Automatic - 10 Minutes News for Hoteliers - Page 171

2 min

How OTAs react when hotels charge above market rates

📈 May 20, 2025: In April 2025, the World Parity Monitor by 123Compare.me highlights the challenge for independent hotels, which face undercutting by non-major OTAs when they price above the market average. Independent hotels saw Lose rates jump to 41.8% if priced over 40% above average, compared to 34.0% with major OTAs. Overall, 75% of sampled hotels were undercut by OTAs, with Expedia’s Lose rate exceeding 20%. Direct rates rose 6.3% from January to April 2025, showcasing a seasonal trend.

2 min

Airbnb on becoming the perfect concierge

🏠 Airbnb CEO Brian Chesky, on May 15, 2025, announced Airbnb's transformation from a booking platform to a full-service concierge offering accommodation, massages, personal chefs, and haircuts to enhance guests' travel experience. Airbnb is transitioning towards a weekly lifestyle utility, leveraging AI for customer service and trip planning. The platform's expansion into services like childcare aims to build trust and compete with hotels, which might need to adapt to this full-service, integrated approach. Read more at Barron's (subscription required).

1 min

Why AI falls short on personalization in hospitality

📢 On May 15, 2025, the hospitality industry faced a challenge as AI struggled to provide the personalized experience guests expected. With 71% of consumers demanding personalized interactions and 76% frustrated without them, AI's lack of emotional intelligence led to dissatisfaction in service-driven sectors. Generic AI responses risked hotel loyalty and brand reputation, suggesting that while AI is useful, it requires design improvements emphasizing empathy and human involvement to adapt to guest needs proactively and contextually.

1 min

U.S. hotels set record Q1 RevPAR

🏨 U.S. hotels in Q1 2025 reached a record RevPAR of $92, a 2.2% increase from the previous year, with March hitting the highest figures ever. Occupancy dipped amid economic uncertainties, and international arrivals slowed. Urban hotels saw robust growth driven by corporate and group travel. Mid-sized urban transactions were popular among investors, with a preference for central business districts and resort markets. Economy hotels saw a 5.7% RevPAR drop year-over-year. A total of $145 billion in hotel loans is expected to mature by 2026, indicating potential for strong transaction activity. Limited new supply and tariffs could maintain high hotel performance throughout 2025.

1 min

Expedia doubles down on B2B partnerships

📈 On May 15, 2025, Expedia Group unveiled new B2B APIs, advertising tools, and AI-powered features, following a year where B2B partnerships generated $4.1B, up 21% YoY. The expansion allows partners to access flights, cars, hotels, activities, and insurance, operating like OTAs and driving customer engagement with over 135 million room nights booked through partners in 2024. Expedia's integration with OpenAI and Microsoft Copilot enhances travel planning, while ACI optimizes dynamic video content. Partners can now use sponsored listings and loyalty features to promote bookings.

1 min

Travel marketing strategies for a softening market

🛫 In APAC, with travel demand reducing post-pandemic, brands are shifting from acquisition to retention, focusing on trust-building and loyalty. A report highlights strategies in Singapore, Australia, and China, emphasizing partnerships and multi-channel visibility. Key facts: Travel slowdown leads to 65% retention focus and 64% brand-building; 74% use comparison sites, 66% consult OTAs, and 31% social media; Singaporean travelers prefer OTAs (76%) and promotions; marketers advised to engage with affiliates, influencers, and communities; trust, transparency, and authenticity are essential. Reported on May 15, 2025.

1 min

BCD Travel to become latest reseller of Amadeus Cytric

📅 On May 14, 2025, Amadeus expanded its partnership with BCD Travel, launching "Cytric Easy for Microsoft Teams" as a new reseller offering. The integration allows efficient planning and booking of flights, hotels, and cars within Microsoft Teams, aiming to reduce corporate travel costs and increase productivity. Features include "Share My Transfer" for better coordination among travelers, streamlining corporate travel by combining booking, reporting, and policy compliance.

2 min

Airbnb relaunches Experiences and adds hotel-style services

🏠 Airbnb, on May 14, 2025, commits $250 million to evolve into a full-service travel platform. Relaunching “Experiences” in 650 cities and introducing “Services” in 260 cities, the company now offers unique activities and hotel-like services. Airbnb aims for multiple billion-dollar revenue streams, integrating a travel concierge-style app, with personalized and social features for users. No significant revenue is expected in 2025 from this investment, but future plans may include flight and rideshare options.

1 min

Expedia calls AI the biggest shift since mobile

💻 May 14, 2025, Expedia reported mixed Q1 financials with a 6% increase in room nights booked and $3 billion in revenue but a $200 million net loss due to weaker travel demand. CEO Ariane Gorin emphasized AI's transformative potential, likening it to mobile tech's impact. Strategic expansions include Instagram's Trip Matching and Microsoft Copilot integrations. AI tools like OpenAI trip planning and Romie enhance user experience through passive and interactive AI features.

1 min

U.S. travel industry hit by $12.5B drop in foreign tourism

🏖️ U.S. travel and tourism industry may lose $12.5 billion in 2025, a 22.5% drop from its 2019 peak, due to Trump administration immigration policies. Projected international spending to decrease to $169 billion from $181 billion in 2024. Border cities and tourist hubs are most affected, with the U.S. Travel Association calling for actions to reassure international visitors of a welcoming U.S. Some domestic destinations might gain from increased local travel.

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