Automatic - 10 Minutes News for Hoteliers - Page 189

2 min

Hotels.com’s new AI chatbot falls short of expectations

🛠 May 21, 2025, Expedia Group launched an AI-powered chatbot in the Hotels.com app to boost brand performance. While the redesigned app and smart filters increased conversions by 35%, the chatbot struggles with accuracy and lacks key functionality like flight booking and accurate location recommendations. Listings have correct pricing, and users can save hotels to trips, but flights and activities need manual entry. The chatbot suggests restaurants and attractions but lacks booking integrations.

2 min

Google’s search revolution

💻 May 21, 2025, Google launched "AI Mode" at its developer conference, now available in the U.S. with Gemini 2.5 AI model integration. This aims to replicate expert conversations in search, impacting web traffic by reducing site visits. 1.5 billion users access AI overviews, causing a 30% drop in click-through rates. Future features include live video search and smart glasses. Google introduces a $250/month "Ultra" AI plan with 30TB storage amid competition from AI rivals.

2 min

New Expedia research signals a shift in consumer priorities

📈 May 21, 2025 – Expedia's 2025 Traveler Value Index highlights that 88% plan leisure trips in the next year, with a 19% rise in international travel intent since 2022. Social media influences 61% of trip ideas, up from 35% in 2022, and 73% are swayed by influencers. Trust is as pivotal as price, with 75% paying more for better-reviewed lodging. 83% favor using loyalty points for travel. Chinese, UK, and German travelers lead in planning international travel.

CBRE softens 2025 U.S. hotel forecast on slower economic growth

📈 May 20, 2025, CBRE Hotels Research revised its 2025 U.S. hotel industry forecast due to weaker economic conditions. U.S. GDP growth is now 1.4%, down from 2.4%, with inflation at 2.9%. RevPAR is expected to grow by 1.3% (previously 2%), ADR by 1.2% (down from 1.6%), and occupancy by 0.21 percentage points. Urban hotels and drive-to resorts are best for growth, aided by increased travel and a weaker dollar. Supply growth is forecasted at 0.8% annually.

Amadeus acquires ForwardKeys

📈 May 20, 2025, Valencia: Amadeus acquired ForwardKeys, a Spanish analytics firm, to enhance its travel intelligence. Founded in 2010 by Olivier Jager and Christophe Van Zwynsvoorde, with CCO Laurens Van Den Oever as co-owner, ForwardKeys reported €9.3M in revenue and €1.7M in operating profit in 2023. This acquisition aligns with Amadeus' global reach, focusing on predictive analytics for tourism clients. Further integration details will follow stakeholder discussions.

Building rate confidence to drive direct bookings

🛑 May 20, 2025, travel industry: Real-time pricing tools like BenchDirect and price comparison widgets are crucial for hotels to maintain competitiveness and boost direct bookings. Implementing price match features and offering exclusive direct perks, such as complimentary drinks, can differentiate hotel sites from OTAs. Engaging guests with personalized and predictive messaging can further enhance conversion rates, while smart targeting helps protect margins by showing offers only when necessary.

U.S. hoteliers press congress for tax relief

📈 May 20, 2025, Washington, D.C.: Over 250 members of the American Hotel & Lodging Association (AHLA) met with lawmakers to advocate for tax and workforce reforms to boost U.S. hospitality. Key proposals included a permanent Small Business Tax Deduction, H-2B visa cap increase, and the “No Tax on Tips” initiative. AHLA emphasized bipartisan cooperation, presenting the Spirit of Hospitality Award to supportive lawmakers. Congressional awareness is growing, but urgent action is needed for sector recovery.

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.

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.

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