Automatic - 10 Minutes News for Hoteliers - Page 243

1 min

Travel industry to contribute record $11 trillion to global GDP in 2024

🌍 In 2024, a record 10% of global spending will be on travel, with the industry's contribution to global GDP growing by 12.1% to $11.1 trillion. The U.S., China, and Germany will lead in travel spending. The U.S. alone has 1 million job openings in leisure and hospitality, according to the U.S. Travel Association on September 5, 2024.

2 min

Consumers Visit 277 Websites Before Booking Travel

📌 Travelers now visit 277 web pages before booking a vacation, a significant increase from 38 in 2013. The booking process takes on average 303 minutes, or over 5 hours, often involving a return to online travel agencies (OTAs) after checking other sites. Early planning averages 2.5 pages per day, increasing to 25 pages on the purchase day. Despite efforts to simplify, the complexity underlines the growing importance of travel advisors.

1 min

Hotel management agreement trends in Asia Pacific

🏨 In Asia Pacific, hotel management contracts (HMAs) have extended, with the average base fee decreasing from 1.7% to 1.6%. The 2024 Hotel Management Contract Survey, analyzing 400 HMAs from the past two decades including 145 agreements from 2018-2023, reveals a rise in performance termination clauses to 93%. JLL and Baker McKenzie foresee a shift toward diverse operating models, like franchises and white-label operations.

The shifting landscape of travel bookings

🏨 Direct bookings are gaining traction with a 29-point gap between OTA flight research (26%) and direct airline bookings (55%). Skift's report "Direct Bookings vs. OTAs" reveals that on Sep 4, 2024, travelers favor direct booking for reliability and exclusive deals, despite using OTAs for comparison. OTA loyalty programs lack appeal in contrast to airlines and hotels, suggesting a need for OTA program enhancements.

Travel networks could be the next wave of commerce media

🏖️ Travel ad spend, 2.6% of digital ads, is set to grow through 2026. Expedia launched its media network in May, followed by United Airlines in June. By February 2024, Marriott's media network was in high demand. These networks offer ad placements across various travel-related platforms.

The affluent experiences traveler

🏖️ Sep 4, 2024, U.S. affluent travelers (18+ with household income of $150,000+) make up 20% of experiential travelers but contribute to 1/3 of bookings and 46% of total spending on tours, activities, and attractions. 77% of older and 74% of younger affluent travelers prioritize experiences in destination choice. 59% of younger and 27% of older affluent travelers book these experiences over four weeks in advance, surpassing the 22% of middle-income and 28% of lower-income travelers who do the same. More details at TTW and Arival.

U.S. RevPAR to increase by 1.4% in 2024

🏨 Lodging Analytics Research & Consulting (LARC) forecasts a 1.4% U.S. hotel RevPAR growth to $99.56 in 2024 with ADR up 1.8% to $158.65 despite a 0.3% dip in occupancy to 62.8%. In 2025, RevPAR is expected to rise 2.5% to $102.02, ADR to increase 3.1% to $163.55, but occupancy to decrease 0.6% to 62.4%. EBITDA is projected to fall 0.3% in 2024 with a 3% rise in hotel values, but increase 1.2% in 2025 with hotel values going up by 2%. A cumulative 10% increase in hotel values is anticipated over five years.

3 min

Testing the impact of buy now, pay later across 150,000+ checkout sessions

💳 Yuval Shwager, Head of Product at Mixtiles, inquired about the impact of Buy Now, Pay Later (BNPL) options on checkout friction and card volume cannibalization. BNPLs now represent over $300 billion in global transactions. Stripe processed more than $1 trillion in transactions last year, about 1% of global GDP. Stripe conducted A/B tests on 150,000 payment sessions to assess BNPLs, which led to increased sales, revenue up to 14%, and higher conversion rates across a range of transaction values. Mixtiles implemented three BNPLs, resulting in thousands of dollars in increased revenue.

1 min

European demand for flights at ‘all time high’

✈️ The International Air Transport Association (IATA) noted a 7.2% increase in air passenger demand in Europe for July. On September 3, 2024, this rise was reported despite falling short of the global average of 8%. European airlines saw a 7% boost in available seat kilometers (ASKs), compared to a 7.4% global average rise. International flight demand in Europe grew by 8.3%, against an 8.1% capacity expansion. The CrowdStrike IT incident in mid-July, causing numerous flight cancellations, didn’t dampen the month’s demand.

1 min

American demand for international trips drives ‘travel momentum’

🏖 American households’ travel spending surpasses pre-pandemic levels, driven by international travel. Bank of America data (Jan-Aug 2024) shows spending per household up 10.6% from 2019, despite a slight dip compared to 2023. Europe captured 43% of spending May-Jul, while Asia's spending grew 11% year-over-year. High-income earners, above $125,000 annually, are leading the trend, opting for luxury hotels over standard accommodations this summer. View the full report at CNBC.

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