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Automatic

2811 posts

GBTA predicts new record year for business travel in 2024

💸 Global business travel spending is set to rise by 11.1% in 2024, continuing a trend from 2022 and 2023 with 30%-47% yearly growth. This trajectory points to a 6.95% annual compound growth rate from 2025 to 2028. In 2023, the spending hit $1.34 trillion, including $501 billion on lodging, $282 billion on air travel, $245 billion on food and beverage, $165 billion on ground transportation, and $142 billion on other expenses. CEOs and CFOs are driving this growth due to economic stability and demand recovery, with many markets nearing pre-pandemic levels as of July 23, 2024.
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In travel, DTC (direct to consumer) feels more like ‘difficult to compare’

📌 Travelport's 2024 State of Modern Retailing report reveals 80% of travelers find comparing fares time-consuming, with 69% reporting limited information on airline sites. 60% spend 1-4 hours planning their trip, while 36% invest over five hours. Notably, 70% of Millennials and 64% of Gen X prefer booking via OTAs for better choice and transparency. Full details available at Travelport's website.
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Google to keep cookies – what the major reversal means for advertisers

💻 Google announced on July 23, 2024, a major policy reversal on Chrome's third-party cookies, keeping them operational despite initial plans to phase them out starting in 2019. The decision responds to pressure from regulators and industry stakeholders concerned about the impact on internet commerce. Instead, Google will offer a new Chrome feature allowing users to make an informed choice about cookie acceptance, coordinating with regulators and the industry during the rollout.
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Air travel demand ‘normalizing’

✈ On July 22, 2024, airline industry executives at the Farnborough Airshow reported normalized air travel demand post-COVID boom, with a trend toward basic, cost-effective fares. Ryanair expects a 15% drop in quarterly profits due to falling fares, while business travel continues to recover from the COVID crisis.
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J.D. Power seeing changes in hotel guest behavior

🏨 Travelers value hotels based on expectations being met, as per the J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) study. The luxury and upper-upscale hotel segments have strong satisfaction scores in 2024, while limited-service sectors see a decline. Post-pandemic, guests are making fewer trips but staying longer, focusing on cleanliness, maintenance, and staff interaction. Higher expectations tied to room rates lead to varying perceptions of value for money.
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Motels are having a moment

🏠 On July 22, 2024, it was reported that roadside motels are regaining popularity among younger adventurers, partly due to their unique and charming designs. Instagram pages dedicated to these motels have amassed hundreds of thousands of followers. Despite only 16,000 motels remaining in the United States as of 2012, this renewed interest could be pivotal for the struggling motel industry.
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Hyatt to acquire Standard Hotels

🏨 Hyatt Hotels, in "advanced talks" to acquire Standard International, has expanded significantly since 2017, doubling luxury rooms and tripling resort rooms. Standard International, founded by Andre Balazs, currently boasts about 20 hotels, with plans to add up to 12 more in the next five years in locations including Brooklyn, Austin, Mexico, and more. Reported by Bloomberg on July 22, 2024.
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Keep Michelin men out of our hotels

🏨 Michelin has recently introduced a star rating system for hotels. As of July 22, 2024, this innovation could push hotels to pursue Michelin stars, potentially leading to the same intense focus on standards that restaurants experience, which some argue could be detrimental and stifling due to Michelin's precise and demanding criteria.
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CBRE on AI’s impact on hotels

💻 On July 18, 2024, AI is poised to reshape the hotel industry, driving consolidation and favoring larger companies with access to proprietary data and cash flow. Strategic partnerships among hotel brands will grow to enhance data access, potentially disadvantaging smaller companies. Hotels may shift to dynamic pricing models based on guest revenue potential. Online search engines might start directly selling lodging, intensifying competition with OTAs and major hotel brands. More details at CBRE.
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