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  • 4 min

Happy Revenue Science Day!

🎓 IDeaS co-founders, Dr. Ravi Mehrotra and Sanjay Nagalia, pioneers of revenue science in the hospitality industry, created technology to optimize hotel revenue and profitability. Their journey began at the Indian Institute of Technology and led to the development of systems that replace gut feelings with data-driven decision-making. Their innovations include dynamic pricing strategies and improved forecasting accuracy, transforming the hospitality industry with empirical science and predictive analytics. The company celebrates its achievements on Revenue Science Day, honoring the founders' contributions.
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The world of online travel as seen by Glenn Fogel

📍 On August 6, 2024, the CEO of Booking Holdings discussed the impact of competition, regulation, and AI on travel. Booking.com aims to simplify information organization, decision-making, and execution for travelers, ensuring value and price competitiveness. The CEO acknowledges the universal desire for cost-free customer acquisition but notes the unrealistic nature of this expectation. For the full interview, visit The Verge.
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Airbnb plans to add hotel-like services

🏠 Airbnb, on August 6, 2024, announced plans to enhance guest stays with luxury amenities like personal chefs and mid-week cleaning. By providing services comparable to hotels, Airbnb aims to attract more travelers. CEO Brian Chesky highlighted the company's focus on app refinement and quality listing maintenance. Additionally, Airbnb intends to increase its boutique hotel rooms through HotelTonight, in response to varying local home-sharing regulations.
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Google is a monopolist and acts like one

📨 On August 6, 2024, a federal judge ruled that Google illegally maintained an online search monopoly, potentially impacting the business operations of Big Tech like Google, Apple, Amazon, and Meta. Government claims Google paid billions to be the default search engine on devices, blocking competition. Remedies for Google's conduct are pending a decision by Judge Mehta.
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What do travelers value in a hotel?

🏨 On Aug 6, 2024, ZS Atlas Intelligence's white paper revealed that hotel guest satisfaction depends on service quality rather than pricing. From 2019-2021, cleanliness was a major issue, especially in midscale hotels, which improved significantly in 2021-2023. Food and beverage services negatively affected all hotel scales during 2019-2021, with the economy scale being the most impacted. Hoteliers are advised to meet guest expectations to enhance satisfaction.
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What’s happening with the economy? How will it affect the travel industry?

💸 On August 6, 2024, U.S. markets dropped following a jobs report, signaling concerns of a potential recession after 15 years of economic growth, excluding the Covid period. The travel industry is feeling the impact, with Delta noting a shift from low fares to the experience economy driving demand. Marriott, Wyndham, and hotel REITs observed a recent dip in revenue per available room. Booking Holdings reported U.S. customers showing a preference for lower-rated hotels or shorter stays, indicating a possible trend towards more budget-conscious travel decisions.
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Future trends in boutique hotels

🏡 At the Boutique Hotel Owners Conference on September 16-17, 2024, industry experts will discuss trends in ecotourism with metrics like carbon emissions, the importance of art and design through local collaborations, the need for transparent pricing and guest personalization, and the transformative impact of technology in providing customized experiences. Get more insights at BLLA.
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  • 2 min

Difficult To Compare

📌 Travel industry adopts DTC, increasing product options from 500 in 2010 to 10,000 in 2024, causing travelers to visit up to 277 webpages before booking, a spike from just 38 in 2013. The digital transformation aims to enhance customer journey and revenue, necessitating marketplace technology to simplify choice and maintain consumer confidence.
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Chinese women lead the future of luxury travel

🌍 On Aug 5, 2024, FINN Partners released a study titled "China's Women In Charge," indicating a shift in Chinese women's travel preferences. Representing nearly 60% of Chinese tourists and influencing 70-80% of travel decisions, these women are redefining luxury travel. Material luxury takes a backseat as 63% seek "me time" and 50% prioritize joyful experiences. With China's expected return as the top international travel spender in 2023, their impact on the industry is significant.
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US hotel performance begins subtle descent

🏨 U.S. hotel occupancy dropped 1.5 percentage points from the previous week during July 21-27, more than the 0.6 point drop last year and the 0.4 point fall in 2019. Average daily rate (ADR) fell 0.9% week over week, while revenue per available room (RevPAR) decreased by 3%. Despite this, ADR is up 1.3% from last year, leading to a 0.9% RevPAR increase. Group demand remained high across the top 25 U.S. markets.
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