Market Trends

🏨 European hotels achieved over 48% better direct rates than OTAs during "Peak" season from October 2023 to October 2024, an increase from 2023. Paris led with the best direct rates at 67.35%, followed by Lisbon (66.56%), Palma de Mallorca (66.02%), Barcelona (62.22%), and Venice (61.91%). Conversely, properties in Ho Chi Minh City lost 54.8% of rates to OTAs, similar to 2023.

📈 Bikky, a customer data platform for multi-unit restaurants, announced a partnership with Haven Hot Chicken, a Nashville-style Hot Chicken restaurant founded in 2020. Haven opened its ninth location in summer 2023, and its chicken sandwich was named "Best Bite in Town" by Food Network. Haven uses Bikky to track guest behaviors, make data-backed decisions, and evaluate menu items like their caesar salad, which was kept for strategic reasons. With ambitious expansion plans for 2025 and a focus on precise site selection, Haven is leveraging Bikky's insights for strategic growth. Bikky is also partnered with brands like Dave’s Hot Chicken and Bojangles.

✈ In 2025, passenger numbers are set to hit 5.2 billion, marking a 6.7% increase from 2024. Airline industry revenue is anticipated to surpass $1 trillion for the first time, growing 4.4% year over year. The IATA report from December 11, 2024, highlights the airline industry's strategic significance, contributing nearly 1% to the global economy. With $940 billion in costs, the industry's expected net profit margin is slim at 3.6%, averaging a profit of only $7 per passenger.

🌀 Nearly 29% of global travelers avoided destinations due to extreme weather concerns in the past year, reveals a report by WTM Global and Tourism Economics. Gen Z (18-34) is particularly cautious, with 43% dodging such areas. Thailand is expected to lose 55 days of sunshine, while Canada might gain 23 days. The changes are attributed to human-induced climate change, expected to increase the frequency of extreme weather events. (Published on Dec 11, 2024)

📍 In 2024, affluent travelers are shifting from ostentatious luxury to seeking understated luxury that prioritizes personalization and emotional connections. Post-luxury travelers choose authentic experiences over status symbols, with owner-operated hotels gaining popularity for their unique identity and genuine sense of place. Full details on Skift (subscription required).