Market Trends

📊 July 2024: 123Compare.me released the World Parity Monitor report. Major OTAs like Expedia Group and Booking.com show stable or improved direct price parity. Minor OTA Reserving experienced a 5-point increase in price disparities. A 1.5% shift to ‘Beat’ cases in total disparity occurred, continuing June's 4-point positive parity trend. Long-term bookings are doing better in ‘Beat’ category. Palma de Mallorca gained 10 points, and Frankfurt am Main increased by 12 points in ‘Beat’ performance, indicating better price distribution management. Overall destination performance remains stable.

🏨 The U.S. and China dominate the global hotel construction pipeline, contributing 64% with the U.S. having 6,095 projects/713,151 rooms and China 3,815 projects/699,786 rooms as of Q2 2024. A record 15,453 hotel projects and 2,395,726 rooms reported worldwide, with 6,265 projects/1,115,989 rooms currently under construction. New hotel openings are slated to reach 2,534 in 2023, 2,756 in 2025, and 2,812 in 2026. Dallas, Atlanta, Chengdu, Shanghai, and Inland Empire, Calif. lead in city pipelines. Upper midscale projects total 4,540/585,688 rooms, upscale 3,688/634,050 rooms, and luxury segment projects up 13% YOY with 1,066/214,270 rooms.

🌱 Banyan Group introduced Banyan Tree brand in Kyoto’s Higashiyama Ward, Japan. This luxury hotel, Banyan Tree Higashiyama Kyoto, features 52 rooms, a spa, natural Onsen, and two dining venues. The hotel is close to the UNESCO heritage site Kiyomizu-dera Temple and offers traditional Japanese architecture with modern influences by Kengo Kuma and Yukio Hashimoto. It joins Banyan Group's eight hotels in Japan and forms part of their global portfolio of 80 hotels, targeting to double their footprint by 2025.

🍴 Bret Thorn, Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality since 1999, reports on food and beverage trends and hosts "In the Kitchen with Bret Thorn" podcast. Wrote "Kitchen Dish" column for The New York Sun (2005-2008), worked in Thailand as journalist (1992-1997), and received the 2006 Jesse H. Neal National Business Journalism Award. A magna cum laude Tufts University graduate, studied French cooking at Le Cordon Bleu, Paris, and was inducted into the Disciples d’Escoffier in 2014. Lives in Brooklyn, NY.

📚 TrustYou's consumer research reveals generational differences in travel review behaviors. Millennials and Gen Z (18-39) read (84%) and write (66%) more reviews than Baby Boomers and Gen X (40-65), especially after a positive experience (37% vs. 24%). Baby Boomers and Gen X prefer hotel websites for reviews, while younger generations favor Google. For surveys, 83% of older travelers respond to emails, whereas 33% of younger ones prefer text messages. Negative reviews are considered genuine by 68% of older vs. 57% of younger travelers. Cleanliness is vital for Baby Boomers and Gen X (7/10), and Wi-Fi is crucial for 43% of Millennials and Gen Z. Younger travelers expect rapid responses to negative reviews, with 55% stating a response doesn't change dissatisfaction. The survey included 800 U.S. hotel bookers, 45% aged 18-39, and 55% aged 40-65, conducted in September 2022.

🥪 Mango habanero flavor is increasingly popular in the U.S., featured in various dishes and drinks. Despite habanero's spice, these mixtures highlight the pepper's floral notes and mango's sweetness. Market research by Datassential shows a 118% menu presence growth over four years, now at 4.8%. Its popularity is notable among Gen Z, millennials, and Hispanic consumers.

☕ Starbucks, the $86B coffee giant, reported a 4% global same-store sales decline YoY, with a 6% fall in store traffic and China experiencing an 11% decline. CEO Laxman Narasimhan cites economic weakness, reflecting trends also seen in other F&B chains. Howard Schultz, former CEO, criticized the company's direction, noting the erosion of the "Third Place" concept due to mobile app sales, which account for 31% of U.S. sales. Over 34m people hold $1.7B+ on the Starbucks Rewards App, and the company recorded $215m in breakage revenue in 2023. Starbucks is investing $450 million in the Siren System to streamline barista processes, despite customer concerns over the loss of community space, recommending a focus on experience rather than transactions.

🏨 Hyatt Hotels Corp. saw group and business transient as strongest customer segments in Q2, with group room revenue up by 8%. U.S. business transient segment increased by 14%, and global RevPAR grew by 4.7% compared to 2023. Net rooms growth was approximately 4.6%, and the pipeline of executed management or franchise contracts grew by 9% YOY to 130,000 rooms. Hyatt recorded a net income of $359 million and a leisure transient decrease of 2%. World of Hyatt membership reached 48 million, up 21% from the previous year, and strategic partnerships continue to expand with recent alliances and acquisitions.

🎶 Designed by Akin Atelier, JAM Record Bar in Sydney's central business district is a monochrome establishment seating 45 in an 80-square-metre space, featuring a decor inspired by Tokyo's mid-century listening bars. The owners, Justin and Bettina Hemmes of the Merivale hospitality group, named the bar after their parents and their music label, JAM Recordings. The interior includes 15,000 vinyl records, exposed pink fibreglass insulation for acoustic properties, and a central bar area. Kelvin Ho, with over 15 years and roughly 20 projects with Merivale, describes the design style as "simple and analogue but also refined," using materials like cork, plywood, and common insulation in a sophisticated manner. Chef Michael Fox and James Irvine contribute to the Japanese-inspired menu and crafted drinks.