Market Trends

🏖 By 2040, 50% of domestic tourism in the U.S. will be senior travel, catering to retirees aged 50-60, nearly 300 million people. Chinese tourism is expected to rebound to pre-pandemic levels with travel companies avoiding sharp price increases, employing healthcare professionals, and offering senior discounts. Women retire at 50 and men at 60, benefiting from four decades of economic growth. Travel services are adapting for this demographic. [Article Date: Aug 20, 2024]

🏖️ On August 20, 2024, The Guardian discussed the concept of "the new tourist," contrasting with the old tourist's selfish approach, and emphasized embracing and learning from different cultures to combat overtourism. The idea is to transform from being consumers of places to learners and connectors within them. Full story: [The Guardian](https://www.theguardian.com/news/article/2024/aug/19/the-good-tourist-can-we-learn-to-travel-without-absolutely-infuriating-the-locals).

🏖️ On August 20, 2024, U.S. CEOs warned about declining consumer financial health impacting travel, following the highest unemployment rate since fall 2021. Despite this, the Conference Board reported more Americans plan vacations now compared to last year. U.S. hotel occupancy rates for the week ending August 10 were also up year-over-year, with over 82,000 locations monitored by CoStar Group.

🥪 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.

🏨 CBRE revises U.S. hotel RevPAR growth forecast to 1.2% for 2024, down from May's 2.0% prediction. Despite a slower H1 at 0.5%, H2 is expected to see a 2% increase, influenced by international tourism and elections. Economic indicators include a 2.3% GDP growth and 3.2% average inflation for 2024. RevPAR might hit a record $100.54, achieving 114.5% of 2019's pre-pandemic levels with a 1.1% average daily rate increase and 0.1% occupancy rise. U.S. TSA reports a 5.4% rise in passenger throughput, with over 549 million travelers.

🏖 On Aug 19, 2024, leisure travel demand showed a downturn with variations by income: high-income travelers favored international trips while low-income individuals scaled back. Hilton CEO Chris Nassetta highlighted financial strains on lower-income travelers, resulting in fewer travels. Last-minute bookings increased as per Airbnb CFO Ellie Mertz. The travel industry sees a shift towards more economical accommodations and selective bookings.