Market Trends

✈️ Heathrow Airport, June 30, 2025, warns of a challenging transatlantic market due to U.S. economic uncertainty, affecting business travel. While overall passenger traffic is expected to rise by 0.5%, reaching 84.2 million in 2025, driven by demand in Latin America, the Middle East, and Asia-Pacific, business travel on U.S. routes shows early signs of weakness. Heathrow continues to monitor global trends closely, with rising costs potentially impacting earnings.

🍽 Saladplate, the official hub for Informa Markets' Hospitality, Food, and Beverage portfolio, offers a platform for industry insights. It features weekly news, a monthly newsletter, and a bi-monthly e-magazine. Users access over 10,000 brands and products through its directory. The platform keeps users informed with updates from over 35 international trade events, enhancing engagement and innovation in the sector.

📅 May 2025 saw a mixed performance in France's hotel industry. Occupancy dipped slightly by 0.3 points. Entry-level hotels faced declines, with low-cost segments down by 2 points, and budget by 0.8 points. Midscale and upscale segments rose by 0.6 and 2.2 points. International tourism revenue hit €4.1 billion, up 25.4%. Germans, Dutch, and Spanish tourists surged by 25%, 24%, and 15% respectively. The average daily rate increased by 2.4%, driven by a 3.7% rise in upscale rates, while low-cost RevPAR fell 3.8%.

Blog Post Excerpt 💸 Jun 25, 2025: Corporate hotel programs transform with 77% of travel managers using dynamic pricing, and 60% opting for hybrid models. Gen Z and Gen Alpha influence noted by 78%. Location remains crucial at 82% prioritization. Sustainability gaps persist at 57%. Online booking tools grow, with 74% expecting increases. 62% find value outside GDS, though audits are low at 39%. 77% predict steady or increased travel spend next year.

📊 NYU SPS released "The State of Distribution 2025" with RateGain and HEDNA. Surveying 700 hotel brands and 21,000 properties across 310 cities, it highlights trends in hotel distribution. AI adoption is early-stage; independent hotels test new tech while chains streamline systems. Distribution teams are leaner, with 80% of hotels spending up to two days weekly on manual reporting. Integration and collaboration remain focus areas. Investment in technology is essential, but without readiness, potential is missed.

📈 TripStax's Core data-processing engine is set to surpass one million non-GDS 'passive segments', equivalent to a £250 million turnover travel management company. With a segment-to-trip ratio of 2 and average trip value of £500, this milestone, three years post-launch, highlights the travel industry's reliance on non-GDS bookings. Chief Product Officer David Chappell notes the growing NDC adoption and potential financial impact, estimating up to £4M in costs and lost revenue if charged £2 per segment.

📅 68% of travellers now favor hotels offering personalized experiences over traditional loyalty programs. Among Gen Z, this preference rises to 83%. A Mews survey found 71% of high-income earners also value tailored experiences. Only 24% of travellers find hotel rewards most valuable. Frustrations with traditional programs include quick expiration (28%) and blackout dates (24%). 88% will return with consistent service, while poor service (62%) deters loyalty. Hospitality must transition from transactions to personal connections.

📱 Net Affinity's data for Q1 2025 reveals a 7% rise in smartphone bookings in the UK, USA, and Republic of Ireland. In April 2025, 59% of Irish bookings were made via smartphones, up from 52% in 2024. Last-minute bookings (within 7 days) increased by 4%. While Irish-originating bookings fell by 2%, UK and Northern Ireland saw a 7% rise, and USA bookings dropped by 4%. Mobile optimization remains crucial for hotels.