Revenue Management

📱 Hotelogix discusses Attribute Based Selling in the hotel industry, with a focus on personalizing guest experiences by allowing them to customize their stay through unique room features. The content is dated August 13, 2024, and is promoted as a strategy for hotels to empower guests. The source is Hotelogix's marketing material, with an emphasis on the latest tips and trends in hospitality. The article is part of Hotelogix's blog, aimed at providing insights into the evolving dynamics of the hotel industry.

🍴 Square's Quarterly Restaurant Report in Q2 2024 shows 3.7% of restaurant transactions included a service fee, doubling since early 2022. Cafe Venetia uses service fees for European operating models and team support. Square Payroll Index reports restaurant workers' hourly pay up 4.10% year over year, surpassing the 2.98% inflation rate as of July 2024. Late-night restaurant transactions in Boston rose from 12% to 31% since Q2 2019; Richmond's late-night transactions are now at 35%; Philadelphia's at 31%. Washington D.C. suburbs, like Navy Yard and NoMa, see increased restaurant activity, while areas east of The Potomac River experienced declines.

💰 Square's Quarterly Restaurant Report reveals service fees in 3.7% of restaurant transactions in Q2 2024, doubling since early 2022. Cafe Venetia employs these fees for their European model. Wage growth for restaurant workers is at 4.10%, outpacing July 2024's inflation of 2.98%. Nightlife thrives with Boston's late-night transactions jumping from 12% in Q2 2019 to 31% in 2024, and similar spikes in Richmond and Philadelphia. Washington D.C. sees more restaurant activity in developing neighborhoods like Navy Yard and NoMa.

📊 In Q2 2024, Square reported that approximately 3.7% of restaurant transactions included a service fee, a more than 100% increase since early 2022. At Cafe Venetia, service fees support their European operating model and team growth. The Square Payroll Index showed a 4.10% increase in average hourly earnings for restaurant workers compared to the inflation rate of 2.98% as of July 2024. Nightlife in Boston saw transactions rise from 12% to 31% late night between Q2 2019 and 2024, while Richmond's late-night transactions reached 35%, and Philadelphia's hit 31%. Washington D.C. saw more restaurant activity in developing neighborhoods such as Navy Yard and NoMa.

🏨 U.S. hotel industry reports year-over-year growth with occupancy at 69.4% (up 0.8%), ADR at $159.63 (up 0.6%), and RevPAR at $110.84 (up 1.3%) for the week of July 28 - August 3, 2024, according to CoStar. Houston leads with occupancy rising 28.1% to 75.8% and RevPAR jumping 45.7% to $93.88. Both Houston and Philadelphia saw ADR grow 13.7%, reaching $123.82 and $161.02, respectively. Anaheim and Los Angeles experienced the sharpest RevPAR declines, dropping 12% and 10.7% to $171.55 and $158.64, respectively.

💰 Choice Hotels International reported a 2% revenue increase to $435.2 million in Q2 2024, with net income up 3% to $87.1 million. Adjusted net income slightly decreased by 0.4% to $88.8 million, whereas adjusted EPS grew by 5% to $1.84. The adjusted EBITDA reached a record $161.7 million, a 6% rise. The global pipeline expanded by 22% to over 114,000 rooms, with hotel openings up by 20%. Franchise agreements increased by 8%, and international room numbers grew by 1.6%. Shares worth $296.2 million were repurchased, and $28.9 million in dividends were paid out in the first half of 2024.

🏠 Saudi Arabia's Vision 2030 aims to diversify the economy away from fossil fuels, with Riyadh and Jeddah showing steady hotel performance year-to-June, Riyadh up by 3%. In September 2021, the Middle East was first to reach pre-COVID hotel performance levels. Africa experienced a 200% GOP growth in May over January 2020 but saw dips in June. Egypt's payroll cost stood at 13.7% with rooms division profitability at 88%, while South Africa managed a 22% payroll cost. Sub-Saharan Africa is driving growth with low energy prices, labor costs, and strong business travel demand.

📈 On August 12, 2024, amidst market volatility, the U.S. Bureau of Labor Statistics reports a rise in unemployment to 4.3%. However, the travel industry remains strong, with 92% of Americans planning domestic travel within six months. TSA screenings show a 5.9% increase in travel volumes in June and July over the previous year, while international travel is up 18% year-to-date, nearing pre-Cold War levels.

💸 InterContinental Hotels Group (IHG) CEO Elie Maalouf revealed on August 12, 2024, investments in technology and loyalty programs to boost direct bookings. The group's guest reservation system (GRS), developed with Amadeus since 2015, enables upselling in over 6,000 hotels, averaging extra $40 in Luxury and Lifestyle, $20 in Essentials and Suites. Their cloud-based revenue management system (RMS), in 1,700 hotels, uses data science, AI, and predictive tools to optimize booking channels and pricing, showing initial revenue gains.

🏨 STR and Tourism Economics adjusted their 2024-25 U.S. hotel forecast: 2024 RevPAR remains at +2% YOY, ADR down 0.1 percentage points, occupancy up 0.2 points. 2025 occupancy projections increased by 0.2 points, ADR and RevPAR stable at +2% and +2.6%. Midscale and economy hotels affected by fewer low-income travelers, high-income travel persists. International demand pressured by strong dollar, European cost-of-living crisis, Asia Pacific's air travel recovery. Slower growth expected in 2025, yet improved international, business, and group travel forecasted. Annual GOP and EBITDA margins to improve YOY, labor costs to marginally decline, with upper midscale chains forecasting $168 less than luxury in labor costs for 2025. Prior forecast had decreased ADR by 1 point and RevPAR by 2.1 points for 2024; 2025 ADR and RevPAR projections had dipped 0.8 and 0.9 points, respectively.