Revenue Management

🏨 IHG Hotels & Resorts witnessed a 3.2% rise in RevPAR in Q2 with overall RevPAR up by 3%, ADR increasing by 2%, and a notable 2.5% increase in the Americas. However, RevPAR in China dipped by 7%. Operating profits soared 12% to $535 million despite a $10 million currency hit, as total revenue climbed 4% to $2.32 million. Growth momentum saw the opening of 80 hotels (11,700 rooms) in Q2, and a remarkable 123% YOY increase in new signings at 255 hotels (39,400 rooms). In H1, IHG launched 126 hotels (18,000 rooms) and signed a record 384 properties (57,100 rooms). New brand Garner already boasts over 80 signings since 2023, with conversions representing over half of H1 signings. Holiday Inn expanded with 200 new signings over 30 months, 90 openings, contributing to IHG's global estate of 6,430 hotels totaling 955,000 rooms.

📝 A TrustYou study shows 95% of travelers read reviews before booking. Authors read an average of 9.8 reviews, while those just browsing read 7.5 reviews. About 51.4% prefer direct hotel feedback; Google is used by 47.5%. Hotel guests often don't leave reviews due to time constraints (50%), unawareness of where to post (35.1%), or simply not wanting to post-travel (1 in 4). Incentives like room upgrades or discounts could motivate over 6 in 10 guests to review. Email surveys are favored by 63.7% for feedback. Personalized responses to feedback can increase review likelihood by 43%.

🐔 Wingstop UK, named the UK's fastest growing restaurant group in June for the second consecutive year, started exploring a sale after unsolicited buyer interest. Goldman Sachs is handling the sale process, begun recently, with the brand's valuation undisclosed. Founded in the US in 1994, Wingstop reached the UK in 2018 and has grown to 48 sites. They plan to open at Leeds's White Rose Shopping Centre and aim for 57 locations by year's end, with a long-term goal of 200 sites in five years.

🍔 Restaurant delivery sales in Britain increased by 17.1% in June over the same month in 2023, following an 11.3% rise in May. The cool weather and Euro 24 football tournament prompted more at-home dining. Takeaway and click-and-collect sales, however, dropped by 1.1% year-on-year in June. In total, combined sales of deliveries, takeaways, and click-and-collect were up 9.7% compared to June 2023. Deliveries made up 11.2% of restaurant spending, while takeaways comprised 4.4%.

💰 Avoid common revenue management mistakes in the hospitality industry by incorporating real-time data, optimizing distribution channels, implementing dynamic pricing, focusing on customer segmentation, and monitoring competitor actions to enhance hotel performance and profitability. For instance, instead of static pricing, employ dynamic pricing strategies based on demand and market conditions using revenue management systems (RMS) and regularly review your strategies. Optimize OTA listings, promote direct bookings, and balance channel mix to maximize visibility and profits. Understand different customer segments to tailor marketing and offers for increased bookings and guest satisfaction. Regularly conduct competitor analysis and adjust strategies accordingly to stay competitive. Leave hotel revenue management to the experts like RevOptimum for a personalized strategy to boost RevPAR.

🏨 From 2019 to 2023, U.S. hotel parking revenues surged by 23.1%, with CBRE's sample showing a profit margin of 61.3%. Hotels averaged 283 rooms, a 69.7% occupancy rate, and a $237.48 average daily rate. Resort hotels led parking revenue per-occupied-room (POR) at $14.85, while limited-service hotels recorded $8.35. The overall parking profit increase was 32.3%. 22.3% of CBRE-tracked hotels reported parking revenue in 2023, up from 17.0% in 2019, and 26.6% of U.S. hotels had EV charging stations as of 2022.