Revenue Management

📈 The Consumer Price Index dropped 0.1% in June, first decline since 2020, with an annual increase of 3%, nearing the Fed’s 2% target. Food index rose 0.2% in June; food-at-home up 0.1%, food-away-from-home climbed 0.4%. Over 12 months, food-at-home prices increased 1.1%, while restaurant prices jumped 4.1%. Full-service restaurant menu prices rose 0.6% versus limited-service at 0.2% in June. Kalinowski Equity Research predicts full-year 2024 same-store sales growth to be significantly lower than 2023.

🏖️ Las Vegas led meeting volume growth with a 22.2% YOY increase, followed by St. Louis at 12%. Average space used in the top 25 U.S. markets was 4,127 sq ft with 141 attendees; secondary markets used 4,085 sq ft for 132 attendees. The top five markets by YOY growth in event volume, led by Las Vegas, varied in industries such as sports entertainment and technology. Louisville topped secondary markets with a 72.73% increase in event bookings, with financial/banking as the leading industry. Other high-growth secondary markets included Madison, Sacramento, Pittsburgh, and Norfolk-Virginia Beach with notable YOY growth and diverse leading industries.

💸 Michael McCartan, area VP EMEA at IDeaS, examines revenue management in boutique vs. branded hotels. Boutique hotels have traditionally been hesitant to adopt advanced revenue management solutions. These hotels face a greater impact from revenue strategy errors, with a 20% discount on room rates resulting in a 10% revenue decrease for a 20-room hotel versus a 1% decrease for a 200-room hotel. Advanced revenue management systems (RMS) can help smaller hotels optimize pricing, minimize gap nights, and employ flexible pricing strategies. Larger hotels already benefit from automation in pricing adjustments and inventory management. Embracing RMS can enable boutique hotels to compete effectively, even during off-peak seasons or local demand spikes.

💰 Marriott International launches Business Access by Marriott Bonvoy, a new online travel booking platform for small to medium-sized businesses. Available in the U.S., Canada, Europe, Middle East, Africa, Caribbean, and Latin America, the program offers discounted rates on hotels, flights, rental cars, and rail within one multilingual tool. A global survey shows 75% of business travelers experience booking frustrations, with 58% preferring to book outside their companies’ platforms. The platform includes features like real-time reporting, expense management, and traveler safety monitoring, with plans to expand to other regions.

💸 Mission Mars, operator of 32 sites, reported a group revenue of £71.1m in FY23, up from £47.1m in 2022. Albert’s Schloss brand contributed £32.3m, up from £21.6m, while Rudy’s reported £29.3m, up from £16.1m. Albert’s Schloss saw a 6% like-for-like growth; Rudy’s experienced a 24% increase. Both brands outperformed their market segments by 15%. Adjusted EBITDA for FY23 was £8.7m, compared to £5.2m in FY22. Nine new Rudy’s sites and several potential Albert’s Schloss locations are planned. The largest Albert’s Schloss opened in London following an £8m investment.

🏅 In Paris, for the 2024 Summer Olympics, hoteliers and Airbnb hosts slashed rates due to lower-than-expected demand. Hotel rates, although still above average for July/August, decreased significantly with three-star hotels dropping from €523 to €282 and four-star from €738 to €430 over nine months. Bookings during the Olympics are up, but occupancy rates linger below 70%, only exceeding that for four days of the Games.

🌍 Asia Pacific's travel market is expected to reach $689.5 billion by 2030, with a 6% CAGR from 2019-2030. Luxury travel is significant, with 68% of Southeast Asian travelers planning to spend more in the next year. Indians lead with 89% planning increased travel spend, favoring travel within Asia Pacific. An average of six leisure trips is expected in the next 12 months, with Australia being the top destination (46%). Fine dining influences 81% of HNW individuals' hotel choices. India is predicted to be the third-largest domestic and fifth-largest outbound market by 2027. Hilton's DoubleTree has surpassed 100 hotels in Asia Pacific, with 80 more planned. Radisson Hotel Group has added 10 new properties in India, reaching over 180 hotels in operation or development.

📌 Hotels face challenges with manual OTA reconciliation, risking revenue loss through billing discrepancies, which are tedious to correct and could impact profitability. Automation offers cost savings by minimizing errors, enhancing revenue with accurate commission tracking, and improving productivity by streamlining processes. The shift to automated reconciliation can save hotels thousands of dollars, increasing operational efficiency and financial performance. Vimal Patel, the article's author, is a hospitality industry expert and founder of INNRLY.

🏕 Minor Hotels rebrands Peace Resort Samui to NH Collection Samui, the first NH Collection in Thailand, opening January 1, 2025. The resort, founded by the Pupaiboon family in 1977, is located on Bophut Beach, Koh Samui, 400m from Anantara Bophut Koh Samui Resort, featuring 122 rooms including deluxe rooms, bungalows, and villas, some with private pools and beach access. Amenities include an all-day restaurant, lounge, fitness, water sports, kids’ area, retail shop, and event spaces. Curator Hotel & Resort Collection adds four U.S. properties including 73-key Quirk Richmond, 109-room Albert Hotel, The Ozarker Lodge, and 510-room Ascent on Main. Hotel Anna & Bel will open on August 7 in Philadelphia with 50 rooms, a restaurant, pool courtyard, wellness facilities, fitness center, and Caletta bar. ENVI Lodges opens ENVI Sisini Serengeti in Tanzania with 11 luxury tents/villas and plans two more properties by 2025.