TOP NEWS

🏖️ The global market for travel experiences is valued over $1 trillion, with destination visitors spending approximately $1.1 to $1.3 trillion on experiences, representing about 30% of the market. Paid, structured tourist activities total $250 to $310 billion annually, growing more than 14% per year by 2025. Despite this, nearly half (47%) of experience bookings still occur offline. A McKinsey survey highlighted that 52% of Gen Zers splurge on experiences, contrasting with 29% of baby boomers. By June 2024, 78% of experience operators receive at least half of their bookings through platforms. However, challenges persist, including the frustration of over 47% of the experience bookings still not being digitized.

🏠 Dusit Hotels, part of Dusit International, to open Devarana Sakleshpur, Karnataka – A Dusit Retreat in March 2028, the first Devarana hotel beyond China, with 75 luxury villas (25 with private pools) in India. Moxy, under Marriott International, launches second Florida hotel, Moxy Miami Wynwood, with 120 rooms and a 3,000-square-foot event space. U.S. hotel industry sees occupancy at 60.8% (+1.9%), ADR at $154.99 (+1.2%), and RevPAR at $94.22 (+3.1%); Tampa and New Orleans report significant increases. ME by Meliá opens ME Malta in St. Julian’s, featuring 113 rooms and 27 suites, with a rooftop bar to debut in 2025.

📊 Duetto Revenue Strategy Forum (RSF) Greece 2024 convened at One&Only Aesthesis for a half-day event, focusing on how data and technology can empower hotel revenue teams and drive growth. Dr. Aris Ikkos noted a 9.9% year-over-year increase in Greek tourism by August 2024, despite a 7% drop in average spending per visitor. AI was highlighted for its role in predicting guest behavior and optimizing pricing. The Hellenic Chamber of Hotels emphasized the urgency of digital transformation for Greek hotels to stay competitive.

🏰 Alexandra Alves Gaspar, a Glion Executive Master’s in Luxury Management and Guest Experience graduate, focused on olfactory branding in her thesis titled “What the Nose Knows: Exploring the Invisible Sense in Shaping Luxury Experiences”. Positioning scent as a key player in luxury branding, she highlights the power of smell in creating immersive brand experiences. Olfactory memories are highly retentive, with a 65% accuracy over a year, and strategic scent use can increase retail sales by 11% and customer satisfaction by 20%. Emotionally connected customers are 52% more valuable than satisfied ones. Alves Gaspar emphasizes the importance of a scent being congruent and consistent with a brand’s identity, using Eden Rock – St Barths and its collaboration with Diptyque as an exemplary case of olfactory branding.

🏄 Dr. Barbara Czyzewska recommends luxury ranch vacations in the USA to lift spirits during fall. In the 19th century, ranches became integral in America, with livestock grazing on over a quarter of US land. King Ranch in Texas is the largest at 825,000 acres, housing approximately 35,000 cattle. Paw’s Up Resort in Montana, founded by the Lipson family in 2005, offers glamping with personal butlers. Brush Creek Ranch in Wyoming spans 30,000 acres, providing all-inclusive experiences with outdoor activities and gourmet cuisine. The Ranch at Rock Creek in Montana offers an authentic working cattle ranch experience. Whiteface Lodge Resort & Spa in New York reflects luxury lodge décor and provides pampering spa treatments. These destinations offer a blend of adventure and luxury, keeping the American West spirit alive.

📜 Focusing on creating memorable hotel experiences for children and teens represents a significant untapped opportunity in the hospitality industry. Guests Alicia and Saar, hailing from industries such as toy and game design and innovation, recognize the potential in infusing creativity into hospitality for young guests. They note that families and children are often served in traditional ways, suggesting a gap in innovation and creativity for these demographics in the hospitality sector. They cite a personal anecdote about their daughter's profound delight over a simple wooden yo-yo received at a motorway hotel, which overshadowed the allure of scenic vacation spots and highlighted the impact of unexpected, thoughtful gestures. Alicia and Saar emphasize the influence children have on travel decisions, with Expedia reporting that 67% of trip ideas originate from kids, and the Family Travel Association finding 70% of destinations are chosen with kids' input. These statistics underscore the importance of directly engaging children and teens in the hospitality experience. They suggest that investing in experiences for younger guests can result in high ROI due to the relatively low cost compared to other hotel upgrades and the strong potential for building brand loyalty. The pair advocate for segmenting offers by age and designing experiences that resonate with each group, especially teens who often receive little attention in the industry. They call for a reimagining of typical kids' amenities, like menus and gifts, to create superior, memorable experiences. Alicia and Saar envision hotels as potential new media channels where partnerships with kids' brands

🏠 Mixed-use developments are integrating hotels, trending towards branded hotel residences. JLL, Hilton, and Marriott note a growing preference for mixed-use due to live, work, play consumer trends. Four Seasons has 54 locations with residential components since 1985, with 65% of new projects including residences. Accor's One Living, with 7,000 homeowners and nearly 50 locations, has over 110 projects underway. A JLL study in 2023 found luxury hotels in mixed-use developments achieve a 27% average rate premium, boosting RevPAR by 21%. Branded residences can command a 30% value premium. Marriott's St. Regis Longboat Key Resort and Residences in Florida offers extensive amenities, emphasizing the benefits of mixed-use projects.

📖 On Nov. 6, 2024, a podcast episode was released discussing the power of hospitality in uniting diverse individuals and communities. Guests included Ashli Johnson of Hospitality Hued, Sarah Eustis from Main Street Hospitality, Jason Himber of MINA Group, Christopher Hunsberger from Appellation, Charlie MacGregor of The Social Hub, Kara Bartelt of The Hoxton in Los Angeles, Christopher Randall of 21c Museum Hotel in St. Louis, and Harsha L'Aqua of Saira Hospitality. Topics ranged from fostering empathy through diversity, inclusive hotel policies, and community engagement, to hospitality's potential for social impact.

🏨 Non-room revenue constitutes 32% of total hotel income, with F&B contributing over 80% to this segment. Between 2021-2022, F&B expenses increased by 82.3%, driven by an 85.9% surge in labor costs and a 73.5% rise in cost of goods sold. Despite high costs, F&B profits soared by 145.2%, reaching a 29.3% profit margin in 2022. Miscellaneous income, including resort and cancellation fees, grew by 175.3% and 89.2% respectively in 2024 compared to 2019, while amenity profit margins (golf, spa) averaged 30-40% from January 2023 to June 2024.