TOP NEWS

🏨 Hospitality tech trends include cloud-native tools with open APIs, RMS adoption, AI language models, digital check-in/keyless entry, guest experience hubs, unified inboxes, digital internal communications, conversational commerce, AI-based translation, integrated payment processing, end-to-end reputation management, Google Analytics 4, and IoT technology. RMS data processing doubled since 2018. 34% of chains implemented digital check-in/keyless entry; another 34% plan to. Only 35% have chatbots on websites. Integrated payment solutions score 8.8/10 in importance, but only 34% have implemented them. AI enhances guest experience and operational efficiency.

📢 Martin Soler, co-founder of 10minutes.news and a fractional CMO, discusses challenges and trends in the hospitality industry. He highlights the difficulty of implementing hotel subscription models, citing that only 9% of guests return to the same hotel in cities like Paris over several years, and even the best hotel groups see less than 12% of guests return within 12 months. Nike's recent stock struggles are linked to a hyper-focus on direct sales and activist branding, hinting at potential implications for hotel marketing strategies. The importance of adopting hotel technology that addresses unchanging guest needs such as increased tech usage, integration, privacy, security, and faster service is also emphasized. Soler encourages the use of YouTube for hotel marketing and critiques the disconnect between hotel design and technology integration. He ends with personal observations on the positive impact of the Olympics on Parisians' happiness and city atmosphere.

💲 A new study "The Future is Now: Technological Transformation in Corporate Travel" by GBTA and Cvent highlights the corporate travel industry's adoption of technology. 88% of travel management companies, 74% of suppliers, and 59% of buyers believe their organization handles technology well; however, there's room for integrating AI and blockchain. On average, 18% of a travel program’s budget is spent on technology, with European buyers (43%) likelier than North American ones (30%) to increase tech spending. Data was collected from 388 travel professionals in North America and Europe from February 6-19, 2024. 📊

🏨 Choice Hotels President and CEO Pat Pacious predicts domestic RevPAR to surpass 2019 levels by 10% in H2 2024. Q2 showed RevPAR improvement, yet behind industry pace. Domestic unit growth at 1% YOY; pipeline up 11%. Q2 revenues hit $435.2 million (+2% from 2023), with EBITDA at $161.7 million (+6%). Franchise agreements increased 8% YOY, global pipeline at 115,000 rooms (+22%), and international room count up by 1.6%. Everhome Suites pipeline includes 65 domestic projects, 20 under construction. Conversions drive growth with 80% of openings YTD from conversions, and mid-scale conversion agreements up 31% YTD.

🍴 Ama, an all-day restaurant in Washington, D.C., opened in early-June near Navy Yard and Capitol Hill. The establishment transitions from a morning coffee and pastry spot to a focaccia and sandwich hub during the day, and in the evening, it becomes an aperitivo bar and dinner venue. Led by Johanna Hellrigl and Micah Wilder, the restaurant aims to efficiently serve the community's daytime dining needs. Ama features a diverse, seasonal menu with Italian roots, including Ligurian seafood and Alto Adige comfort dishes. The beverage program, managed by Wilder, boasts housemade bitters, cordials, and a unique cocktail menu served with an exclusive seltz gun sourced from Milan. Ama emphasizes customer lifetime value and staff well-being, adding a 3.85% health and wellness charge to bills for employees' benefits and commits to sustainable practices.

🏨 In the hospitality industry, hotels face challenges with consistent revenue due to fluctuating occupancy rates and market conditions. Locally Negotiated Rate (LNR) contracts offer a solution by providing a stable revenue stream and building corporate client relationships. LNR contracts are special pricing agreements with corporate clients, guaranteeing a minimum number of room bookings and often include benefits like room upgrades. These contracts help hotels manage cash flow, forecast occupancy, and improve guest loyalty and operational efficiency. Implementing LNR contracts requires identifying target markets, researching competitors, creating attractive proposals, and negotiating terms. A well-structured LNR contract includes clear room commitments, a flexible rate structure, guaranteed amenities, provisions for renewal and extensions, and performance metrics. Future LNR trends include dynamic pricing, personalization, system integration, sustainability, and adapting to remote work. Effective implementation requires researching potential clients, assessing hotel capabilities, staff training, and regularly updating contracts to stay competitive.

💻 Kevin King, CEO of Shiji International, discusses the challenges and strategies for modernizing B2B tech in industries like hospitality. Despite the saturation of consumer tech, B2B remains resistant to change due to the "If it ain’t broke, don’t fix it" mentality. King emphasizes the need for technology that is affordable, adaptable, and user-friendly, advocating for cloud and API-first architectures. He also stresses the importance of prioritizing privacy and security in design, and collaborating with key customers to tailor solutions to industry-specific challenges.

🔎 Yum! Brands plans to expand voice AI in Taco Bell drive-thrus by end of 2024. Daniel J. Connolly suggests integration with core systems is crucial, and Robert Peterson of Oracle views voice AI as a standard UI evolution. Courtney Radke and Lee Holman discuss efficiency and regional training needs. Surveys report potential for reduced errors and faster service, but franchisee cost concerns remain. Data privacy and security highlighted by Connolly and Peterson. Robert Dawson raises additional deployment questions. McDonald's had previously abandoned AI due to accuracy and customer satisfaction issues.

📌 Minor Hotels, a Bangkok-based group, reported a revenue increase of 11% year-over-year (YOY) in Q2 and a first half (H1) profit jump of 16% from 2023. The company's consolidated core net profit rose 3% YOY to THB 2.6 billion ($72 million) in Q2, and 17% to THB 1.7 billion ($47 million) in H1, backed by a core revenue surge to THB 66.1 billion ($1.86 billion), marking a 14% YOY growth. Occupancy rate growth was noted in Asia, the Indian Ocean, and MEA region by six percentage points to 61% in H1 and 56% in Q2. Globally, occupancy increased modestly. Average Daily Rate (ADR) jumped 11% YOY for the quarter, while Revenue Per Available Room (RevPAR) saw a 12% increase. In Thailand, RevPAR surged by 14% YOY in Q2. Minor expanded its global hotel portfolio, including brand debuts in Finland, South Africa, and Sri Lanka. With over 50 hotels in 56 countries, Minor aims to add over 200 properties by the end of 2026.

📌 Valor Hospitality Partners, under the leadership of their regional director, prioritizes guest experience, training, and service quality. They conduct biannual inspections and audits, encourage staff to predict guest needs, and value personalized service. The guest experience in the hotel industry has evolved, with a shift towards personalization and technological integration, including AI, AR, and VR. Valor strives to stay ahead by monitoring trends and guest feedback, aiming to provide unique, satisfying experiences.