TOP NEWS

🏩 Leanne Harwood, SVP and Managing Director at IHG, highlights the value of people investment in hospitality (Oct. 16, 2024). IHG's RISE program targets elevating female leadership through mentorship [03:26]. Focus on empowerment programs scalability and career transformation [04:34], with mentorship and sponsorship being key for career growth [05:06]. "Lean In Circles" promote open dialogues for sharing experiences [07:01].

🏨 Essential hotel software includes a Property Management System (PMS) and Channel Manager, which automate operations, improve guest service, and prevent overbookings. Revenue Management Software (RMS) uses market data for optimal pricing. Booking engines facilitate direct bookings, while Guest Feedback & Review Management tools enhance reputation. Customer Relationship Management (CRM) systems personalize guest experiences, and integrated Point-of-Sale (POS) systems offer seamless service billing. STAAH provides integrations for these technologies, crucial for operational efficiency and maximizing revenue.

📦 Google's share of direct hotel bookings fell by 1 percentage point globally but dropped from 13.4% to 8.9% within the EU due to the Digital Markets Act (DMA). The study by Mirai covered eight months and over 3,000 hotels, highlighting a 1% decline in market share for Google within the EU. However, Google regained 82% of this loss through increases of 1.5 and 2 percentage points in Google Ads and organic search, respectively. In non-EU markets, Google Hotel Ads saw a decrease from 16.8% to 15.7%, with paid traffic increasing by 20%, accounting for 12.7% of total bookings.

🏨 Hotel revenue management is vital, with KPIs like RevPAR (Revenue Per Available Room), ADR (Average Daily Rate), and Occupancy Rate playing key roles. RevPAR is calculated by dividing Total Room Revenue by the Number of Available Rooms, while ADR is the Total Room Revenue divided by the Number of Rooms Sold. Occupancy Rate is the proportion of Rooms Sold to Total Available Rooms, expressed as a percentage. TRevPAR (Total Revenue Per Available Room) considers all revenue streams, computed as Total Revenue divided by Number of Available Rooms. GOPPAR (Gross Operating Profit Per Available Room) accounts for profitability after operational expenses, calculated by subtracting Operating Expenses from Total Revenue and dividing by the Number of Available Rooms. CPOR (Cost Per Occupied Room) helps manage service costs per room, and Booking Pace assesses the rate of future bookings. RevOptimum offers expertise in these KPIs to optimize hotel revenue.

🏨 Hospitality associations are vital for networking, growth, and innovation in the lodging industry. International associations such as the International Hotel & Restaurant Association (IH&RA), the International Luxury Hotel Association (ILHA), and the Professional Convention Management Association (PCMA) cater to various professionals ranging from hotel chains to event planners. U.S. associations like the American Hotel & Lodging Association (AHLA) support major global brands, while the Asian American Hotel Owners Association (AAHOA) boasts nearly 20,000 hotel owner members. Across Europe & the UK, associations like the Austrian Hotelier Association (ÖHV) with 1,600 members, and the Irish Hotel Federation (IHF) with over 1,000 hotels, advocate for their regions’ hospitality interests. LATAM's Brazilian Hotel Industry Association (ABIH) represents over 32,000 accommodation providers. The Mexican Association of Hotels & Motels (AMHM) includes more than 7,000 Mexican hotels. Hospitality Sales and Marketing Association International Latin America (HSMAI LATAM) supports professionals across several Latin American countries. In the Asia Pacific, the Asia Pacific Tourism Association (APTA) and the Australian Hotels Association ACT (AHA ACT) are among the key players. These associations provide resources, advocacy, and community engagement, catering to a wide range of hospitality professionals.

📱 AI-driven solutions in the hotel industry promise marginal improvements in revenue management but require high-quality data. Small to mid-sized hotels, such as 100-room properties, may only see a 1-2% boost, questioning the investment's ROI. RMS providers are integrating AI enhancements, offering a cost-effective alternative to system overhauls. Large hotels in competitive markets could significantly benefit from AI's precise forecasting and pricing. Improving data quality is essential, with steps like auditing sources, standardizing entry procedures, automating collection, and cleansing data. Demand Calendar, a business intelligence tool, offers classification and prediction capabilities, aiding in revenue optimization and serving as a precursor to AI implementation. 🏨

🏨 Recent reports indicate an increase in travelers choosing trips closer to home, with hoteliers needing to examine demographics, such as geographic locations and purchasing behavior, to tailor guest experiences. A 2023 Morning Consult poll reveals 52% of Millennials and Gen-Z adults took three or more leisure trips in the past year, despite inflation pressures. Key trends include remote work, extended stay, bleisure travel, and health and wellness. Revenue management insights guide hoteliers in marketing strategies, focusing on segmented revenue performance, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR). Personalization is expected by travelers, with data on preferences used to enhance the guest experience. Guest feedback is crucial, with the best practice being to solicit it within 48 hours of departure. Geoff Roether of IDeaS emphasizes using traveler data to improve their experience.

📌 Marriott International CEO Anthony Capuano, in a Fireside Chat at The Lodging Conference, reflected on his 30-year tenure and leading through crises. Capuano took over as CEO in 2021 amid COVID-19 and the passing of predecessor Arne Sorenson. Faced with dire liquidity concerns, Marriott questioned its survival. In August 2023, they responded to Maui wildfires, focusing on educational support. Capuano emphasized growth to satisfy customers and provide career opportunities, not just for expansion's sake. Nearly 3,000 people attended the event.

🏦 On Oct. 14, 2024, Scott Curran, COO of Reneson Hotels, discusses driving revenue and profits by empowering staff and enhancing guest experiences. He highlights Reneson Hotels' focus on exceptional customer service for guest retention, the significance of sound operations and a capable team for financial success, and the role of GuestEQ, a tech solution he co-founded, in refining hotel operations and guest interactions. Key strategies include higher staffing at front desks and ensuring critical information reaches the right people efficiently. 🏨

📌 Economist Bernard Baumohl predicts a 'soft landing' for the U.S. economy but acknowledges uncertainty for the lodging industry. Factors influencing the economy include interest rate cuts, geopolitical issues, and the U.S. Presidential election. Consumer spending on lodging dipped in the second quarter of this year, marking the first decline since the pandemic. Despite this, Baumohl sees strong fundamentals in the lodging industry due to a robust job market and increased interest in travel. The outcome of the election could greatly impact economic conditions, with concerns about financial market reactions if Trump wins.