TOP NEWS

🌍 In 2024, a record 10% of global spending will be on travel, with the industry's contribution to global GDP growing by 12.1% to $11.1 trillion. The U.S., China, and Germany will lead in travel spending. The U.S. alone has 1 million job openings in leisure and hospitality, according to the U.S. Travel Association on September 5, 2024.

🏖️ The World Travel & Tourism Council (WTTC) released the 2024 Economic Impact Trends Report, revealing the U.S. as the leading Travel & Tourism market with a $2.36 trillion contribution to the economy. China followed with $1.3 trillion, and Germany with $487.6 billion. India's rise to the 8th spot at $231.6 billion, from the 10th, marks its growing sector influence. China's Travel & Tourism sector grew by 135.8% in 2023. International visitor spending is expected to grow by 16% to $1.9 trillion, while domestic spending is projected to reach $5.4 trillion, up 10.3% from 2019. Travel & Tourism investment increased by 13% in 2023, hitting over $1 trillion.

🏨 Hotel leaders who focus on team member recognition enhance engagement and consistency in the hospitality industry. Caring for a loyal team involves capital and time investment to prevent costly turnover. Prioritizing early bonds, especially during onboarding, is crucial for long-term growth and employee satisfaction. Managers should identify dedicated team members for leadership roles and monitor progress through reduced turnover and increased satisfaction scores. The industry faces a challenge in retaining skilled associates, emphasizing the need for attention to individual goals and interdepartmental recognition to foster loyalty and reduce turnover. Story contributed by Rachel Moniz, COO at HEI Hotels & Resorts.

🏨 IDILIQ Hotels & Resorts chose IDeaS G3 RMS to automate revenue management for its five luxury resorts in Spain, totaling 900 rooms. Transitioning from manual spreadsheets to automated systems, IDILIQ has enhanced pricing strategies and removed the need for manual data entry. Key benefits include optimized pricing for room types and classes, 'What-If' analysis, and automatic discounting rules. The technology is a central part of IDILIQ's strategy for its commercial team, improving operational efficiency and allowing for charitable initiatives through their Kind Holidays program.

📌 The European Union introduced the Digital Markets Act (DMA) in 2022 to regulate digital 'gatekeepers'. As of September 2023, the EU Commission designated seven companies as gatekeepers: Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft, and Booking.com (as of 13 May 2024). The DMA imposes obligations like enabling the uninstallation of pre-installed apps and data sharing with business users. Booking.com must comply with the DMA within six months of its May 2024 designation, affecting rate parity clauses and competition fairness. The UK's Digital Markets Competition and Consumers Act (DMCC) mirrors the DMA, with the Competition and Markets Authority enforcing similar regulations. Unintended consequences of the DMA for hoteliers include a 20% drop in organic traffic and increased distribution costs due to greater OTA visibility.

📅 On Sept. 4, 2024, Micah Solomon, a customer experience expert, spoke on the "Hospitality Daily Podcast" about enhancing guest experiences. Insights include the importance of full attention to customers (01:43), empathy for their mindset (02:43), engaging questions over the routine (04:26), and the necessity of adequate staffing (06:00). He highlighted The Ritz-Carlton's staff empowerment for exceptional service (06:25) and a case of a Hobbit-themed birthday event (07:18), while also noting the timing for "wow" experiences (09:13).

🏨 In Asia Pacific, hotel management contracts (HMAs) have extended, with the average base fee decreasing from 1.7% to 1.6%. The 2024 Hotel Management Contract Survey, analyzing 400 HMAs from the past two decades including 145 agreements from 2018-2023, reveals a rise in performance termination clauses to 93%. JLL and Baker McKenzie foresee a shift toward diverse operating models, like franchises and white-label operations.

🐝 Eric Braun from Terminix highlights increased pest risks in hotels due to constant guest traffic potentially bringing bed bugs. Litigation risks exist for hotels negligent in pest control, with law firms specializing in bed bug cases across the U.S. New pesticide ingredients have evolved to combat resistant bed bugs, reducing the need for heat treatments. Advances in residual killing, like Applied Science's soybean oil-based products, allow for single-treatment efficacy. Rentokil Terminix Innovation Center develops new pest control technologies, including remote monitoring for rodents. The industry is moving towards greener solutions, with non-toxic treatments becoming cost-competitive, as seen with Applied Science Labs' products. Terminix's Integrated Pest Management (IPM) reduces toxic chemical use by combining preventive and physical measures.

💳 Buy Now, Pay Later (BNPL) is emerging as a key payment method in the hospitality industry, with benefits like improved conversion rates—40% of Gen Z has used BNPL in the past 90 days—and increased booking values, with Affirm reporting a 48% rise in average booking value. Hoteliers see a 14% revenue increase when offering BNPL, which also allows better management of room inventory and enhances guest experiences. Cloudbeds partners with Affirm to provide BNPL options to its US and Canada customers.

📝 Over 90% of travelers read reviews before booking. Hotels should target survey distribution 24-48 hours after checkout for optimal response. Email is the preferred channel for survey completion, with mobile optimization being essential. 35.1% of guests don't leave feedback due to unawareness of survey availability. Incentives like room upgrades or discounts can prompt more than 60% of guests to leave a review. Ethical incentivization and transparent communication are key. Batiqa Hotels increased reviews by verifying contact data for survey distribution. Follow-up practices and using feedback for service improvement are also recommended.