TOP NEWS

🏠 In Paris, Airbnb listings nearly tripled during the Olympics, but a post-mortem analysis by Lighthouse and Shiji Reviewpro revealed hotels remained half-empty due to inflated rates and increased supply not accounted for in pricing strategies. Expedia Group launched Travel Shops, allowing influencers to monetize hotel endorsements by integrating social content with direct booking. While AI is becoming integral in travel, akin to online shopping's rise, its full acceptance in holiday planning remains cautious. Marketing's obsession with being different is contested, emphasizing the need for customer reassurance over uniqueness.

👨 In the hospitality industry, hotels are leveraging technology and data analytics to stay ahead of guest expectations. A study shows 78% of travelers consult online reviews, and implementing AI can increase customer satisfaction by 40%. Responding to over 50% of reviews can boost average review scores by 6%. Personalized experiences are key, as tailored services based on feedback can enhance guest loyalty and revenue. The industry has evolved with guest preferences and technological advancements, making anticipation of guest needs and customization crucial for hotelier success.

📌 A study by Agilysys shows 68% of APAC travelers willing to increase hotel spending for personalized experiences, 73% would pay up to 30% more for room upgrades post-booking. 66% are likely to spend more with reduced wait times, 68% with good loyalty programs. High satisfaction (86%) yet only 37% would rebook, indicating the need for memorable experiences. Key spending drivers: 46% appreciate extra-mile staff efforts, 41% personalized activity recommendations, 30% staff recall of conversations. Personal touches, like preferred rooms, remembered restaurant preferences, and small surprises, impact spending. The survey included over 1,000 travelers from Australia, Hong Kong, New Zealand, and Singapore, emphasizing RevPAG over RevPAR for capturing guest spending.

📝 The article discusses the importance of control in user experiences, with examples from travel AI and a restaurant game. Propellic sponsors the newsletter and offers marketing insights for travel marketers. Ahref’s travel SEO guide was the most clicked link in the previous newsletter (#154). Google’s NotebookLM is used to create a podcast-like audio from the Travel Tech Essentialist Newsletter. Rex Woodbury's Egg Theory proposes that AI should balance automation with user contribution. Alex Kremer applies Egg Theory to travel AI, emphasizing user involvement. Personalized Google Docs and Maps are becoming popular travel guides. B2B purchasing decisions are driven by fear, favoring incumbents over startups. Andreessen Horowitz's SPEEDRUN program plans to invest $23 million in seed startups. B2B travel tech startups are modernizing hotel technology stacks. A dice roll promotion at Dishoom restaurant increases customer engagement and sharing on social media. Brands communicate distinct messages, impacting user perception. U.S. VC-backed companies saw a decade-high in flat and down funding rounds in the first half of 2024. The article concludes with a list of job openings in the travel tech industry.

📌 In Parsippany, New Jersey, Super 8 by Wyndham introduces the INNOV8TE 2.0 design package, available across the US and Canada, as part of its 50th anniversary. Mike Mueller, president of Super 8, emphasizes the brand's innovation and owner-centric approach. The upgrade features new color schemes, furniture, bedding, and flooring, aiming to enhance guest experience and operational efficiency. Options allow for full room upgrades or gradual improvements, with support through Wyndham’s Manufacturer Direct program or traditional renovation. Unveiled in September 2023 at Wyndham’s Global Conference in Anaheim, California, INNOV8TE 2.0 is now accessible to owners.

📈 Thayer Ventures and Derive Ventures form Thayer Investment Partners (TIP) in San Francisco. Chris Hemmeter, Tyler Carrico, and Mike Scott lead as managing partners, leveraging experience in hospitality start-ups. TIP to launch a new fund soon, building on Thayer Ventures' foundation since 2009 and Derive's 2022 inception, aiming to innovate in travel tech and boost industry efficiency. Lee Pillsbury, Thayer Lodging Group founder sold to Brookfield in 2014, continues as Thayer Ventures Funds managing director.

🛫 Travelers expect a personalized hotel experience, with 75% wanting on-the-go tailored suggestions. Websites have just 1-3 seconds to captivate users, or 1/3 will leave. A Skift study shows 6/10 travelers would pay more for 24/7 customer support. TrustYou analysis of 153.6 million reviews found service quality can boost a hotel's score by up to 6.26 points. Cleanliness is crucial for 9/10 travelers. iSeatz's study reveals 69% prefer loyalty programs offering better discounts, while 80% are inclined toward sustainable travel. AI technology and experiential travel are critical for future trends, with 89% of tourism providers reporting increased demand for experiential travel.

🏦 Rivero emphasizes choosing a hospitality brand that aligns with personal values for a fulfilling career, highlighting Ritz-Carlton as her favorite because it matches her DNA. She advises students to pursue internships in operations to understand hotel functioning deeply, a trait shared by successful hoteliers. Additionally, Rivero encourages creating customer experiences that go beyond the functional to emotional and 'wow' factors. In leadership, she stresses selecting and nurturing the right team to build loyalty and commitment, despite the hospitality industry's limitations in competing with flexible hours and high salaries.

📞 A female revenue manager (RM) is tasked to analyze the hotel's revenue streams before Monday's meeting, as the hotel is behind projections. Her analysis involves manual work with spreadsheets, consolidating data from the Property Management System (PMS), Revenue Management System (RMS), Point-of-Sale (POS), and event management software. She struggles to form a complete picture and feels the pressure to devise a plan to increase profitability. To improve efficiency and decision-making, she proposes the adoption of a Business Intelligence (BI) tool to consolidate data, which gets the asset manager's support. Moving forward, the hotel aims to become a data-driven organization.

📌 Mayfair Equity Partners invested €35m in BizAway, a B2B travel management firm. BizAway, founded in 2015, acquired Next Generation Travel's business travel division in April last year. The investment will fund AI and data strategy enhancements and explore M&A opportunities. Mayfair and BizAway's shareholders received transaction advice from Clearwater and Lazard, respectively. BizAway aims to transform the corporate travel experience, capitalizing on its success and significant growth over the past decade.