TOP NEWS

🏨 On Aug 12, 2024, Medallia Market Research surveyed 2,000 travelers, discovering 53% prefer hotels over Airbnbs and Vrbo rentals (28%) for the summer season. Hotels are favored for location (50%) and cleanliness, outpacing short-term rentals at 44%. Enhancing guest experience through digital analytics and behavioral intelligence during booking and pre-stay is essential for hoteliers to maintain brand trust and loyalty. Full details at Hotel Dive.

📈 Expedia's shares rose over 8% on Friday, August 12, 2024, after surpassing quarterly profit expectations. Domestic travel in the U.S. has been challenged since early 2024, leading to Expedia cutting the FY24 booking growth forecast to 4%, from an earlier mid- to high-single-digit growth estimate. The company flagged concerns about future demand due to rising costs and inflation, aligning with competitors like Booking and Airbnb who observe consumers delaying travel and spending cautiously.

🏠 Hospitality industry adopts digital tipping as a contemporary solution, enhancing staff morale, job satisfaction, and retention. This modern approach, noted on Aug 12, 2024, is in line with consumer behavior changes, offering instant payments and inclusivity for all employees. The move signifies a broader shift towards efficiency and raises questions regarding the transition's impact.

📢 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. 📊

✈ Air India partners with Merlin Entertainments, allowing Flying Returns loyalty members to earn up to 10 Reward Points per 100 Indian Rupees at five Legoland locations: Windsor (UK), New York, California (USA), Dubai (UAE), and Malaysia. Tickets must be booked online to earn points. This collaboration is part of Air India's ongoing transformation and expansion of Flying Returns, which has added over 50 partners in the last 18 months.

🏨 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.

💸 Hyatt Hotels Corporation reported a 4.7% rise in system-wide RevPAR and a 4.6% net rooms growth in Q2 2024. Net Income hit $359 million with $158 million adjusted. The pipeline reached a new record of approximately 130,000 rooms, showing a 9% year-over-year increase. The World of Hyatt loyalty program grew by 21% to 48 million members. In Q2, the company added 18 new hotels with 3,251 rooms. There were notable property sales and a brand acquisition, with $1.5 billion of the $2.0 billion asset sell-down commitment realized. Total liquidity stood at approximately $3.5 billion as of June 30, 2024. The company issued $450 million of 5.250% senior notes due 2029 and $350 million of 5.500% senior notes due 2034. A dividend of $0.15 per share is payable on September 10, 2024.

🏨 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.