TOP NEWS

🏅 Paris Olympics designed for TV viewing, but facing lower hotel occupancy in 2023; hotel rates increased by 500% despite past lessons from London and Milan. Booking.com perceived as lacking hotelier-friendly services; marketing and storytelling in hotel industry highlighted as crucial for guest connection. American travel intent at an all-time high, with 20% planning to travel abroad. Biometric technology in hotels expected to rise in adoption by 2024-2025, although GDPR concerns linger. Hotel industry needs data cleanup before AI implementation can be effective. Sales and Marketing discussed as fundamentally similar, with different communication channels.

📈 Room revenue is the main income for hotels, with KPIs like occupancy percentage, RevPAR, ADR, MPI, ARI, and RGI being critical. Other revenue, such as F&B sales, spa services, event hosting, and additional amenities, can significantly increase profitability. Customer acquisition costs can range from 15% to 25% according to Kalibri Labs. Variables costs include housekeeping, utilities, room amenities, and wear and tear. The contribution margin, calculated as Contribution/Gross Revenue, is key to profitability analysis, with examples illustrating the importance of balancing total contribution and percentage. Strategic management requires comprehensive revenue analysis, cost control, and informed decision-making to maximize profit and ensure sustainable hotel growth.

💸 Attribute-based selling (ABS) revolutionizes hotel booking by offering guests the choice to select room features and amenities during reservation. ABS enhances guest satisfaction, increases average daily rates (ADR), and optimizes revenue per available room (RevPAR). Peter Waters of Amadeus predicts hotels moving from room-sellers to merchandisers. For implementation, ABS complexity and the potential revenue benefit must be weighed, advises Andrew Rubinacci of FLYR. Priya Rajamani of Stayntouch emphasizes ABS can be integrated with existing technology. Hoteliers should evaluate tech capabilities, understand their property's unique attributes, assess market demand, consider staff impact, perform cost-benefit analyses, pilot the program, and be patient with adoption, following the crawl-walk-run approach.

📢 In Miami, the Converge Hospitality Revenue Summit recently concluded with nearly 300 attendees including IDeaS' clients, partners, and leaders. Keynote speakers like Chris Hemmeter forecasted hospitality tech growth, Cassie Kozyrkov discussed AI as an enhancement tool, Maricarmen Cardenas and Rob Darrow advocated for data-driven decisions, and Sanjay Nagalia offered a glimpse into IDeaS' product future. The summit acknowledged innovators Alexis Remy with the Innovation Award and Angus Blair with the Changemaker Award. Upcoming events include Converge Bangkok on Nov. 4-5, 2024, and Converge London on July 22-23, 2025, with early bird registration available until September 31.

📈 Dishoom, a UK restaurant group, is set to debut in the US in August through a collaboration at Pastis in New York City. JKS, another London-based group, is eyeing New York, Los Angeles, and Las Vegas for expansion. San Carlo Group plans a Miami launch as a testbed for further US growth. Sexy Fish launched in Miami in 2022, while Chotto Matte established a Miami presence in 2018, expanding to San Francisco with more cities planned. Hawksmoor opened in NYC in 2021, followed by Chicago, signaling more North American openings. UK brands face a competitive US market, with Carluccio’s, Pizza Express, and YO! having struggled previously. Despite challenges, the US market presents significant opportunities for successful UK restaurant brands.

🏠 Adoption of biometrics in hotels is expected to rise in 2024 and 2025, addressing privacy concerns and staffing challenges. CyberLink's FaceMe system boasts a 99.83% accuracy, tested by NIST. Martin Chevalley of InnSpire suggests the technology allows staff to focus on guest engagement over clerical tasks. Facial recognition is favored over fingerprints due to environmental resilience and lower spoofing risk. While current costs are high, prices are anticipated to fall, making the technology more accessible.

📱 W Sydney, a five-star hotel with 588 rooms, chose IRIS for digital guest experience solutions. The IRIS app enhances the guest experience with mobile ordering and information on hotel amenities, local weather, and attractions. B&F Director Anand Prabeer reported a significant increase in room service orders and ancillary revenue within the first 6 months. The app's integration into the hotel's operations has led to optimized staff workflows and reduced costs. IRIS VP Sales and Marketing Graham Rushin expressed excitement about the partnership's success in meeting guest demands.

🏨 AI in the hospitality industry enhances hotel searches, online reservations, and customer service. Conversational bots like ChatGPT simplify booking processes and improve customer interactions. By leveraging AI for SEO, predictive analytics, and personalized services, hotels can increase visibility and revenue. However, challenges remain, such as high implementation costs, integration difficulties, and maintaining high-quality, ethical AI-generated content. AI-driven strategies include creating user-friendly websites, influencer marketing, social media engagement, and direct bookings to optimize user experience and drive sales. Nadav, co-founder of Virdee, has extensive software engineering and product team leadership experience.