TOP NEWS

💧 World Water Day is observed on March 22, reminding the hospitality and wellness industries of water conservation responsibilities. Hotels, resorts, fitness centers, and pools face challenges with water management due to rising costs and stricter regulations. Many are investing in smart water monitoring, leak detection, and greywater recycling to reduce water use and comply with laws. VivoAquatics has helped businesses cut water usage by up to 25%, with one operator seeing a 30% reduction in water usage and an 80% decrease in water-related complaints. Businesses are encouraged to perform water audits, install water-efficient fixtures, and use leak detection technology to improve sustainability and gain a competitive edge.

🏨 Covivio, with 60% variable components in their portfolio, down from 100%, reflects a shift in the hospitality sector's lease agreements, which have become more complex and sophisticated over time. Union Investment's lease agreements evolved from simple 10-15 page documents to more regulated ones, while Radisson, with 20-30% of their business in leases, emphasizes a close partnership and hybrid leases. Marriott International favors franchises, avoiding new leases, and the hospitality sector saw hotels account for 16% of Europe’s transaction volume last year, marking an all-time high. The Hospitality Operator Forum is set for June 12.

🏨 Over 20 years, Franco Grasso’s team has assisted 2500+ properties in 30+ countries with hotel revenue management. Revenue management encompasses several factors like data, technology, and market segmentation to optimize hotel performance. Hotels employing strategic revenue management see benefits such as increased occupancy, profits, and harmonized operations. For instance, seasonal hotels can maximize revenue by extending operational periods and optimizing rates. An "ideal hotel" for revenue management, as described by Grasso, would be a 4-star property, well-located, and catering to both leisure and business travelers, without traditional amenities like a mini-bar.

💰 Accor's loyalty program, ALL, surpassed 100 million members since 2019, with 11 million new members in 2024. It trails Marriott Bonvoy (228M), Hilton Honors (210M+), IHG One Rewards (145M), and Wyndham Rewards (114M). ALL members spend 2x more than non-members, contributing to 33% of bookings. Accor plans to introduce 15 new partnerships in 2025 and continues to weave sustainability into its rewards, challenging giants like Marriott despite a smaller hotel footprint of over 5,600 properties.

🏀 In 2023, sports bettors wagered an estimated $15.5 billion on March Madness according to Statista. Host cities like Cleveland and Phoenix saw hotel revenues skyrocket by 227% and 109%, respectively, during the tournament weekends. Additionally, sports bars experienced a 25% increase in new visitors even without a dedicated sportsbook. Venue management technology is pivotal for optimizing space and profits, with dynamic seating tools and real-time adjustments being game changers. The tournament's duration of three weeks offers multiple opportunities for revenue, differentiating it from a one-off event like the Super Bowl. Operators are encouraged to integrate sports betting, employ dynamic pricing, and create alluring fan experiences to capitalize on the event's full revenue potential.

📱 Amadeus' "Travel Dreams" report, based on 6,000 travelers from the US, China, India, UK, France, and Germany, reveals 63% of hotel guests are willing to pay an extra 12% on average daily rates for specific features, potentially increasing revenue by over $5,300 per room annually. Business travelers prefer online/self-service check-in (71%) and 22% are open to paying with cryptocurrency or digital wallets. Leisure travelers value personalized service, with 50% prioritizing it and 52% agreeing to share personal data for tailored deals. The average loss per person due to lack of travel insurance is $1,210, with Chinese travelers estimating over $2,500. Virtual reality and AI are desired for pre-travel exploration and local recommendations by 82% of business and 66% of leisure travelers, respectively. The study's methodology included input from international travelers and interviews with industry executives, using Amadeus Demand360® data.

📈 The 100th edition of Tell, Martin Soler's newsletter, discusses AI in hotels, selling hotel spaces for coworking, and the importance of storytelling in the industry. The early adopters of AI in hospitality are said to learn and adapt quickly, leading the way for latecomers who might struggle to catch up. Data collaboration is key for personalized experiences, with a need for solid PMS, CRS, and CRM integration. Retail media is predicted to become a dominant advertising channel by 2030. Hospitality tech stacks require understanding of their components' relative importance, and APIs might soon be replaced by a faster Model Context Protocol (MCP) to improve integration and data exchange.