OTAs typically have the better booking experience, greater reach thanks to infinitely higher marketing spend, and if they also have the better price thanks to member rates, mobile exclusive discounts, package rates, etc., why would anyone still book direct?
Now that’s a big statement to put out there, but I’m very confident that I’m pretty close to 100% correct with my observations. The reason why I’m so sure is that I know most hoteliers are not financial people and they are oblivious to the issue I am going to explain. On top of that – I see this all the time.
I believe rate parity is essential for transparency and trust with our guests. It ensures consistent rates across all third-party channels, avoiding confusion and maintaining our brand's reputation. While we have the flexibility to offer special rates on our own website (a channel we fully own), rate parity helps us manage distribution more effectively with OTAs and other third parties we don't fully control (which we don't own).
I believe that hotels should have the freedom to set different rates across their distribution channels, including OTAs, without being bound by rate parity agreements. Firstly, allowing hotels to set their own rates enables them to respond more dynamically to market conditions and tailor pricing strategies to different customer segments.
Rate parity is non-sense and the RTI ( Retun time invested.) is always negative. here is why: 1. Hotels cannot answer how much additional business they got because of disparity - so easy to throw rocks as to how much money "might have been lost" vs 2.
Premia to acquire two hotels in Greece from Nordic Leisure Travel Group, Atom divests Exe Coruna hotel in Galicia, Spain.
Spanish hotel transactions exceeded €1.6Bn in H1 2024, involving 56 properties and over 8,100 rooms. This is about a 3% increase compared to H1 2023 and 56% above the 5-year average (2019-2023). The Balearics, Barcelona, and Madrid were the most active hotel investment markets, supported by healthy operating results. Elevated investment activity is expected going forward, likely exceeding €3.0Bn by the end of 2024.
Anthony Capuano, President and Chief Executive Officer, said, “Marriott reported strong second quarter results, with net rooms up 6 percent year over year and worldwide RevPAR[1] growth of nearly 5 percent, as consumers continued to prioritize travel. International RevPAR increased more than 7 percent, with Asia Pacific excluding China leading the way, posting an impressive 13 percent RevPAR increase from the year-ago quarter.
With my workshops and speaking, I often do an exercise where I challenge each leader to find a minimum of $250 in next month's forecast. That can be savings in the form of reduced payroll or expenses. It can also be a source of new revenue. The participants come up with some amazing ideas that really work. The great thing about these ideas is that we almost always get to repeat and compound. An idea that works next month just works EVERY month. Read more about creating asset value here.
One of the initial steps when considering a new hotel development is the all-important hotel feasibility study. Or is it the market study? Or should you, the developer, be considering an interim step?
Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2024. Highlights include:
The first half of 2024 confirms Accor's growth outlook, as presented at the Capital Markets Day on June 27, 2023 and reiterated in recent earnings and revenue releases.
Siloed and fragmented procurement software often complicates the procure-to-pay process. Outdated solutions are typically expensive, inflexible, and inefficient, yet many organisations persist in using these antiquated systems. This reliance on old-fashioned procurement management systems hinders operational efficiency.
UAE-headquartered Global Hotel Alliance has reported robust Q2 results across all key performance indicators positioning the world’s largest alliance of independent hotels brands for a positive second half of the year.
Aptech has teamed with BirchStreet Systems to deliver efficiency and automation where it is most needed – the procure-to-pay (P2P) process. Based on customer demand, this collaboration brings together the best in cloud-based enterprise accounting and P2P software to deliver better control over purchase orders, invoicing, budgeting, order delivery, flexible payment options, invoice imaging, and financial review efficiency with drill down from P&L to invoice image.
A newly-revised edition of the Uniform System of Accounts for the Lodging Industry (USALI™) is now available, published by Hospitality Financial and Technology Professionals (HFTP®). The publication is available for purchase and download here.
Amid a growing travel market and steady inflation, hoteliers are under increased pressure to differentiate themselves from competitors and remain profitable. While room rentals are often considered the greatest source of hotel revenue, your culinary offerings also serve as a valuable opportunity to attract and retain business.
Hospitality Financial and Technology Professionals (HFTP®) is expanding its news and information distribution arm with the launch of Clubs-Online™, a newsletter catering to club professionals. The newsletter, available to HFTP members and subscribers, will feature exclusive content presented by industry experts and geared to club professionals, owners, and board directors as it relates to finance and technology.
Fort Lauderdale, a staple South Florida beach destination, is shifting its focus beyond leisure tourism with a $1.3-billion investment in the Broward County Convention Center and adjoining Omni Hotel. Following this project, Fort Lauderdale will position itself as both a vacation destination and a commercial city.
Room Mate acquires the Staying Valencia portfolio, ISTAR Club-Deal sells Best Western Premier Opera Opal in Paris, Entra sells Clarion Collection Hotel Savoy in Oslo, Kaya Tourism Group acquires Great Northern Hotel in London, VOIhotels acquires Arenella Resort in Sicily, Italy, Dudok Real Estate acquires Holiday Inn Express Rotterdam Central Station.
JHR is Acquiring Two Hotels Each in Okinawa and Tokyo for a Total of JPY 56.2 Billion, MRA Acquires the Randor Hotel Hiroshima Prestige in Hiroshima for JPY 2.58 Billion, Ananda Sold Five Service Apartment Business Subsidiaries for THB 2.54 Billion, TAP Secures SGD 5.33 Million from Apricot Capital in Funding Exercise for Planned Expansions, Tuan Sing Holdings Limited Announces Rebranding of Hyatt Regency Perth Hotel in Perth, Australia.
Maintaining strong, equitable vendor relationships is key to any successful hotel enterprise, especially during periods of economic uncertainty. When done effectively, these partnerships ensure that hotels can navigate supply disruptions, provide consistent, high-quality amenities, develop unique and competitive offerings for guests, and meet industry standards and regulations. For many hotels, cooperation with suppliers was essential for surviving the pandemic and continues to help set them apart from competitors.