There is an on-going debate among academic researchers and professional analysts on Airbnb's impacts on the traditional lodging business. Some found Airbnb had significant negative impact on the hotel industry; others claimed that the impact remained negligible.
In the highly competitive hospitality industry, it is critical to assemble as much information as possible to make educated decisions: enter revenue management. Using the basic principles of supply and demand economics, hoteliers can optimize revenue by strategically managing a property's room inventory, pricing and distribution. Based on market trends and forecasts about consumer demand, revenue managers are able to maximize revenue during high-demand periods and stimulate demand during periods of lower activity. Put simply, hotel revenue management is selling the right room to the right customer at the right moment at the right price through the right channel.
Spring brings on many conferences including our own Lodging Industry Forecast Event (LIFE) Conference held in March. Recently we've had Meet the Money, held in early May and the NYU Hotel Conference, being held now. In this article, after Meet the Money in LA and during NYU in New York, we analyze one and predict the other.
With trivago's 1.4 billion annual searches, we see many clear trends in user search behavior and preferences. From that data*, we ascertained some best practices for hoteliers to follow when marketing their properties and establishing their price strategy. What follows are a few factoids and infographics as they relate to summer trends 2017.
The increasing incidence of intermediaries selling hotel rooms and other services is a major topic of discussion among U.S. hotel owners and operators. From online travel agents to convention housing companies, third-parties are placing themselves in between hotels and their guests during the sales process. Of course these intermediaries want to get paid, and therefore this has become a rising expense for hoteliers.
Investors, buyers, bankers, appraisers, and owners gathered at the Hunter Hotel Conference in Atlanta, Georgia, March 22–24, 2017. McKenna Luke represented HVS at the Hotel Values in a Changing Market panel, where discussions included the cautiously optimistic outlook, areas of investment opportunity, impacts of interest rates and new supply on values, and growing trends in Millennial-style travel. Investment opportunities in primary markets are reported to be highly competitive, especially with foreign investors and high-net worth individuals remaining active. In 2016, these buyers made up 36% to 43% of transaction volume; the outlook for this year is expected to be similar. However, certain secondary and tertiary markets are still providing opportunities for newer investors, or for investors with more-stringent return requirements, to benefit from RevPAR growth or turnaround opportunities following a renovation or gains in operational efficiency. Some newer hospitality investment platforms, including "poshtels" (posh hostels), were even touted to attract higher-earning Millennials.
It's the little things that make a world of difference. This is doubly true in hospitality where all those small, subtle, innocuous touches may add up to something far greater and ultimately help your brand stand out from the pack. I strive to bring these into the limelight because they are often easier and cheaper to execute than the grander, large-scale renovations so often sought after to revitalize a brand.
Abstract: Amenities specified by hotel companies' brand standards can become a point of contention between hotel owners and brand managers. At issue for the owner is whether offering a particular amenity justifies the expense, while brand managers are typically more concerned with maintaining consistent brand standards systemwide. This report provides another perspective, by analyzing the short-term return on investment for six upscale and luxury brands offering three popular complimentary amenities—bottled water, internet access, and fitness center use—both in terms of their effects on first-time visits and on repeat business. While internet access held the greatest attraction for first-time guests, complimentary bottled water offered the highest ROI for returning guests. Analyzed over a twelve-month period, the fitness center had a negative ROI for both groups. Of particular interest, the study also found that guests greatly overestimated the likelihood that they would use the hotels' amenities.
CHR Insights features industry analysis and commentary from Kelly A. McGuire, MMH '01, PhD '07, who is a CHR fellow and vice president, advanced analytics, for Wyndham Destination Network. Previously the leader of the SAS Hospitality and Travel Global Practice, and a member of the CHR Advisory Board, she has long been active in advanced analytics and big data. Her blog posts feature industry research and guest interviews to address current industry issues.
Over the past decade and a half, regional ski resort visits throughout the U.S. have been largely stagnant or in decline. Per Snowsports Industries America 2015 Fact Sheet, nationwide visits peaked at 60.5 million in the 2007/08 season and dropped to an almost 15 year low of 52.8 million in the 2015/16 season. Why is this and what does the industry need to do to remain viable long-term?
Generally, any hotel that uses a nearby educational institution as the primary demand generator can be considered a campus hotel; however, the scope of this article focuses on hotels that are directly affiliated with an educational institution, often a college or university.For each campus hotel project, developers should fully understand the school's vision to create a property that not only meets the design requirements and educational purposes, but is also economically sustainable. On the other hand, operators should have appropriate revenue management practice, leverage school's internal resources, and manage student employees with extra emphasis on scheduling and training.
Mobile advertising's advanced targeting capabilities can be used to engage a lucrative market: the weekend traveler. The weekend getaway is cheaper, easier to plan and requires less time off than a traditional week-long trip. And since 41 percent of Americans reported using none of their vacation days in a recent survey by Skift, a travel industry platform, there is value in focusing on the short-term stay.
Hotel owners, consultants, managers, developers, financiers, and other stakeholders gathered at the 2016 Dallas Hotel Conference on October 20, 2016, to share thoughts on U.S. hotel industry dynamics. The conference, held at the Omni Mandalay Hotel in Las Colinas, offered insights ranging from the impact of foreign capital sources to new forms of competition in Texas and surrounding markets.
Coming off of a record year in 2015, Caribbean hotel occupancy in 2016 has declined every month so far this year compared to last according to the folks at STR. Blame it on Zika, AirBnB, Brexit, Cuba or the airlines if you like, but there is something else at work this year – the US Presidential election.
The market is poised for boutique hotels to make an impact on the hotel industry like they never have before. With an expected soft landing of the economy in 2017 (2-3 percent RevPAR growth max) it is more important than ever for independent hotels to ensure that they have proper revenue strategies in place. Competing with the big brands for market share can sound like a herculean struggle but with execution of the proper procedures, a boutique hotel can stand apart from the crowd.
While running a successful hotel requires a wide and diverse skillset, most professionals inside the industry wouldn't count the ability to entertain as an important part of that list.
While the newest generation of travelers – the oft written about Millennials – may not yet have the discretionary spending muscle of Gen Xers and Boomers, they are having a decidedly pronounced impact on the evolution of the branded hotel space. Unique experiences, lifestyle, design, and authenticity rule the day now. Does that sound the death knell of the branded hotel?
Hotel experts from across the industry converged last week in Memphis, Tennessee, for the Memphis Hotel and Lodging Association's annual Southern Lodging Summit. Memphis, the birthplace of Holiday Inn and a hub for Hilton Worldwide's corporate operations, has a rich heritage in hospitality, and many of today's top hotel executives trace their professional lineage back to the city.
It is claimed that PIPs (property improvement plans) exist to ensure all franchisees are brand compliant and to drive customer satisfaction. However, it appears big brands such as Choice, Holiday Inn, Wyndham and Best Western, often use them to push hoteliers out of a market to benefit corporate expansion strategies. So are PIPs really in the best interests of franchisees?
Every ten years or so, the Financial Management Committee (FMC) of the American Hotel & Lodging Association revises the Uniform System of Accounts for the Lodging Industry (USALI). The USALI serves as the industry standard for reporting hotel revenues and expenses.