Nov 4 2024

Hyatt sees elevated attrition as some hotel owners resist renovations

Executives say they’ve maintained strong net growth as older hotels exit portfolio.

By Sean McCracken
Hotel News Now

Even as officials with Hyatt Hotels Corporation reported a new record pipeline, executives say they’re seeing an outsize attrition from their portfolio from hotel owners unwilling to meet brand standards.

During the company’s third-quarter earnings call, Hyatt President and CEO Mark Hoplamazian said the company’s year-to-date attrition rate approaches 1.5%, which he added is “significantly higher than our typical run rate” of 0.5% and 1%.

“About 40% of that difference has to do with brand standard and market-specific issues that affected our renewal or agreement to move forward with certain hotels in our portfolio,” he said. “Some of it is markets that have become, I would say, more challenging or where the central business district has moved. We are looking for new representation. In a couple of cases, it’s owners we didn’t come to agreement with on bringing hotels to brand standards.”

Because of Hyatt’s strong signings and pipeline — now at a record 135,000 rooms across 690 hotels — the company has managed to maintain strong network growth, Hoplamazian said. Hyatt’s network growth was 6% year over year with 4.3% net rooms growth in the quarter. But Hoplamazian’s statement about owner reluctance to make renovations at their hotels reflects comments made by industry experts in recent years of growing contentiousness between brands and owners over deferred maintenance, property improvement plans and renovations.

Asked by analysts if Hyatt’s attrition issues are expected to leak into 2025, Hoplamazian said he doesn’t see this as a long-term trend.

“I think there was a relatively higher number of hotels that were coming to the end of life and PIP requirements that were not met,” he said. “So maybe we had a blip here heading into the fourth quarter. I will say that if you look at the structure of our brand portfolio, we do not, at this point, have a brand into which we would encourage owners who want to downgrade their hotels to something that’s a lower level just to maintain those rooms. That’s different than our competitors. So some of this is just maintaining brand integrity across our brands as they stand today.”

Hyatt opened 16 hotels with 2,589 rooms in the quarter, including Alila Shanghai, Brunfels Hotel in the Unbound Collection, Grand Hyatt Kunming and Park Hyatt Marrakech.

The company also announced multiple new planned acquisitions and partnerships to grow its overall portfolio. Hyatt closed on the acquisition of Standard International on Oct. 1, adding the Standard and Bunkhouse brands to its portfolio. Hyatt also announced plans for a 50/50 joint venture with Grupo Piñero that will own the Bahia Principe brand and operate 23 all-inclusive resorts.

Including the Bahia Principe transaction, Hyatt officials project 7.75% to 8.25% net rooms growth for full-year 2024.

Third-quarter performance

Hyatt announced systemwide revenue per available room growth of 3% year over year for the third quarter, driven by 1.2% average daily rate growth and a 1.3-percentage-point improvement in occupancy.

Hyatt achieved net income of $471 million in the quarter with full-year net income now projected to hit a range between $1.4 billion and $1.45 billion. Adjusted earnings before interest, taxes, depreciation and amortization for the quarter was $275 million.

As of press time, Hyatt stock was trading at $145.77 a share, up 12% year to date. The NYSE composite was up 14.6% for the same period.

Credit Hotel News Now

Nov 1 2024

Counting the Cost of Contactless

By PolyU’s School of Hotel and Tourism Management

Today’s hotels are embracing the contact-free revolution, seeking to meet the expectations of health-conscious travellers by minimising physical contact and enhancing hygiene protocols.

Today, with the tap of a smartphone or even a wave of a hand, hotel guests can access their rooms, make payments and request services. But how much are customers willing to pay to go contact-free in hotels?

Thanks to Dean Kaye Chon, Dr Faye Hao and Dr Jinah Park of the School of Hotel and Tourism Management (SHTM) at The Hong Kong Polytechnic University, working with a co-author, we now know much more about the factors driving hotel customers’ willingness to pay for contactless services.

Their novel empirical insights will guide hotel practitioners to invest more smartly and rationally in contactless solutions.

“Contactless service is being widely adopted by the hotel industry”, explain the researchers, “to provide the safest possible experience while maintaining good service quality”. By deploying contactless technologies at every stage of the customer journey, hotels can remove the need for physical contact from all major hospitality service encounters.This may include “disinfection of public facilities and spaces, auto-detection of body temperature, keyless access, touchless smart rooms, and robotic services”, note the researchers.

By meeting hotel guests’ need for more stringent safety and hygiene protocols, such contact-free provision can enhance customer satisfaction and trust and lead to more positive evaluations of hotels.

However, there is another side to the story. “Contactless hospitality service is expensive and has uncertain returns on investment”, the researchers warn.

For example, some customers may be reluctant to pay a surcharge for contact-free amenities because they prefer “the human touch” or regard contactless technologies as unnecessarily complex.

“Some customers believe that contactless technological implementation reduces the cost of hotel operation and management, thus expecting that they should be charged less”, add the authors.

Surprisingly, given the widespread implementation of contactless services in hotels to provide safe, seamless and efficient services, we still know little about how they are received by hotel guests.

“Customers’ willingness to pay (WTP) for contactless service is still unclear in the hospitality industry”, say the authors.

This lack of understanding is putting hotels at a disadvantage. “There is a mismatch in the supply and demand of different contactless amenities”, observe the researchers.

While most hotels are willing to invest in self-service check-in, keyless access, food ordering and concierge services, customers prefer contactless payments, digital room keys and digital messaging services. “Therefore, exploring customers’ WTP for various contactless amenities is critical to guide hotels’ investment”, the researchers point out.

WTP for hotel amenities – including contactless services – may vary with hotel type and customer-related factors.

“Luxury and mid-priced hotel guests have higher WTP for green practices than economy hotel guests”, the researchers report.

Guests’ age, education and income level, as well as their travel-related decisions, technology readiness and health concerns, may also affect how willing they are to pay for contactless services.

Integrating these diverse constructs, the researchers developed a novel series of discrete choice experiments to explore hotel guests’ preferences regarding various contactless services.

The first step was to identify the relevant attributes of contactless service in a hotel setting, based on interviews with hotel managers and contactless service technology providers in China.

“Six amenities of contactless service in the hotel industry were identified”, the researchers report. These were “contactless front desk”, “elevator”, “room entrance”, “payment”, “smart room devices” and “robotic services”.

Together with the price of a room for a night, these six types of contactless amenities were bundled into hypothetical hotel room packages for testing with real hotel guests. “We designed a series of discrete choice experiments to capture hotel guests’ WTP in various scenarios”, the researchers explain.

“Each scenario included three hypothetical hotel room packages with different hotel contactless amenity combinations”.

These experiments were incorporated into a survey administered to 1,939 mainland Chinese respondents.

The first section of the questionnaire elicited information on the respondents’ hotel stay profiles;

the second presented the choice experiment;

the third asked about the respondents’ attitudes towards technology, including contactless services;

and the fourth collected demographic information.

The researchers used a hybrid choice model to analyse the data obtained from the survey, as this approach well captures heterogeneity in individual preferences – here, hotel guests’ WTP for various contactless services.

The results of this analysis provide a holistic understanding of how and why hotel guests differ in their WTP for contactless services – with critical implications for hotels. “The empirical findings of this study provide three key takeaways for hotel organisations to develop more efficient contactless service design and delivery in the future”, the researchers say.

First, among the six categories of contactless hotel amenities, the respondents reported the highest WTP for contactless room entrance and payment services – the contactless amenities with which they were most familiar.

“By contrast”, the authors report, “the WTP for contactless front desk services and smart room devices had the lowest values”.

Crucially, these were the amenities with which the guests were least familiar. Given this connection between familiarity and WTP, investing in preferred contactless services will help hotels boost revenue in the short term.

“However, in the long run, hotels need to pay more attention to improving customers’ awareness of less common and less preferred contactless services”, the researchers tell us.

Based on this finding, the researchers also suggest that user training can play a crucial role in increasing customer acceptance of new contactless services.

“Accumulating positive experiences may address the current challenges of hotel contactless service (i.e., contactless front desk and smart room devices)”, they say. Hotels can also benefit in the long term from designing more “delightful” moments of contactless service delivery to encourage guests to accumulate positive experiences of going contact-free.

Second, the researchers found that certain characteristics of hotel guests influenced their WTP for contactless hotel services. For example, older guests reported a higher WTP, suggesting that hotels can benefit financially from tailoring contactless service marketing to seniors. In addition, customers who generally stayed in budget hotels were less willing to pay for contactless services, whereas luxury hotel guests were willing to pay more.

“More efforts to balance budget hotel customers’ price sensitivity with technology engagement are thus required”, the researchers suggest.

Third, and perhaps surprisingly, customers’ WTP for contactless services was only marginally affected by concerns about virus transmission. Instead, they regarded going contact-free as primarily a technological advancement. Their readiness for contactless hotel services was closely related to their acceptance of or resistance to new technology in their everyday lives.

“Connecting the technologies from customers’ everyday lives to hotel stays could make contactless service accessible to more people”, the researchers point out. “Customers’ needs and concerns regarding technology, such as discomfort, insecurity, performance expectancy, and trust issues, should be considered when delivering high-quality contactless service”.

However, the researchers also found that technology could not completely substitute for “the human touch” in service encounters.

“Hotel organisations should establish a holistic strategy to satisfy customers’ desire for interpersonal linkage and technological efficiency by designing contactless technology as an augmenter of human contact in service delivery”, they explain.

“Although the hotel industry used to depend heavily on human touch”, the researchers note, “against the backdrop of the COVID-19 pandemic, customers’ change of preference from human service to robotic service is salient and has led to a significant increase in the WTP for contactless robotic hospitality services”.

By shedding light on the factors responsible for heterogeneity in hotel guests’ WTP for contactless services, this innovative study offers guidance for hotel businesses on securing competitive advantages as the hospitality industry goes contact-free in the post-pandemic era.

Hao, Fei, Qiu, Richard T. R., Park, Jinah, and Chon, Kaye. (2023). The Myth of Contactless Hospitality Service: Customers’ Willingness to Pay. Journal of Hospitality & Tourism Research, Vol. 47, No. 8, 1478-1502.

Credit eHotelier

Oct 30 2024

Can China turn a short-term boost into a long-term rebound?

By Sean McCracken
Hotel News Now

Other Asia-Pacific nations such as Australia and New Zealand face different recovery paths.

Multiple waves of fiscal stimulus and the Golden Week travel holiday has given China an air of hopefulness despite economic headwinds, but STR’s Jesper Palmqvist says the region has a continued combination or short-term worries and long-term growth potential.

Speaking on the latest episode of the Hotel News Now podcast, Palmqvist, STR’s regional vice president for Asia-Pacific, said the combination of the Golden Week holiday and stimulus efforts definitely created an updraft, but one that isn’t necessarily permanent.

“We had a great Golden Week,” he said. “No doubt, people were traveling. They were going to places that we assumed they’d be going — a lot of those new and upcoming destinations and brands that made sense for them. … And I suppose it had a similar kind of effect as the domestic stock markets had, even if less extreme, when the stimulus package came: big boost and then kind of back down again because it was for all intents and purposes back to normal quite quickly once it ended with that extended period.”

Palmqvist highlighted how the Western understanding of the Chinese economy is sometimes overly dire, particularly because no other economy of its size can course-correct in real time.

“It’s one of the few countries that can turn around something real quickly,” he said. “They have the power to influence spend very quickly compared to other countries its size and the policy-making to do that.”

Palmqvist was joined by Matthew Burke, STR’s regional director for the Pacific, who added that countries such as Australia and New Zealand are “very different animals” in comparison.

Burke said the demand environment is still settling in New Zealand a year after some governmental changes.

“They’re reimagining the economy and what they want to be able to do,” he said. “At the same time interest rates were quite high to hammer down inflation, and that’s obviously had a impact on consumer sentiment domestically, and also in terms of businesses as well and how they travel. So that’s impacted Wellington and then Auckland has the same elements, but it also has a rapid rise in supply that was all built for the forthcoming convention center and, putting COVID aside, that international arrivals would continue to advance and travelers from America are coming through in higher numbers now than they were in 2019.”

The story in Australia continues to mirror that of the U.S., with softer hotel demand growth against a backdrop of expenses creeping upward, Burke said. The starkest difference between the countries is Australia doesn’t have the split in hotel performance seen in America.

“We haven’t see that same bifurcation at the lower end of the market,” Burke said.

For all of HNN’s discussion with STR’s Jesper Palmqvist and Matthew Burke, which also includes discussion on performance in countries like Japan, South Korea and Indonesia, listen to the podcast above.

Credit Hotel News Now

Oct 29 2024

Did you know Halloween originated in Ireland?

Halloween – a time for thrills, chills and wonderful traditions. But did you know that everyone’s favorite spooky holiday began in Ireland?

Trace Halloween right back to its origins and you’ll find yourself in the mists of pagan Ireland over 3,000 years ago – a time when the ancient festival of Samhain was celebrated in the heart of Ireland’s Ancient East to mark the beginning of winter.

Halloween’s roots lie in the ancient Gaelic festival of Samhain, a Celtic celebration marking the end of the harvest season and the start of winter. During Samhain, also known as ghost night or spirit night, Irish people lit bonfires, avoided travelling alone at night and wore costumes to ward off wandering spirits – especially evil ones – a tradition that echoes in the modern day festivities of Halloween.

Traditionally a harvest of fruit and nuts was gathered for a feast and there were lots of children’s games and marriage divination games. People visited their neighbours and there was lots of entertainment.

When Christianity came to Ireland, Samhain became Halloween, the term derives from the date being the evening before the Feast of All Saints (The Hallowed Ones). A cross was placed above the door of the house to protect the home from bad luck for the year ahead.

Later Irish emigrants brought their Halloween traditions to many countries, especially America, and the holiday we know today gradually evolved.

Oct 29 2024

Hotel performance normalizes across Asia as key destinations deal with China's shifting travel patterns

By Stephanie Ricca
Hotel News Now

SINGAPORE — China remains the domino in the Asia-Pacific region that can fall any number of ways, influencing future travel patterns.

But other countries continue to pivot as China recovers, and hoteliers are noticing Chinese demand patterns changing along the way.

“Is the Chinese economy collapsing? No, it is not,” said Jesper Palmqvist, regional vice president for STR at the Hotel Investment Conference Asia-Pacific. “China has proven they can turn things around quickly.”

Thanks to recent economic stimulus efforts and solid Golden Week travel activity in early October, optimism is on the upswing. And while outbound travel is not where it was, hoteliers from surrounding countries are hopeful that wave of Chinese travelers will return.

Paitoon Wongsasutthikul, chief investment officer of real estate investor and developer Asset World, said the number of Chinese travelers coming to Thailand this year is only about 50% to 60% of what it was pre-pandemic.

“But Thailand is a destination. This year we are expecting the inbound tourism number to be around 35 [million] to 36 million,” he said. “In 2019 that was about 40 million, so we’re getting close.”

One trend many HICAP speakers brought up is that as Chinese outbound travel recovers, it won’t necessarily look the same as it did pre-pandemic, with large tour groups going to “typical” tourist locations.

“Not all Chinese tourists are created equal,” Wongsasutthikul said. “We see more and more Chinese people traveling for experiences, and they’re ready to spend. We are seeing Chinese tourists exploring dining out at Michelin-starred restaurants, at rooftops.

“There are many opportunities with the different groups of Chinese travelers coming,” he said. “You’ll see more and more looking for this type of different experience.”

Japan strong

Japan’s hotels continue to lead the APAC region in average daily rate growth, according to CoStar hospitality data.

“Inbound travel to Japan is expected to be about 35 million people, which is a record high,” said Yoshiki Kaneda, president and CEO of Seibu Prince Hotels & Resorts. “The growth has been driven not by occupancy but by rate. We still have a lot of opportunity, which is a good problem to have.”

Hotel investors are focused on Japan as well, though it’s highly competitive, said Hoe Kit Mak, managing director of Lodging Private Equity Fund for CapitaLand.

“Everyone loves Japan for business, for holidays, for scenery, for food, for the low-interest-rate environment,” he said. “For all those reasons, it’s a key market for us for investment.”

But he underlined that competition is tough.

“It’s loved by everybody so pricing is very tight,” Mak said. “You have to be able to assess whether the price works for you, notwithstanding a low-interest-rate environment. We’re still looking to do more there, but we have to be prepared to roll up our sleeves and add additional value.”

Indonesia, Maldives and Thailand

Indonesia is another country that has experienced big growth this year, but Palmqvist warned that like in Japan, the big growth in Indonesia “every month slows down and normalizes.”

Also like Japan, Indonesia’s hotel revenue per available room gains have been driven by ADR.

On the other hand, other countries in the region notching notable performance — Vietnam and the Maldives — have been driven by occupancy gains, Palmqvist said.

Angeline Tan, senior vice president of SingHaiyi Hospitality, which operates the Momentus Hotels & Resorts brand, said the Maldives are a key market for her company. The islands see a lot of demand, but hospitality projects require a lot of work, particularly to ensure sustainable building.

SingHaiyi owns two resorts in the Maldives and is building a Hyatt Regency set to open in 2027.

Branded hotels are coming into Thailand rapidly, Palmqvist said.

Wongsasutthikul’s Asset World has 23 hotels across Thailand, most branded under Marriott International, Hilton and IHG brands.

“RevPAR is higher at our hotels than it was pre-COVID, and ADR is way above 2019 levels,” he said. “We’re still missing a little occupancy in cities like Bangkok, but Phuket and Samui are already above pre-COVID levels.”

Credit Hotel News Now

Oct 26 2024

Accor on track to surpass €1 billion EBITDA for full-year 2024

By Terence Baker
Hotel News Now

French hotel firm Accor is continuing to ride the wave of improved hotel performance metrics, even if insiders insist the hospitality industry has entered a period of normalization.

During a third-quarter conference call with analysts, executives at the Paris-based firm said Accor is on track to deliver full-year earnings before interest, taxes, depreciation and amortization of between €1.1 billion ($1.19 billion) and €1.125 billion.

At the firm’s half-year results in late July, Sébastien Bazin, Accor’s chairman and CEO, predicted such an outcome. At the time, Accor reported a 13% EBITDA increase to €504 million, which he said was the first time it had passed the half-billion-euro hurdle.

In its full-year 2023 earnings results, Accor posted EBITDA of €1.003 billion, the first time Accor had passed the billion-euro mark.

Accor’s hotel revenue per available room increased 5.3% year over year in the third quarter. Chief Financial Officer Martine Gerow said Accor’s full-year RevPAR growth outlook sits between 4% and 5%.

During the quarter, Accor’s global revenue increased 12% year over year to €1.43 billion. The company’s luxury and lifestyle division reported an 18% revenue increase and the premium, midscale and economy division reported a 7% revenue increase.

In a note accompanying the third-quarter results, Bazin said that “good performance was driven in particular by the dynamism of our luxury and lifestyle brands, sustained growth in high-potential regions and the positive impact in France of the Olympic Games, for which Accor was one of the Premium partners.”

Gerow underlined the value of the 2024 Summer Olympics being hosted in Accor’s home city.

“RevPAR [across Europe and North Africa] was up 6% versus prior year driven by a 7% growth in average room with France, obviously, and Germany, equally, being strong drivers,” she said. “In France, Paris RevPAR was clearly boosted by the Summer Olympics. The Games period delivered a peak performance, which was in line with our expectations with ADR that was more than double in the period, and we also had 15 [percentage] points of incremental occupancy over the game period.”

Group demand is also back in force at Accor’s hotels. Executives said there has been a 20% increase in event attendance in the company’s key markets.

Around the world

In the third quarter, there was marked improvement in Accor’s Southeast Asian hotel portfolio, which reported the strongest RevPAR growth in the company’s Middle East, Africa and Asia-Pacific region. Gerow said that region was “driven by international demand, including from China.”

China itself, which represents 21% of Accor’s regional rooms revenue, reported flat RevPAR performance during the third quarter.

“The [China] domestic market remains penalized by the decline in consumption,” Gerow said.

A milestone for the Mercure brand

One of Accor’s significant achievements in the last 90 days has been the opening of the 1,000th hotel for its Mercure brand.

Accor debuted the Mercure brand in 1973 with the Mercure Paris Nord Saint-Witz. Its 1,000th Mercure hotel was one of several hotels that opened on the same day: the 282-room Mercure London Earls Court; 60-room Mercure Chandigarh Tribune Chowk, India; 291-room Mercure Fukuoka Munakata Resort & Spa, Japan; the 495-room Mercure Marival Emotions Resort, Mexico; and the 216-room Mercure Nantong Renmin Road, China. Nine Mercure hotels opened in China just in August.

In the third quarter, Accor debuted 47 hotels and approximately 8,000 rooms across all its brands, a 3.2% increase over the same quarter in 2023. At quarter’s end, Accor’s global portfolio included 5,638 hotels and 838,826 rooms.

“As [Accor] anticipated, churn was higher this quarter as compared to [the third quarter of 2023], primarily driven by the portfolio-upgrade program we have in the [premium, midscale and economy] division, and we do expect this to normalize in the fourth quarter. We regained positive momentum in the pipeline, which increased 6% versus last quarter,” Gerow said.

Accor ended the third quarter with a hotel development pipeline of 1,380 hotels and approximately 231,000 rooms.

As of press time, Accor’s stock was trading on the Euronext Stock Exchange at €42.04 per share, up 21.5% year to date. Euronext was up 6% over the same period.

Credit: Hotel News Now

Oct 26 2024

Marriott CEO talks evolving nature of hotel brand business, working through pandemic challenges

By Bryan Wroten
Hotel News Now

In fireside chat, Capuano reflects on lessons learned from Bill Marriott, Arne Sorenson.

PHOENIX — In Marriott International President and CEO Tony Capuano’s view, there are two types of companies with international reach.

There are U.S. companies with international operations, and there are truly global companies, which is Marriott’s aspiration.

“A small but important part of that is the world does not operate on the calendar and clock of Bethesda,” he said, referring to the company’s headquarters in Maryland. “If I’m on the phone at five o’clock in the morning, I can get Asia before the end of the business day, and then just follow the sun.”

Marriott operates in 141 countries, so there’s not a lot of time to sleep, Capuano said during a fireside chat session at the recent Lodging Conference.

In his prior role as a development executive with Marriott, Capuano said he was often asked about the company’s development strategy.

“We want to capture as much of that travel wallet as we can,” he said. “So, how do you do that? You make sure you have the right product everywhere those [Bonvoy] members want to travel for every trip purpose.”

The overarching focus is not growth for the sake of growth but to satisfy the guests Marriott serves, he said. With the right growth strategy, it creates tremendous career opportunities for Marriott employees. It allows guests to concentrate their travel in a single portfolio. It gives owners and franchisees the opportunity to grow their portfolios.

Taking this approach helps cultivate real relationships, not just ones that might help close a specific deal, he said.

“What can we do to help you grow your business?” he said. “When I think about the core of our business, we are a rapid-growth business, and the vast majority of that growth comes on the shoulders and balance sheets of our owners and franchisees.

“We just opened our 9,000th hotel. Of those 9000, we own 20 — and I’d be happy to sell you those 20. But if that’s your business model, then cultivating those relationships, and irrespective of the legal relationship, treating those owner and franchisee partners is critical to our model.”

Evolving loyalty programs

The investment community tends to focus on the gross enrollment numbers of hotel brands’ loyalty programs, which is fair given that it’s a metric that allows for apples-to-apples comparisons, Capuano said. It’s a shame on any brand company that narrows its focus to gross enrollments and doesn’t evolve the programs from a transactional platform to allow members to do more than earn and spend points on stays.

“That is foundational and critically important to the platform, but there’s so much more potential than that, and in an odd way, the pandemic opened our eyes to that even more,” he said.

At the time, Marriott’s Bonvoy program had 150 million to 160 million members, and the principal connection between the company and these members was staying in Marriott’s hotels. That connection was threatened as people were no longer traveling.

That led Marriott’s teams to think more broadly and creatively about how to enhance the stickiness of the program and find more touchpoints with members, he said. This the big opportunity for all hotel loyalty programs.

“You can’t pick up a trade journal or even the Wall Street Journal and not read an article about the ravenous, almost insatiable appetite that travelers have for experiences,” he said. “I think these loyalty platforms, as they evolve give us a tremendous portal to offer unique, once-in-a-lifetime experiences to our members.”

Challenges during the pandemic

In the early days of the pandemic, then-Chairman Bill Marriott asked rhetorically in a boardroom meeting whether the company would survive, Capuano said. It was a situation no one could have prepared for.

“If we’ve erred in terms of the management of our balance sheet, I’d say we’ve erred on the side of conservatism, but … not once did I ever hear somebody in a meeting say we ran a sensitivity to see if revenue drops 92% overnight. What does the [profit and loss] look like?” Capuano said.

It was an extraordinarily difficult time compounded by the fact that no one knew for what equation they were solving, he said. The most immediate focus was on generating liquidity, but no one knew how long that focus would be necessary.

The death of then-CEO Arne Sorenson in February 2021 was a profound loss for the company, Capuano said. Sorenson was a generational leader as well as a friend and mentor to many at Marriott and across the hotel industry.

During the call he received about being appointed to CEO, Capuano said Bill Marriott gave him some advice.

“What he said was, ‘Nobody wishes more than me that I could stop the world spinning for a few weeks so we could properly grieve our friend. But the reality is, whether you like it or not, tomorrow morning, 800,000 people are going to wake up and put on a Marriott name badge and expect you and the leadership team to lead them out of this existential crisis,’” Capuano said.

That advice allowed Capuano to compartmentalize the challenges he would face the next morning, he said.

Importance of mentors

Mentorship is critically important, Capuano said. He had the privilege to work with both Bill Marriott and Sorenson, and he recalled the important lessons learned from them.

Following the company’s purchase of Starwood Hotels & Resorts Worldwide in 2016, Marriott’s leadership team did a world tour of Starwood’s global offices. When flying back from Dubai, Capuano said he asked Sorenson about trying to follow Bill Marriott, “as iconic a leader as the industry has ever known.”

Sorenson told him that Bill Marriott’s advise was that the company’s directors had selected Sorenson to be CEO because they believed he was the right leader of the company. The only way he wouldn’t succeed is if he tried to be Bill Marriott, not Arne Sorenson.

Capuano said he remembered those words when he was appointed CEO after Sorenson’s death.

“Arne was remarkable. I have no idea how to be Arne. I only know how to be myself,” he said. “But with mentors like Arne and Mr. Marriott, there are lessons that you take from every leader who you work with, and I think that’s highly impactful as you develop your own leadership style.”

Sorenson would talk at length of his concern about being an engaged listener in a time when people’s attention spans are shorter, Capuano said. After Sorenson’s death, many of the stories people shared about him came from people who only spent a few minutes with them, but that short time made an impact.

“What it made you realize is, for those five minutes, he put his phone away, he looked them in the eye, he listened to what they had to say,” Capuano said. “He engaged, and it really reveals the power of active, engaged listening.”

Around the time of the Starwood acquisition, Kate Walsh, dean of Cornell’s Peter and Stephanie Nolan School of Hotel Administration, asked for a meeting with Bill Marriott while in Washington, D.C., Capuano said. She spent an hour with him, and toward the end of their time together, she said her students would be asking her for his advice.

“He got that kind of wry grin on his face, and he said, ‘Tell them to be humble,’” Capuano said.

Credit Hotel News Now

Oct 23 2024

IHG CEO: Chinese Hotels Poised for a Turnaround

By Terence Baker
Hotel News Now

Global revenue per available room up 1.5%.

IHG Hotels & Resorts’ hotels in Greater China continue to drag on its overall portfolio, but executives say the region is starting to trend back toward 2019 pre-pandemic performance.

During an earnings conference call, IHG CEO Elie Maalouf said 2024 hotel performance in Greater China was down year over year due to “good comps last year. … I think the difference will be less in the fourth quarter.”

IHG’s global hotel revenue per available room continues to grow, up 1.5% year over year. Greater China’s hotel RevPAR fell by 10.3%.

“We have good momentum through 2024 and into 2025,” Maalouf said, acknowledging that the third quarter showed record group bookings and that growth in that business segment continues to look good through 2025.

More on China

In the third quarter, IHG’s hotels in Greater China felt the impact of a shift in the holiday calendar and two typhoons, with the storm that hit Shanghai in September reputedly the strongest typhoon to hit China in 75 years. Maalouf reiterated that the region is otherwise reverting to “normal” travel and hotel demand patterns, following a “bottoming out.”

He added that China’s “real estate overhang takes time to be digested, as it did in the U.S. It will take time to turn, but we think it is turning,” he added.

Maalouf said that travel in China continues to be strong to Southeast Asia and Japan and outbound flight capacity is almost back to 2019 levels, although it is not in terms of inbound flights.

“Most [Greater China] decline is rate, not occupancy, as upscale travelers went to other regions,” he said.

Michael Glover, IHG’s chief financial officer, said 6,700 hotel rooms were added to the company’s Greater China pipeline, and cumulative signings to date there were up more than 20%.

“2024 is to be one of our biggest years in the region, which is very exciting,” he said.

Maalouf added that in recent quarters in China, IHG has given “no key money, no discounts from fees, or different incentives, actually, any incentives. We are in a really strong position in China, and we have the leading brands in most categories,” he said.

Around the world

In IHG’s third-quarter earnings release, Maalouf said the British firm has “made great progress this year to further strengthen [our] enterprise platform, grow our brands and deliver on our growth algorithm. The power of this algorithm comes from the compounding nature of growing fee revenues through the combination of RevPAR, system expansion and ancillary fee streams.”

In Europe, Middle East, Asia — not including Greater China — and Africa, IHG’s hotels performed the best, with RevPAR increasing by 4.9%.

“EMEAA is pleasingly driven by both pricing and demand,” Glover added.

While there is a range of trading performance across that large region, Glover said IHG’s hotels in Continental Europe posted a 7% year-over-year RevPAR increase in the quarter, helped by the Paris Olympics and events in Germany.

The United Kingdom showed a 2% increase in RevPAR, with contributions coming from both London and regional U.K.

Development pipeline

IHG opened 98 hotels in the third quarter with approximately 17,500 rooms, which was more than double what it opened in the same period in 2023, Glover said.

That number did include the rollout of approximately 6,200 keys from IHG’s partnership with German operator Novum Hospitality, which both companies announced in April, Glover said.

“Novum will continue to grow the system over the next 12 to 18 months, but the next quarter will see fewer rooms added from it due to that next batch requiring more [property improvement plans],” he added.

Glover said the performance of IHG’s overall portfolio showed signs of the “normalization” of the industry that has been echoed throughout the year by most of the major hotel companies. He added IHG continued to show an ability to win deals across all segments.

IHG signed more than 19,200 rooms and 129 hotels in the third quarter — an increase of 14% year over year — growing the company’s total pipeline to 327,000 rooms in 2,218 hotels as of the end of the quarter.

Agreements with Las Vegas resorts set to end

Maalouf also gave details on the end of IHG’s affiliation with The Venetian Resort Las Vegas and The Palazzo at The Venetian Resort, which has been in place since 2010. The affiliation ends on Jan. 1, 2025.

Even though that will result in a decline of 7,092 rooms — or approximately 0.7% of IHG’s rooms count — Maalouf said: “The unique nature of the fee structure … [meant the deal] contributed less than $1 million or 0.1% of IHG’s revenue from fee business in 2023 and a net nil contribution to operating profit from reportable segments.”

“The legacy agreement is from 15 years ago, and we were a very different company from 15 years ago. The ending of that agreement will have no effect on the P&L and a slight improvement to the system fund,” Maalouf added.

As of press time, IHG Hotels & Resorts’ stock was trading at £86.30 ($111.84) a share, up 21.9% year to date. The London Stock Exchange’s FTSE 100 index was up 7.2% over the same period.

In the third quarter, IHG Hotels & Resorts reduced its share count by a further 3.7% and predicted it will pass the $1 billion mark in share returns before the end of 2024.

Maalouf said he is “certainly pleased with the latest trading performance,” noting IHG’s globally diverse footprint and continued pricing power.

Credit: Hotel News Now

Oct 21 2024

Luxury by any other name: High-end hotel operators seek to differentiate in a crowded segment

By Harvey Chipkin
HNN contributor

Alt luxury. Progressive luxury, Sustainable luxury. Barefoot luxury. Treehouse luxury?

While no one seems to have come up with a substitute for the word luxury, unique descriptors are now commonplace as operators seek to differentiate themselves within the crowded upper end of the market.

Recent research from Morning Consult says that cost isn’t everything when it comes to luxury. While luxury experiences tend to be expensive, according to the research, cost isn’t the first thing on consumers’ minds when asked what defines luxury. In fact, for travel, high cost ranked last as a consideration.

“I think the term ‘luxury’ is often overused in the hospitality industry,” said Kenan Simmons, senior vice president for the Americas at Small Luxury Hotels of the World.

Everyone defines luxury differently; what it means for one person could be completely different for the next, Simmons said. The true pinnacle of luxury lies in personalization.

“By understanding each guest’s unique desires, we can curate experiences that resonate deeply, aligning them with their ideal offerings,” Simmons said. “That’s real luxury. “

The personalization theme was a constant in comments from hotel operators.

“Luxury is what each person’s thinks it is to them,” said Daniel Hostettler, CEO of Florida resort The Boca Raton. “You have to ask the guest pre-arrival: ‘Why are you coming and what do you want out of your stay?’”

Similarly, Kristi Gole, executive vice president-strategy for the Global Hotel Alliance, said “it’s up to the customer and what they care about.”

Sylvia Wong, vice president of real estate investment firm WTI, Inc. and owner of Ariva and the Ariva Serviced Residences in Las Vegas, said the definition of luxury hospitality is “absolutely” evolving.

“I think it is an acknowledgment of the fact that guests are diverse and have different preferences and needs,” she said.

Toni Stoeckl, chief marketing officer for SH Hotels & Resorts, believes the shift is “about moving beyond the one-size-fits-all approach and delivering hyper-personalized experiences that resonate with each guest.”

“Consumers now have more choices than ever, and as a result, the luxury landscape has become somewhat commoditized,” he said.

Ben Wolff, co-founder of Onera, which offers “treehouse-style” units at two Texas properties with more in the pipeline, said that “without a doubt, experience, adventure and wellness are the new status symbols.”

He said the modern traveler “prefers novelty and tech-forward efficiency over brand familiarity/conformity and high staff-to-guest ratios. “

Overly deferential, butler-like hospitality is becoming a relic of the past, Wolff said. Travelers today prefer warmer interactions with the hospitality staff they encounter. The modern traveler wants to feel like their hospitality experience is “collaborative not transactional.”

“They want to connect with the property origin story, the founders and the hospitality team,” he said.

As for barefoot luxury, Gole said that a good example of that category is Castaway Island Resort, a Fijian Island near where the Tom Hanks movie Castaway was filmed. The property positions itself as “Fiji’s original private barefoot island resort.”

Luxury by any other name

While the word luxury may be unavoidable, providers of high-end hospitality do seek to set themselves apart through language. Terms such as ultra-luxury, “alt” luxury and progressive luxury are becoming more prevalent, said Chintan Dadhich, general manager of Conrad New York Downtown.

While “luxury” still holds value in retail and tangible products, Dadhich said there is a growing preference for terms such as “personalized,” “rare” and “authenticity,” which reflect a more tailored and genuine experience, aligning better with current consumer expectations.

Small Luxury Hotels of the World likes to use the word “bespoke” to reflect its emphasis on customized stays, Simmons said. One of the brand’s core values is: “Make it personal.”

“Hotels enable bespoke experiences that place travelers at the heart of an environment,” he said. “Every interaction is personal and authentic, forging intimate connections with a place and its people.”

Consumers are no longer just looking for opulence, Stoeckl said. They want experiences that resonate with them on a personal level.

“We embrace the idea that our brands aren’t ‘something for everyone,’ but instead, ‘everything to that someone’ who deeply connects with our vision, our purpose and the experience we bring to life,” he said. “It’s this personal connection and sense of purpose that has created a true cult following for our 1 Hotels brand.”

Terms like “personalization” and “authenticity” may not necessarily be synonymous with luxury in a traditional sense, but Dina Niekamp, associate vice president of sales, marketing and brand at Hyatt Hotels Corp.‘s Miraval Resorts & Spas, said “they surely enhance the experience.”

“Elements of personalization and authenticity are woven into each guest experience to create an environment where people feel connected to themselves and those around them and feel safe opening up to new experiences and perspectives,” she said.

Miraval properties are also all-inclusive, adding a layer of luxury in terms of “not having to worry about making reservations or planning once on property,” Niekamp said.

Hostettler describes traditional luxury brands such as Ritz-Carlton and Four Seasons as “chain luxury” that may offer a more predictable experience than that found at independent properties like The Boca Raton which, he said, “provide a true sense of place.”

At Onera, said Wolff, marketers tend to avoid the word luxury and use phrases such as “landscape hotel,” “experiential resort” and “unique stay.”

Wellness and well-being

Aside from the more abstract terms such as authentic and personalization, luxury hospitality brands share an emphasis on well-being or wellness.

At Miraval, luxury is exemplified through regularly rotating “transformative” well-being workshops, classes and other activities that support the connection between mind, body and spirit, Niekamp said. That includes treatments at Life in Balance Spas; culinary, cultivation and nutrition activities; yoga, meditation and breathwork; equine activities; and private well-being counseling.

Realizing that much of its clientele is wellness-focused, Wong said Ariva offers a variety of spaces and services that best meet their needs to maintain their routines while on the road. These include a peaceful zen garden, a “luxe” yoga and cycling studio and an expansive fitness center offering individual and group classes.

Stoeckl said wellness is a priority for luxury hotel guests. Whether guests are traveling for work or play, “we believe well-being should always be front and center.”

But well-being does not always mean spas and yoga. At Ariva, it boils down to having the comforts of home, Wong said.

“As wonderful as luxurious hotel stays were in my own business trips to Las Vegas, I missed the simple joy of making a simple [and healthy] breakfast for myself, having more space, and the feeling of staying at home,” she said.

All units at Ariva have high-end kitchens.

Wellness also needs to extend to the various aspects of a hotel property.

Wolff said even meeting facilities should be “inspirational, nature-oriented and retreat-like facilities, unlike big-box convention hotels.”

Heightening experiences

While the word “experience” has been core to hospitality marketing for years, luxury brands now aim to bring it to new levels.

“Luxury to one guest might be a quiet dinner on a secluded beach with sand between their toes,” Dadhich said. “Another guest may prefer to be in a beautiful dining room surrounded by people all dressed to the nines.”

It’s all subjective, he said, “but as long as you understand your guests’ unique desires and can cater to them, you’re providing a luxury experience.”

As an example of modern luxury, Simmons said he was recently at Calala Island in Nicaragua where he was able to fish with the local staff. Following the expedition, guests brought their catch back to the property where a Michelin-star chef created a meal from the fish.

“It’s not traditional luxury, and it’s not everyone’s taste of luxury, but it was an experience that will stay with me for a very long time,” he said.

Sustainably luxurious

In what’s often termed as progressive luxury, sustainability is a key component. It is a core pillar of what is considered luxury at SH Hotels & Resorts’ 1 Hotels brand, Stoeckl said.

“And it aligns perfectly with the concept of progressive luxury,” he said.

Today’s guests are seeking more than just a lavish experience. Stoeckl said they’re looking for purpose and values that resonate with their own.

“Sustainability isn’t just an add-on,” Stoeckl said. “It’s woven into everything we do, from the materials we use in construction to the operations of our hotels and the guest experiences we offer.”

For instance, 1 Hotels provides timers in showers as “a gentle reminder” that keeping showers to five minutes to help conserve water. Room keys are made from five different types of wood, and each property participates in a “1 Less Thing” initiative, where guests can leave behind unwanted clothing to be donated to local charities. Lobby farm-stands offers fresh, locally sourced fruit to promote a connection with local farmers.

Technology meets luxury

While technology might be considered the antithesis of luxury, high-end operators see it is a potential enabler. Technology is increasingly integrated into luxury experiences to enhance personalization and efficiency, Dadhich said. High-tech features allow staff to provide more tailored services, from personalized room settings accessible via apps to AI-driven personal assistants.

Technology enables the offering of “little things that make a difference,” Hostettler said. For instance, The Boca Raton’s room-service carts carry micro-chips so staff know they have been pushed into hallways and can be collected.

“Creating magically personalized experiences starts with understanding what our guests love most,” Stoeckl said. “We use data not to replace, but to enhance the high-touch experience, allowing us to deliver services and amenities that reflect our guests’ individual preferences. Technology helps us gain insights into our guests’ lifestyle and interests, enabling us to curate stays that feel uniquely tailored to each person.”

He said when guests join 1 Hotels’ loyalty program Mission, it makes it easier to track their deliver what they want without having to ask.

“We’ll keep track of your preferences — your likes, dislikes, sleep patterns, wellness rituals, and more — so we can make sure your retreat is perfectly tailored to you and help you feel right at home,” he said.

Generational gaps

While younger travelers have historically been thought to prefer informal trappings, operators see it as a mindset for older guests as well. There is a noticeable trend where younger generations opt for more casual, authentic luxury experiences, Dadhich said. This reflects broader lifestyle choices that favor flexibility and sustainability. However, it’s also a psychographic shift, where people across all ages are valuing experiences and personal relevance more highly, especially after the pandemic.

“It’s definitely a mindset, but overall, I feel that we’re moving to a more casual and approachable definition of luxury,” Simmons said. “The days of stiff and stuffy hotel service are over. Guests aren’t looking for accommodation that boasts about the thread count of their sheets or their marble baths, because in all reality, clients who travel to ‘luxury hotels’ already have them at home, or better.”

Wolff agreed.

“I think the younger generation expects a different style of luxury than generations past,” Wolff said.

He added baby boomers are also embracing more casual luxury and opting for novel experiences over familiarity or conformity.

As spending on luxury increases rapidly among millennials and Gen Z, Dadhich said there is a segmentation within the market where these younger demographics seek distinct experiences. For example, younger travelers might prefer an uncharted island or deep forest exploration rather than lounging in a poolside cabana.

Luxury today isn’t defined by age as guests seek engaging experiences that make them feel connected and inspired, Stoeckl said.

“No one wants to feel old or out of touch,” he said. “Consumers across the board are looking to be part of a cool, vibrant experience.”

Credit Hotel News Now

Oct 18 2024

'Time to Bear the Fruits' of Transformation, Accor CEO Says

Sébastien Bazin prioritizes smart growth and optimizing growth in China and India.

That’s not to say he’s done. In fact, far from it.

“We bought a lot in the last 10 years, but we haven’t added anything serious over the last three years, and I don’t miss it,” he said in a candid general session interview at the Hotel Investment Conference Asia Pacific in Singapore this week. “It was necessary for Accor to be transformed, and I seriously believe Accor has been transformed. That doesn’t mean we won’t do anything more; it means it’s time to bear the fruits.”

In 2015, the French company bought FRHI Hotels & Resorts, owner of the Fairmont, Raffles and Swissôtel brands. The following years brought vacation rental company Onefinestay, new brand Jo&Joe, Orient Express, Mövenpick Hotels & Resorts, 21c Museum Hotels, Our Habitas and more into the company. At the end of June 2024, Accor had 5,682 hotels including more than 838,000 rooms in more than 110 countries.

And bearing the fruits to Bazin means 9% to 12% growth annually, which he said is on track.

While mergers and acquisitions have been a hallmark of Accor’s last decade, his current take on industry mergers and acquisitions is that “there’s no need for any big M&A right now,” he said. “I don’t really believe we’ll see further consolidation.”

Topics other than adding new companies take more of his time these days. Chief among them are talent, artificial intelligence, sustainability, and how to best optimize his company in China and India.

Those topics are top of mind for most hoteliers here at the HICAP event, and Bazin is tackling it head-on.

“We know that travel and tourism are blessed industries for the next 20 years. We will have 3% to 7% demand every year for the next 20 years and supply growing at max 2% to 2.5%, meaning we are entering a period where demand is exceeding supply by three times,” he said. “So the question is, where are you playing and how do you play?”

Here in Asia, Bazin said it’s a priority to “play smart” in both China and India.

“We don’t make much money in China. It’s a great market, but we don’t make much money there,” he said. “And what do we do about India? It is by far the best and largest opportunity for hospitality for the next five to 10 years, but how do you play in India?

“It’s super difficult, and today I am thinking how do we rethink and do things differently?”

Accor’s growing luxury and lifestyle brands portfolio is where Bazin spends a lot of his time, also serving as division CEO for the company’s Luxury & Lifestyle division, which is growing at a fast clip, outpacing the growth of Accor’s legacy core of midscale and economy brands.

The company’s Ennismore division, which includes 17 luxury and lifestyle brands, grows 25% to 45% annually, Bazin said. And while he’s accustomed to the high-risk, less-predictable growth landscape that comes with lifestyle and luxury hotels versus more stable, cash-flowing midscale and economy hotels, Bazin is worried about the trajectory of luxury and lifestyle growth.

“We have ended up over the last couple of years in an unhealthy situation, where [requests for proposal] ask the five big global brands to compete [for lifestyle and luxury hotel contracts]. And whoever wins will have to pay more in key money to get the hotel,” he said. “It’s so capital-consuming to play that race.”

In the future, Bazin said his dream is that “there are no RFPs for luxury lifestyle and don’t even ask me for key money. I am the brand you need and love. The game of us being on our knees and begging investors to give us the capital? That game is unhealthy.”

Credit: Hotel News Now

Oct 11 2024

Why Housekeeping is the heart of a hotel: leadership insights

Housekeeping is often seen as a behind-the-scenes role, but it is really at the core of every hotel’s operations.

Traditionally, it is referred to as “back of the house,” but I have always thought that term sells it short. In my experience, housekeeping is truly the “heart of the hotel” because it touches so many areas—from guest rooms and public spaces to staff uniforms and executive laundry.

Housekeeping impacts every part of the hotel, and this influence is felt in both guest satisfaction and the overall wellbeing of employees.

Challenges in leadership

Leading a housekeeping team comes with its fair share of challenges.

The biggest? Attracting and retaining talent.

It is an ongoing effort to find and keep skilled staff, and as leaders, we need to follow through on the promises we make during the hiring process. That means ensuring staff have the training, tools, and opportunities to grow within the department. Without this, it is hard to build a motivated and stable team.

On top of that, housekeeping leaders need a wide range of skills. Not only do you need to understand the ins and outs of business operations—from budgets to labor costs—but you also need to be great with people. Balancing both these roles is essential for success in housekeeping.

Building trust with staff

One of the keys to building a strong housekeeping team is approachability. I like to call it “approachable leadership,” where leaders create an open and supportive environment.

This can be done through regular meetings, like shift briefings or monthly gatherings, where everyone feels comfortable voicing their thoughts.

In my time at Four Seasons, “direct line” meetings were opportunities for staff to speak directly with leadership, fostering trust and open dialogue. When your team knows you are available and willing to listen, it helps create loyalty and a sense of connection. It is the informal chats and shared experiences that make leaders more relatable and dependable.

Working with Generation Z

Gen Z is bringing new energy into the workplace, and they have got a lot to offer. In my experience, they thrive when they are seen and appreciated. Many of them excel at digital tasks and are eager to contribute in innovative ways.

So how do you engage them? By leveraging their strengths.

For instance, you could have Gen Z staff help with presentations or give them leadership roles in meetings. Giving them these platforms helps them feel valued while developing their confidence and skills. This approach doesn’t just benefit them—it boosts morale across the team.

Advice for new leaders

If you are just starting out in housekeeping leadership, here is my top advice:

Be yourself: Authenticity is crucial for building trust with your team.
Be accessible: Be approachable, empathic, and always listen.
Be a good listener: Your staff need to feel comfortable talking to you about their challenges and needs—that is how you build a strong, supportive team.
Develop business acumen:
- Focus on budgeting and financial management, as housekeeping departments often handle some of the largest budgets in the hotel.
- Find a mentor—someone in finance, for example—who can guide you through the financial aspects of your role.

Ultimately, success in housekeeping leadership comes down to trust and loyalty. If your team trusts you and believes in your leadership, they will follow you.

Leaders who are empathic, approachable, and business-savvy are the ones who truly thrive.

Leading from the heart

If housekeeping is the heart of the hotel, then nurturing that heart keeps the whole operation running smoothly.

Adaptable leadership that builds trust and loyalty can have a ripple effect, benefiting the entire hotel.

By: Sylvie Balenger

Service Training, Operations, HR, Strategic Solution Partners

Credit eHotelier

Oct 8 2024

Becoming a Mixologist: Skills, Training, and Tips

In the realm of cocktails and drinks, there exists a fine line between the roles of a mixologist and a bartender. While the two are often used interchangeably, they are actually very different. They require two distinct sets of skills and have different responsibilities. Let’s delve deeper into the world of mixology and bartending to understand the nuances that differentiate these professions.

What’s the difference between a Mixologist and a Bartender?

At the core of the distinction between a mixologist and a bartender lies a passion for crafting exceptional cocktails. A mixologist is revered for their creativity in combining elixirs and ingredients to concoct unique and flavorful drinks. On the other hand, a bartender focuses on serving traditional drinks and providing excellent customer service. Understanding the divergent paths of mixologists and bartenders is essential for those aspiring to enter the world of professional drink-making.

What skills are required in mixology?

To excel in mixology, individuals must possess a diverse skill set that goes beyond simply mixing drinks. From understanding flavor profiles and balance to mastering the art of presentation, mixologists need to be proficient in various areas to craft memorable cocktails. Additionally, attention to detail, creativity, and a thirst for innovation are traits that set successful mixologists apart in the competitive beverage industry.

The journey to becoming a Mixologist

Embarking on the path to becoming a mixologist requires dedication, training, and a deep-rooted passion for the art of mixology. Let’s explore the steps and considerations involved in pursuing a career as a mixologist.

Education and training in Mixology

Formal education and training programs in mixology provide aspiring mixologists with the foundational knowledge and skills needed to succeed in the industry. Enrolling in courses that cover topics such as cocktail crafting, spirit knowledge, and mixology techniques can enhance your expertise and set you on the right path towards becoming a proficient mixologist.

Gaining practical experience in the field

Hands-on experience is invaluable in the journey to becoming a skilled mixologist. Working in bars, restaurants, or cocktail lounges allows aspiring mixologists to hone their craft, experiment with ingredients, and interact with customers to understand their preferences.

Embracing opportunities to learn from experienced mixologists and bartenders can further enrich your knowledge and set you on the path to mastering the art of mixology.

Mixologist vs Bartender: Debunking myths and misconceptions

The distinction between a mixologist and a bartender is often blurred in popular culture, leading to misconceptions about their roles and contributions. Let’s debunk common myths and shed light on the unique value that mixologists bring to the world of bartending.

Clarifying the distinctions between the roles

While both mixologists and bartenders play essential roles in the hospitality industry, their responsibilities and areas of expertise differ significantly. Understanding these distinctions is crucial for appreciating the craft and artistry that each profession entails.

Highlighting the importance of mixology in bartending

Mixology serves as the foundation of bartending, elevating the experience of customers and setting establishments apart in the competitive landscape.

By emphasizing the art of mixology and incorporating innovative techniques and flavors, bartenders can create exceptional cocktails that leave a lasting impression on patrons.

Tips for aspiring Mixologists

For those aspiring to pursue a career in mixology, here are some valuable tips to kickstart your journey and refine your skills in the art of crafting cocktails:

1. Develop your palate and knowledge of ingredients

A deep understanding of flavor profiles, spirits, and ingredients is essential for creating balanced and flavorful cocktails. Experimenting with different combinations, tasting various spirits, and refining your palate can elevate your mixology skills and help you create unique and memorable drinks.

2. Experiment with flavors and creating unique cocktails

Creativity is at the heart of mixology, and experimenting with flavors, textures, and presentation can set your cocktails apart. Don’t be afraid to push the boundaries, try new ingredients, and innovate to create signature drinks that reflect your style and creativity.

3. Network to build your reputation in the industry

Networking with industry professionals, participating in mixology competitions, and showcasing your skills at events can help you build a strong reputation in the industry.

By staying connected with the mixology community and seeking opportunities to showcase your talent, you can establish yourself as a respected and sought-after mixologist.

4. Use social media to document your work

Social media can also be used as a tool for strenthening your industry reputation. Whilst people can’t taste your creations via social media, you can show off your creativity and presentation skills.

Always have a camera or your phone handy to take shots of your most aesthetically pleasing cocktails. Post them on instagram, tiktok, Youtube or your own website or blog to show case your mastery of cocktail presentation. Your customers who have actually tasted your work will soon flock to the comments to leave you reviews, boosting your status in the industry.

In conclusion, the path to becoming a successful mixologist involves a combination of education, practical experience, creativity, and networking.

By honing your skills, embracing innovation, and staying true to your passion for mixology, you can carve out a rewarding career in the world of cocktails and beverages.

Credit EHL Insights

Oct 4 2024

Six months in, Aimbridge's CEO focused on hotel owners and building relationships

Craig Smith’s quest to build a better company through burgers and fries.

It’s an often-used phrase, but in an industry so heavily reliant on people working together, it’s true.

The hotel industry is about relationships.

That’s why Craig Smith, CEO of Aimbridge Hospitality, has made it one of his responsibilities to meet regularly with hotel owners who have hired Aimbridge to manage their properties.

“I have a group of 20 owners that I own, and my thing is, I’m going to see them in-person four times a year,” he said. “I told my team, no, Zoom doesn’t count. A call doesn’t count. In-person, because that’s where relationships and real honesty happens, face to face.”

In an interview focused on his first six months as Aimbridge’s new chief executive, Smith recalled times in his former role at Marriott International that he would tour hotels along with then-Marriott CEO Bill Marriott, who liked to speak directly with hotel staff to ask them questions about themselves, how their jobs were and what, if anything, they needed to better do their jobs.

“Because he knew that sometimes the answers were a little varnished by the time they got to his level,” Smith said.

The CEO represents the company, and it’s important to be accessible to employees, he said. It’s irritating if the corporate level of a hospitality company wasn’t hospitable, so Smith set out to make sure that wasn’t the case when he started at Aimbridge.

“First day, I said I expect everybody in the building to say hello to me, and if I don’t say hello to you or wave to you or acknowledge you as we walk past each other, I’ll buy you Five Guys,” he said, referring to the fast-food chain. “There’s a Five Guys two blocks away, so everybody’s been trying to get me.”

Smith later upped that challenge, telling employees that everyone should carry the card that talks about Aimbridge’s company values and culture. If someone catches him without the card, he owes them a burger and fries from Five Guys. Just as with the greeting, employees have been trying to catch him.

And one got him.

When speaking in Birmingham, England, at a company event that was televised to the company, a young executive asked Smith for the card, but he had left it in the briefcase in his room.

“Everybody laughed, and he said, ‘Oh, you owe me Five Guys,’ and he went on to talk about guest satisfaction scores,” Smith said.

Smith left the stage to ask the general manager if there was a Five Guys location there, and it turned out there was one at the local train station. A bellhop made the run to get the burger and fries.

“I went up and knelt in front of [the executive] and gave him this package of Five Guys burger and fries and everything else, and he got to eat it,” he said. “It hasn’t happened since.”

That’s why meeting people as CEO is important, Smith said.

“You set the culture. You set the tone. People like to laugh and joke with you, and the same thing happens with owners,” he said. “If I develop that relationship ahead of time, if we have problems, then you can talk through it. Calling them just when there’s a problem, that’s not a relationship.”

Making changes

Since starting as CEO six months ago, Smith has introduced several changes to Aimbridge. He restructured the company’s leadership organization — flattening it, as he calls it — to have more leaders overseeing the hotel divisions answer directly to him, putting him closer to property-level teams.

The current leadership team is a mix of old and new talent at Aimbridge. Some have served in their roles for a while, some were promoted and others are new to the company. Among its new hires are Eric Jacobs as chief global growth officer and Christopher Tatum as president of full-service hotels.

There’s also been a renewed focus on hotel general managers, whom Smith calls the most important people in the organization.

“I think there was a little too much focus on the corporate headquarters, which happens in all big companies, and we forget that we are really here to support the field,” he said.

Smith stepped into the role of CEO of the world’s largest third-party hotel management company in March after a brief retirement from a 35-year career in hospitality.

Because hotel owners are Aimbridge’s No. 1 client, it was necessary to make sure the company and its teams could provide them the answers they needed and reach their goals.

The company recently rolled out a dashboard called Aimbridge Intelligence that allows owners to look at their numbers faster, Smith said. Owners can review performance metrics and compare their different hotels managed by Aimbridge.

It allows owners to not just ask Aimbridge questions but pull information and hold it accountable, he said.

Another development was instilling a performance culture, Smith said. The team built a strategy map covering the next few years, and it translated that into scorecards used in performance reviews at the end of every month at every level of the organization. The training is still going on further down into the organization, but people are looking at their numbers. He believes by measuring in a systematic way, it changes peoples’ behavior proactively.

Everyone is learning, and it creates an opportunity to figure out who’s performing and who isn’t, he said. There’s a natural tendency in leadership to like people who are similar, but that can lead to missing problems. This process can help guide around that, and it can also help find people who are delivering great results but may otherwise be overlooked.

“It gives you a chance to pat the one person on the back and tell the other person, ‘Hey, let’s lift up your game a little bit as we go forward,’” he said.

Aimbridge has rolled out strategy maps and balanced scorecards to make sure everyone has the discipline each month to look under the hood and see how they’re doing, he said. They have metrics to review: market share on the top line, general operating profit margin at the bottom line, associate satisfaction measured by turnover and guest satisfaction.

“The goal is that you pick those four or five metrics, which is really simple, but the hardest part is the discipline of making sure you’re focused on them all the time and deliver on them,” he said.

At the corporate level, the teams have to wake up every day and think about how what they’re doing can drive more profit at each of Aimbridge’s hotels, he said.

Opportunities for future growth

With industry experts expecting a rise in hotel transaction volume in 2025, that opens up chances to gain new management contracts. But it also means third-party operators will need to protect what they have in their management portfolios.

“First and foremost, it’s about us proving our worth as operators,” Smith said.

To not lose contracts when a property changes hands, Aimbridge has to prove it’s superior to its competitors, he said. The same is true to attract the new owner of a property.

While that sounds simplistic, that’s what operators sell, Smith said. A company selling cars has to have the best reputation for having cars that drive well and don’t break down.

“That’s the part that we’re probably spending the most amount of time in the company working on and fixing and lifting up and saying, how can we make that competitive advantage even more so,” he said. “How can we lift it up?”

Aimbridge’s market share is improving year over year, and within the last three months, margins are improving as a result of the work everyone is doing, he said. General manager turnover is also below the industry average.

Aimbridge’s team believes there will be an uptick in hotel deals as early as the fourth quarter of 2024, Smith said. It’s been slow and steady over the last 18 months or so, and everybody is waiting. There are a lot of owners under a lot of financial pressure right now, and that may mean handing back the keys or selling a property or two in the interest of keeping the rest of their portfolio.

“What it means for all of us in the operating world is it’s just opportunity and being ready and set for it,” he said.

Major hotel brand companies continue to focus on their loyalty programs and digital channels, and they’re moving away from the management space, opening a large opportunity third-party operators, Smith said.

The number of potential openings is even greater in international markets, where third-party management is a newer but decidedly growing practice, he said, pointing to his background working overseas for Marriott International. Brand franchises are growing across the globe, opening up opportunities for third-party managers.

“In the Middle East and Asia, it’s just about to get kicked off, and so there’s a lot of phone calls from that part of the world,” he said.

Along with organic growth, Aimbridge has increased its size and scale over the years through buying other management companies. It merged with Interstate Hotels & Resorts in late 2019, and it later bought Grupo Hotelero Prisma and Prism Hotels & Resorts in 2021 and then Terrapin Hospitality in 2022. It also acquired 27 management contracts in early 2022 when NewcrestImage sold its portfolio to Summit Hotel Properties.

Looking ahead, Smith said Aimbridge is open to further acquisitions and is in fact currently in talks with a few groups over possible deals. What he’s looking for is deals that will add something to the company that’s it’s missing, not just buying contracts.

“I’d rather give key money or sliver equity or some other things,” he said. “I don’t want to go out and just buy contracts. You want something that’s going to give you an opportunity to grow in an area that maybe you’re short in or that you need to grow. Sometimes there’s opportunistic deals out there.”

He said some groups approached Aimbridge after learning more about its new leadership team.

“This is just like a hotel deal that you negotiate,” he said. “You’re going to negotiate a lot of them to get a few of them. It’s got to work for both sides, so we’ll see what happens, but our feelers are out there, and there are lots of opportunity overseas.”

Oct 2 2024

A look at the strongest and weakest hotel markets across the Asia-Pacific region

Speaking on the latest episode of the Hotel News Now podcast, Palmqvist notes there seems to be three “buckets” across the region.

That includes:

Markets experiencing declines in demand and rate, such as China (revenue per available room down 4.5% in U.S. dollars year to date through August) and New Zealand (down 12.9%).
Slow and steady growth markets like the Maldives (up 9.2%), Philippines (down 2.5% in U.S. dollars but up 2.1% in Philippine pesos), Singapore (up 2.6%) and Australia (up 6.4%).
And the clear outperformers, headlined most obviously by Japan (up 12%) but also including Indonesia (up 17.9%), Malaysia (up 24.5%) and Vietnam (up 18.5%).

He said among those markets, Japan and Vietnam are best poised for continued growth.

“I think Japan will take a little bit of time for that slowdown at a national level because we still see that rate growth in Tokyo and Osaka and Kyoto to some degree,” he said. “So that’s going to continue a bit. I would expect Indonesia and Malaysia to soften a bit. Thailand will see something before peak season comes in because growth in peak is always going to be lower than growth in shoulder and low. You can have more impact. I think we’ll see percentage gain is going to slow down in some of those markets there. Vietnam will keep going for a while, from that lower end, for sure. I think New Zealand and China will take a little bit longer, for totally different reasons there.”

Palmqvist also noted two major news items happening in the region recently: Oyo’s planned $525 million acquisition of Motel 6 parent company G6 Hospitality, and the Chinese government’s interest rate cut and additional stimulus efforts to buoy consumer confidence and spending.

He said the G6 deal marks a new level of growth and maturity for Oyo.

“For me personally, it looks like a good deal,” he said. “I think it’s a great expansion base for a company like Oyo that has [had] such an interesting journey.”

He said the company had been criticized earlier in its history for “growing too fast” in some countries like China, but the G6 deal is set up to be a more strategic play. That’s indicative of how Oyo has changed in recent years, he added.

“When you think about the growth they’ve done post-COVID in strategic markets, the product is different,” he said. “They’ve gone through a maturity process in 10 years that took some companies, 30, 40, 100 years, right? And for me, that’s what’s so impressive.”

In terms of China, Palmqvist said there is some hopefulness that a 50 basis point interest rate cut will help the overall economy, but there are some people saying the move doesn’t go far enough.

“That confidence piece is so important in a market like China,” he said. “People do work as a machine is the collective thinking. There’s so much money behind it. So I think there’ll be some impact going into [the fourth quarter] in terms of some spending.”

Credit Hotel News Now

Sept 27 2024

Tips for How to Improve Your Hotel Operations

The hotel industry is highly competitive, making efficient operations essential for delivering great guest experiences while maintaining profitability. Streamlining your hotel operations ensures every aspect of your hotel, from housekeeping to reservations and guest services, runs smoothly.

This article explores the significance of hotel operations, the role of a hotel operations manager, effective strategies for success, and how hotel operations software can boost your efforts.

Hotel Operations Meaning

Hotel operations means all the processes and tasks involved in managing a hotel. This includes guest relations, food and beverage services, maintenance, housekeeping, and front office operations management. Effective hotel operations can improve guest satisfaction, unified service delivery, and operational efficiency.

Why Are Hotel Operations Important?

How do hotels operate? An effective hotel operations plan is the foundation of any good hotel. It plays into every part of the hotel. Here are a few reasons they are essential:

Guest Satisfaction: Smooth operations ensure guests have a good experience. Happy guests are more likely to visit again or recommend your hotel to others.

Operational Efficiency: Reorganizing operations can cut waste and inefficiencies to create better use of resources and cost savings.

Employee Productivity: Clear processes and easy-to-use systems let staff do their jobs effectively, increasing productivity and job satisfaction.

Operational Challenges in the Hotel Industry

The hotel sector encounters various operational hurdles that can affect both profitability and guest satisfaction. Some of the primary challenges include:

Labor Shortages: Many hotels are facing difficulties in hiring and retaining qualified staff, which can result in slower service and diminished guest experiences.

Increasing Operational Expenses: Rising costs for supplies, utilities, and workforce can put pressure on hotel budgets. Effective cost management is essential to maintain service quality without compromising on guest experience.

Evolving Guest Expectations: Today’s travelers expect higher standards in cleanliness, technology integration, and personalized services. Meeting these expectations is vital for staying competitive.

Inefficient Systems: Many hotels still rely on outdated or poorly integrated systems, leading to operational inefficiencies. Adopting a modern Property Management System (PMS) can help streamline operations and enhance guest services.

Role of a Hotel Operations Manager

A hotel operations manager plays a huge part in coordinating and overseeing all the operational aspects of a hotel. Some of their responsibilities include:

Staff Management: Hiring, training, and managing staff to ensure they offer excellent service and meet all hotel standards.

Guest Services: They make sure guest’s needs are met quickly and efficiently, handle complaints, and otherwise improve guest satisfaction.

Operational Efficiency: Introducing processes to simplify operations, improve service, and reduce costs.

Budget Management: They control expenses, oversee budgets, and work to meet financial targets.

Health and Safety Compliance: Ensuring the hotel meets all health and safety requirements to offer a safe place for staff and guests.

Performance Monitoring: These managers review and analyze operations performance to find areas of improvement and implement needed changes.

Best Software to Manage Hotel Operations

In the modern age, using software is integral for efficient hotel operations management. Hotel online reservation software is a great addition to any hotel. One of the best options is Hotelogix, a cloud-based property management system (PMS). Here’s why Hotelogix stands out:

Multi-Property Management: Hotelogix offers multi-property management software so you can manage several locations from one platform. This is ideal for hotel groups and chains.

Centralized Control: You can manage all operations, such as housekeeping, billing, front desk, and reservations, from a central dashboard for better operational efficiency and control.

Real-Time Updates: Get immediate updates on inventory, booking, and guest details to be sure you have up-to-date and accurate information for all departments.

User-Friendly Interface: The interface used by Hotelogix is intuitive. Staff will easily learn to perform their duties in an efficient manner.

24/7 Support: Experience access to customer support at all times to resolve issues and ensure great operations.

Ways to Improve Operations- Best Practices in Hotel Operations

Improving hotel operations requires a strategy. You also need to implement best practices. Below are some practical methods to enhance your hotel’s operations:

Automate Processes: Automate routine tasks using hotel management software like Hotelogix. This might include check-ins, reservations, and billing to save time and reduce manual errors.

Staff Training: Invest in training programs for your staff to ensure they are skilled, knowledgeable, and motivated to offer great service.

Modernize Communication: Implement excellent communication tools and channels to create smooth interactions between staff members and departments.

Optimize Inventory Management: Use inventory management tools to keep track of supplies and avoid overstocking or shortages.

Enhance Guest Experience: Create a personalized guest experience using data to offer tailored amenities and services. Access feedback and make needed improvements based on reviews.

Implement Energy-Efficient Practices: Use energy-efficient practices to contribute to environmental sustainability while reducing operational costs.

Regular Maintenance: Schedule regular maintenance checks to be certain all facilities and equipment are in great condition to prevent disruptions and breakdowns.

Monitor Performance: Use key performance indicators (KPIs) to evaluate and monitor the performance of different departments. This can be used to make optimal improvements.

Top Trends in Hotel Operations

Being aware of hotel operations trends can provide a competitive edge for your facility. A few trends to be aware of include:

Sustainability Initiatives: Hotels are moving towards sustainable hotel operations by implementing eco-friendly practices, such as reducing waste, using renewable energy, and sourcing sustainable products. This can attract environmentally conscious travelers.

Technology Integration: The use of the Internet of Things (IoT), machine learning, and artificial intelligence is transforming hotel operations. These technologies improve guest experiences, enhance efficiency, and provide insights using data analytics.

Mobile Optimization: Mobile optimization is important as travelers increasingly use devices to book rooms, check in, and talk to hotel staff. Responsive websites and mobile apps are crucial tools for hotels.

Contactless Services: People want contactless services like digital keys, cashless payments, and mobile check-in and check-out. This is driven by a need for convenience and safety.

Personalization: Using data-driven insights to personalize guest experience is standard in several industries. Hotels use guest data to offer customized offers, recommendations, and services.

Remote Work Accommodation: With more people doing remote work, hotels are adapting by implementing relevant amenities, such as business services, dedicated workspaces, and high-speed Internet.

Hotel Operating System – Hotelogix for Managing Hotel Operations

Hotelogix helps hotels to efficiently manage their hotel operations. The multi-property management software is designed to meet the needs of hotel groups and chains by offering real-time updates and control across several properties. Below are some ways that Hotelogix can improve your hotel operations:

Comprehensive Management: The suite of features available from Hotelogix helps manage all aspects of your hotel operations, from housekeeping to reservations and guest services.

Cloud-Based Convenience: As a cloud-based PMS, you get the convenience of managing and accessing hotel operations at any time and from any location for total flexibility.

Scalability: Whether you manage one property or many, Hotelogix is designed to scale with your business. You will always have the tools you need to succeed.

Enhanced Guest Experience: Providing personalized services and centralizing guest data lets Hotelogix enhance the guest experience. This can create better loyalty and satisfaction.

Analytics and Reporting: Use analytics and reporting features to get insights into your hotel’s performance, find trends, and make informed operational decisions.

Final Thoughts

In the highly competitive hotel industry, efficient operations are key to delivering outstanding guest experiences and maintaining profitability. By understanding the significance of hotel operations and the critical role of a hotel operations manager, hoteliers can implement strategies that enhance every aspect of their property, from guest services to housekeeping.

Leveraging modern can further modernize operations, offering centralized control, real-time updates, and a user-friendly interface that empowers your staff. By adopting these best practices and staying informed about industry trends, your hotel can not only meet but exceed guest expectations, driving both satisfaction and success in a rapidly evolving market.

About Hotelogix

Hotelogix is a leading cloud-based property management system designed to simplify hotel operations and enhance guest experiences. It offers comprehensive tools for managing reservations, housekeeping, billing, and more, all from a centralized dashboard.

With real-time updates and multi-property management capabilities, Hotelogix ensures that hoteliers can efficiently oversee multiple locations with ease. Its user-friendly interface allows staff to quickly adapt, improving productivity and service quality. Additionally, Hotelogix provides 24/7 customer support, ensuring uninterrupted operations.

Credit HNR Hotel News

Sept 18 2024

Mentoring and Networking: Building Relationships for Career Development

Hard work leads to success. Right? That’s what most people think, but career advancement may depend more on who you know and how you optimize your personal connections. In today’s competitive job market, mentoring and networking are no longer just supplemental supports for career growth, they’re essential.

Unfortunately, mentoring and networking are often perceived as transactional exchanges, or as looking for hand-outs and favoritism, and nobody likes that. However, both research on social capital and professional experience suggest that effective mentoring and networking is about building relationships and sharing experiences. With this perspective, they become more fulfilling.

In this light, three key elements of mentoring and networking are professional development, building relationships and being intentional. Let us see how each of these work in practice and how they can be applied for your personal growth.

Professional development

The 70-20-10 approach by the Center for Creative Leadership is a well-known model for leadership development. In this model, 70% of learning comes from challenge assignments and 10% from coursework and training. The bridging 20% comes from developmental relationships such as mentoring, coaching and sponsorship. These relationship building activities provide guidance and support (mentors), encourage behavior improvement (coaches) and help to increase visibility in the organization (sponsors). To highlight the importance of these relationships in career development, consider this quote from a young manager.

Additionally, leadership training programs and short courses are excellent ways to boost your skills, open the doors to new career opportunities, and reach the next level in your current career path with the support of a learning center and their academic and professional network.

Building relationships

Since relationships play an influential role in professional development, it is important to understand how to build the right kinds of relationships.

First, we build relationships with people who are like us, located close to us and with whom we share intense activities. This rule suggests that a good way to meet people is to get involved in activities where we share interests or where we have an intense period of working together.
The second point to remember is that different types of relationships have different purposes. You may rely on friends and family for support and friendship, while people higher or in other parts of the organization may provide advice and influence. It is good to think about how different people contribute to your network, depending on the support you need from them.
Finally, it is important to remember that givers are the best networkers. Givers are those willing to help others with no strings attached and who set appropriate boundaries. In addition, “energizers” who build trust and engage in possibilities are four times more likely to build effective relationships.
One last thing to consider: relationship building is easy for people who have a high level of emotional intelligence, which is essential in leadership roles today.

Being intentional

With more than 30 years of experience in the hospitality industry, José Soriano resonated with these concepts:

“I have been fortunate in my career to work with women and men who have contributed to my personal journey and career. Mentors, coaches and sponsors have helped with my personal and professional development and growth. One of my big takeaways is that you should be intentional about and committed to building relationships, invest time and be responsible for staying in touch. The positive impact that mentoring and networking have on you is transformational. The power of communities, bringing people together and connecting authentically allows you to collaborate, build trust, learn and grow in inspired ways, which will be a catalyst for incredible opportunities in your life.”

Some ideas that can help you in developing an intentional approach to networking are:

Participate in shared projects: Boards, volunteer activities, cross-functional teams, training programs. These projects provide opportunities to meet people over a longer time span and in repeated activities, so others can get to know you and build a trusting relationship.
Meet people in new contexts: Over coffee, social events, travel, and outside activities. Or consider taking up a hobby that develops soft skills and connections. Building relationships with people in different settings helps people to see the multiple facets of you and your talents.
Find a mentor, sponsor, coach: Participate in your company’s mentoring program, ask for help from people who know you well, and build trust. In addition to providing career guidance, mentors and sponsors can make introductions and provide legitimacy. While your talents are of an unknown quantity, an introduction from a sponsor gives you an opportunity to showcase your abilities, facilitate trust, and gain acceptance in a new situation.

Getting started

Take a step back and reflect on your professional relationships. Is there someone new you would like to meet? Invite them for coffee. Is there a part of the organization you would like to learn more about? Volunteer for a cross-functional team. Would you benefit from guidance to enhance your career vision? Join your company’s mentoring program. Notice that each of these actions requires being proactive and getting involved in a longer-term activity. They are not about a transactional approach of exchanging business cards at a one-time event.

EHL Hospitality Business School, for example, is a place where mentoring and networking play an important part in learning and development. EHL offers a mentoring program for its employees and EHL Alumni often connect with students as mentors. And any EHL learning program, be it undergraduate, graduate or executive, is an intense experience in social learning. The school offers an environment of trust that facilitates building relationships and networks with new and diverse colleagues.

Sometimes people are afraid to ask for help. Don’t worry – we have all been there. Take a step to reach out, especially to someone you perceive as a giver, and see where this step takes you. And remember to always say “Thank you”, to those who have contributed to your journey.

Credit eHotelier

Sept 17 2024

Hotel Rate Management: Understanding What It is and How to Do It

What’s the number one activity that fuels revenue generation at your independent hotel?

As a general manager or hotel owner you’ll find much debate on how to achieve it and what ‘good’ looks like, but very little on what that duty actually is: setting competitive rates that help you meet your goals.

Whatever metric you’re shooting for – better occupancy, a higher average daily rate (ADR) or greater revenue per available room (RevPAR) – and whatever factors you consider – competitor pricing, demand, availability – none of them are achievable if you don’t get your rates right.

Of course, you’ll also be juggling many other tasks to ensure that your hotel is running smoothly. But, for the moment, let’s park those and focus on the fundamentals of setting competitive rates, something that can seem complicated – but doesn’t need to be if you understand the principles.

Get this right, and you’ll see marked improvements in your revenue performance.

Rate management helps hoteliers set and adjust room rates to drive bookings and maximize revenue

Rate management in the hospitality industry is the practice of strategically setting and adjusting room rates to optimize bookings and maximize revenue. It involves analyzing a variety of factors to determine the best rate for each room at any given time.

These factors include:

Market conditions: The state of the economy, local events, and even weather patterns can impact demand for hotel rooms – set your rates in a vacuum and you’ll get them wrong.
Competitive landscape: Understanding the pricing strategies of your competitive set – and having a clear view of their room rates – is crucial for positioning your rates effectively in the market; without these insights, you can price yourself out of the market or sell yourself short.
Customer demand: Analyzing historical booking patterns and current demand trends gives you a clearer picture of anticipated market demand that allows you to adjust rates in real-time.
Seasonality: Different seasons bring varying levels of demand, requiring careful rate adjustments to maintain occupancy.
Room types and amenities: Rooms with better views, more space or added amenities can often command higher prices.

How rate management helps hotels maintain high occupancy levels

Effective rate management plays a pivotal role in maintaining high occupancy levels. By strategically setting competitive room rates and understanding traveler preferences, you can attract more guests, even during low-demand periods or in crowded markets.

This is done via dynamic pricing. Done well, it means you don’t have to sacrifice ADR or RevPAR to drive occupancy. Let’s dig into the details.

Set competitive room rates

Competitive pricing doesn’t always mean offering the lowest rate; it involves pricing rooms in a way that reflects their value while also being attractive to potential guests, whether fluctuations are driven by seasonality, room size, number of beds, number of rooms, length of stay or other factors too numerous to mention.

If you strike the right balance, you’ll increase revenue and profit; strengthening your bottom line.

During peak tourist seasons, you can increase rates due to higher demand, but in the off-season, while you’ll almost certainly want to bring your prices down to help maintain occupancy levels, deploying the best tools, data strategies prevent you from dropping them too far.

Imagine a period of high demand during a popular summer festival. By increasing rates slightly above your competitors, you could attract guests looking for premium experiences, resulting in higher occupancy even when other hotels were struggling to fill rooms.

Understand what travelers want

Understanding traveler preferences is another critical component of rate management. By analyzing guest feedback and booking patterns, you can tailor your offerings to meet traveler expectations, leading to higher satisfaction and increased bookings – and see your rooms booked at the prices guests are prepared to pay for them; it’s all about landing on the right price.

For example, if a boutique hotel in a major city noticed through guest feedback that travelers highly valued complimentary breakfast, they could incorporate this feature into their rate management strategy. By doing so, they could increase room rates slightly while still attracting guests who appreciated the added value. This approach not only improves occupancy rates but also enhances the overall guest experience.

Ultimately, a handle on rate management equips you with greater insight into many of the things that help you make good pricing decisions, such as market demand, which rooms sell best and what additional services guests need.

Rate management vs revenue management: What’s the difference?

Let’s start by defining revenue management, the broader of the two disciplines.

Hotel revenue management is a strategic, data-led approach to optimizing rooms and services with the aim to maximize total revenue. It factors in variables such as demand, competition, customer segmentation, and distribution channels, it considers a range of KPIs, and it’s critical to the commercial operation of a hotel for a number of reasons, such as:

It can provide a competitive advantage through the understanding of market trends and market behavior, enabling you to outperform competitors.
Through the use of demand forecasting it can help you plan operations more efficiently, leading to cost savings and improved guest satisfaction.
Hotel rooms are a perishable commodity – unsold rooms don’t generate revenue if empty – revenue management ensures consistent occupancy.

We said it was broader. It’s not just that; to all intents and purposes, rate management is a complete subset of revenue management – and arguably the most important one; certainly, it’s the one that all other subdisciplines feed into or overlap with.

So where exactly does rate management fit within revenue management?

Focusing specifically on setting and adjusting room rates, rate management enjoys a position of such importance because it directly impacts on both occupancy and revenue. Rate management typically occurs on an ongoing basis after you’ve completed key revenue management tasks such as demand forecasting, segmentation, competitor analysis and market analysis.

This ensures that your rates are set in a way that aligns with your broader revenue goals – which we’ll now take a quick look at.

Rate management supports overall revenue goals

Successful rate management doesn’t just help you fill rooms – it plays a critical role in supporting your hotel’s overall revenue goals. By setting competitive rates that attract guests and maximize occupancy, you’re laying the foundation for strong, sustainable revenue growth.

When combined with other strategies, such as offering targeted promotions, effective rate management can significantly boost your hotel’s profitability.

By optimizing room rates, you can maximize RevPAR, arguably your most important metric.

Moreover, effective rate management can enhance your hotel’s market position, making it more competitive in the long run.

5 best practices for successful hotel rate management

That’s the theory and an overview of the strategy. What about tactics for implementation?

Setting rates takes trial and error, patience, reflection, consultation with your colleagues, and a view of the revenue management picture. As you’d expect us to say, there’s no simple play book. But these five tried-and-tested tips will help you get started or refine your existing practices.

1. Consider historical data

Leveraging historical data is crucial for informing and improving your rate management efforts. By analyzing past booking trends, seasonality and guest behavior, you can make more accurate predictions about future demand and set rates accordingly.

Key historical data to consider include:

Average daily rate (ADR): As the name suggests, this metric provides insight into the average revenue generated per occupied room.
Occupancy: Understanding past occupancy levels can help in forecasting future demand.
RevPAR: This metric combines occupancy rates and ADR to provide a comprehensive view of revenue performance.

But there are many more, as discussed in our essential guide to revenue metrics.

Understand these data points and you’ll be stepping on to the fast track of rate management.

2. Optimize yield management

Yield management is a dynamic pricing strategy that involves adjusting rates based on supply and demand – so good inventory management is essential.

A critical component of rate management, it allows you to maximize revenue by selling the right room at the right time to the right guest. To optimize yield management, you should:

Consider external factors such as market demand, competitor rates and booking patterns
Leverage dynamic pricing: Adjust rates in real-time based on changing market conditions and demand with a pricing recommendation tool.
Monitor booking pickup and pace: Track how quickly rooms are being booked to identify opportunities for price adjustments.
Try and segment your market: Tailor pricing strategies for different customer segments, such as business travelers vs leisure travelers, and on their willingness to pay, and tailor your rates accordingly

It’s a broad topic, so for a deeper dive, have a read of our introductory guide to yield management.

3. Make the most of your distribution channels

Online travel agencies (OTAs) are a powerful tool for driving bookings, especially for independent hotels that may not have the marketing reach of larger chains. OTAs enable you to reach a global audience, fill rooms during low-demand periods, and collect valuable data on traveler behavior.

But, don’t forget, the number one channel you want to drive business through is your own website, so you avoid incurring the commission fees that come with having your rooms on OTAs.

To maximize the benefits of your channels :

List rooms on multiple OTAs to increase visibility and assist in your quest to collect data about travelers, which can support other best practices we’ve discussed
Integrate a channel manager into your tech stack so your can optimize room visibility, rates and channel distribution in real-time
Use a market leading booking engine to ensure direct booking on your website is a seamless experience for potential guests
Use real-time dynamic room pricing data in combination with your channel manager to help inform your rate management decisions across all of your channels

4. Keep an eye on customer satisfaction rates

Customer satisfaction is directly linked to your ability to charge competitive rates.

By regularly monitoring guest feedback, you can gain insights into what aspects of your service are most valued by guests and adjust rates accordingly.

For instance, if guests frequently praise the quality of your hotel’s bedding or the friendliness of the staff, you can perhaps justify slightly higher room rates. Conversely, if guests complain about the value for money, it may be necessary to lower rates or enhance offerings.

Make sure you should regularly:

Review guest feedback and satisfaction scores
Use positive feedback to justify rate increases
Respond to negative feedback: Address complaints about pricing and highlight positive feedback in your marketing efforts and improve your services
Offer value-added services: Consider bundling services, such as breakfast or parking, to enhance perceived value
Monitor review sites: Regularly check sites like TripAdvisor and Google Reviews to stay on top of guest feedback

By prioritizing customer satisfaction, you can build a loyal customer base and improve your hotel’s reputation, which in turn supports your rate management strategy.

5. Invest in a pricing recommendation tool

In a world so driven by data, a pricing recommendation tool is essential for effective rate management. This will provide you with the insights and automation you need to optimize rates and drive room revenue.

Pricing recommendation tools generate dynamic price recommendations for your hotel rooms. Enabling you to unlock more revenue opportunities and optimize your prices without diverting you from your day-to-day responsibilities.

Employing a pricing recommendation tool eliminates the need for you to manually check the room pricing landscape. It delegates a significant portion of the decision-making process to the tool itself.

Broadly speaking, a good pricing recommendation tool will offer:

Dynamic pricing recommendations into the future – guests book far in advance; you need to be able to cater for this and offer optimized rates to match.
Customized settings – every hotel is different and if you only have a one-size-fits-all tool, you’ll become frustrated. The user should be able to give as much, or as little control as they feel comfortable with. You want to be able to automate rates but also have the final say.
Transparent rate recommendations – if the solution recommends a rate change it should explain exactly what variables led to this decision in plain language exactly.
Ease of use – An effective dynamic pricing solution should have user-friendly dashboards and be easily discernible for users, even if they have no prior revenue management experience. There should also be robust training resources available in case users need support.
Seamless two-way Channel Manager for syncing and decision making

By investing in the right pricing recommendation tool, you can greatly improve your practice of rate managemen, seize new revenue opportunities and achieve better financial outcomes.

Enhance your hotel’s pricing strategy with data-driven insights

Pricing recommendations tools provide the most effective support in your efforts to optimize room rates and drive revenue.

Lighthouse is a market leader with the industry’s most accurate data sets and best-in-class solutions for independent hotels, not least in the pricing recommendation tool space. Pricing Manager has designed specifically for small, independent hotels, and endeavors to:

Boost your revenue with data-driven rate recommendations
Save you valuable time with user-friendly automation
Take control of your pricing strategy with flexible settings
Leverage the robust and most trusted industry data set

Pricing Manager offers numerous market-leading features, many of which set it apart from its competitors.

Settings are customizable and can be fine-tuned to meet your needs, along with the option to override price recommendations, so you are always in control.
The option to set Autopilot – instantly sending certain recommendations and maximizing your time
Pricing Manager analyzes both internal and market data, including pickup rates, occupancy forecasts, and competitor rates. The outcome? Optimal pricing for your hotel.
Using Pricing Manager is a breeze, even if you don’t have prior Revenue Management experience, thanks to our user-friendly dashboard.
Support that never sleeps – global customer support ensures peace of mind across all time zones; we’re always here, whenever ‘now’ is for you
No pricing puzzles – we demystify pricing with transparent calculations: occupancy, competitor pricing, demand; it’s all there to see in just a few clicks
Effortless PMS integration – no time-consuming manual work required, so you can focus on what you do best

If you like the sound of Pricing Manager, start a free trial today and fully optimize your rates up to 365 days in advance.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

Credit HNR Hotel News

Sept 12 2024

Hotel Room Innsights Report: Hotels.com Pulls Back the Covers on the Surprising World of Hotels

Lost and Found: A pet lizard, $6 million watch and car tire are some of the oddest items left in hotel rooms around the world
Room Service: An Evian filled bathtub, burnt toast, 4lbs of bananas and a caviar hotdog top the most bizarre room service orders
Hidden Hotel Perks: A 400-year-old Japanese garden and guitar concierge are among the hotel perks you never knew you needed

AUSTIN – Yesterday Hotels.com launched its annual Hotel Room Innsights Report*, uncovering surprising services and stories from more than 400 partner hotels worldwide. This year’s report reveals the astonishing items left behind by guests, wildest room service orders, hidden hotel perks and ‘out of this world’ services accommodating travelers today.

At Hotels.com we know hotels inside and out – it’s in our name. By asking hotels to reveal the secrets behind their most memorable stays, we discovered that these “innsights” have actually inspired services available to guests today. From guitar concierges to pet healers, hotels are catering to travelers’ unique demands, which may well become the norm. With the Hotels.com app, you can experience them all while earning rewards and enjoying exclusive perks at VIP Access properties. Melanie Fish, vice president of Global Public Relations at Hotels.com

Lost and Found – When Leaving the Trip is Hard, but Leaving Belongings is Easy

The report shows the most common forgotten items are dirty laundry, device chargers and makeup and toiletries, but this year’s innsights reveal a new list of forgotten items not for the faint-hearted.

The priciest: Hotel staff found a Rolex, Birkin bag, and a $6 million watch.
Pet peeves: A chick and pet lizard were found (and returned) after their owner checked out.
Essentials only:
Guests forgot two full-leg casts and 10% of hotels reported that guests left behind their dentures.
The unexplainable: Items include a rice cooker, car tire, blender and construction pipes.

Thankfully, hotels are adapting to help forgetful guests. Leave your toiletries at home at the Viceroy Riviera Maya, which has a soap concierge. The Kimpton Vero Beach Hotel allows travelers to browse and borrow accessories like sunglasses and handbags from retailer Anthropologie through its “Forgot it? We’ve got it!” program.

Despite efforts like ‘lost and found’ boxes, some hotel staff have gone to the extreme to reunite guests with their possessions. One hotel hero drove 100 miles to return a passport, another ran several blocks to deliver items before a cruise ship departed, and another took a shopping trip to replace a lost teddy bear for a young traveler and included a book detailing the bear’s adventures.

Room Service – When Guests Turn Ordering Off-Menu into an Artform

Gone are the days of ordering a classic club sandwich to the room. For the second year in a row, Hotels.com is revealing the most peculiar room service orders and services. The most head-scratching requests include:

An Evian-filled bathtub so a child can bathe in the purest water
Customized allergen menu for their pet, i.e., gluten free, dairy free, etc.
Burnt toast
A caviar hot dog
Fresh goat milk
4lbs of bananas
A high five from a team member to ensure their room service request was read

Hotels are adapting to these increasingly odd room service requests, with W Osaka installing a ‘Whatever/Whenever’ button for guests to order anything, anytime. At the Hospes Maricel & Spa, Palma de Mallorca, guests can order Beauty Room Service, including facials and high-tech beauty treatments.

Hidden Hotel Perks – The Perks You Never Knew You Needed

Hotels.com gives a glimpse behind the front desk at the extraordinary hotel perks you never knew existed and how to make the most of your stay.

Stroll through a 400-year-old Japanese garden at Hotel New Otani Tokyo The Main.
The Four Seasons Hotel Austin provides an in-room guitar concierge for guests who want to strum on a premium guitar.
The Sentinel Hotel in Portland offers Very Important Pets services, including access to top groomers and a pet acupuncturist for stressed pets.
Take a private guided tour of the British Museum at The Montague on the Gardens in London.
Savor a personalized wine tasting experience in the cellar of Villa Gallici Hôtel & Spa.

Hoteliers also share insider tips for getting the most out of your room, like requesting a smoking room for a balcony or a higher floor for more space and quiet. Staying at Hotels.com VIP Access properties gives Silver, Gold and Platinum One Key members access to even more perks to elevate their stay, with some of the top benefits including:

Potential room upgrades
Spa vouchers
Free breakfast
Food and drink extras
One Key members can earn OneKeyCash when booking VIP Access properties

To book the properties featured in the Hotels.com Hotel Room Innsights Report and explore additional hotels with unique services and amenities, click here.

Credit hospitalitynet

Sept 12 2024

The what and why behind nationwide hotel strikes

Pay, working conditions vital to ‘save our industry,’ union leader says.

The union, which represents roughly 300,000 workers across various hospitality industries in the U.S. and Canada including roughly 100,000 in hotels, had workers walk off jobs in cities such as Baltimore, Boston, Greenwich, Honolulu, Kauai, San Diego, San Francisco, San Jose and Seattle during the weekend. Workers remain on strike in San Diego and more strikes are expected in Oakland, Providence and possibly Sacramento depending on the results of an upcoming strike authorization vote in that city.

Speaking on the latest episode of the Hotel News Now podcast, Cade Watanabe, president of Unite Here Local 5 in Hawaii and co-chair of the ongoing national campaign, said a willingness to take better care of workers is vital to “save our industry.”

“The basis of our campaign has really been about not just making sure we have the economic improvements and wages to be able to live in the cities that we welcome our guests to, but also to provide the service, too,” he said. “We’re in the business of hospitality. We want to be able to do that. And part of being able to do that is we need the property staffing. We need workload concerns being addressed. We want to make sure that not only are workers like ourselves respected by this large industry that made over $100 billion in 2022, but also that our guests get what they pay for as well.”

Watanabe said the strikes on Labor Day were the culmination of a campaign that launched earlier in the year, specifically on May 1, which coincides with International Workers Day.

Workers across those markets are pushing for pay increases along with specific contract language limiting their workloads and the reversal of pandemic-era cuts to amenities such as daily housekeeping, he said.

The Labor Day strikes are an acceleration of already historic level of labor activity across the hotel industry, which also saw significant strikes during contract negotiations in Los Angeles and Las Vegas in recent years.

Watanabe said a recent strike in Hawaii involved more than 5,000 workers from eight hotels, which he called “the largest mobilization of our hotel workers in over 30 years.” He added the biggest impetus for those workers’ frustrations is over being ill-equipped to provide “high-quality service,” and cost of living and housing increases far outstripping pay in the industry.

“In Hawaii, tourism is the most important industry, and if our No. 1 industry isn’t able to provide good, long-term jobs for our local community, then the question really is, why should the community and why should our local people in every one of our cities support tourism?” he said.

Asked whether hotel investors should shoulder the burden of increased cost of living and housing issues, Watanabe said the union isn’t “asking our hotel operators to solve our social problems that exist in every one of our markets.”

“What we are asking them is to meet us more than halfway or meet us halfway and step up to the plate and help us deliver the product that they so much depend on and they market,” he said. “We want to do this work. We love our jobs. We love our guests. We need the tools, and part of those tools are the proper staffing to be able to provide that high quality of service that we believe our guests want when they save up and stay at one of our hotels anywhere across the country.”

Credit Hotel News Now

Sept 6 2024

Personal Branding Strategies: 5 Tips to Make You Career Grow Faster

In a global job market characterized by fierce competition and rapid technological evolution, candidates face a constant challenge to develop their careers and get others to recognize their professional value.

Whether you’re applying for a job, asking for a promotion, or vying for a leadership position, success comes to those who differentiate themselves from the competition and effectively communicate the skills, traits, and experience that set them apart.

A big part of that is personal branding. Whether you look like it or not, these days, everyone is a brand, and all your professional touchpoints, from your resume and LinkedIn profile to the way you communicate and carry yourself are an extension of that brand. With that in mind, you must be comfortable marketing yourself and understand how to do it in a cohesive and compelling way.

What is personal branding and why is it important?

Personal branding is the intentional process of defining and promoting your value proposition. The key word here is ‘intentional’. It’s not always easy, but by being intentional about your brand, you can control your narrative and actively work to differentiate yourself from the competition.

It might sound like an egotistical exercise, but a well-managed personal brand is a powerful tool that can help you thrive in an ultra-competitive job market. It enhances your visibility, makes it easier to expand your professional network, and increases your chances of attracting new opportunities. It also enables you to share your unique attributes and values with the people that matter.

It used to be only high-profile business leaders and celebrities who would spend time creating a personal brand. However, the digital world – and social media and professional networking platforms in particular – have democratized that ability so everyone can shape their professional personas and connect with prospective employers, clients, and business partners.

How to build a personal brand for career development

If you’re ready to move on in your career, you need to create a clear and specific message that showcases your USPs and differentiates you from the competition. Here’s how you can do it.

Step 1: Think about what drives you

The first step in your personal brand journey is to dig into what drives you. For your brand to ring true, it must be authentic. If it’s not, there’ll be no consistency or compelling value proposition.

Think about all the raw materials you have to work with, from your education, personal and professional experiences, interests, and hobbies to your social connections, relationships, and how people think about you. Then ask yourself the following questions:

What skills or talents are you most proud of?
What do people most admire about you?
What projects excite you?
What motivates you to work?
What are your core values (limit it to three)
What are the traits you aspire to?
What do the people you most admire have in common?

Writing down your answers to these questions will help you identify any overlaps and the values and beliefs that drive you. You can then use your responses to identify the skills and behaviors you want to develop and create an accurate and concise brand message. These elements of self-awareness are crucial for leadership and personal branding.

Step 2: Personal branding strategies

Once you have the essence of your personal brand, you can then make a list of adjectives and descriptive phrases that capture the real you. You should avoid broad descriptions – for example, ‘I am an experienced accountant’ – and use more descriptive language that will help to differentiate you – ‘I am a detail-orientated cost-based accounting expert’.

It’s often the case that our perceptions of ourselves differ from how other people see us. To ensure your brand message accurately reflects your skills and attributes, ask friends, colleagues, family, and romantic partners what they think your strengths and weaknesses are and work their feedback into your brand message.

It’s also worth assessing your skills and talents against the competition. What traits, credentials, and behaviors do they exhibit and what attributes are unique to you? That will help you differentiate your message and identify areas you can develop.

Step 3: Create the narrative

A personal brand is not just a single message or some thoughtful adjectives. It’s an ongoing narrative woven by you that builds up in the minds of your audience. A great place to start is to think about the times you’ve fully embodied the brand you want to portray and communicate those events on your CV, in job interviews, in feedback sessions, and most importantly, through your actions.

You do not have to control the narrative when you’re with friends, family, and colleagues you know well, but in professional interactions that matter with influential people, you should try to put your best foot forward. That doesn’t mean bragging or talking about yourself excessively. It means delivering on your personal brand through your actions and behaviors.

Step 4: Communicate your story

Once you have a compelling narrative, the next step is to think about how you’ll communicate it. Storytelling is often praised as the ultimate branding tool. Your brand story is an elaboration of your narrative, but how do you make it authentic and implement it? To develop a deep understanding of the power of storytelling and learn how to create a story that goes beyond product and services features, you may want to use tools such as Brand Story CanvasTM.

Next, you must choose the right channels to share your brand story. Common brand-building mediums include your resume and cover letter, LinkedIn profile, networking events, and any content you produce, such as blogs, speeches, training sessions, or videos. It would be best if you also considered your target audience. It could be employers in a particular niche or judges for a professional award d you’d like to win.

Self-promotion can feel uncomfortable, but no one will hear your story if you don’t put it in front of them. Giving people easy ways to see what you can offer is an important part of the plan.

Step 5: Identify allies

Accelerating your career development through personal branding is more effective if you have allies to help you spread the word. Genuine allies, such as colleagues and supervisors, networking contacts, professional mentors, and friends, will usually be happy to help. You should have a clear idea of who you want to reach out to and why. You can then explain what your goals are and make a straightforward request.

Connecting with fellow professionals who have similar interests and sharing articles or videos you’re passionate about will also help you expand your network and build your brand.

Success won’t come overnight

Studies have shown that personal branding, and particularly having a strong digital presence, can be effective across various demographics and industries. It can strengthen your connections, enable you to engage more deeply with stakeholders, and help others understand who you are. But don’t expect immediate results. Personal branding is an ongoing process that takes time and effort.

Once you’ve identified your differentiators and created a compelling narrative, you must continually assess how it fits your professional context and career goals. It’s a lot of work, but the benefits are well worth it.

Credit: eHotelier

Sept 5 2024

Hotel management agreements in Asia Pacific now average 17 years

Comprehensive industry study by JLL and Baker McKenzie draw conclusions from approximately 400 management contracts over 20 years.

Hotel management agreements (HMAs) are increasing in duration and while management fees have decreased in the past five years, sales and marketing fees have increased across Asia Pacific. The major findings of the Hotel Management Contract Survey 2024, commissioned and published jointly by JLL (NYSE: JLL) and Baker McKenzie, show that the initial term of HMAs increased by four years on average since 2005 to reach 17.4 years in 2024, however regional operators generally have a shorter term and an appetite for more flexibility.

The 2024 Hotel Management Contract Survey represents the most comprehensive study of its kind in Asia Pacific, comprising of approximately 400 hotel management agreements (HMAs) analysed over the past 20 years. This year’s survey also included 145 hotel management contracts signed specifically between 2018 and 2023, the largest sample yet in Asia Pacific, to contribute to the 20-year study.

According to respondents, the length of HMAs does differ by market with Maldives and Japan at 26 and 23 years respectively, where there are a higher number of luxury hotel developments and owners prefer to lock in brands for longer. Furthermore, practice in Australia is more tailored to shorter agreements with an average of 15 years as owners prefer shorter terms and unencumbered asset sales.

One factor influencing the duration of HMAs is increasingly the make-up of fees. According to the survey, the average base fee in contracts has come down to 1.6% of revenue from 1.7%. Incentive fees are increasingly based on a sliding scale based on performance against gross operating profit thresholds.

“In most markets we have seen hotel management fees come down and increasingly fees are linked to results against agreed performance thresholds, which creates additional incentives to operators to perform. An optimally negotiated management agreement aligns the interest of the hotel owner with the operator through rewarding outperformance,” says Xander Nijnens, Senior Managing Director, Head of Advisory & Asset Management, JLL Hotels & Hospitality Group, Asia Pacific.

Despite a decline in management fees, the survey affirmed that sales and marketing fees have increased. Compared to previous years, a higher proportion of operators are charging sales and marketing fees at 3% or more of either Rooms Revenue or Total Revenue.

“There has been clear progress on curtailing management fees but increasingly these drops are being offset by increases in sales and marketing, program fees and variable costs to the hotels. From our interactions with the market, these fees tend to be seen as mandatory, less transparent, and less straightforward to compare across brands, which is causing some concern with owners,” says Nijnens.

Furthermore, a major shift observed in the past 20 years is the including of performance termination provisions in management contracts with 93% of contracts now including this clause. These tend to be based on two performance tests: against revenue per average room (RevPAR) performance of a competitive set, and gross operating profit (GOP) performance against budget, and generally over two consecutive years.

“It is clear that not all performance termination provisions are created equally, and it is critical to get into the detail of the mechanism and thresholds to ensure there is a real option to terminate when the operator is not performing,” says Sebastian Busa, Head of Commercial Real Estate in Australia and Co-Chair of the Asia Pacific Practice, Baker McKenzie.

In the years ahead, JLL and Baker McKenzie predict that owners in Asia Pacific will have a more diverse set of operating models compared to standard hotel management contracts, with franchise, manchises and white label operators getting further traction.

According to respondents, three major new themes will emerge in the coming decade that will impact HMAs in Asia Pacific.

A rise in alternative operating models: Growth in traction of white label operators, direct franchises, and potential manchises
Sustainability influence: Expect to see sustainability increasingly embedded and legislated into contracts by owners and operators.
Room for terminations: Higher liquidity and hotel sales could put a significant premium on vacant possession assets.

“As hotel markets in Asia Pacific mature, we are seeing owners become increasingly savvy in their management contract negotiation and critically considering their branding and operating models. Looking forward we expect this to bring more flexibility into management contracts, we anticipate more ESG provisions, and more termination options to optimise the value of hotels,” says Nijnens.

Credit JLL

August 29 2024

Asia’s F&B Landscape: Key Markets to Watch

As 2024 progresses, the Food & Beverage (F&B) sector in Asia shows signs of steady recovery, offering a glimpse of strategic opportunities for investors and hotel operators. A detailed comparison of profit margins from 2019, 2023, and 2024 year-to-date (YTD) reveals critical trends in key markets across the region.

Marginal Gains Signal Stability in Australia. The country’s F&B profit margins have edged up from 8.4% in 2023 to 8.5% in 2024, reflecting a stable market. While the margin increase is slight, consistency suggests that the sector is on firm footing. Investors may see this as a signal of reliability in a market that has weathered the post-pandemic storm well.

Challenges persist in Hong Kong and Japan. The two countries in contrast to Australia, present a less optimistic picture. Both markets have seen their profit margins stagnate or decline compared to pre-pandemic levels. Hong Kong’s F&B margin remains flat at 23%, while Japan’s margin slightly increased to 24%, yet both are far below their 2019 levels. This suggests that recovery in these regions may be slower, requiring cautious optimism and perhaps a more long-term investment approach.

Vietnam and Thailand continue to be bright spots in the region. Both countries show strong and stable profit margins, with Vietnam at 38.2% and Thailand at 32.3% in 2024. These figures are consistent with or even exceed their 2019 levels, signaling recovery and growth. For hotel operators and investors, these markets represent significant opportunities for expansion and investment.

Singapore and Indonesia have demonstrated gradual but steady improvements in their F&B profit margins. Singapore’s margin rose from 26.6% in 2023 to 27.5% in 2024, while Indonesia’s margin increased to 38.5% in 2024. These trends suggest that both markets are on a positive trajectory, making them attractive for those looking to capitalize on growth potential in Southeast Asia.

The Philippines and the Maldives show signs of stability, with F&B profit margins holding steady. The Philippines saw a slight increase to 37.7%, while the Maldives experienced a modest rise to 40.3% in 2024. This stability is a positive indicator for these markets, suggesting that they have navigated the recovery phase effectively and are now positioned for future growth.

The overall picture of F&B profit margins in Asia highlights a region in recovery, with varying degrees of progress across different markets. Focusing on these markets with strong recovery signals could yield substantial returns even while maintaining a cautious approach in regions requiring more time to stabilize. This strategy positions stakeholders to capitalize on the ongoing recovery and future growth in Asia’s dynamic hospitality industry. As the F&B sector continues to rebound, strategic investments in the markets that show strong recovery signals could yield substantial returns while remaining cautiously optimistic about other markets which may require more time to stabilize, positioning stakeholders to benefit from the ongoing recovery and future growth in Asia’s hospitality industry.

By Bouserrind Comson, Director of Hotel Intelligence – APAC, and Jeannette King, Marketing Manager at HotStats

HotStats is a global data benchmarking company offering specialized performance analysis and a benchmarking tool that helps analyze financial and operational data from a diverse range of hotels globally. This provides hotel owners, operators, and investors with valuable insights into the financial performance of their properties against their competition – an invaluable resource for weighing options and evaluating investment opportunities. For a quick demo, email us at [email protected] or visit www.hotstats.com.

Credit HOTSTATS

August 29 2024

Hotelier’s Handbook: 7 Surprise & Delight Tactics to Improve Hotel Guest Satisfaction

In today’s competitive travel landscape, independent hotels face a unique challenge: standing out from the crowd and capturing the hearts (and wallets!) of travelers. At TravelBoom, we believe in the power of creating unforgettable guest experiences that drive direct bookings and cultivate lifelong loyalty.

That’s where surprise and delight tactics come in. These unexpected gestures of hospitality can transform an average stay into a raving fan experience, generating positive online reviews and word-of-mouth recommendations that will improve hotel guest satisfaction. The best part? They don’t have to be expensive or complicated. With a little creativity and industry expertise, you can empower your staff to create personalized moments that optimize guest satisfaction and boost your bottom line.

How To Improve Hotel Guest Satisfaction

1. Local Love: Celebrate Destination Delights

Go beyond the minibar and transform your hotel into a gateway to the best your city has to offer. Partner with local businesses to curate an authentic experience that delights guests, but also showcases your hotel as an expert guide to the destination. Here’s how to leverage local love for maximum impact:

Welcome Baskets with a Local Twist

Greet guests with a thoughtfully curated basket filled with regional treats, artisanal products, or locally sourced snacks. This provides a delightful surprise and also introduces them to the flavors of your region.

Exclusive Partnerships

Collaborate with nearby attractions, restaurants, and shops to offer guests complimentary passes, exclusive discounts, or unique experiences. This adds value to their stay and encourages them to explore the local scene.

Local Guidebooks or Maps

Provide guests with custom-designed guidebooks or maps highlighting your favorite local spots, hidden gems, and must-see attractions. This positions your hotel as a knowledgeable insider and helps guests make the most of their visit.

Social Media Spotlights

Feature your local partners on your hotel’s social media channels. Share photos and stories that highlight the unique aspects of your destination and the businesses that make it special. This cross-promotion benefits everyone involved and generates buzz around your hotel.

Local Events Calendar

Keep guests informed about upcoming festivals, concerts, and events happening in your city. This helps them plan their itinerary and adds an element of excitement to their stay.

By embracing local love, you create a win-win situation: guests enjoy a more immersive and memorable experience, local businesses gain exposure, and your hotel strengthens its brand reputation as a destination expert. This boosts guest satisfaction, and it also sets the stage for positive reviews, word-of-mouth recommendations, and increased direct bookings.

2. Special Touches for Special Occasions: Turn Moments into Marketing Magic

Personalized surprises can turn ordinary stays into extraordinary memories, and those memories translate into powerful marketing for your hotel. Here’s how to leverage data-driven insights to create unforgettable experiences that delight guests, but also amplify your brand:

Data-Driven Discovery

Utilize your guest data to identify upcoming birthdays, anniversaries, or honeymoons. This information can be gathered through direct inquiries during booking, loyalty program profiles, or even social media monitoring.

Tailored Surprises

Once you’ve identified a special occasion, go the extra mile with a personalized touch. This could be a complimentary room upgrade, a handwritten note from the staff, a bottle of champagne, or a small gift relevant to the celebration.

Capture the Moment

Encourage guests to share their special moments on social media by creating a dedicated hashtag for your hotel or offering a small incentive for posting. This user-generated content serves as authentic marketing and social proof for potential guests.

Post-Stay Follow-Up

After their stay, send a personalized thank-you email acknowledging their special occasion and expressing your hope that they enjoyed their experience. Include a call-to-action to book directly with you for future celebrations, perhaps with a special discount code.

Amplify Positive Reviews

When guests share positive feedback about their special occasion experience, amplify their voices by featuring their reviews on your website and social media channels. This demonstrates your commitment to guest satisfaction and attracts more guests seeking memorable celebrations.

By strategically incorporating marketing into your special occasion surprises, you create a virtuous cycle: guests feel valued and appreciated, they share their positive experiences with their networks, and your hotel gains valuable exposure and direct bookings.

3. Embrace the Power of “Thank You”: Turn Gratitude into Gold

A heartfelt “thank you” can go a long way in building guest loyalty and driving repeat business. But why stop there? You can amplify the impact of your appreciation and turn it into a powerful tool for attracting new guests and boosting direct bookings, through some simple marketing. Here’s how:

Personalized Post-Stay Emails

Don’t just send a generic thank you message. Craft a personalized email that acknowledges the guest by name, mentions specific aspects of their stay, and expresses your genuine appreciation for their business. This shows that you value their individual experience and sets the stage for a deeper connection.

Targeted Feedback Requests

Invite guests to share their feedback through a personalized survey or review platform. Use this opportunity to gather valuable insights that can help you improve your offerings and tailor your marketing messages. Consider offering a small incentive for completing the survey, such as a discount on a future stay or entry into a prize drawing.

Exclusive Offers for Returning Guests

Show your appreciation for repeat business by offering a special discount or exclusive perk for those who book directly with you again. This not only incentivizes loyalty but also helps you bypass third-party booking fees.

Social Media Shout-Outs

If guests leave a particularly glowing review or share their positive experience on social media, take the opportunity to publicly thank them and showcase their feedback to your followers. This reinforces their positive feelings and demonstrates your commitment to guest satisfaction to a wider audience.

Referral Rewards

Encourage guests to spread the word about your hotel by offering a referral rewards program. This could involve giving them a discount or bonus points for each friend they refer who books a stay. This turns your happy guests into enthusiastic brand advocates and helps you attract new customers through trusted recommendations.

Leveraging the power of “thank you” and incorporating strategic marketing elements, you can create a positive feedback loop that fosters guest loyalty and also drives direct bookings, and expands your reach.

4. Upgrade the Ordinary: Amenities with an “Aha!” Moment

Don’t settle for the expected; go beyond the ordinary to create amenities that surprise and delight your guests. By incorporating thoughtful touches and unexpected extras, you can transform mundane offerings into memorable experiences that leave a lasting impression and generate positive word-of-mouth.

Highlight unique amenities

Showcase your hotel’s unique amenities in your marketing materials and social media posts. Use captivating photos and descriptions to create a sense of anticipation and excitement.

Cultivate a spirit of discovery

Encourage guests to explore the hidden gems of your hotel. Designate specific areas or activities as “secret spots” or “local insider tips.” This adds an element of fun and discovery to their stay.

Turn everyday amenities into experiences

Elevate even the most basic amenities by adding a personalized touch. Offer a curated selection of local teas or gourmet coffee in the lobby, or provide guests with handwritten notes and local recommendations.

Leverage social media

Encourage guests to share their “Aha!” moments on social media using a dedicated hashtag. This user-generated content serves as authentic marketing and social proof for potential guests.

Examples:

Instead of: A standard mini-fridge, offer a selection of locally sourced artisanal snacks and beverages.
Instead of: A generic welcome drink, provide guests with a personalized cocktail based on their preferences.
Instead of: A basic fitness center, offer guests access to on-site yoga classes or guided nature walks.
Instead of: A standard room service menu, partner with local restaurants to offer guests a curated selection of gourmet meals.
Instead of: A generic guest book, create a “memory wall” where guests can share their favorite moments from their stay.

By going the extra mile to create “Aha!” moments, you enhance the guest experience and also create a powerful marketing tool that sets your hotel apart from the competition and attracts new guests seeking unique and memorable experiences.

5. Tech-Savvy Surprises: Leverage the Power of Data

In today’s digital age, data is a goldmine of insights waiting to be tapped. By harnessing the information you gather about your guests, you can create personalized experiences that surprise and delight but also reinforce your hotel’s commitment to exceptional service. This, in turn, can lead to increased guest satisfaction, positive reviews, and ultimately, more direct bookings. Here’s how to leverage data to your advantage:

Capture Relevant Information

Go beyond basic contact details and preferences. Use your online booking form, pre-arrival surveys, and social media interactions to gather valuable insights about your guests’ interests, hobbies, and special occasions.

Personalized Welcome Amenities

If a guest mentions a love for hiking, leave a map of local trails in his or her room. For wine enthusiasts, a curated selection of local vineyards could be a welcome surprise. Tailor your amenities to match individual preferences whenever possible.

Targeted Email Campaigns

Segment your email list based on guest data and send targeted offers or promotions that align with their interests. For example, offer a spa package to guests who have expressed interest in wellness, or promote a local food festival to foodies.

Social Media Engagement

Use social media listening tools to monitor conversations about your hotel and identify opportunities to engage with guests. Surprise and delight them by responding to their posts or offering personalized recommendations based on their interests.

Data-Driven Upsells

Analyze your guest data to identify opportunities for upselling or cross-selling. For example, offer a romantic dinner package to couples celebrating an anniversary, or suggest a family-friendly activity to guests traveling with children.

Measure and Refine

Track the impact of your data-driven surprises on guest satisfaction and direct bookings. Use this information to refine your strategies and continuously improve the guest experience.

Through embracing a tech-savvy approach to guest service, your property can create personalized moments that exceed expectations, generate measurable marketing results, and drive long-term loyalty.

6. Embrace the Unexpected: Empower Your Staff to Become Brand Ambassadors

Your staff are the heart of your hotel, and their interactions with guests can make or break the overall experience. By empowering them to go above and beyond, you create magical moments for your guests but you also turn your team into passionate brand ambassadors who actively contribute to your hotel’s marketing efforts. Here’s how to make it happen:

Set Clear Expectations

Communicate to your staff that you value personalized service and encourage them to look for opportunities to surprise and delight guests.

Provide the Tools and Resources

Give your staff a budget for small gestures, such as complimentary drinks, snacks, or room upgrades. Ensure they have access to guest information and preferences to personalize their interactions.

Recognize and Reward

Acknowledge and celebrate staff members who go the extra mile. This could be through public recognition, bonuses, or other incentives. This reinforces the importance of exceptional service and motivates your team to continue delivering outstanding experiences.

Create a “Staff Picks” Program

Allow your staff to recommend their favorite local attractions, restaurants, or activities to guests. This adds a personal touch to your recommendations and positions your hotel as a knowledgeable insider, and it showcases a culture of hospitality and reinforces your hotel’s brand identity.

Leverage Social Media

Encourage your staff to share their guest interactions on social media. This user-generated content showcases your hotel’s commitment to personalized service and provides authentic marketing material that resonates with potential guests.

Encourage Online Reviews

Train your staff to politely ask guests for online reviews and to mention their positive experiences with the hotel’s personalized service. This helps to boost your hotel’s online reputation and attract new guests.

When you empower your staff to embrace the unexpected, you create a win-win situation: guests enjoy memorable experiences, your team feels valued and motivated, and your hotel gains a powerful advantage through authentic storytelling and positive word-of-mouth.

7. The Power of “Thinking Ahead”: Anticipate Needs, Exceed Expectations and Amplify Your Reputation

Proactive guest service is the cornerstone of exceptional hospitality. By anticipating guest needs and going the extra mile before they even arrive, you create a wow factor that fosters loyalty and also turns your guests into enthusiastic brand advocates. Here’s how to leverage the power of anticipation for maximum marketing impact:

Data-Driven Personalization

Analyze guest data from past stays and booking information to identify preferences and anticipate needs. This could include noting a guest’s preferred room type, dietary restrictions, or special occasions.

Pre-Arrival Communication

Reach out to guests before their stay to confirm their preferences and offer personalized recommendations or upgrades based on their needs. This demonstrates your attentiveness and sets the stage for a tailored experience.

Thoughtful In-Room Amenities

Surprise guests with amenities that cater to their specific needs. This could include stocking the minibar with their favorite beverage, providing a crib for families with young children, or offering a personalized welcome note.

Surprise and Delight Moments

Go beyond the expected by anticipating unexpressed needs. For example, offer a complimentary late check-out to guests with a late departure flight or provide a picnic basket for couples celebrating an anniversary.

Post-Stay Follow-Up

After their stay, send a personalized thank-you email acknowledging their specific needs and expressing your hope that you exceeded their expectations. This reinforces the positive experience and encourages them to share their feedback.

Targeted Email Campaigns

Use guest data to segment your email list and send targeted offers or promotions that align with their interests and past experiences. For example, offer a family package to guests who have previously stayed with young children.

Measure and Refine

Track the impact of your proactive guest service on satisfaction and direct bookings. Use this information to refine your strategies and continuously improve the guest experience.

Anticipating needs and exceeding expectations can create a reputation for exceptional hospitality that sets your hotel apart from the competition. This drives guest loyalty and repeat business while also generating positive word-of-mouth and online reviews that attract new guests seeking a personalized and memorable experience.

Surprise and delight tactics are a powerful investment in your hotel’s future. TravelBoom can help you implement these strategies and optimize your digital marketing to maximize direct bookings and turn satisfied guests into lifelong brand advocates.

Ready to take your hotel’s marketing to the next level? Contact us today to learn more about our results-driven approach to hospitality marketing!

About TravelBoom Marketing

TravelBoom specializes in developing and executing customized data-driven marketing solutions that drive direct bookings and growth for its clients. With over 25 years of experience in digital marketing for travel and hotels, TravelBoom leverages advanced data science and analytics to uncover insights and develop strategies that greatly enhance results for our clients and reduce reliance on third-party channels. TravelBoom is also host of the world’s #1 ranked Hotel Marketing Podcast and its quarterly Traveler Sentiment Study both of which can be found at www.travelboommarketing.com.

Credit HNR Hotel News

August 28 2024

Beyond Small Talk: Deep Networking Techniques for Introverts

As an introvert, do you ever feel like you’re at a disadvantage in social situations? Introverted people tend to feel happier in their own company, which can have its benefits. However, when it comes to networking, making new contacts, and selling yourself professionally, being an introvert can make these activities feel like an uphill battle.

It’s a misconception that introverts like to be isolated and spend all their time alone – far from it. Although extroverts are more likely to form new friendships, introverts tend to invest deeply in their inner circles. However, introverts tend to struggle with larger groups. They often feel drained when socializing with lots of people, while extroverts are energized. It’s the reason some introverts choose to avoid professional networking events – but it’s also a mistake.

Professional networking can lead to job opportunities, career advancement, and greater professional status and authority, but it does require socializing. Fortunately, introverts can learn to become proficient networkers – and eventually even enjoy it!

Here’s the proof – introverts can become better networkers

“I hate networking” is a common refrain we hear from hospitality executives, MBA students, and other professionals. Many regard it as false, inauthentic, and superficial, but in today’s world, networking is essential.

If you have to get out there, the good news is that there are steps you can take to improve your networking skills. One study of 450 professionals found that, regardless of gender, age, career stage, or level of introversion or extroversion, you can become a better networker and accelerate your career.

Why introverts ‘hate’ networking

It’s easy to differentiate the social butterflies from the introverts in most networking situations. The extroverts will be working the room, laughing joyfully, and having effortless conversations with everyone they meet. The introverts, on the other hand, are more likely to be reading emails on their phones intently, standing against a wall, and taking their seats in the conference hall long before they’re called.

But why do introverts struggle so much with professional networking? Every situation is different, but here are some common reasons why introverts may find it challenging.

Making small talk – Small talk is an important part of networking, particularly in the early days when you’re finding common ground and forming a connection. Introverts prefer deep and meaningful conversations and can find superficial chat uncomfortable.
Crowded spaces – Chaotic and noisy spaces can be overwhelming for introverts and make it more difficult to build meaningful connections.
Energy drain – Extroverts gain energy from social situations while introverts find them draining. Introverts are energized by solitary time and prefer to socialize in small groups. They have to psych themselves up to be ‘on’ in networking events, which requires more effort.
Fear of rejection – Introverts can fear rejection when approaching people and cannot always brush off the negative impact of an awkward encounter. That fear or negative experience can affect their willingness to approach people in the future.
Self-promotion – Professional networking often requires a degree of self-promotion. Introverts can find it uncomfortable to talk about themselves and their achievements and prefer to listen rather than talk.

Networking tips for introverts: how to survive and thrive

Many introverts actively avoid professional networking for the reasons we’ve explained, but introverts are not innately bad at networking. They can be very successful networkers because they’re good listeners and have a genuine interest in other people. Here are a few networking tips to help you get out there and improve your skills.

Switch from ‘prevention’ to ‘promotion’

People fall into two camps in professional networking scenarios: prevention or promotion. If you’re focused on prevention, you aim to get through the event unscathed and avoid clumsy errors and negative results. On the other hand, if you strive for promotion, you aim to achieve a positive win.

Due to their dislike of networking, many introverts have a preventative approach. They try to engage as little as possible and fear rejection when they do. However, it is possible to switch your mindset to one of promotion. Here are three things that you can do to get the most out of networking opportunities, both personally and professionally.

Set yourself a goal before the event, such as ‘I’ll introduce myself to 3 people I haven’t spoken to before’
Remind yourself of your achievements and don’t feed feelings of imposter syndrome.
Don’t let your confidence be damaged by awkward moments or blame yourself if a conversation or encounter doesn’t go smoothly; it takes two to tango.

Play to your strengths

Some people say networking is a numbers game, but as an introvert, you should focus on quality over quantity. Rather than expending your energy talking to as many people as possible, play to your strengths and aim to forge strong bonds with a smaller group of people.

The truth is that one meaningful professional relationship can be worth a hundred casual acquaintances that you promise to grab a coffee with but never do. Professional networking is not social media where you are judged by how many ‘friends’ or ‘followers’ you have. In this case, the quality of your relationships is everything.

Introverts also tend to be better listeners and are more empathetic than extroverts, which can help them build deeper and more enduring connections. Rather than a weakness, that can make your introversion a strength.

Don’t mistake introversion for shyness

Shyness and introversion are not the same thing. Shy people tend to be excessively self-conscious and self-critical. They can even struggle to express themselves or talk confidently among their friends. That is not the same as introversion. While they might feel shy approaching people in professional scenarios, most introverts are perfectly capable of holding a conversation and expressing themselves clearly, they just prefer to do so one-on-one or in small groups.

If you fall more on the side of shyness, don’t worry. There are many ways to overcome your shy nature and introverted tendencies. Here are a few things you can do before a networking event.

1. Start with the people you know: Before heading to a big event, practice social behaviors with people you know. Try having lunch with a small group of colleagues or classmates and then practice making eye contact, using confident body language, making introductions and small talk, asking questions, or offering invitations.

2. Plan some conversation starters: Come up with some comfortable, practiced ways to start a conversation such as introducing yourself within the context of the event, giving a compliment, or making an observation.

3. Rehearse what to say and how to look: Try presenting yourself in front of a mirror, or wearing the clothes you plan to wear to the event, in order to see how you look and the overall impression you give to others.

Arrive and leave early

A simple networking tip for introverts is to arrive at the event early. Introverts dislike large groups and noisy environments, so getting there promptly allows you to start talking to people and build a rapport before it gets into full flow. That also helps you avoid walking into a busy and noisy venue where conversations and groups have already formed.

As an introvert, you also shouldn’t feel bad about leaving an event early. Networking, particularly at large gatherings, requires more cognitive effort for introverts and can be draining. Once you’ve achieved your goals and spoken to the people you’d like to connect with, don’t be afraid to bow out to recharge alone.

Learn how to leave a conversation gracefully

An important part of being a good networker is knowing when it’s time to move on. The high levels of empathy associated with introverts mean you can talk to people longer than necessary due to worries they’ll feel rejected.

If you feel like you’ve covered all the bases, rather than waiting for things to get awkward, smile and explain that it was really interesting to talk to them and say it would be great to speak again. Then take a couple of minutes to rest and recalibrate.

Meet people one-on-one

We have preconceived ideas about what networking looks like, but that doesn’t have to be your reality. Online networking, via social media, particularly LinkedIn, can be a great way to connect, start conversations and arrange face-to-face meetings.

Meeting one-on-one is more personable and plays to the strengths of introverts, who are at their best when doing away with the small talk, engaging in meaningful conversations, and building relationships.

Embrace your introversion

Whether you’re the most introverted of introverts or simply someone who hates small talk, the benefits of networking mean it’s something to work at rather than ignore. Following our tips will help you make incremental improvements and grow an extensive professional network while still being yourself.

Written by: EHL Graduate School

Credit eHotelier

August 26 2024

5 Revenue Management Tips for Beach, City, Mountain, or Countryside Hotels

As a hotelier, you know your hotel faces unique revenue management challenges. Your location, primary types of travelers, and the season of the year all play into profitable pricing strategies.

This article addresses specific ways to improve your revenue and profitability no matter you location or seasonality.

Franco Grasso Revenue Team has worked with more than 2000 clients on five continents and over 30 countries in more than fifteen years. This article leans on that experience to provide you with specific, actionable tips that you can apply to your hotel to boost revenue and improve profitability.

Some of these tips are essential to savvy revenue management practices regardless of location or seasonality. For instance, the importance of online visibility is universal. Without it, your guests won’t find you, and you’ll struggle with low bookings.

Others focus on the specific concerns of beach, city, mountain, or countryside hotels. For example, a seasonal hotel can implement a specific revenue strategy targeting family rooms that can more than triple your room rates during peak demand.

Here’s a taste of what you’ll find in the eBook.

City Hotels

Your independent hotel is well-situated for business and leisure travelers and conveniently located to shops, restaurants, and city sights within walking distance and accessible public transportation.

However, because there are such differences between business and leisure travelers, you can treat your mid-week room rates and weekend rates like two different seasons. Take corporate rates. They can be a financial loss if you’re not careful.

Then, Sunday is traditionally a weak day in the city hotel landscape, but you could provide incentives for your guests that improve your bottom line in the short and long term.

Let’s consider corporate rates.

Corporate rates

Should you negotiate corporate rates at static rates or a dynamic pricing approach? Dynamic pricing is a significant part of revenue management yet, you don’t have to choose one or the other. You can offer a website-only discount to specific companies with a personalized promo code. Such a code incentivizes corporations while you also compete in dynamic pricing on the OTAs.

Have a company that insists on a static rate? Consider whether it’s a good rate for your hotel during the time they want the rooms and don’t offer guaranteed allotments. There’s no point in booking several rooms at a low rate during high season when you would have sold the rooms to the public at higher rates.

If you have existing contracts, it’s worth reviewing them. Are the terms favorable to you? Review your OTA numbers and see if you often reduce your last-minute, mid-week rates. If so, that’s a sign to renegotiate your corporate contracts.

Rate adjustments

The data shows most business people book close to their check-in date. They’re likely comparing rates on the OTAs. You can review your RMS statistics to understand your market segments better. If you need to drive more occupancy from OTAs and your website, it’s best to lower your rates weeks in advance rather than 2-3 days before the check-in date. You don’t want customer complaints about higher rates than what they see advertised on Booking.com or another OTA.

You can protect corporate agreements in two ways.

1-Raise prices on OTAs close to check-in. This protects your corporate contracts while still appealing to customers. Re-negotiate your contracts as soon as you can.

2- Add a clause in your contract guaranteeing corporate clients the best rate if they see a lower one online. That way, they know they’re getting the best deal possible.

Find out more in the ebook about ways to create brand loyalty from your business customers, why it makes sense to treat mid-week and the weekend as two different seasons, and how to turn Sunday into a profitable day of the week.

Beach Hotels

It’s probably not surprising that our data shows beach-side hotels that open earlier and stay open longer make more money. But the reasons why may surprise you.

It’s not simply a matter of adding a few more months to the open season. It’s also about putting smart revenue management practices in place.

Early reviews boost visibility

For example, if your hotel opens in April instead of June, you can launch the busy summer season with early reviews. Getting positive reviews in April and continuing them through the summer means your hotel will be front and center on the OTAs when the high season hits in July. Increased visibility with positive reviews means more bookings. You can incentive your guests to leave reviews by offering great service and asking for the review.

Review your cancellation policy

In high season, you don’t want last-minute cancellations, which could potentially leave you with a gap in your bookings. Yet guests want flexibility, so how do you satisfy both parties? You could require a longer cancellation period during high season, such as if it’s less than 14 days, the guest is charged 100% of the stay as a penalty for late cancellation.

This gives your guests flexibility up to two weeks before their visit, so if they do cancel, you can apply progressive pricing adjustments to fill the space without offering last-minute discounts.

Then, during lower or shoulder season, you can adjust your cancellation with a two-day window (they pay the 1st night as a penalty.) This helps you maintain visibility on the OTAs.

Remember, as soon as a customer books, you have the chance to start building that relationship. Ask them the reason for their travel and make relevant suggestions for fun things to do in the area. When people feel appreciated, they’re less likely to cancel.

Optimize your family room rates

While some hotels price family rooms at an incremental increase to accommodate more people, that’s not the most profitable way.

Rather than taking the double room rate, adding $30 to it, and calling it a triple, you can implement revenue management to boost that room value by hundreds of dollars. You may be able to offer additional services for these families such as discounts on nearby attractions. This can increase the perceived room value.

Savvy revenue management-minded hotels treat family rooms like another hotel with a separate pricing strategy.

We’ve seen specific peak dates with a starting difference of $60 between double and quadruple rooms jump to a final point of $600 because you move the price point independently on each based on demand.

Mountain Hotels

Once the domain of ski holidays and sipping hot chocolate by a roaring fireplace, mountain hotels see an influx of summer visitors looking to cool off from rising temperatures.

With a strategic pricing strategy, you can raise the hotel’s online visibility and maximize your peak season room rates.

Build your brand reputation

Online ratings matter. Hotels with a 9 or more on Booking or a 4.5 or more on TripAdvisor, paired with effective revenue management, boost room rates three or even five times more than expected.

Our consulting firm has seen 3-star hotels with a 9+ score selling at more than $1.000 per night during peak wintertime events (such as NYE), while similar hotels with a lower score and no revenue management in place did not manage to cross $200.

Our statistics show if you provide excellence and quality, you can sell rooms at peak rates during peak events, and 8 out of 10 guests will leave positive reviews.

You can also re-visit your non-refundable deposits to increase your online visibility.

Review non-refundable rates

Our data shows that applying weather-dependent non-refundable rates can limit online visibility and, therefore, the possibility of selling at higher rates. That’s because most people click the “Free Cancellation” filter on OTAs to narrow their hotel search. You’re missing out on this visibility if you only have a nonrefundable rate.

We recommend a variable cancellation policy depending on the season but skip the non-refundable rates and advance deposits. You can track your data to see the statistics on the booking window and cancellation rate on RMS and OTAs. Pair that with a study of historical performance (occupancy and ADR) to gain insight into your hotel’s best cancellation policy for the winter season.

Countryside Hotels

Each season is an opportunity to review rates. When you review historical data, you have guidelines for this season’s pricing.

Starting rates

Track your market segmentation with a good RMS. That will show if you have groups, events, and weddings on a particular date. It’ll also track the historical pickups and Average Daily Rate (ADR) by room type (double rooms, family, suites, etc.) Other pricing factors include historical weather trends and the distance from other attractions. For example, is your hotel near a beach or a historic city? All of these affect your room rates and allow you to maximize revenues.

This information allows you to create effective pricing and map inventory to peak dates.

Prices and inventory on peak dates

When demand is high, it makes sense to raise room rates. On such occasions, the guest pays for the destination and location rather than the room. For example, take a countryside hotel within an easy drive to a nearby beach or city destination with special events.

If the closer hotels are full, people will expand their search radius to other hotels within commuting distance. This is why it’s essential to manage online inventory strategically. Revenue management principles will have you allocating a few rooms early and refilling that inventory at gradually increasing rates as demand increases.

Find the right balance

If weddings are a big part of your revenue, make sure they’re not impacting your profitability. It may sound counterintuitive, but if you’re offering one group exclusive access to your property for a Saturday, you interrupt your ability to book other guests through online channels, which can lead to an empty week and a considerable loss of revenue.

It’s a delicate balance. You want to analyze your past data and use that information to guide informed decision-making. You may find it’s more profitable to refuse the event. Or, you may need to raise your rates for them to compensate for lost revenue on other days.

Discover how you maximize event rentals, ensure a profitable F&B program, and raise your rates while keeping long-time guests happy. It’s all here in 5 Revenue Management Tips for City, Beach, Mountain, and Countryside Hotels.

Hopefully, you can see that revenue management isn’t a one-and-done tactic you try occasionally. It’s a discipline that affects your entire business in a positive way when used in every aspect of your hotel year-round.

Massimiliano Terzulli

Revenue Management Strategist, Italy

Credit eHotelier

August 24 2024

How 2 successful entrepreneurs created China’s top cocktail bar

Nestled amongst a quaint row of shops in Guangzhou’s West Temple Front Street, Hope & Sesame started when speakeasies were an unknown concept in Guangzhou back in 2016. Founded by EHL Hospitality Business School alumni and successful entrepreneurs Bastien Ciocca and Andrew Ho when they were just 30-year-olds, their unassuming cocktail bar has grown from a hidden gem into one of Asia’s top bars.

Having recently been named the Best Bar in Mainland China (2023 and 2024) by Asia’s 50 Best, today Hope and Sesame has become a mainstay, not just in Guangzhou, but in the global cocktail scene.

The beginning of a partnership

The founding of Hope & Sesame was largely a stroke of serendipity. After having built successful careers in luxury hotels in different countries, it was Andrew and Bastien’s chance reunion in Guangzhou that changed everything. They both decided to leave the hotel industry to start their own food and beverage (F&B) business.

You just have to be open to new opportunities all the time, and when it’s the right time, you kind of feel it, Andrew reminisces.

They chose Guangzhou for its growth potential due to its increasing consumer demand for diverse and innovative F&B experiences. The pair began their venture by first securing a venue. One key element is the landlord. If they understand what we want to do, it’s a green light, said Bastien.

The venue itself played a role in shaping their decision, since they initially intended to open a restaurant. That was, until they discovered the kitchen wouldn’t fit their design. Since Bastien and I both love cocktails, I just thought, why not turn it into a bar then? Andrew recalls.

Had the kitchen been larger, maybe they’d be running a Michelin starred restaurant today. No one knows, but that was how Hope & Sesame was born.

Located just outside the city centre, the neighbourhood’s old-school charm and predominantly older residents inspired them to launch a speakeasy bar.

During the day, nobody realizes there’s a bar there. Guests have to find the hidden door to enter. Andrew Ho

With no other bars or restaurants nearby, they initially depended on word of mouth and events to attract customers. With the crucial support they needed coming from the EHL alumni network.

The strong alumni network helped us set up the collaboration between our bar and hotels such as Mandarin Oriental in Beijing and Shenzhen. EHL is a label for trust and quality which has really helped us throughout our journey. Bastien Ciocca

As Hope & Sesame gained recognition, other bars began to appear in the neighbourhood, drawing locals and eventually turning the area into a destination for out-of-town visitors.
We get a lot of tourists, so now when they visit Guangzhou, they see the TV Tower, the museums, and they go to Hope & Sesame. Andrew
From bootstrapping, to China’s best bar
While Andrew and Bastien now run several bars, Hope & Sesame holds a special place in their hearts. It was their first venture together in a city that was relatively new to both of them; Andrew was from Hong Kong and Bastien from Switzerland. It was also a business they bootstrapped with their own funds.

We did not raise [funding] once. We just depleted our bank accounts, jokes Andrew. However, there was also a practical reason for not raising funds. If you have an investor, you’re basically just working for the investor. If so, then why don’t I just work in a hotel? So we decided that this has to be only ours, in order for us to execute our vision.

To which Bastien adds, That also gave us a lot of motivation to find solutions, and in the end it worked.

As they expanded, their strategy of keeping financial – and creative – control hasn’t changed. This means that for subsequent brands like Bar SanYou and DSK Cocktail Club, Andrew and Bastien continue to maintain ownership, with the support of some close friends and family as partners.

In the first four years of bootstrapping their operation, they worked every single day, and as Andrew recalls, We did everything, from cleaning the toilets to making drinks. As it happened, their first year at EHL, particularly the Année Préparatoire (AP), had already well-prepared them for this aspect of their business. As the AP builds essential operational skills, fostering resilience and mastery in customer-centricity, adaptability, and agility—crucial for any hospitality business.

On creating winning concepts

Thanks to their hospitality training at EHL and their extensive experience in the hotel industry, Andrew and Bastien were already well-equipped to run a high-end bar. Unlike bartenders who’ve worked their way up the ranks, the pair’s hospitality education provided them with the communication skills and business background necessary to connect with the luxury market.

Our international education helped us understand how to create a better bar. Andrew

Every business should embrace a sense of locality and cultivate the cultural identity surrounding their venue. Bastien

To emphasise the bar’s distinctive Chinese roots, they focus on using only ingredients from China, especially traditional Chinese liqueurs.

For example, when they established Bar SanYou Guangzhou in 2020, they focused heavily on baijiu. With signature cocktails like Moutai Milk Punch, they aim to bridge the gap between baijiu and a younger generation of drinkers – but that’s not the only reason they’re focusing on baijiu.

I think baijiu’s going to be a huge trend, like mezcal and tequila had in the past 10 years. Because consumers are always looking for something new, and they look for something that has culture and quality. Baijiu has all that. Andrew

Overcoming the challenges of running a bar

Initially, they faced some challenges in finding qualified employees because, as Bastien explains, many of them have not had the chance to see other countries, so our expectations were harder to understand at first.

As Andrew explains: You’re working with different kinds of people. Some may not be good at certain things, so you have to motivate them to use the best of their abilities. He also believes that cultivating a brand name employees can admire is crucial for fostering their pride in working for the company. Brands like Four Seasons or Mandarin Oriental are names that people love. If there are issues at work, they’ll be more willing to fix them because they’re proud to work there, right?

And as Hope & Sesame’s brand grew, it began attracting EHL students as interns, some of whom eventually transitioned to full-time staff.

We see EHL interns being a lot more hardworking, a lot more resourceful. They all have a bit of flair. They’re a lot more passionate about food and beverage, and for us, that’s very important. Andrew

Our industry requires flexibility and fast problem-solving, Bastien adds. And we could always count on every EHL intern that joined us.

However, the most challenging aspect for the pair is keeping up with the standard of service.

People will always need to eat, sleep, travel, but not go to a bar. It’s a challenge to ensure that guests have a great time. Things move super fast here; it’s not easy to stay on trend. Bastien

Industry insights and the way forward

Andrew firmly believes that trends come and go, but the future of cocktail bars will always be anchored in quality hospitality: You can have the most creative drinks, but once people try it, then that’s it. But people come back because they feel like they were treated well. People will always focus on the core, which is service and hospitality.

We see a lot of well-designed venues by leading architects, but with no soul, no talents involved in the process. Such venues may struggle to sustain long-term success, Bastien emphasises. Consumers crave connections with brands. Once established, these connections turn customers into ambassadors.

Celebrating their eighth anniversary this year with five bars under their belt, the team has also evolved into sought-after bar concept consultants for top hotels across China. Andrew credits their success to the power of delivering good hospitality, and the importance of follow-through. It’s about execution, he asserts. Anyone can have ideas and the best bar concept, but if they can’t execute it or make it profitable, it doesn’t work. That’s what separates successful entrepreneurs from the rest.

Credit EHL Insights

August 21 2024

Hyatt Plans To Expand Lifestyle Portfolio with Standard, Bunkhouse Acquisition

Hyatt Hotels Corporation is on track to acquire Standard International, which owns lifestyle hotel brands The Standard and Bunkhouse Hotels.

The deal, which is set to close before the end of the year, comes with an initial base price tag of $150 million with another $185 million in post-acquisition growth incentives and fees of up to $47 million, according to a news release announcing the deal.

Hyatt plans to create a new lifestyle group following the transaction led by Standard International’s Executive Chairman Amar Lalvani and including both current Standard employees and Hyatt executives. Lalvani’s title with the new group will be president and creative director.

Lalvani founded the Standard brand in 2010 along with André Balazs. He formed Standard International in 2013 by acquiring the brand from Balazs, later adding Bunkhouse Group to the Standard portfolio.

Before forming Standard International, Lalvani worked in development for the W Hotels brand at Starwood Hotels & Resorts Worldwide. He along with former Starwood colleague Ross Klein were involved in a lawsuit after they left Starwood for Hilton, bringing confidential information Hilton used to launch a new boutique hotel brand, set to be named Denizen. The companies settled in 2010 and Hilton was banned from creating a boutique chain for several years.

Standard’s 100% asset-light portfolio includes 21 hotels with roughly 2,000 rooms. The company has an additional 30 projects in its pipeline. Hyatt officials say the company quintupled the size of their lifestyle portfolio from 2017 to 2023 through the combination of organic growth and various acquisitions.

Other brand acquisitions made by Hyatt in that period include Dream Hotel Group, Two Roads Hospitality, Miraval Group and Apple Leisure Group. The deals have largely been funded by a series of real estate dispositions, with the company selling off $3.6 billion in owned hotels since 2019.

Earlier in the week, the company announced the $1.07 billion sale of the Hyatt Regency Orlando, which marked the biggest asset sale price in the company’s history.

Hyatt officials believe the planned acquisition of Standard International positions them as the leader in the “premier lifestyle space.”

“The team behind Standard International has created a unique and award-winning portfolio of brands and properties that turn the status quo on its head and have attracted a loyal following among the most discerning lifestyle guests for the past 25 years,” Hyatt President and CEO Mark Hoplamazian said.

Properties Standard currently has under management, franchise and license agreements include:

The Standard, London
The Standard, High Line in New York City
The Standard, Bangkok Mahanakhon
Hotel Saint Cecilia in Austin, Texas
Hotel San Cristóbal, Baja California, Mexico

Standard International had been majority owned by Sansiri PLC since 2017, and that firm will continue to own several of the Standard-branded properties.
The company also operates several restaurants, branded residences and nightlife concepts, along with two smaller hotel brands, Peri Hotels and The StandardX.

“We waited a long time to find the right company with whom to join forces,” Lalvani said in the news release announcing the deal. “In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base. I am very proud that our team has delivered on the potential we saw with The Standard and Bunkhouse Hotels and am honored that Hyatt appreciates how special our brands, properties, and — most importantly — our people are. We have a shared vision for the enormous potential that still lies ahead. I would be remiss not to express my gratitude to Hyatt for taking this bold step forward and to Sansiri who has been instrumental in supporting our efforts.”

Credit Hotel News Now

August 15 2024

Record-Breaking Hotel Construction Pipeline in China: Q2 2024 Highlights and Future Forecasts

As seen in Lodging Econometrics’ (LE’s) Q2 2024 Hotel Construction Pipeline Trend Report for China, the country’s hotel construction pipeline has reached unprecedented heights at the close of the second quarter. The pipeline stands at a record-high 3,815 projects with 699,786 rooms, marking a 4% increase in projects and 3% in rooms year-over-year (YOY).

According to the Q2 report, projects under construction have hit a new all-time high of 2,743 projects with 498,551 rooms, accounting for 72% of the projects in China’s total pipeline and growing 3% by projects and 4% by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 390 projects/70,520 rooms at Q2, up 9% by projects and 10% by rooms YOY. Projects in early planning grew 4% YOY at Q2 to close the quarter at 682 projects/130,715 rooms.

China had 219 projects/37,261 rooms start construction in Q2. That number represents a 37% YOY increase by projects and a 32% increase by rooms. Two-hundred-sixty-four new projects, with 43,301 rooms, were announced into the China construction pipeline during Q2, rising 12% YOY by projects. Combined, renovation and conversion projects reached record-high counts and stand at 206 projects and 42,084 rooms at Q2, showing a 32% YOY increase in projects and a 47% increase in rooms.

At Q2, three chain scales account for an impressive 69% of the projects and 65% of the rooms in China’s total pipeline. The upper midscale segment, claiming 32% of the projects in the country’s total pipeline, achieved record-highs this quarter, with 1,227 projects/190,268 rooms. Hotel construction projects in the upscale chain scale also reached new all-time highs at Q2, with 979 projects/219,104 rooms. The midscale segment closed the quarter with 437 projects/43,206 rooms.

Chengdu leads China’s pipeline at the Q2 close with 147 projects/29,951 rooms. Shanghai follows with 126 projects/24,340 rooms. Next is Guangzhou with 122 projects/24,977 rooms, then Hangzhou with 103 projects/20,997 rooms, and Xi’an with 87 projects/15,813 rooms.

During Q1-Q2 2024, 341 new hotels/47,084 rooms opened in China, with an additional 596 new hotels/92,589 rooms forecast to open in Q3-Q4. LE analysts forecast a total of 937 new hotels and 139,673 new rooms to open by year-end 2024.

In 2025, LE analysts forecast 994 new hotels/166,683 rooms to open, and according to the newly released 2026 new hotel openings forecast, 759 new hotels/146,894 rooms are forecast to open in 2026.

Credit Lodging Econometrics (LE)

August 13 2024

India Projected to Lead Asia Pacific, excluding China, in New Hotel Openings Through 2026

In the Q2 2024 Asia Pacific, excluding China (APEC), Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the total pipeline in APEC has hit a record 2,056 projects with 406,118 rooms, marking a 6% increase in projects and a 1% rise in rooms year-over-year (YOY).

Currently, 864 projects with 199,784 rooms are under construction in the APEC region. Projects scheduled to start construction in the next 12 months have risen to 358 with 65,853 rooms, up 23% by projects and rooms YOY. Projects and rooms in the early planning stage have soared to a record-high 834 projects with 140,481 rooms, representing a 19% YOY increase in projects and 6% in rooms.

The upper upscale, upscale, and upper midscale chain scales dominate the pipeline, accounting for 62% of projects and 65% of rooms. Both the upper upscale and upscale chain scales hit record-high project and room counts at the end of Q2 24. The upscale segment leads with 507 projects and 100,524 rooms, while upper midscale and upper upscale stand at 390 projects/78,452 rooms and 380 projects/83,811 rooms, respectively. Notably, renovation and conversion projects in the APEC region have also reached an all-time high of 305 projects with 51,909 rooms in the second quarter.

Countries with the most projects in the APEC construction pipeline at Q2 are led by India with a record-high 610 projects with 75,280 rooms and accounting for 30% of the projects in the total APEC pipeline. Following at a distance are Vietnam with 247 projects/85,760 rooms, Indonesia with 181 projects/31,550 rooms, Thailand with 163 projects/38,350 rooms, and Japan with 162 projects/30,122 rooms.

At Q2, APEC cities with the largest project counts are led by Bangkok with 67 projects/15,394 rooms, Jakarta with 42 projects/8,979 rooms, and Melbourne with 40 projects/7,496 rooms. Phuket follows with 36 projects/9,050 rooms, and Sydney with 31 projects/5,225 rooms.

In Q2 2024, 62 projects/12,721 rooms started construction, and 142 new projects/23,541 rooms were announced into the region’s pipeline. Fifty-seven new hotels/9,214 rooms opened in the APEC region during the second quarter, totaling to 131 new hotels/23,316 rooms opened in the first half of 2024. LE forecasts an additional 228 new hotels to open throughout Q3-Q4, bringing the total year-end 2024 openings to 359 new hotels with 69,861 rooms.

LE analysts forecast India to dominate the APEC region’s new hotel openings forecast over the coming years, claiming 25% of total openings in 2024 and leading with the largest number of new opens through year-end 2026.

Looking ahead to 2025, LE analysts anticipate 323 new hotels with 66,523 rooms to open in the APEC region. LE’s newly released forecast for 2026 New Hotel Openings expects 341 new hotels/65,617 rooms throughout the APEC region.

Credit: Lodging Econometrics

August 9 2024

7 Innovative Strategies to Supercharge Your Hotel’s Direct Bookings

Imagine a world where every booking goes straight to your hotel, cutting out the middleman and saving you significant commission fees. This isn’t just a dream—it’s a reality that direct bookings can offer.

By focusing on driving direct bookings, you can boost your revenue, strengthen your relationship with guests, and maintain full control over their experience. Discover how embracing direct bookings can transform your hotel’s financial health and guest satisfaction.

A robust booking engine offers valuable features that streamline the booking process and enhance direct bookings. Here’s how you can leverage these benefits to supercharge your hotel’s direct bookings:

Why direct bookings matter

Direct bookings allow you to keep more of your revenue by avoiding hefty commission fees imposed by Online Travel Agencies (OTAs). Additionally, booking directly through your website provides you with greater control over guest interactions and the opportunity to build a more personalized relationship with your customers. STAAH SwiftBook’s advanced features are designed to enhance this experience, offering seamless integration and valuable tools to drive direct bookings. Let’s find out seven innovative strategies to help you stand out and boost your direct bookings:

1. Utilize a commission-free booking engine

Switching to a commission-free booking engine can significantly enhance your profit margins. Unlike traditional OTAs, which take a hefty commission, a commission-free engine allows you to retain more of your revenue. This not only helps reduce costs but also provides more flexibility in offering exclusive deals and promotions directly on your website.

2. Promote a variety of rate plans and exclusive packages

Offering a range of rate plans and exclusive packages that are only available through your website can incentivize guests to book directly. Highlight special offers such as “Book Direct and Save” discounts, all-inclusive packages, or unique experiences like private tours or spa treatments. Emphasizing these exclusive benefits can make your direct booking channel more attractive than third-party options.

3. Promote local experiences and useful tips

Transform your website into a go-to resource for guests by showcasing local attractions, events, and activities. Create content around concerts, tours, and trips that guests can enjoy during their stay. Providing valuable tips and insider knowledge not only enriches their experience but also positions your hotel as an expert on the local area, encouraging direct bookings from travelers seeking a well-rounded trip.

4. Enhance tour website’s user experience

Ensure your website provides a smooth, intuitive experience from start to finish. Use high-quality images, clear calls-to-action, and an easy-to-navigate booking process. Optimize for mobile devices and fast loading times to keep visitors engaged and reduce bounce rates.

5. Implement a robust loyalty program

A well-designed loyalty program can encourage repeat bookings. Offer exclusive rewards such as discounts, complimentary services, or room upgrades to guests who book directly through your site. Make your loyalty program easy to understand and promote its benefits prominently.

6. Leverage AI-powered personalization and chatbots

Artificial intelligence (AI) can enhance guest engagement by providing personalized recommendations based on user behavior and preferences. Integrate AI-powered chatbots on your website to assist guests in real-time. These chatbots can handle booking inquiries, offer personalized suggestions, and address special requests, creating a seamless and interactive booking experience.

7. Harness the power of social proof

Social proof, such as guest reviews and testimonials, can greatly influence potential bookers. Showcase positive feedback on your website and social media channels to build trust. Encourage guests to leave reviews and integrate review management tools to streamline this process and highlight your hotel’s strengths.

By incorporating these strategies and leveraging the advanced features of booking engines, you can effectively increase your direct bookings, enhance guest satisfaction, and boost your revenue. Embrace these innovations to stay ahead in the competitive hospitality industry and deliver exceptional experiences to your guests.

Credit eHotelier

August 4 2024

Beyond Bookings: How Hotel Marketing Drives Revenue Beyond the Reservation

Johanna Bernuy

Marketing Manager, Sweden

Today, marketing is no longer an optional extra for any business, and the hospitality industry is no exception.

While some might view marketing as simply crafting social media posts and eye-catching visuals, the truth is that there are many other aspects to marketing and all of them are crucial for your brand to succeed.

Did you know that marketing strategies can increase revenue by up to 25% for businesses? This isn’t just about short-term gains either. A well-defined marketing plan fosters brand awareness, builds customer loyalty, and positions your business for long-term success. And this holds true because companies with strong brand loyalty see a 3-7% increase in revenue compared to their competitors.

Imagine you’ve poured your heart into creating a luxurious haven, complete with impeccable service and stunning amenities. However, if potential guests don’t even know your establishment exists, those efforts remain unseen.

Marketing acts as the bridge, connecting your business with eager travelers seeking an experience like the one you offer. Either using organic content or paid media, one of the main goals for marketing is to increase the visibility of your business and the awareness of your brand in order to create more conversions ( direct bookings) and repeat business (loyalty).

In fact, if the question is how do we create more revenue, generate more bookings, do more upselling, marketing cannot be ignored in this equation when it is a crucial part of your revenue optimisation strategy.

If you are not yet convinced, here are three ways that a hotel marketing strategy contributes to your revenue optimisation:

Capturing guests and driving direct bookings

The travelers are not flipping through brochures or relying solely on travel agents anymore. Today’s travelers are digitally-empowered, carefully researching and booking their stays directly online. This presents a key opportunity for your hotel.

Among your main marketing assets, your website and social media accounts hold immense power. By optimizing these platforms for direct bookings, you can capture the attention of these online travelers and convert them into loyal guests, ultimately boosting your revenue.

Is your website optimised for direct bookings?

It goes beyond just aesthetics – it’s about creating a user-friendly experience that seamlessly guides visitors towards booking with you.

Think mobile-first, most travel research and booking happens on smartphones. Make sure your website is easy to navigate and visually stunning on all screen sizes. Prioritize a user-friendly booking engine. It should be prominent and easy to find, with clear progress indicators and minimal steps to secure a reservation.

In the case of direct bookings, highlight exclusive benefits for booking directly on your website. Showcase security assurances and clear information about your property to build trust and encourage bookings. By creating a seamless and secure user experience, you can convert website visitors into loyal, paying guests.

Is your content attractive enough?

On the content side, you need to understand that today’s travelers are bombarded with options. You don’t want your property to be just one more.

Your website and your social media accounts need to be captivating, instantly transporting them to the heart of your unique experience. Remember: travellers now book thinking about how shareable on social media this location will be. How can you showcase your property and location as an “instagram-worthy” destination?

A few things to keep in mind in this aspect: Invest in high-quality visuals that showcase the essence of your hotel. Craft compelling descriptions that paint a picture of the perfect getaway, not just a room with a bed. Remember, you’re selling an experience, a memory they’ll never forget.

Are you providing social proof?

Modern travelers trust the experiences of others. Real reviews play a key role in convincing a guest to make a booking. Did you know that over 95% of customers consult online reviews before making a purchase, and nearly half consider them among the top three factors influencing their decisions? In the hospitality industry, this translates to the power of guest reviews.

Just like in OTAs it is easy to find what a hotel does best through a review, the same should happen in your website, making it easy for travelers to read about other’s experiences.

Keep in mind that showcasing only perfect reviews can generate a sense of inauthenticity. A balanced approach is key, including a mix of positive and negative reviews, along with your thoughtful responses to any concerns, builds trust and credibility. Potential guests appreciate seeing how you address issues and strive to provide exceptional service.

Creating a remarkable and constant experience

Moving beyond the initial booking, creating a remarkable guest experience is key to building loyalty and positive word-of-mouth, which translates into more revenue. This is one of the most important aspects of your digital marketing strategy: how to create a guest journey that resonates with guests and puts your brand top of mind.

‍Is your guest journey smooth?

Think beyond check-in and check-out. A remarkable experience starts from the moment guests book, with clear but interesting pre-arrival communication that builds anticipation. And of course, personalized.

Although properties are paying more attention to this aspect, you still see two kinds of brands: the ones that don’t contact the guest until the check-in moment and the ones that overload guests with many messages each day.

None of these approaches is correct.

Look for a balance, don’t disappear but also don’t overwhelm your guests. Think about creating valuable touchpoints for each stage of the customer journey. Although it might seem like a task that can take all of your time, using the right tools will be extremely beneficial. A hospitality CRM, in this case, will help you to process your data and create the entire guest journey.

Get inspired with this article: 7 steps to creating a guest journey for the first time

Are you communicating with them multi-channel?

Travelers expect convenience and choice. By offering a variety of communication channels like email, WhatsApp and SMS, you empower your guests to reach you easily on their preferred platform. At the same time, you increase your conversion rate. Did you know a multi-channel CRM has 9x times more conversions than an email-only CRM?

Are you providing a personalized experience?

A touch of personalization makes an ordinary stay something truly special. Leverage guest data (with their consent) to tailor your approach. Use your hotel CRM to clean your data and understand the preferences of your guests.

Once you understand your data, target different segments of your guests with different content. For example, couple’s offers to couples, upgrades and luxury treatments to high-spenders, family-friendly activities to family bookers, and so on.

Nurture the relationship and loyalty

While securing the initial booking is crucial, fostering long-term guest loyalty requires extending your efforts beyond their stay. The probability of selling to an existing customer is 60% to 70%, whereas the success rate with a new prospect is only 5% to 20%.

Studies suggest it can be up to seven times more expensive to acquire a new guest than to retain an existing one. This means investing in strategies to keep your guests happy can lead to significant cost savings for your business.

What happens after they leave your stay? The guest journey doesn’t end. You can create different touch points after check-out to engage with your guests and nurture the relationship. Add them to your newsletter, send a message on their birthday, send out special offers based on their previous stay (here, guest data is again important), and more.

All these efforts will help you to boost your guest loyalty, which translates into recurring revenue.

As you’ve read, a digital marketing strategy is crucial for your hotel and it will help you not just to have content on social media but to truly impact your revenue. Although it might sound like a complicated process, the truth is that if you have the right tech by your side, things can run smoothly and your hotel marketing strategy will be in place before you know it.

Credit: eHotelier

August 3 2024

Record EBITDA Highlights Accor's First-Half Earnings Results

France-Based Hotel Firm Injects Cash Into Ownership Platform AccorInvest

French hotel company Accor set a personal record for earnings before interest, taxes, depreciation and amortization in the first half of the year.

The global hotel brand’s EBITDA was €504 million ($547 million) in the first six months of 2024, which Chairman and CEO Sébastien Bazin said was a 13% increase over the first half of 2023 and exceeded the company’s EBITDA growth guidance range of between 9% and 12%.

“We’ve never done that before, half a billion-plus for six months,” he said. “We feel confident, we feel strong, and we are able to control the controllables. Wherever we see demand, we are there. Yes, there are challenges, but we are confident.”

Accor also reported a 6% year-over-year increase in hotel revenue per available room and an 11% year-over-year revenue. Earlier in the year, the company projected RevPAR growth between 3% and 4%.

Bazin added that the results are “confirming our sound and controlled business model. … In today’s world, you better control as much as you can.”

Accor announced its half-year results the day before the 2024 Summer Olympics begin in Paris. But the Games are likely to only represent a 0.5% increase to Accor’s full-year EBITDA, Bazin said.

“We have fuel in other regions that allow us to be where we are,” he said.

Globally, Accor is optimistic about its growth opportunities in Asia-Pacific, the Middle East and Africa. Bazin said the company is seeing no signs that consumers are pulling back their spend or tightening their travel budgets, either.

Outbound travel demand from India represents approximately 14 million people, which Bazin added could rise to approximately 80 million in a year or two, most of whom were initially heading to Southeast Asia. It’s a similar projection from when Chinese travelers began taking more and more international trips a decade ago.

China, meanwhile, continues to be challenging, said Martine Gerow, Accor’s group chief finance officer. She said domestic travel there was difficult, and business travel has not come back as expected.

Bazin said Accor showed “solid future demand” across its portfolio, notably in the Middle East, where Accor said it expects a 51% increase in international visitors, fueled by continued interest in the United Arab Emirates and in Saudi Arabia.

He added Accor’s portfolio growth aligns well with where the company sees growth in traveler demographics around the world.

In Asia-Pacific, for example, Accor’s rooms pipeline is 51% of the current stock, and that additional stock will contribute 31% of fees payable to the French firm. In March, Accor added 22 hotels in Japan with a total of more than 6,000 rooms in an agreement with owner Ebisu Resort LLC and its brand Daiwa Resorts. The hotels included in the acquired portfolio were rebranded as either Accor’s Mercure or Grand Mercure brands.

Bazin said other goals are to improve management and franchise EBITDA by 100 basis points from the same period this year and to strengthen the firm’s global hotel share of wallet, especially in the Middle East and Africa.

Accor’s partnerships with up-and-coming hotel brands continue to blossom. Its recent collaborations have been with Our Habitas and LVMH Moët Hennessy Louis Vuitton.

“Our Habitas looked for us. That is a perfectly similar pattern to that of [now-Accor brands] Hoxton, Rixos, 25hours and others. It is a natural alliance, similar to other [companies whose] founders knocked on the doors of Accor,” he said.

Bazin described Our Habitas as a “resi-luxury tourism” brand.

According to its full-year 2024 guidance, Accor projects year-over-year RevPAR growth between 4% and 5%, net unit growth between 3% and 4% and an EBITDA range between €1.09 billion and €1.125 billion, an increase of between 9% and 12%.

AccorInvest Update

During the first half of the year, Accor injected €67 million in operational costs to AccorInvest, its separately owned and managed asset division it created to make the global brand company more asset-light.

When AccorInvest was first spun off from Accor, it contained approximately 1,400 hotels, of which Accor owned approximately 300. Today, AccorInvest has a portfolio of 701 owned or leased hotels with more than 109,000 rooms.

Bazin said more capital help might be provided, but that would be determined by AccorInvest sales levels.

“At the moment I do not think so, but we will need to talk more to you in upcoming quarters,” he said. “AccorInvest needs to deliver. Its level of debt is too high.”

Bazin added he hoped by the end of 2025 or by early 2026 to find a buyer for the remaining assets in the AccorInvest’s platform.

Further, Bazin said he wants to make sure Accor is being properly valued. More clarity would be available on this by the release of full-year 2024 numbers next spring, he said.

“The value of our assets are not properly reflected in our share price,” he said.

As of press time, Accor stock was trading at €36.40 a share, a 5.9% increase year to date. The Euronext stock exchange index has shown a 16.6% increase over the same period.

In the first half of the year, Accor returned €686 million to shareholders via share buybacks and dividends, a number that “translated to 7.9% of our market cap as of Jan. 1, 2024,” Gerow said.

In total, €1.1 billion has been returned to shareholders, with projected returns of approximately €3 billion by the end of full-year 2027.

Credit: Hotel News Now

July 29 2024

Unlocking potential: the benefits of early career exploration in hospitality

Embarking on early career exploration is not only crucial for professional advancement but also for personal growth, particularly in dynamic fields like hospitality. Spanning from hotel management to culinary arts, this vibrant industry offers diverse paths that demand specialized skills and a genuine passion for serving others.

Here’s why early exploration holds such significance, humanized through real-life examples and personal insights.

1. Discovering passion and aptitude

Many young individuals stumble upon their career paths by chance or through exposure. Hotel Management consultants highlight that early exploration allows them to unearth whether hospitality resonates with their interests and strengths. For instance, someone might find their calling for customer service and management while immersing themselves in Hotel Management Consultancy during school breaks.

2. Building foundation skills

Starting early in hospitality lays the groundwork for invaluable skills. Whether mastering teamwork in a bustling kitchen, honing customer interactions at the front desk, or grasping the intricacies of event management, these experiences forge a robust foundation for future career growth.

3. Networking and industry insights

Hospitality thrives on relationships and networking. Early exposure connects individuals with industry professionals, unveils market dynamics, and provides insights into emerging trends. These connections not only open doors to opportunities but also offer mentorship critical for career development.

4. Real-world application of education

Early career exploration lets young individuals apply classroom learning to real-world scenarios, bridging theory with practice. This hands-on approach enriches understanding and prepares them for the industry’s demands.

5. Career readiness and adaptability

Early exposure cultivates adaptability and readiness for diverse roles within hospitality. Whether navigating different cultures, managing high-pressure situations, or innovating in service delivery, early experiences equip individuals with essential skills to thrive in this dynamic field.

6. Inspiring future leaders

Early career exploration inspires future leaders by showcasing the profound impact of hospitality careers. Young professionals hope to make significant contributions to the industry by leading sustainable initiatives and transforming the guest experience.

Conclusion

Early career exploration in the hospitality industry is about more than just landing a job; it’s about developing skills, finding a passion, and starting a rewarding career path. Fostering this inquiry from an early age enables people to make well-informed professional decisions, make significant contributions to the sector, and influence the global hospitality landscape going forward. Every opportunity, whether it be through formal schooling, internships, or part-time work, is crucial in forming the future generation of hospitality professionals.

Credit: eHotelier

July 18 2024

How to Make Your Hotel a Wellness Tourism Hub

According to the Global Wellness Institute, wellness tourism was worth $651 billion globally in 2022, and is forecast to grow to a massive $1.4 trillion by 2027. An article by Łódź University found that the post-COVID wellness tourism sector represents one of the fastest-growing tourism market segments globally. In addition to this sector’s rapid growth, wellness travellers tend to spend much more per trip than travellers from other tourism sectors.

How can hoteliers benefit from this trend? How can you offer activities to aid the healthy balance of mind and body and how can you integrate a wellness lifestyle into your business? Does this development have to cost you a lot?

What is wellness tourism?

The Global Wellness Institute (GWI) defines wellness tourism as “travel associated with the pursuit of maintaining or enhancing one’s personal wellbeing”. On a basic level, wellness tourism is often synonymous with destinations offering yoga and spa retreats or detox packages, but with the rising trend of travellers looking to escape the stresses of life and improve their well-being, the sector is far more extensive. Fortunately, there are more affordable approaches to incorporating elements of wellness or retreat culture into your hotel.

Does your hotel already offer wellness?

One of the most convenient characteristics of wellness tourism is that it is multifaceted and could be in the form of food, fitness, relaxation, or local culture – so hoteliers may already have elements of wellness tourism in place at their hotels, maybe without even realising it and probably without giving it quality marketing presence.

Perhaps your hotel has gym facilities, a chef who knows vegan recipes, luxurious rooms which promote rest and relaxation or even an underutilised spa? In addition to areas where you may already have some wellness offerings, there are other ways you can include health and wellness into your property without it costing much if anything at all.

“What constitutes a wellbeing holiday is subjective,” Justin Francis, co-founder and CEO of Responsible Travel told National Geographic. “I’d say a painting holiday in the Scottish Highlands or a wild camping experience can be as much about wellness as a vegan Pilates retreat. Wellness holidays simply allow you to rest and revive in your own way, mentally and physically.”

Ways to include wellness tourism at your property

MOVEMENT

Embracing physical fitness epitomises a proactive approach to wellness, enhancing one’s overall health and safeguarding against lifestyle diseases. Studies increasingly demonstrate that regular exercise not only improves physical health but also reduces stress and fosters a happier state of mind.

If your hotel already has a gym, ensure that your machines are running well and guests know what to do with them. Ideally, you should have someone on hand to offer advice on exercises. If staff aren’t an option, have clear workout guides up for guests to follow. In addition to keeping the gym looking clean and neat, make sure it features in your hotel marketing and ensure that all of your online travel agent profiles have gym facilities listed as one of your hotel amenities.

Even if your hotel doesn’t have dedicated workout facilities, you can still promote fitness and movement as part of your wellness offerings. Consider innovative options like partnering with fitness companies to provide in-room workout programs accessible via Smart TVs or in-room tablets. You can also enhance guest experience by offering hotel-branded fitness props like mats and weights for in-room use.

Additionally, collaborating with local Pilates, Yoga, or other fitness instructors to host classes in communal areas, conference rooms, or poolside settings can further enrich your wellness offerings and cater to diverse guest preferences. providing information or coupons for nearby leisure centres, jogging trails, and cycling routes further enriches the guest experience and promotes holistic well-being.

The Even Hotel has positioned physical fitness as one of its top USPs and it sits front and centre in their marketing collateral. The Even offers access to a state-of-the-art fitness centre as well as in-room workouts via a workout-on-demand app. Guests can request certain fitness gear to be sent to their rooms and Premium rooms have an in-built ‘fitness zone’ which includes TRX resistance loops and even an interactive spin bike.

According to Raul Ortiz, VP of global marketing and brand management for EVEN Hotels speaking to Well and Good magazine “Currently, 80 per cent of guests who book with us plan on working out in their room, and most actually do once they stay with us.” This is a good indication of how many guests are looking to keep up with their fitness routine while travelling.

OUTDOOR ACTIVITIES

According to MasterCard’s report on Travel Industry Trends, spending on things increased a measly 12% from 2019 to 2023, while travellers spent 65% more on experiences in the same period. Guests want to feel connected to the local culture and natural surroundings and are shying away from a cookie-cutter room in a hotel approach.

Combining this desire for cultural immersion and experiential travel with the wellness benefits of just being outdoors gives you the best of both trends. Beyond suggesting walking routes and nearby vista destinations, hoteliers can collaborate with local outdoor adventure companies to offer guided hikes, nature walks, or cycling tours, or team up with local wellness practitioners, such as Yoga and Pilates instructors, to organise outdoor classes in scenic locations. These partnerships not only enhance guests’ outdoor experiences but also foster mutually beneficial relationships, as cross-promotion can lead to increased visibility for both parties.

Moreover, arranging day trips to nearby attractions or cultural sites showcases the hotel’s commitment to offering comprehensive vacation experiences. By curating unique and immersive excursions, hotels demonstrate an understanding of guests’ desires for enriching and memorable travel experiences. Whether it’s exploring local landmarks or embarking on off-the-beaten-path adventures, guests will appreciate the opportunity to connect with their surroundings and indulge in wellness-focused activities during their stay.

“Luxury retreats that offer mountain hikes, forest bathing, and wild swimming even in cold waters adopting the Wim Hof cold therapy method, will be on the list of high-end travellers looking for a dive into the wild in 2024.”

– Me Time Away Magazine

Hotel Saranac offers guests a digital ‘explorer concierge,’ the Field Guide, detailing a myriad of outdoor activities in the local area. From hiking the Saranac Six (a group of mountains surrounding the hotel’s local area) to canoeing in the Historic “Seven Carries” Route to mountain biking, road biking and even bobsledding, this hotel seems to have it all – even though none of it belongs to the hotel!

SPA & BEAUTY

While establishing a full-scale spa facility may not be feasible for all hotels, there are numerous ways to incorporate spa-like experiences into your wellness offerings. Enhance guests’ relaxation and well-being by providing luxurious amenities such as spa-quality soaps, shampoos, and lotions in guest rooms, along with plush robes and gowns for added comfort. You could also include a selection of herbal teas to be pre-ordered to the guest’s room before check-in, offering unique blends which promote rest and rejuvenation. Or have a full tea selection in each room, allowing guests to control what blend (and associated wellness benefit) they would enjoy.

Consider partnering with local freelance massage therapists or beauty practitioners to offer massage treatments, waxing, facials, or manicures, providing guests with a comprehensive spa-like experience during their stay without leaving the comfort of their accommodations. You could set aside a dedicated room with scenic views as a massage and treatment room, where guests can enjoy personalised massage sessions tailored to their preferences, or invite freelance therapists to take their equipment to guests’ own rooms.

Additionally, consider offering exclusive discounts or coupons for nearby spas, allowing guests to explore additional wellness options in the surrounding area.

You could also offer a unique turn-down service, including a bath drawing bonus, which could include various aromatherapy items, such as scented candles, bath oils and even flowers in the bathroom. Turning down the lights and offering a candle-lit bath is sure to make anyone feel rested and pampered. If you want to spend a little more, invest in a hot tub for some of your premium rooms.

Although the Waldorf Astoria in Chicago boasts a spa facility on-site, they also offer their signature massage or a couples massage in the guest’s room, a facial in partnership with Knesko skincare (with a complimentary glass of diamond-dusted Veuve Clicquot). This means guests don’t have to leave the comfort of their bedroom to experience the spa experience. Any hotel could achieve this with freelance massage therapists and pre-bookings.

SLEEP

Offering a full night’s rest will ensure that your guests are already well on their way to feeling well.

Disruptive sleep patterns can wreak havoc on our hormonal balance, cause weight gain and exacerbate mental health disorders. An interesting article from the Institute of Medicine sums up the findings on sleep deprivation, “After decades of research, the case can be confidently made that sleep loss and sleep disorders have profound and widespread effects on human health”. One aspect that every hotel will have is a bedroom for your guests, so how can you make the most of these spaces, enhance your guest’s sleep quality and use that in your hotel’s wellness offerings?

Sleep-focused tourism is emerging as a trend in the hospitality sector, with many hotels marketing their sleep programs as a primary feature. While it can be as basic as high-quality bedding and blackout curtains, it can become as technologically advanced as a ‘smart bed’ which controls temperature and can even adjust its firmness depending on where the guest is in their sleep cycle.

If you’re not in the market for an AI-enabled mattress, your hotel’s focus on sleep wellness can begin with something like a sleep-focused turn-down service. Offer a turndown service where staff dim the lights, play soothing music, and leave a calming herbal tea to signal the transition to bedtime. You can include some sleep amenities such as scented eye pillows, aromatherapy options, white noise machines or soothing music playing in the rooms. You could even include more specific items such as a meditation CD or a relaxation program guests can follow before bed.

One hotel that is getting the sleep tourism trend right is the Royal Champagne Hotel and Spa. Guests staying in the Junior Suites are treated to premium linens, blackout curtains, and a serene, soundproof environment. The Royal Sleep Kit greets them with sleep mist, melatonin drops, a Morphée meditation guide, and a satin sleep mask. The Spa offers a soothing one-hour candle massage, while Le Bellevue restaurant serves a sleep-focused menu with a “Sleeping Beauty” mocktail. As guests dine, the team prepares a calming bedtime ritual in-room, including a sleep mist, curtain closure, and herbal tea with sweet treats for a restful night’s sleep.

HEALTHY EATING

If a property is looking to position itself as a wellness destination on any level, getting food and beverage right is critical. It’s essential to offer balanced meals emphasising fruits, vegetables, and vitamins and offer various options for different dietary preferences.

While this can initially seem overwhelming, offering vegetarian, vegan and gluten-free options is possible with a little research and training. Once these items have been integrated into your menu, they need to be communicated to both current and potential guests.

Any changes in your menu to cater for dietary requirements should be showcased on your social media, in client emails and on your website. Make sure potential guests know they can stay with you while still being able to enjoy the foods they require. According to Statista “The number of vegans in the EU is forecast to grow from about 6.6 million in 2023 to almost 8.3 million by 2033.” While not a huge percentage of the population globally, it does help to be one of the hotels in your area offering vegan options to those few million.

Ensuring the accuracy and quality of the food served is paramount. Well-trained staff knowledgeable about different diets, and how the food is prepared, who can guide and engage with guests effectively can foster trust and satisfaction.

Aside from changing your existing menu to include various options such as vegan, vegetarian, gluten-free, dairy-free or sugar-free options, your property can also start to include healthy options in your breakfast buffets, in your mini-bar offerings and even offer healthier options behind bars or in vending machines.

Guests who care for their bodies also often want to know that their products are sustainably and ethically sourced. Getting local food producers on board and explaining the origins of the raw ingredients can help attract and delight guests. Better yet, offering nutrition courses, healthy cooking demos and interactive moments with chefs and guests can all help to put you on the wellness tourism map.

“Hotels need to embrace sustainability, nutrition, multi-sensory design and psychology, and expand on the idea of what healthy eating looks and feels like,”

– Charles Spence, professor of experimental psychology, University of Oxford.

One hotel making the most of the food and beverage wellness trend is Aro Ha Wellness Retreat. Amongst their vast array of health and wellness amenities and activities, they offer healthy meals, cooking demonstrations and an Ayurvedic cooking class.

WELLNESS EVENTS, WORKSHOPS AND CLASSES

Hosting wellness-focused classes and events can effectively meet the expectations of guests seeking opportunities to improve their physical and mental well-being, without requiring extensive investment in full-time staff or spa facilities. Collaborating with local practitioners can provide a rich array of workshops and classes, whether hosted at your property or at their venues. To foster a mutually beneficial relationship, consider offering transport services for guests attending off-site workshops, along with negotiated discounts.

Expanding beyond traditional wellness activities, hotels can offer creative and engaging options. For instance, sound healing sessions with Tibetan bowls or gong baths can provide unique relaxation experiences. Similarly, DIY skincare workshops using natural ingredients allow guests to create personalised spa products they can take home. Aromatherapy blending sessions or classes on creating herbal teas can also be popular and relatively inexpensive to set up.

Advertise the regular classes in brochures and market classes with a less structured timetable in the reception and on social media.

One hotel offering unique and interesting wellness events is the Canyon Ranch in Woodside, California. They offer events such as personal development talks and workshops, women’s empowerment circles, Yoga retreats and meditation classes.

As wellness tourism continues to gain momentum, it’s not just the travellers benefiting from self-improvement; the broader tourism economy, including hotels and local businesses, also reaps the rewards. It also seems that what we have seen of wellness tourism is just the beginning and that it’s unlikely to slow down any time soon. By implementing simple yet effective changes, hoteliers can position themselves at the forefront of the wellness movement without requiring significant capital investment.

Source eHotelier

July 3 2024

OTA and Direct Booking: Finding the Right Balance

On one side, you have OTAs (online travel agents) that are vital distribution partners to liquidate unsold inventory and put heads in beds. On the other side, you have the hotel’s direct channel, their website, which is the most profitable for online booking.

Establishing a better mix between OTAs vs. direct bookings from third-party distributors and direct bookings or the right balance OTAs vs. Direct can help modern hoteliers maximise revenue and take full advantage of projected market growth.

The OTA dominance and advantage

The OTA dominance in the distribution space is hardly one you can ignore; almost 2-1 share of bookings according to market reports. The primary drivers for this is their nimble nature. They are also well-armed with technology and highly knowledgeable of online shopping tactics and strategies. In addition, they leverage their own loyalty programmes to keep potential guests shopping on their channels.

There are some distinct advantages of partnering with OTAs.

Wide reach: OTAs have a global presence and extensive marketing budgets, helping properties gain visibility to a broad audience.
Marketing and advertising: OTAs invest heavily in marketing, which can drive significant traffic and bookings.
Customer trust: Many travellers trust OTAs due to their established reputation and user-friendly platforms.
Distribution: OTAs provide a diverse distribution channel that can help fill rooms during off-peak times.

This dominance comes at a cost. And hoteliers are quite familiar with how rapidly these have grown in the last few years. Hence, the turn to optimising direct bookings.

Why direct bookings matter?

Higher profit margins: Direct bookings eliminate the commission fees paid to OTAs, increasing profitability.
Control over customer data: Direct bookings allow properties to collect guest information, aiding in personalised marketing and enhancing guest relationships. This also helps foster brand loyalty.
Customised experience: Hotels can offer tailored packages, room upgrades, and exclusive deals that might not be available through OTAs.

Striking a balance

Where OTAs are the volume drivers, direct is the profit pilot. A successful balance between the two requires leveraging the strengths of each channel to inform your business goals. Supporting both channels is important and here are a few ways to maximise returns from them:

Optimising your website: Ensure your website is user-friendly, mobile-responsive and provides a seamless booking experience. Use high-quality images, detailed descriptions and clear calls-to-action.
Making booking via your website easy: Your booking engine plays a crucial role in converting website visitors into bookers. A smart booking engine such as SwiftBook can help you make optimised decisions via dynamic pricing as well as offer discounts, loyalty programmes, free amenities or flexible cancellation policies for guests who book directly.
Invest in marketing: Use meta search engines, SEO and SEM to attract direct traffic to your website. Capitalise on the website visitors through remarketing campaigns, particularly those that didn’t complete a booking. Combine the power of search with social media and email marketing to round off all channels.
User reviews and testimonials: Encourage satisfied guests to leave reviews on your website and social media platforms, enhancing your property’s credibility.
Channel management: Use a channel manager to synchronise availability and rates across all distribution channels, reducing the risk of overbooking and ensuring rate parity. Using insights from your channel manager, you can also dial-up the high-performing channels in real-time.
Partnerships and collaborations: Collaborate with local businesses and tourism boards to create attractive packages that encourage direct bookings.

Equally managing OTA relationships will help ensure you maximise your spend with them. Some tips to keep in mind for OTAs:

Negotiating commissions regularly to ensure they remain favourable.
Participate in OTA promotions selectively, targeting periods of low occupancy or launching new offerings.
Continuously monitor the performance of each OTA and adjust your strategy based on the results.
Ensure rate parity across all platforms to maintain trust and avoid penalties from OTAs.

Balancing OTAs and direct bookings requires a strategic approach that leverages the strengths of both channels. While OTAs can significantly boost visibility and occupancy, direct bookings are crucial for maximising profitability and fostering brand loyalty. By employing a mix of digital marketing, incentivising direct bookings, and maintaining healthy OTA relationships, hotels can achieve a balanced distribution strategy that optimises revenue and enhances guest satisfaction.

Credit eHotelier

Nine Proven Ways to Grow Your Occupancy Rates

It’s not a revelation, but a hotel cannot thrive—or survive—without a sufficient stream of guests coming through their doors. While operators will likely find success increasing their hotel’s occupancy rate by cutting prices, engaging in a “race to the bottom” with your competitors in pricing is not advisable for reputational and long-term financial health.

Fortunately, price isn’t the only tool available to hoteliers looking to improve their occupancy rate. Below, we’ll highlight how to increase hotel occupancy with some tried-and-true approaches and introduce some important considerations to keep in mind when monitoring this common hotel performance metric.

Hotel occupancy: the basics & important considerations

Before we get tactical, we have some basic foundation to lay for anyone not yet up-to-speed. Hotel occupancy is a simple but important measure of how “full” a property is. Hotel occupancy rate is calculated by taking the total number of rooms occupied and dividing it by the total number of rooms available (if you wish to express this as a percentage, multiply this figure by 100).

While occupancy has a direct connection to revenue performance, this is a metric that requires context—like revenue generated, or better yet, profit generated from this level of occupancy—to effectively evaluate your hotel’s overall performance.

Breaking occupancy down by room type is another helpful approach for operators seeking to gather useful insight from this metric. For example, if your standard “entry-level” rooms are consistently packed while occupancy for deluxe room types lags far behind, that may suggest there’s an upselling opportunity to offer standard room guests a discounted upgrade—driving additional revenue through filling a previously unoccupied room and opening up a higher-demand room for booking. While this is a relatively simple example, these types of tactical changes can be easily automated with modern revenue management tools.

How to increase hotel occupancy: 9 tried and true approaches to consider

The nature of today’s hospitality landscape means guests are often spoiled for choice and the supply of places to potentially stay is increasingly abundant. To grow or maintain occupancy rates hoteliers must be willing to innovate, experiment and adapt.

While there’s no simple, universally effective solution for increasing hotel occupancy, the following prove effective in the right circumstances.

1. Consider your other channels for promotions

Don’t limit promotions to your brand website. Explore channels like the Global Distribution System (GDS), consortia, and work with corporate accounts’ administrative staff. Leverage the “Billboard Effect” and collaborate with online travel agencies (OTAs) to increase visibility and drive bookings. Build relationships with local businesses, such as tour desks, event organizers and attractions, to create mutually beneficial partnerships that will help grow your occupancy.

2. Develop targeted, relevant packages

To increase occupancy, try creating tailored packages for your target audience. Consider creating themed packages based on local events or attractions, such as wine tasting or museum tours, or offering gas/petrol vouchers for weekend staycations for guests who live in neighboring districts or states. Monitor the performance of your packages and adjust them as needed to maximize their appeal.

3. Leverage social media to drive FOMO (fear of missing out)

Fear of missing out on the fun is a strong driver for change, and social media provides an excellent medium for tapping into this. Harness the power of social media to create a sense of urgency and desire for your hotel. Share photos, stories, and promotions that highlight unique aspects of your property, local events, and guest experiences. Engage with your audience through comments, questions, and contests to build a loyal following and generate interest in your hotel.

4. Revenue manage instead of yield manage

While it’s easy to sometimes get locked in on trying to yield additional revenue during a high-demand night, it can pay off to take a step back and consider the impact this has on larger revenue and occupancy picture for the surrounding days.

Instead, focus on revenue management over yield management, which means capitalizing on peak night demand to drive occupancy on the adjacent shoulder nights. This might involve sacrificing some average daily rate (ADR) on the peak night but gaining longer-stay bookings that improve occupancy and can ultimately have higher revenue value overall.

5. Grow direct bookings

This is a strategy that provides an immediate term occupancy lift through the use of exclusive benefits like discounted rates, complimentary amenities and loyalty program perks for direct booking channels. While this approach does typically require some incentivization, the effort can pay off long term as well-designed direct booking promotions can encourage loyalty program participation (and the data collection benefits that come with) while cutting down on commission costs from online travel agencies.

6. Personalize guest experiences

Provide personalized experiences for your guests by leveraging data from previous stays, preferences, and feedback. Tailored services and amenities can make guests feel valued and more likely to return—and more likely to recommend to others, boosting occupancy in the long run.

7. Implement a dynamic pricing strategy

Adopt a dynamic pricing strategy that adjusts room rates in real-time based on factors such as demand, competitor pricing, and market conditions. This approach helps maximize revenue and occupancy by ensuring that your hotel remains competitive and attractive to potential guests. Apply this to dynamic to discounting too. Discount the minimal amount necessary to capture the most bookings and avoid leaving money on the table.

8. Utilize and encourage guest reviews and testimonials

It’s a simple truth, but many guests tend to tune out what a hotel has to say about itself—particularly for subjective features. Most seek out external validation in the form of reviews and testimonials to get a true sense of what to expect.

Fortunately, you can use this tendency to your advantage in a long-term effort to increase occupancy. Encourage satisfied guests to leave reviews on popular review platforms such as TripAdvisor and Google Reviews. Positive reviews can significantly impact potential guests’ decision-making process, leading to increased booking conversion. Even less-than-ideal reviews have a silver lining, as addressing any negative feedback promptly, sincerely, and professionally demonstrates your property’s commitment to guest satisfaction.

9. Compete at the room type level

Growing market share is not limited to competing your lead-in room type against your primary competitor’s lead-in room type. Consider leveraging your premium rooms to compete against higher-rated luxury competitor’s lead-in room types. For instance, many guests would consider a 4-star hotel club room with club benefits that’s priced similar to a 5-star hotel’s basic room.

Thinking beyond increasing hotel occupancy rates

By implementing these strategies, hoteliers can increase or maintain occupancy rates even in the face of changing conditions. Adapting to the evolving travel landscape and the needs of your guests will help ensure your hotel’s long-term success.

Of course, occupancy only tells part of the story. Revenue management is ultimately about selling the right product, to the right customer, at the right time, with the right pricing, and through the right channel.

Credit eHotelier

July 1 2024

7 Trending Revenue Streams for Your Hotel in 2024

As the hospitality industry continues to evolve in response to shifting consumer preferences and technological advancements, hotels are redefining their approach to revenue generation. Recognizing the need to adapt and diversify, forward-thinking hoteliers are exploring new avenues to bolster their bottom line and enhance guest experiences in 2024.

Let’s explore 7 trending new revenue streams that can boost your hotel’s profitability.

1. Embrace the rise of coworking and remote work

The growing trend of remote work and the demand for flexible workspaces present an excellent opportunity for hotels. Convert underutilized spaces into coworking hubs, offering day-use packages, private offices, and meeting rooms for digital nomads, entrepreneurs, and remote professionals. This not only diversifies your revenue streams but also attracts a new segment of guests.

2. Host entertainment events at your property

Transform your hotel into a vibrant hub by hosting entertainment events such as live music nights, comedy shows, or themed parties. By becoming a local entertainment hotspot, you not only attract guests but also draw in the surrounding community, thereby increasing foot traffic and revenue from food and beverage sales.

3. Consider renting rooms by the hour or for single-day use

Acknowledging the evolving needs of modern travelers, offering flexible booking options can be a game-changer. By allowing guests to book rooms for shorter durations, whether it’s for a quick nap, a business meeting, or a day-use staycation, hotels can optimize occupancy rates and revenue per available room (RevPAR).

4. Leverage custom F&B experiences

Elevate the dining experience by offering personalized culinary experiences tailored to individual preferences and dietary restrictions. This could include chef-led cooking classes, curated tasting menus, or interactive dining experiences like farm-to-table dinners. By tapping into the growing demand for experiential dining, hotels can enhance guest satisfaction and drive additional F&B revenue.

5. Kid-friendly amenities and activities

Create a welcoming environment for families by offering a range of kid-friendly amenities and activities. This could include children’s play areas, supervised kids’ clubs, indoor or outdoor playgrounds, and kid-friendly pools with water slides or splash pads. Additionally, providing amenities such as cribs, high chairs, baby bathtubs, and strollers can make traveling with young children more convenient for parents.

6. Female-friendly amenities

Cater to the specific needs and preferences of female travelers by offering amenities such as women-only floors, in-room beauty services, yoga mats, skincare products, and safety features like well-lit parking areas and 24/7 security escorts. Creating a safe and welcoming environment for female guests can foster loyalty and positive word-of-mouth referrals.

7. Offer pet services

In an era where pets are increasingly considered as family members, catering to furry companions can be a lucrative niche. Provide pet-friendly amenities such as pet beds, bowls, grooming services, and designated play areas. Additionally, offering pet-sitting or walking services can appeal to travelers reluctant to leave their pets behind, thus tapping into a new market segment.

In addition to these key strategies, hotels can explore other innovative avenues to diversify revenue streams, such as:

Wellness retreats and packages: Capitalize on the growing wellness tourism trend by offering specialized packages that include yoga sessions, spa treatments, nutritional workshops, and mindfulness activities.
Virtual reality (VR) experiences: Enhance guest engagement and entertainment by offering VR experiences within the hotel premises, whether it’s virtual tours of local attractions, immersive gaming zones, or virtual fitness classes.
Collaborations with local businesses: Forge strategic partnerships with local businesses such as spas, restaurants, tour operators, and retail outlets to offer exclusive discounts, packages, or co-branded experiences, thereby expanding your hotel’s offerings and attracting new clientele.

In conclusion, the key to thriving in the competitive hospitality landscape lies in innovation and adaptability. By embracing new trends, leveraging technology, and catering to evolving consumer preferences, hotels can unlock new revenue streams and ensure long-term success in an ever-changing industry landscape.

Credit eHotelier

June 24 2024

On the menu today – F & B profitability

As hoteliers and consultants, we respond to the question of profitability spontaneously. In Asia, most large format hotels have a much more equal distribution of rooms and F&B revenue. In some cases, F&B can be 50% of the total revenue. The question here is – does F&B have a larger scope perhaps in terms of profitability? My opinion? Yes!

However, a lot of this is seen as MICE revenue or banquet related, which itself is mix of corporate conference revenue and revenue from social events, mainly weddings. While weddings undeniably represent a lucrative segment for hotel F&B earnings, focusing solely on this demographic can overlook significant profit-earning potential in other areas. Having said that, weddings do have true revenue and profitability potential if you can do it really well. Brands like Marriott and IHCL have really taken the game a notch up and gone all the way till the end by launching “Shaadi by Marriott” and “Timeless Weddings by Taj”. However, expanding beyond weddings will allow hotels to mitigate risks associated with seasonality and market fluctuations, fostering long-term sustainability and growth in their F&B operations, all flowing through to the GOP of the hotel.

Approximately one half or say a quarter of F&B revenue arises from restaurant sales. In fact, it would be safe to assume that many times restaurants in the hotels can be the reason why people visit the hotel and not just vice-versa the rooms.

In the dynamic landscape of the hospitality industry, F&B operations stand out as a vital component contributing significantly to a hotel’s financial success. From fine dining restaurants to casual cafes, bars, and room service, F&B services represent not only a substantial revenue generator but also a critical element in guest satisfaction and overall experience. While this sounds like music to the ears of hotel owners (especially new hotel owners, who may be swayed by the many stories of successful F&B outlets), a key item often escapes attention. Very few talk F&B profitability. The main focus, especially by hotel brands themselves, is on revenue generated, not profitability.

Add to this another dimension – that restaurants generally can be expensive propositions for any hotel. Kitchens are often oversized as space is generally not a constraint. Afterall, who is counting the square feet of rent expense? No one – because there is no rent to pay. Also, the interior finishes can often be lavish. After all, this is a public area, so a little bit of extravagance is allowed. So, it’s a field day for designers, kitchen consultants and of course plays in beautifully into the ROE of the project. By the way ROE here equals Return on Ego.

Badhai ho!

A fun fact: For many hotels, F&B revenue represents 30–50% of their total revenue and the focus still remains on weddings as a segment with restaurants playing second fiddle.

Unfortunately, the typical hotel F&B managers’ focus for their restaurants remains only on:

Top line
Number of covers
Average cheque

This is dangerous in many ways because this is only the tip of the proverbial iceberg. The speciality restaurant manager does not panic when the 80 cover restaurant only does 6-10 covers for a weekday lunch meal period. Even if this happens on a daily basis or more frequently than not, the manager isn’t worried about his cost of raw materials, overheads and team salaries and that is a red flag right there. Just imagine the alternate scenario if this restaurant had instead been outsourced or never built. Or if rent had to be paid for the area on a square foot basis, there was a utility bill to be covered or maintenance or license fees. Guess what – the same F&B manager would have been long fired.

However, to be fair it’s not entirely his/her fault. Hotel brands are just not doing enough to train their staff on this front mainly because they too don’t see it as a red flag. The restaurant world is fast paced and competitive where there is only survival of the fittest. You have to provide a memorable culinary experience, be active on social media and have the right set of influencers recommend the restaurant. Followers, ratings, social media presence and awards are all big buzz words without which you don’t stand a chance.

The real deal: stand alone restaurants

Running a stand-alone restaurant is tough due to various reasons. Firstly, unlike restaurants in big hotels, stand-alone ones lack the support and resources needed to handle financial ups and downs and invest in important areas like equipment and advertising. Costs such as rent, utilities, and upkeep are a big part of the budget, so managing expenses well is crucial to staying profitable. Also, there’s a lot of competition in the food industry, so stand-alone restaurants must be creative, offer something unique, and always deliver great quality to keep customers coming back. Finding and keeping good staff can be hard too. Plus, dealing with rules and regulations, like getting licenses and meeting health and safety standards, adds more challenges. Overall, it takes a lot of flexibility and determination to make a stand-alone restaurant successful amidst all these obstacles.

So how does one improve F&B profitability?

Challenge No. 1: Brands insisting on multiple restaurants

Brand standards have been a bone of contention and while that needs separate focus, the current focus is on brands insisting on multiple restaurants. While this approach can enhance the overall guest experience by offering diverse culinary options under one roof, it also poses logistical and operational hurdles. Hotel brands often view in-house restaurants as integral components of their identity and guest offerings, preferring to maintain control over the dining experience from concept to execution. This insistence on internal management can limit flexibility and creativity, constraining the hotel’s ability to adapt to changing market trends and local preferences. Additionally, the overhead costs associated with operating multiple restaurants in-house, including staffing, equipment, and marketing, can strain profitability margins.

Challenge No.2: Hotel Brands not outsourcing restaurants

Introducing the concept of outsourcing restaurants within hotel brands opens up a world of culinary possibilities. This concept is widely accepted internationally; however, in Asia, this is still a new concept and this method of optimizing efficiency has not been explored in totality. The advantages are many:

Outsourcing restaurants brings fresh perspectives and diverse culinary experiences to hotels.
Collaboration with external culinary experts or renowned restaurant brands enhances the authenticity and quality of the dining experience.
Hotels can tap into specialized expertise and established reputations of external partners.
Outsourcing alleviates the burden of staffing, training, and operational management on the hotel.
Financially, outsourcing mitigates risks associated with fluctuating demand and reduces upfront investment costs.
Overall, embracing outsourcing empowers hotels to deliver exceptional dining experiences, driving customer satisfaction and loyalty.
We recommend that right from design stage plan to outsource at least one outlet which can be provided a separate entrance if required.

Challenge No.3: Unit Economics

General Managers and Operations (Restaurants / F&B) Heads must shift their mindset to view their units as independent P&L entities. By adopting this approach, they would be able to understand the financial viability and sustainability of each restaurant. Empowering their teams to take ownership of financial performance will higher foster accountability, drive profitability, encourage strategic decision-making, cost-consciousness, and innovation tailored to the specific needs and opportunities of the unit. Look, if you are really keen to see if your restaurant is profitable then do the following apart from tracking Top line, Number of covers and Average cheque.

Add 12–14% of top line as rent (most independents need to actually pay a minimum fixed amount too)
Take food cost at a conservative 25–30%
Take payroll to be 18–22%
Utilities and maintenance at say 5–7%
Add some costs for marketing, influencers and some salt & pepper for good measure.

If you are still surviving then kudos to you as you are doing a great job. If not then perhaps it’s time to be fired and polish that CV!

Final thoughts

Restaurants within hotels holds vast, untapped potential. These dining establishments possess the unique advantage of a built-in customer base and access to resources, yet they often remain underutilized. The question that lingers is whether these restaurants are willing to break free from conventional norms and take the leap of faith required to fully realize their capabilities.

If you are an owner and are suddenly worried then reach out and we can perhaps help. Create a speakeasy, I say – but then that’s another article, another day.

Manav Thadani

Hospitality consultant, Hotelivate

Credit: eHotelier

June 19 2024

Holiday Inn ranks #1 most trusted brand in travel and hospitality, welcomes a modern future

Poised to define the next decade and beyond, the modernized iterations honor the hotel brand’s iconic heritage.

The Holiday Inn brand is not only one of the most iconic names in hospitality, but one of the world’s largest and most recognized brands. According to Morning Consult Intelligence data, the Holiday Inn brand is also the most trusted travel and hospitality brand in the country.

“Trust is invaluable,” said Raul Ortiz, Vice President, Global Marketing & Brand Management for Holiday Inn. “It’s something that’s earned year after year. We are continuing to build a brand that everyone can enjoy and depend on, and this recognition serves as a testament to our ongoing efforts. We are incredibly grateful to our guests who choose to stay with us and to our hotel teams whose unwavering care is the cornerstone of our guests’ experience.”

As the first hotel chain to have a footprint in all 50 U.S. states, the Holiday Inn brand has revolutionized travel through countless contributions to make hospitality more accessible. The brand pioneered the concept of hotel loyalty programs in February of 1983, setting an industry standard that laid the groundwork for IHG Hotels & Resorts to establish one of the world’s largest loyalty programs, now known as IHG One Rewards. The brand also spearheaded the development of the first centralized hotel reservation system – Holidex, in collaboration with IBM – that paved the way for future technological advancements across the hospitality sector.

Today, this legacy of innovation continues, and the brand is using its unrivaled heritage and unique position as a world leader in travel to shape a better guest experience.

New Day, New Stay: An Iconic Brand in A Modern World

With a commitment to evolve alongside the ever-changing needs of today’s traveler, the Holiday Inn brand unveiled a refreshed and modernized prototype for its Americas estate last year.

While the first hotel to fully showcase the brand’s latest design changes is scheduled for an early 2025 debut, the Holiday Inn design aims to integrate elements of the new prototype into more than 14 U.S. hotels by the end of 2024. These adaptations will include:

A Stand-out Exterior: The timeless Holiday Inn sign remains a beacon of familiarity, but now complements a modern designed main building.
Elevated Food and Beverage: The introduction of a more accessible F&B offering with a new counter service model. Here, guests can order both small and big bites, alcoholic and non-alcoholic beverages, sweet treats and more.
- Other models include a blended restaurant and bar space catering to diverse guest needs throughout the day.
- A new breakfast buffet will feature elevated breakfast staples and regional favorites.
Around the Clock Convenience: An open market concept offering a variety of travel essentials 24/7.
A Refreshed Welcome: A cohesive public space featuring a re-imagined interior layout to bring the front desk, order counter, bar, and market within a central unit.
Modern Comfort: Redesigned guest rooms cater to both business and family travelers, featuring four distinct zones for seamless functionality: a welcome zone resembling a home entryway for convenient belongings storage; a versatile work/relax zone with a dedicated desk space, lounge area, and easy connectivity; a cozy sleep zone with a comfortable bed that features tech plug-ins on either side of the headboard; and a refresh zone offering a bright and clean bathroom.
Flexible Spaces: Versatile, multi-purpose spaces for formal meetings and social gatherings. Additionally, the brand will offer an eBar where guests can perch, wait for others and/or ride share services, and work alone or with colleagues.
Timeless Traditions: Founder Kemmons Wilson drew inspiration from his kids when first launching the brand, and a swimming pool was one idea they all had in common. As a result, pools are still a brand standard to this day. Additionally, the brand’s “Kids Stay & Eat Free” hallmark will remain a standard, as it represents just one of the many aspects that have endeared the Holiday Inn brand to families over the decades.

Sophisticated Style and a Bold New Look

In addition to its physical transformation, the Holiday Inn brand team is introducing newly updated branding and marketing materials. The refresh includes a more sophisticated color palette, bold headlines, and dynamic images, and highlights the Holiday Inn brand’s iconic history in a richer, more modern interpretation.

The Holiday Inn “Great Sign” was once a guiding light built to attract travelers off the highway that could be seen for miles. While the “Great Sign” isn’t making an official comeback, the brand’s revamped exterior signage provides that recognizable welcome with an uplifting, illuminated green glow. Moreover, it proudly lets guests know the brand is part of the bigger IHG Hotels & Resorts family.

There are nearly 1,200 open Holiday Inn hotels with an additional 252 in the pipeline across 76 countries. As the brand continues to evolve and grow, Holiday Inn’s unwavering commitment to its guests will be to always remain a beloved and trusted brand.

June 8 2024

The essential guide to revenue management for hotel owners/operators, hotel managers and front desk managers

When you think of revenue management, which is the first department that comes to mind?

If you’re like most in the hotel industry, you will associate revenue management only with revenue managers and the revenue management team; however, the reality is a very different story: revenue management is actually very important (and has different, but equally important benefits) for leadership across all departments, including hotel owners/operators, hotel managers/General Managers and, even, the front desk manager.

Surprised? Don’t worry, I’ll explain….

Revenue management is, at its core, the practice of analyzing and predicting consumer demand to optimise room inventory and price rooms to maximise bookings and revenue growth. In effective strategic revenue management, your goal is to not only fill rooms but also maximize profitability on each booking, in both peak and off-peak seasons.

A revenue management strategy is most effective if it is applied across all the departments in the commercial team (including marketing, sales and revenue management), plus supported by the owner/operator, Hotel Manager and Front Desk Manager. All these internal departments should be invested in ensuring the hotel’s financial success, as they all have a direct impact on whether success is achieved; as such, it’s important to understand the key benefits of revenue management for each of these roles, to understand what they can do to maximise the ROI on the property’s strategic revenue management efforts and, as a result, its long-term profitability.

So, let’s examine the key benefits of revenue management for each position and how it can be leveraged to boost the property’s overall profitability.

The benefits of revenue management for hotel owners/operators

There are many benefits of implementing a data-based revenue management practice at a property, especially for the owners/operators who are responsible for ensuring that the hotel remains financially viable.

Boost the bottom line

By analysing demand patterns, a hotel’s RMS can update prices to fill more rooms at the highest possible rate, enhancing both occupancy and ADR. By finding the proper balance between price, market demand and guest expectations, hotels can increase online bookings and improve the guest experience. It has been proven that increased guest satisfaction can lead to repeat business and more positive reviews, which are shown to increase the property’s perceived value, enabling the property to increase their ADR over time.

But here’s an important caveat… an RMS is critical to a property’s success in today’s highly competitive landscape but there’s another important factor to consider, which is integral for optimal revenue management: the human element.

A hotel’s staff plays a crucial role in interpreting, contextualizing and executing the insights generated by RMS. To be most effective, training staff in revenue management principles goes beyond the operational elements; hotel owners and operators must create a revenue management-first culture. When all team members understand and embrace the importance of revenue management, they can collectively contribute to the hotel’s revenue optimisation goals and maximise the ROI on the property’s revenue management activities.

Remain competitive

Revenue management systems provide benchmarking data that allows hoteliers to compare their performance against their comp set, which is crucial for identifying competitive advantages and areas that need improvement in a property’s operational and pricing strategy.

Enables better strategic leadership decisions

Revenue management can also inform broader strategic leadership decisions, such as hotel expansions, renovations, service offerings and staff training programs.

The benefits of revenue management for hotel managers

For Hotel Managers (or General Managers), a deep understanding of revenue management is imperative for driving revenue growth, ensuring guest satisfaction and achieving long-term profitability.

Forecasting and demand prediction

Effective revenue management is predicated on the ability to forecast future demand accurately. There are two ways to predict future demand: manual analysis of past and current booking trends, market conditions and external factors (such as events or holidays) or by using automated pricing technology that will do all the data collection and analysis automatically, in real-time, freeing up the Hotel Manager to focus his attention on strategic decision-making and on improving the guest experience. Obviously, the latter is a much more effective use of the Hotel Manager’s time, as manual data analysis is time-consuming and is prone to human error.

Market segmentation and price optimization

A crucial aspect of revenue management is identifying the most common market segments that make up a property’s guests. Each segment has unique booking behaviours and price sensitivities, so Hotel Managers need to understand each segment and how to best set their rates to appeal to the property’s most profitable segments, optimising occupancy and ADR.

Distribution and channel management

A hotel’s visibility across various distribution channels is critical, as it will directly impact the property’s long-term profitability; knowledge of the cost-benefit analysis of each channel and how to leverage them for maximum exposure and profitability is essential for a Hotel Manager’s success in revenue management.

The art of hospitality

A Hotel Manager must understand how pricing impacts the guest’s perception of their overall experience to develop revenue management strategies that will bring in new business and ensure that each guest has the optimal stay experience. To accomplish this, Hotel Managers should use guest data (from the CRM) to personalize guests’ experiences, create targeted promotions based on current market demand and build loyalty programs that drive repeat business and attract new customers through positive word-of-mouth.

The benefits of revenue management for front desk managers

The Front Desk Manager is a central figure at a hotel because they ensure the optimal guest experience and are tasked with maximising operational efficiency. When you remember that revenue management is a strategic approach that not only boosts profitability but also significantly enhances guest satisfaction, it makes it easy to understand that revenue management activities should be intertwined with the roles and responsibilities of a Front Desk Manager, as it will ultimately elevate the guest experience and, as such, improve the hotel’s overall long-term profitability.

Dynamic pricing: a win-win for guests and hotels

A common concern for many hoteliers (especially Front Desk Managers) is that guests will be upset and feel “ripped off” if a hotel implements dynamic pricing but that isn’t correct. A 2023 ZHAW University study of hotels using RoomPriceGenie’s automated pricing solution proved that guests’ overall satisfaction actually increased after the implementation of the solution, showing that dynamic pricing is a very positive revenue management strategy, both for hotels’ overall profitability and guest satisfaction.

Effective forecasting = more effective operational planning

Another important part of modern revenue management is forecasting, in which future demand is predicted based on historical data, current booking trends, market analysis, and other external factors like local events, economic conditions, seasonal variations, etc. This information is valuable for the Front Desk Manager, as it can help them make better, data-based decisions on important questions such as staffing, housekeeping schedules, hiring, etc. – all of which fall under the Front Desk Manager’s prevue and which will ensure smoother operations, reduce guest wait times and improve service quality.

Better understanding of guest travel behaviours and needs

Revenue management requires a deep understanding of market segments and guest behaviour, and by using this information, the Front Desk Managers can set more accurate expectations for guests and communicate more effectively. Whether it’s explaining the reasoning behind the room rates or setting the right expectations about availability and services, informed communication fosters trust and improves overall guest satisfaction.

The Front Desk Manager can also use this data to offer personalized experiences to guests; whether it’s automatically booking a returning guest into their preferred room type or leaving a bottle of red wine (their favourite) in the room to thank them for their continued business, this level of personalization goes a long way in making guests feel valued and understood.

As you can see, each of these three roles are integral to the success of a property’s revenue management strategy.

So, I challenge every Hotel Manager, owner/operator and Front Desk Manager to make the most important move necessary to set your property up for future success: implement automated pricing technology at your property to support the implementation of data-backed, strategic revenue management at your property today.

There’s absolutely nothing to lose and everything to win!

Ari Andricopoulos

CEO and Founder, RoomPriceGenie

Credit: eHotelier

June 7 2024

Luxury hotel marketing: 5 key strategies to succeed

Infinity pools with breathtaking views, spacious beachfront bungalows, exclusive spa treatments, Michelin-star restaurants, exquisite design, and exemplary service are all elements we typically associate with luxury hotels. But how do you communicate the elements that make your hotel exceptional to prospective customers?

To be effective, your luxury hotel marketing strategy must tell a story that shows your customers what sets you apart and makes the experiences you offer unique. Importantly, you must actively target a distinct group of customers and ensure your messages appear in all the right places.

In this article, we’ll explore the innovative marketing strategies luxury hotels can use to differentiate their brands and drive customer engagement and loyalty.

1. Harness the power of storytelling

In a luxury market where everyone offers fantastic service and incredible facilities, how do you communicate in a way that sets your hotel apart? The first thing many people think about when they think about luxury hotels is the price, but the art of storytelling and content marketing shift the focus away from the cost and onto the experience.

Storytelling goes beyond merely providing your customers with information. It enables you to create a deeper, more emotional connection between your brand and customers. An effective way to tell a story is to think about what makes your hotel unique. It may be a historically significant building or a spa that has an interesting history all its own. Telling its origin story can set your hotel apart and start creating that deeper connection.

Aspirational narratives are also compelling for the customers you want to target. As a luxury hotel, you’re not just selling a comfortable room in a building. You are inviting customers into a world where they can achieve their dreams and desires. You can drive that narrative by focusing on the prestige and excellence of the hotel. You can also collaborate with successful influencers to co-create content that resonates with your audience and reflects their aspirations.

Consider this story, shared by an EHL Alumni Mael Le Pousard in an article about the value of storytelling in the restaurant business:

“Years ago, I went to a restaurant in a suburb of Glasgow. To this day, I remember, and cherish that meal as one of the best restaurant experiences I have had. The story they were telling was simple: They were the proud, convivial, Scottish neighborhood restaurant. What stuck with me, is how this story seemed to be at the core of everything they did, and how it manifested itself in every detail. The tableware crafted by the local artisan, the friendly, local waitstaff, the carefully curated whisky list, and of course, the dishes featuring the best the region has to offer. In retrospect, it was a simple experience, but it vividly stuck with me years later.”

You should also think about who you’re telling your story to. People tend to associate an older demographic with luxury hotels, and while that may have been the case some years ago, now 25-44-year-olds account for 64% of the luxury goods market. These people use social media, see beautiful images and videos online, follow travel bloggers (influencer marketing), and want to have the same experiences. They want to hear your story.

2. Guest experience is everything

Anyone who books a luxury hotel pays far more than necessary for a comfortable bed. But they’re not interested in price; they care about value. They want to know how your hotel will make them feel and what experiences they’ll have, and that’s where experiential marketing comes in.

Experiential marketing allows you to showcase your value. Experiences are critical drivers behind the decisions of luxury travelers. They want to have exceptional and wonderful experiences, and it’s your job to showcase how your hotel will make them feel that. Consumer-generated content can play a big part in painting that picture. A 2019 study found that 60% of consumers were influenced by content created by consumers when making travel plans, compared with just 19% who were influenced by professional brand images.

You can harness the power of consumer-generated content by curating your Instagram feed to showcase your guests’ experiences and incorporating it seamlessly into your website. Luxury travelers are also highly active on social media, with 55% of luxury travelers believing that creating social media content increases their ability to have meaningful experiences. Hence the importance of a solid social media strategy.

3. Visual storytelling: Use powerful words and strong imagery

For your luxury hotel marketing strategy to be effective, every customer touchpoint must be part of the same exclusive narrative. That extends to the words you use on your website, in articles, brochures, and across your social media platforms. Those words should tell a story of exclusivity, luxury, exceptional experiences, and the highest levels of service quality. But while words are powerful, they’re nothing without imagery that reinforces your messaging.

Luxury brand consumers will not book a hotel on words alone. They want to see professional images of your interior and exterior spaces, the dining experience, and leisure facilities to ensure the aesthetics match their expectations. You should also include images of other prominent facilities, such as swimming pools and spa areas, golf courses, gardens, and beaches or wildlife areas close to your hotel.

Finally, video content is a must-have in your luxury hotel marketing strategy to effectively target audience and catch the attention of the GenZ crowd.

4. Find ways to differentiate

As of 2023, there were over 4,400 four and five-star hotels around the world, all competing for their share of a global luxury hotel market valued at USD 97.53 billion in 2023. With so much competition, it’s essential, even in this exclusive sector, that you take steps to differentiate your hotel from the competition.

Exclusivity is a cornerstone of luxury branding. Consumers are drawn to the allure of something truly unique, and that extends from the product and service to the entire purchasing experience. By finding the unique elements of your hotel and service offering, you can create a luxury hotel marketing strategy that helps you stand out in the crowd.

In this market, everyone goes the extra mile for their customers and offers exclusive guest experiences, so you need to focus on the small details. Personalization and personalized services can be something that gives you the edge. Treating all your guests like VIPs, addressing them by name, offering personalized perks (having their favorite bottle of bubbly on ice for their arrival), and providing personalized gifts for their family can lead to five-star reviews and personal recommendations.

Really going out of your way to help guests make the most of your location can also help you stand out from the crowd. Creating high-quality (and Instagrammable) guides to the local activities, eateries, and bars will help your guests fall in love with the local area and build the brand trust and loyalty that lead to repeat bookings.

5. Create emotional connections

The American poet Maya Angelou said:

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

The same can be said of businesses. According to a 2014 study by Fast Company, advertising campaigns containing purely emotional content performed almost twice as well (31% compared to 16%) as those with only rational content. Luxury hospitality is inherently emotional. As luxury hotels prioritize providing comfort, enjoyment, and positive experiences, incorporating a well-designed “loyalty program” can further leverage these emotional connections to strengthen customer relationships and enhance long-term loyalty.

To benefit from the power of emotional marketing, your campaigns should not only showcase the design and amenities of your hotel. They should also focus on the way you make your guests feel. An important part of that process is understanding what the emotional motivators for your guests are. Once you know that, whether it’s a sense of belonging, freedom, or well-being, you can leverage those insights to tell stories that help you build those emotional connections.

Start boosting your hotel marketing efforts

Although many luxury hotels implement similar marketing techniques, embracing a more personalized approach, focusing on storytelling, and marketing value over price can give you an edge over the competition. The key is to focus on what makes your hotel unique and how it makes your guests feel.

Throughout this article, we see that the keys to promoting a luxury experience all have to do with the motivations and feelings that drive luxury clients. It’s all about knowing what makes people tick. This common theme reminds us that the essence of the hospitality industry is the focus on people. It’s a human-centric business. As a leader in the field of hospitality management training, EHL Graduate School offers programs with a human-centric focus. These programs teach you to evaluate strategic investments, company profitability, people management, and current business challenges through the lens of putting people first. The course content is highly relevant for today’s markets, with the latest knowledge, trends, and skill-based training to enhance business success. The courses help you develop business decision-making and emotionally intelligent leadership skills, leading to greater personal fulfillment and organizational success.

Credit: EHL

June 4 2024

Hyatt’s growth momentum continues with record global pipeline of 129,000 rooms

Growth in lifestyle and resort segments, and the new upper-midscale Hyatt Studios brand, further expands Hyatt’s footprint in new markets while deepening World of Hyatt member loyalty and attracting new guests.

Hyatt Hotels Corporation (NYSE: H) highlighted today that its pipeline has grown by nearly 85 percent since 2017, reaching a record 129,000 rooms. This significant growth highlights the strong preference of hotel owners and the strength of the Hyatt brand. Hyatt’s commitment to creating the preferred portfolio for high-end guests has resulted in doubling luxury rooms, tripling resort rooms, and quintupling lifestyle rooms since 2017.

“Hyatt’s ability to lead the industry in net rooms growth for seven years is a result of our unique approach to development,” said Mark Hoplamazian, president and chief executive officer, Hyatt. “We strategically expand our portfolio of brands, intentionally selecting new and existing markets to enhance our network effect for owners and guests. Our commitment to thoughtful organic growth and strategic acquisitions amplifies our asset-light business model. Our goal is not to be the largest hospitality company, but the company most valued by colleagues, guests, and owners.”

Additionally, the award-winning World of Hyatt loyalty program has quadrupled its membership since 2017 and is up 22% as of the end of the first quarter of 2024 compared to the same period last year, reaching 46 million members globally. World of Hyatt also has 30 percent more members per hotel than its larger competitors.

Lifestyle brands fueling growth, introducing Hyatt to new markets and new guests

Consumers continue to prioritize discretionary spending on experiences with leisure travel demand remaining resilient. Lifestyle hotels create a holistic experience that excites the senses with food and beverage, art, music and programming that is constantly evolving, presenting an enticing proposition for consumers. Hyatt’s upcoming lifestyle property openings and rebrandings include:

Americas:

The Bentley Hotel Southampton (now open) After undergoing a full renovation, the property will be the first Hyatt-branded hotel in the Hamptons when it joins the JdV by Hyatt brand in September.
Thompson Palm Springs (expected to open in September 2024) will debut a collection of 168 bungalow-inspired guest rooms and suites in the heart of the city’s design district. The highly anticipated hotel is accepting reservations for stays beginning September 5, 2024, and will feature spirited dining concept, Lola Rose Grand Mezze and HALL Napa Valley’s inaugural tasting room.
Andaz Miami Beach (expected to open by end of 2024), previously The Confidante Miami Beach, will be the first Andaz hotel in Florida and is undergoing a property-wide multi-million-dollar redesign. The fully reimagined resort will offer guests new immersive dining experiences by the José Andrés Group.
Thompson Miami Beach (expected to open in late 2024) will overlook Soundscape Park and feature a rooftop pool, restaurant, and bar, in an iconic exterior conceptualized by renowned French architect Rudy Ricciotti and designer Atelier Gulla Jonsdottir.
The Legend Paracas Resort (expected to open in 2024) will join the Destination by Hyatt brand in 2024 marking the introduction of the brand in South America. Located on the coast of Peru about three hours south of Lima, the resort is nestled between the Paracas Natural Reserve and the Pacific Ocean, offering panoramic views of Paracas Bay and rugged desert hills.
The Digby (expected to open in 2025) will be the first property to join The Unbound Collection by Hyatt brand in Georgia and will be located on Savannah’s Ellis Square, steps from attractions including City Market, River Street, and world-class shopping and dining.
Hyatt Centric San Juan Isla Verde (expected to open in 2025) will be the first Hyatt Centric branded hotel in Puerto Rico, located in the buzzy Isla Verde neighborhood, one block away from Isla Verde Beach and walking distance to restaurants, shopping, historical landmarks and nightlife.
Andaz Turks & Caicos at Grace Bay (expected to open in 2026) will mark the first Hyatt hotel on the island of Turks & Caicos and the first Andaz hotel in the Caribbean. The 5.5+ acre resort will offer three restaurants and bars, an elevated rooftop venue and full array of lifestyle amenities.
Thompson Monterrey (expected to open in 2026) will be the first urban Thompson Hotel property in Mexico. The hotel will be part of Torre IKON, a mixed-use 31-story tower set to be one of the most iconic high-rise buildings in the San Pedro Garza García neighborhood.

Europe, Africa and Middle East (EAME):

me and all Berlin East Side (expected to open August 2024) represents one of the first deals with Lindner Hotel Group following the collaboration agreement in October 2022. Featuring 223 guest rooms, me and all Berlin East Side will be a part of the JdV by Hyatt collection.
Hyatt Centric Cairo West (expected to open late 2024) will be the second Hyatt hotel in Cairo and boast 301 rooms in the city’s western end, close to major business hubs and key tourist attractions.
Andaz Doha (expected to open late 2024), a 312-room hotel nestled in the prestigious West Bay area of the city will mark the first Andaz branded hotel in Qatar.
Thompson Rome (expected to open in mid-2025) will be a 70-room property situated in the heart of Rome. It will be the first Thompson branded hotel in Italy and located in the historic building that once housed the Italian Communist Party.
Thompson Seville (expected to open in 2026) will be the first Hyatt hotel in Seville and the fourth planned Thompson branded hotel in Europe.

Asia Pacific (ASPAC):

Andaz One Bangkok (expected to open in 2025) marks the first Andaz branded hotel in Bangkok and will be a part of the prestigious One Bangkok, Thailand’s largest integrated development in a central business district.
Thompson Shanghai Expo (expected to open in Q2 2025) will be the first Thompson branded hotel in Asia Pacific and will be at Expo Park Shanghai, an ideal location for business travelers, trade show attendees, and leisure travelers alike.
The Caption by Hyatt brand has just made its debut in Asia Pacific with the opening of Caption by Hyatt Zhongshan Park Shanghai in China this April, and will further expand its presence in several Asia Pacific markets with the launch of Caption by Hyatt Namba Osaka in Japan (expected to open in June 2024), as well as the openings in 2025 of Caption by Hyatt Ba Son Saigon in Vietnam,, Caption by Hyatt Kabutocho Tokyo in Japan, and Caption by Hyatt Sydney Capitol Square in Australia.
The Hyatt Centric brand continues its growth with openings including Hyatt Centric Ocean Front Xiamen in China (expected to open in early 2025), Hyatt Centric City Centre Kuala Lumpur in Malaysia (2025), Hyatt Centric Electronic City Bangalore in India (early 2026) and Hyatt Centric Sapporo in Japan (2026).

Additionally in the Asia Pacific region, ATONA, the modern hot spring ryokan (Japanese-style inn) brand announced in 2022 under a joint venture between a Hyatt affiliate and Kiraku, is expected to open its first properties in 2026 across some of Japan’s top hot spring destinations and areas of natural beauty, including Yufu, Yakushima, and Hakone. ATONA is Hyatt’s first brand to originate from Japan and will offer sophisticated, worldly travelers a rich cultural experience connecting them to local Japanese communities.

Hyatt Studios brand accelerates growth with more than 250 deals and the groundbreaking of second location

The Hyatt Studios brand, Hyatt’s entry into the upper-midscale extended-stay segment, now has over 250 deals in various stages of negotiation, including with several owners who have either signed or are in negotiation to sign development rights agreements for five or more locations each. The brand just celebrated the second Hyatt Studios groundbreaking for a location in Huntsville, Alabama.

Setting the brand apart from its competition, each Hyatt Studios hotel will offer a best-in-class 24/7 marketplace, free high-speed internet and streaming, EV charging stations, and simplified technology that further enhances the brand’s efficient operating model.

With over 3,000 rooms in the pipeline, Hyatt Studios hotels represent several new submarkets for Hyatt. Since Hyatt’s last announcement in late-2023, Hyatt has executed agreements for the following deals:

Hyatt Studios Barrie, Ontario (Canada)
Hyatt Studios Front Royal (Virginia)
Hyatt Studios Oxford (Mississippi)
Hyatt Studios Chesapeake (Virginia)
Hyatt Studios Charlottesville (Virginia)
Hyatt Studios Jacksonville Town Center (Florida)
Hyatt Studios Billings (Montana)
Hyatt Studios El Centro (California)
Hyatt Studios Lehigh Valley (Pennsylvania)
Hyatt Studios Pooler Savannah Airport (Georgia)
Hyatt Studios Harrisonburg (Virginia)
Hyatt Studios Ridgeland (Mississippi)

Grand Hyatt is expected to expand by more than 10 locations over the next two years

Known for its world-class dining, luxurious spas, fitness centers, bold architecture and captivating settings for meetings and events, the Grand Hyatt brand creates exceptional experiences for all guests at the intersection of local culture and global business. Key rebrands and developments in priority markets across the globe include:

Rebrands & Renovations:

Grand Hyatt Indian Wells Resort & Villas (expected to rebrand in September 2024) will rebrand from Hyatt Regency Indian Wells Resort & Spa after an extensive $64 million renovation, including transformed guest rooms, suites, and luxury villas, as well as new restaurant concepts and an enhanced pool experience.
Grand Hyatt Scottsdale Resort (expected to rebrand in late 2024) will be the first Grand Hyatt hotel in Arizona after undergoing a $110 million renovation to transform and rebrand from Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.
Grand Hyatt Singapore is slated to reopen in phases from Q3 2024 following extensive renovations.

New Builds:

Grand Hyatt Kunming (expected to open August 2024) – a 331-room property located in the capital and largest city of Yunnan Province, China, just steps away from iconic landmarks like the Golden Horse and Jade Rooster Archway.
Grand Hyatt Deer Valley (expected to open in late 2024) will mark the debut of the Grand Hyatt brand in Utah and will be located at the famed Deer Valley Resort in the highly anticipated Deer Valley East Village.
Grand Hyatt Grand Cayman Hotel & Residences (expected to open in 2025) will mark the first Grand Hyatt branded hotel in the Cayman Islands and offer 351 guestrooms and nearly 10,000 sq. ft of indoor meeting space ideally situated on Grand Cayman’s famous Seven Mile Beach.
Grand Hyatt Mexico City Santa Fe (expected to open in 2025) – this 275-room hotel will be the first urban Grand Hyatt property in Mexico and the second Grand Hyatt hotel in the region.
Grand Hyatt The Red Sea (expected to open in 2025) – this 430-room hotel will be the first Grand Hyatt property on Shaura Island, the hub of the ambitious Red Sea Project on Saudi Arabia’s west coast.
Grand Hyatt Los Cabos (expected to open in 2026) will mark the first Grand Hyatt hotel in Mexico’s Baja California Sur, situated within the OLEADA Pacific Living & Golf private resort community. This property will offer 1,200 acres of luxury experiences with approximately 20,000 sq ft of indoor meeting space in addition to an outdoor event lawn and a world-class 18-hole golf course designed by Golf Hall of Famer, Ernie Els.
Grand Hyatt St. Lucia (expected to open in 2026) will offer 345 rooms and be the first Grand Hyatt hotel on the island. The property will feature more than 20,000 sq ft of meeting space to accommodate meetings and events of any size.

Hyatt’s Inclusive Collection creates more travel opportunities for leisure guests, groups, and World of Hyatt members in new markets

Hyatt’s Inclusive Collection delivers unparalleled experiences with the luxuries and conveniences offered by an all-inclusive. As of the end of Q1, Hyatt’s Inclusive Collection resorts grew to approximately 41,412 rooms across 124 properties, further enhancing Hyatt’s position as the world’s largest portfolio of luxury branded rooms in resort locations. With 10 distinct brands providing personalized hospitality through exceptional service, immersive dining, and more, the collection continues to expand in new and exciting destinations.

Dreams Madeira Resort Spa & Marina (expected to open in 2024) will mark the entry of Hyatt’s Inclusive Collection into Portugal and feature 366 guestrooms, ranging from standard rooms to luxury villas, as well as an onsite private beach and marina.
Secrets Playa Esmeralda Punta Cana (expected to open in 2024) – situated on the northeast coast of the Dominican Republic in Miches, this intimate, adults-only resort will feature nine gourmet dining options, including six à la carte restaurants, a buffet, a cafe, a grill by the pool, beach, and a private lounge for Preferred Club guests.
Secrets Baby Beach Aruba (expected to open in 2025) – this adults-only resort will mark the debut of Hyatt’s Inclusive Collection on the island. Situated alongside Baby Beach, a popular white-sand lagoon close to San Nicolas, the resort will boast architecture that blends into the landscape, offering stunning views of the region.

To learn more about Hyatt’s development projects, visit: https://www.hyatt.com/development/

The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

May 24 2024

Understanding California's New Hotel Industry Legislation and Its Impact

California’s hotel industry is gearing up for significant changes with the introduction of two pivotal laws: California Senate Bill 644 and California Assembly Bill 537. While the former focuses on cancelation policies, the latter emphasizes pricing display transparency. In this blog, we’ll delve into the key aspects of each bill and explore their potential impact for hoteliers.

California Senate Bill 644 was officially endorsed by the Governor and filed with the Secretary of State on October 10, 2023, and mandates hotels in California to allow penalty-free cancelations within 24 hours after the confirmation if reservations are made at least 72 hours before check-in. Read the law

Similarly, California Assembly Bill 537, also approved by the Governor and filed with Secretary of State on October 13, 2023, prohibits the advertisement or display of room rates that exclude mandatory fees, except for government taxes and fees. Notably, this entails the inclusion of hotel resort fees in the presented room rates. Read the law

Both bills are set to take effect from July 1, 2024, onwards.

How do these legislative measures affect hoteliers‘ operations?

The implementation of these laws brings a new era of transparency and operational adjustment to the hospitality sector. Primarily, hotels are required to revamp their systems in alignment with the new regulatory framework, ensuring compliance with California statuses. This entails integrating all fees into the displayed price, albeit government taxes and fees may be excluded, and delineating cancelation policies upfront during the booking phase. Such transparency safeguards travelers against hidden charges, fostering a clear understanding of what they are paying for.

Moreover, hotels may need to reassess their pricing strategy encompassing both room rates and ancillary pricing. With the mandate to incorporate all hotel fees into the advertised room rate, hotels must recalibrate their pricing models to maintain competitiveness in the market while simultaneously driving profitability. This strategic reassessment allows hotels to adapt to evolving guest expectations and industry standards, ultimately enhancing their market position and revenue potential.

These laws, while currently for California, could serve as a blueprint for other states, potentially leading to a nationwide shift towards greater transparency across the hospitality industry. We’ll be keeping watch to see how this impacts legislation nationwide.

At Cendyn, we’re committed to empowering hoteliers with future-ready solutions that comply with regulatory requirements. Cendyn CRS and Booking Engine will comply by July 1, 2024, with transparent room rate displays and seamless cancellation policy visibility, emphasizing our commitment to customer satisfaction and adaptability.

About Cendyn

Cendyn is a global hospitality cloud-based technology company that enables hotels to Find, Book, Grow – driving revenue, maximizing profitability, and creating deeper connections with guests through its integrated solutions.

Serving hoteliers for nearly 30 years, Cendyn has over 32,000 customers in more than 150 countries including brands Outrigger Hospitality, Hyatt, IHG, Aman Resorts & Hotels, Relais & Châteaux, Banyan Tree Hotels & Resorts, Coraltree Hospitality, and Onyx Hospitality Group – generating more than $20 billion in annual hotel revenue. The company supports its growing customer base with offices across the globe.

To find out more, visit cendyn.com

Credit HNR Hotel News

May 23 2024

Show Me Some Respect – One of the Pillars of Customer Service

Some of you will not recognize the name Rodney Dangerfield, who was one of the funniest comedians of his time, if not all time. He passed away in 2004. (For those who aren’t familiar with Dangerfield, go to YouTube and search for his name, but only if you want to smile and laugh. And just a warning, some of his comedy club material is R-rated.)

Dangerfield had a signature line: I don’t get no respect. For example, “I don’t get no respect …

… When I was a kid, I played hide-and-seek. They wouldn’t even look for me.

… When I was a kid, my parents moved a lot, but I always found them.

… When I was a kid, I was so ugly my parents had to hang a pork chop around my neck to get the dog to play with me.

That was fun, but it’s time to get serious. I was recently asked about the Pillars of Customer Service. Specifically, I was asked what I thought was the most important pillar.

First, there are many “Pillars” of customer service, and if you do a little research, you’ll find articles by experts and examples from companies’ vision statements. As I thought of many of these, one immediately came to mind as an overarching important pillar:

“Respect the Customer.”

It may seem obvious that we should respect our customers. After all, without them, we don’t have a business. So, with that in mind, here are three of my favorite stats and findings about customer respect from my annual customer service research:

61% of customers don’t think companies or brands respect their time! Ouch! This is because customers don’t like to wait on hold for long periods of time, or anything else that seems like a waste of their precious time. And speaking of making customers wait on hold …

51% of customers are likely or very likely to switch companies or leave a brand because they had to wait too long on hold. It’s impossible to never make a customer hold. And, the concept of “too long” is different from one customer to the next. However, to mitigate the appearance of disrespect, at least let your customers know how long they will have to wait, and even better, give them the option of being called back.

60% of customers are likely or very likely to switch companies or leave a brand because the company didn’t respond fast enough. This goes back to respecting your customers’ time. How long do they have to wait for a response?

While these findings focus on respecting the customer’s time, there are many other areas and opportunities to show respect to your customers. So, sit down with your team and discuss the answer to this simple question: Do you show your customers respect?

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.

Credit: SHEP HYKEN

May 6 2024

What does a Hotel Manager do?

Hotel Managers have one of the most challenging yet rewarding jobs in hospitality, and that’s why the job is not for the faint-hearted. The role attracts those who have high ambition, a passion for service, and are natural-born leaders. A career in hotels can be exciting, luxurious, and lead you to travel the world. Whether you work in a boutique hotel or a multinational chain, the day-to-day challenges can be similar. So, just how do you embark on a career in hotels and attaining the Hotel Manager title?

What is Hotel Management?

Before exploring career opportunities in hotel management, it is important to know what working in the hotel industry entails.

In the hospitality industry, hotel management plays a crucial role in ensuring the smooth functioning of various departments such as guest services, food and beverage, and sales. It involves effective planning, management, and organization of lodging operations to deliver the best possible experience to customers. Depending on the size of the lodging business, management may oversee multiple departments and is responsible for leading and motivating the team to achieve a profitable business with exceptional customer satisfaction.

What does a Hotel Manager do?

The very essence of managing a hotel is keeping day-to-day operations ticking over. Therefore, Hotel managers may be required to:

Manage hotel services, such as accommodation and catering.
Oversee events and conferences.
Troubleshoot any issues arising in hotel operations.
Liaise with contractors and suppliers.
Supervise any maintenance work and renovations.
Safeguard security and compliance, conducting inspections where necessary.
Lead on sustainability programs
Manage heads of departments or entire teams
Drive forward sales strategies and oversee expenditure

Handling financial responsibilities of the hotel

Clearly, hotels are looking to turn a profit. Hotel managers must therefore secure high occupancy levels and see to certain strategic financial and accounting duties, for instance:

Managing budgets and controlling expenditures.
Tracking hotel revenues, setting sales targets and optimizing profits.
Analyzing sales figures, reports and the different market segments and channels to define the best-suited pricing and distribution strategies.
Maintaining statistical and financial records.

Leading a successful team

Smooth hotel operations are reliant upon professional staff who are respectful and in tune with guests at all times. Hotel managers need to get the best out of their teams if their establishments are to be successful, which involves:

Talent-spotting, recruiting, and providing ongoing training.
Defining the staff rota and working around holiday absences.
Monitoring and motivating staff with constructive communication in a positive work environment and a shared vision of targets and career progression.
Investing effort in employee engagement and retention in collaboration with HR.

Providing great guest experiences

Hotel managers are responsible for ensuring guests enjoy their stay. With this in mind, they may be tasked with several duties aimed at enhancing the guest experience and seeing to positive customer relations. These may include:

Meeting and greeting guests with a warm welcome.
Being attentive to guests’ needs and wishes, taking opportunities to optimize the guest experience.
Addressing complaints with a personal touch to restore customer satisfaction.
Keeping a watchful eye on both competitors and technological trends and innovations in hospitality with a view to leveraging any insights to build customer relations.

Handling reputation management

To cultivate those all-important glowing online reviews and keep guests coming back for more, hotel managers may also take care of various reputation management and branding duties, such as:

Managing the hotel’s online presence and generating an online buzz through special offers and promotions.
Ensuring all customer inquiries are dealt with in a timely manner and customer-oriented responses are issued for all negative reviews.
Pursuing strategic branding endeavors.

Hotel manager working hours

Hotels never sleep. You would also be forgiven for thinking hotel managers never socialize. The role does entail almost constant pressure and long, erratic working hours that are likely to include some late nights, weekends, and/or bank holidays depending on the shift pattern. To offset this somewhat, your on-the-job capacity may be freed up thanks to in-house meals and the absence of a commute in the case of live-in posts. The job may also offer flexibility in other ways, such as the potential for overseas travel and the added bonus of discounted accommodation.

MORE CAREERS
Event Management careers: everything you need to know How to decide on a career? 10 essential questions to ask yourself

How to become a Hotel Manager?

Becoming a hotel manager may take several years of education followed by several years of career progression depending on the size of the lodging business you want to work for. Typically the bigger the hotel brand, the longer and more difficult it will be to land that role due to increased competition and higher requirements. You might start out on the front desk, a revenue manager, marketing specialist, or event manager, and then manage one of those departments before having the opportunity to progress to the hotel manager or assistant hotel manager role.

The possibilities are endless for beginning a career path toward general management of a hotel. Landing a Graduate Scheme enabling you to work in all areas of a hotel would be a smart first move for recent graduates wanting to climb the career ladder quickly and gain a 360-degree view of hotel operations.

Education requirements

To excel in the hotel industry and become a successful hotel manager, it’s essential to acquire a diverse range of skills and hands-on experience in lodging management. Many large hotels and international facilities require a bachelor’s degree in hospitality management as a minimum requirement. Finding a degree course that has a dual-education configuration is most advantageous, as it allows students to get practical experience in the field as well as learn theoretical components. This way, not only does the theory become more solidified in the students’ minds, but it also bolsters their resumes with professional experience at the same time.

However, by obtaining a Master’s degree in Hospitality Management, you can distinguish yourself further from other candidates and increase your chances of landing a management position. Remember, with hard work, dedication, and the right qualifications, you can achieve your goals and reach new heights in your career.

What is the ideal hotel manager profile?

If you aspire to become a hotel manager, you must have impeccable people skills, an unflappable, trustworthy, and professional demeanor, and the ability to lead, communicate effectively, and stay ahead of emerging trends. You should also possess a keen eye for numbers and be adept at analyzing data. Additionally, you must showcase your exceptional talent and dedication, be adaptable, resilient, and able to make swift decisions under pressure. Keep in mind that this role requires significant sacrifices, including less time spent with family and friends.

What skills does a Hotel Manager need?

Hotel Managers need a myriad of hard and soft skills in order to be successful. Here are some of the most highly valued skills you will need to demonstrate on your CV:

Leadership
Teamwork
Communication
Numeracy
Technology literacy
Project and people management
An eye for detail

Develop related experience

Gaining work experience in a hotel or hospitality environment will help you climb the ladder to the position of Hotel Manager. Whether it’s in the form of an internship during or after studying, or starting in a junior role or operation-specific role that you are qualified for – such as in marketing – with the aim of side-stepping into a Hotel manager or General manager role. Hands-on experience at any level is highly valued in the hotel industry and failing that, experience in customer-oriented environment would be desirable.

Hotel Management career outlook

The career outlook for future hotel managers is looking bright.

According to research, global travel and tourism employment is forecast to rise to 320 million in 2023, a 25 million job position increase on 2022 figures, and just short of pre-pandemic levels. With more people wanting to travel, the industry growth creates more demand for lodging managers.

What’s more, Hospitality statistics from Statista show the global hospitality market reached nearly 4.7 trillion U.S. dollars in 2023 and is forecast to grow to 5.8 trillion U.S. dollars by 2027 at a compound annual growth rate (CAGR) of 5.5 percent. Hospitality comprises of multiple industries, the largest of which are accommodation and food and drink services making it a desirable industry to build a career in.

It is true that managing a hotel requires a great deal of dedication. It is a complex, demanding job, but the rewards can be rich indeed for those who choose to tackle it.

About EHL Group

EHL Group is the global reference in education, innovation and consulting for the hospitality and service sector.
With expertise dating back to 1893, EHL Group now offers a wide range of leading educational programs from apprenticeships to master’s degrees, as well as professional and executive education, on three campuses in Switzerland and Singapore. EHL Group also offers consulting and certification services to companies and learning centers around the world. True to its values and committed to building a sustainable world, EHL Group’s purpose is to provide education, services and working environments that are people-centered and open to the world. www.ehlgroup.com

EHL Hospitality Business School
Communications Department
+41 21 785 1354

Credit Hospitalitynet

May 2 2024

Hotel CEOs Share Insights on Managing Change

BERLIN — Although both Federico Gonzalez Tejera of Radisson Hotel Group and Elie Maalouf of IHG Hotels & Resorts have been with their respective companies for a significant period of time, the two hotel executives have been in charge of leading significant changes of late.

Speaking at the recent International Hospitality Investment Forum, Gonzalez Tejera said the key to managing changes at his company has been clear and honest communication. Some of his major changes include the offloading of its U.S.-based business to Choice Hotels International and his assumption of the chief executive role with Louvre Hotels Group while maintaining his role as chief executive and executive vice chairman with Radisson.

“I’ve learned from many people that I’ve worked for in the past, but I think the most important [lesson] is when you try to do something with honesty, with good intentions and the intention to serve and do something good for the future, things work,” he said.

He said over his time as a leader, the theme of honesty keeps coming back up, especially during periods of transformation and significant change. He said that ethos becomes even more important when dealing with groups of people from different cultural backgrounds who might have differing expectations.

“I think you need to be, in advance, very clear that there are cultural differences. …. We’ve been upfront in recognizing that to avoid misunderstandings,” he said.

Maalouf, meanwhile, has been with IHG for nearly a decade but in the last year has taken over as CEO. He said that transition has been a chance to get a new perspective on the company and get more hands-on.

“I’m not new to the business, but what I did first thing, which many of you do when you take over opportunities, is really go out and see it,” he said. “I’ve always felt we had an incredible trajectory ahead of us. All of the data will tell you so … but until you go out and see it for yourself in your own markets with your own people, it doesn’t feel the same.”

He said despite the company’s eight-decade history, he thinks there remains significant growth opportunities, driven by moving into new markets and deploying new technology.

“We’ve done a lot over the last 10 years to position this company in a very successful place,” he said. “We’ve broadened the portfolio. We’ve entered new markets. We’ve put in place some foundational technology enterprise systems. That puts us in a place to take the next step.”

He said recognizing how the larger macro-environment has shifted in recent years and being proactive is an opportunity for businesses like his and others across the industry. One big example of this is hotels’ collective rising profile for real estate investors.

“Real estate allocators in total want to allocate 8% to 10% of their total assets to real estate between equities and bonds,” he said. “That used to be mostly office and retail, then industrial, then apartments, and hotels were last. Well, hotels are actually among their top priorities today. So, yes, the cost of capital may be higher, but there’s a lot of equity interested to go into a performing asset class.”

Credit Hotel News Now

April 30 2024

Hotel franchising poised for growth across Southeast Asia

Hotel franchising is rapidly emerging as a viable business model in Southeast Asia’s hotel real estate market, offering local and regional hotel owners an avenue for growth and resilience in the wake of the pandemic.

In Southeast Asia, the number of hotels operating under franchise agreements has doubled over the past decade rising from 3 percent of the market to 6 percent in 2024.

Gaining momentum in Southeast Asia

While this remains a modest proportion of the overall market, franchise agreements have proven to be a winning formula elsewhere, attracting hotel owners seeking to tap into the reputation and expertise of renowned brands to drive distribution through their network and their loyalty programmes. This trend has been driven further and faster by major hotel brands like Marriott International, Hilton Worldwide, Wyndham Hotels & Resorts, Choice Hotels International, and Intercontinental Hotels Group, shifting towards an asset-light strategy.

Despite growth in the US and Europe, the model remains in its infancy in Southeast Asia, hampered by the region’s fragmented hotel market, which is made up of numerous small local owners, a lack of options for third-party operators as well as regulatory and legal barriers .

Management contracts are the dominant model of hotel ownership across the region but they often result in disparate operational standards and inconsistent branding.

But before embarking on a franchising deal, hotel owners must grasp the complexities involved and there are some key considerations.

Balance independence with brand recognition
Balancing operational independence with the franchisor’s brand benefits is paramount for hotel owners. While retaining control over talent and cost management is crucial, tapping into the brand’s global and regional programs, such as access to global Request for Proposals (RFPs) and loyalty programs, can significantly enhance the bottom-line. Whilst we see more owner-operators venturing into this space, they will need to ensure their current operational team can adapt acquiring new knowledge and expertise. Be in subscribing to optional commercial support from the brands to bringing in third-party operators or operational consultants /asset managers.
Use asset enhancement initiatives (AEIs) to stand out
Franchise agreements offer owners an opportunity to potentially negotiate relevant AEIs with the franchisor that align with brand standards. This grants owners the freedom to spruce up their assets and differentiate themselves in the market while upholding the brand’s reputation and integrity having that market insights on trends that present low hanging fruit opportunities.
Use data to analyse progress and market position
Regular benchmarking against industry standards is essential for hotel owners to assess their performance and identify areas for improvement. Analysing key revenue and operational metrics helps owners to make informed decisions that can improve their competitiveness and profitability, and keeps hotel owners ahead of the curve.
Streamline operations with multiple franchise hotels
Transitioning from managing hotels to franchising them can unlock efficiencies across a portfolio of properties, particularly by consolidating operations under an experienced management team. Centralising operations under a single General Manager (GM), or commercial teams across hotels for example, and delegating day-to-day tasks across multiple properties streamlines communication, aligns processes and can ultimately reduce costs. This also allows franchised hotel owners to attract higher value talent across their portfolio. Exploring this in greater detail, including cross-training and multi-skilling, and back-office clustering across different business functions are areas where some brand-operated hotels may not be able to capitalise on.
Seek alignment
Successful franchise agreements between brands, operating entities and owners require significant alignment. This is critical to ensure owners are maximising the value of the franchise arrangement, drive operational autonomy and efficiencies, create ongoing value through, unique AEIs whilst being brand compliant. An internal or external governance/asset management structure managing and overseeing see this would be key to consider.

As the hospitality industry anticipated to rebound in 2024, with revenue per available room (RevPAR) recovery reaching 93% of pre-pandemic levels in the APAC region in 2023, investor interest in hotel investments is on the rise. Thailand, in particular, is poised to embrace hotel franchising, seizing opportunities accelerated by the COVID-19 crisis.

We are confident that hotel owners across Southeast Asia. will consider more of such opportunities as we notice the markets evolve, yet readiness is paramount to unlock the potential.

Source and Credit: JLL

April 22 2024

Asia-Pacific Trends: 2024 Meetings & Events

A positive shift is underway for meetings and events this year. Global trends show a return to in-person gatherings, increased attendees, and increasing budgets. What about the Asia-Pacific region specifically? While this region falls behind others when it comes to in-person meetings and events, positivity about health and safety – as well in other key areas – is strong with a ranking of 8 or higher on a scale of 1 to 10.

Our 13^th annual Global Meetings and Events Forecast provides a comprehensive overview of what to expect over the next twelve months, including a look at regional trends in Asia-Pacific.

Slow and steady growth

Meeting professionals in this region are expecting a steady overall increase in activity in 2024. This steady increase balances growth with cautious optimism in most categories due to a variety of factors.

A few standout trends and findings include:

Small and simple meetings will be the most common meeting type.
46% of meeting professionals say they’re likely or very likely to look for a new job in the next 12 months.
Health and safety protocols remain a strong factor (at 28%) when selecting meeting locations.
67% of respondents said that sustainability has been strongly adopted in their meeting program.

Destination appeal

New to this year’s Forecast, we’re including the Top 5 meetings and events locations as determined by 131 American Express Global Business Travel meetings professionals. The results are based on criteria that include accessibility, local attractions, safety and security, and more.

With its cutting-edge facilities and state-of-the-art infrastructure, Singapore has reemerged as a global hub after enduring several years of restrictions. Tokyo and Bangkok rank second and third, further highlighting the vibrant and dynamic cities in this region. Sydney and Hong Kong occupy the final two positions contributing to the regional landscape of premier event destinations in Asia-Pacific.

This year we’re featuring two special must-read sections:

7 actionable insights to elevate your meetings program includes highlights to help kick start your program’s evolution and optimize upcoming trends.
Event marketing trends: Are you ready to impress your marketing stakeholder, focuses on key trends and insights into what matters to your marketing stakeholders plus questions and tips to help you better align with them.

Credit and Source

American Express Global Business Travel

April 17 2024

Aimbridge's New CEO Wants To Think Like Small Operator But Create Advantage With Size

Craig Smith Talks Talent Pipeline, Financials, Other Challenges

In the CEO role for nearly one month, Aimbridge Hospitality’s Craig Smith is determined to recast the company’s size to its advantage while thinking “like a small company that’s really dedicated to each owner and each hotel.”

Over the last month, Smith has been meeting with owners, property teams and brands from some of the more than 1,500 hotels under Aimbridge management, along with his corporate teams. It’s all in effort to learn more about the company he’s leading, what needs to change and what should stay the same.

On April 11, Hotel News Now moderated a virtual fireside chat with Smith that was live streamed to Aimbridge’s hotel owners and associates. This article includes his answers in that fireside chat, a live Q&A with the audience and an exclusive interview with HNN following the chat.

Smith took the CEO role in mid-March for Aimbridge, the world’s largest third-party hotel management company, following the departure of Mike Deitemeyer at the end of 2023.

The majority of Smith’s career has been with Marriott International. After more than 30 years with Marriott, he retired from the company in February 2023 as group president and managing director, international.

Focusing on the Property

Some of the feedback that Smith has received so far is that Aimbridge isn’t using its size to its advantage.

“We can’t talk about size being the advantage,” he said. “You have to use your size to create an advantage.”

Aimbridge needs to move away from quoting its size, because even though it’s the largest hotel management company in the industry, bigger doesn’t equal better, Smith said. With that in mind, Aimbridge is readjusting its operating model so that its regional vice presidents and their teams will be able to visit properties 12 times a year now. That creates more opportunities for hotel general managers to meet with their executives and learn from them directly.

“If their boss is only visiting them a couple of times a year, then they have less opportunity to learn and to be held accountable for what they’re doing,” he said.

The hotel’s director of finance is not going to learn from the general manager because their jobs are different, Smith said. Having finance executives work on a geographical territory will help hotel teams by answering their questions and fixing problems.

“At the end of the day, it’s about mentoring and development,” he said.

Senior leadership needs to get out into the hotels because visiting them lets them hear what’s going on, Smith said. He wants to flatten the organization to have more people closer to the business, not adding more layers in between.

“We’ve got to think like a small, third-party management company and less like a large company,” he said. “In other words, we use our scale for things that are important to us, but our [thinking] has to be almost like a small company that’s really dedicated to each owner and each hotel.”

Having a greater focus on hotel general managers is an important part of the overall strategy, Smith said. When he was an area vice president at Marriott, he had oversight of 25 hotels. It took Smith about six months to figure out that 80% of his time was spent on 20% of those hotels, and those were the ones with poor general managers.

“The truth of the matter is, if you center everything around that general manager, they’ll make everything work on property,” he said.

There’s a tendency for all companies to get ahead of themselves and forget what their business is all about, Smith said.

“Our business is all about making every single general manager successful, whether that’s developing them for the future, training them when they’re already a general manager,” he said. “I think there’s a lot in there, and that alone will actually solve many more other potential issues in the future.”

Company Financials

Aimbridge’s financial situation has fueled a lot of behind-the-scenes industry chatter, as people wonder whether it has overextended itself to fuel its growth.

But when asked about it, Smith said Aimbridge doesn’t have a financial problem.

“There’s a big difference between having a financial problem and not hitting your long-term goals,” he said. “I’d say for me, it’s more about OK, how do we turbo-charge the organization to move faster?”

As for rumors about layoffs, Smith said that right now, he doesn’t see cuts happening in the future. When he talks about flattening the organization, Smith said he doesn’t mean it in the way other executives do when they’re referring to cutting back.

“I’m talking about redistributing people and getting them closer [to property level],” he said.

To improve Aimbridge’s accounting, the company hired an outside consultant. Smith said one of his biggest realizations is the disconnect between corporate and hotel accounting.

He said one of the biggest realizations is that there’s been a disconnect between corporate and hotel accounting. The consultant has taken a few teams at the corporate level and shown them how accounting works on property so there’s a better understanding how it works and how corporate can better serve properties. Thus, that accounting responsibility is taken off the plate of general managers, who can focus on hotel operations.

Property audits are another new initiative starting under Smith’s leadership. They’re designed to analyze a hotel in different ways, then go over the results with the hotel’s management team, identify goals and loop in ownership.

“It’s not an audit to catch some of what they’ve done wrong,” Smith said. “It’s an audit to say, here are areas where you can improve and let me teach you how to do that.”

He said he draws on his experience restructuring audits at Marriott. Bridging that gap between the property and corporate leadership is a critical step, he said, because it helps both groups learn from each other to improve the hotel.

“I think that’s a big piece that has been missing: We need to listen more to the leaders in the field and then structure our corporate headquarters so that we’re actually listening to them and saying, ‘What do we need to do to help you make the hotels more efficient, more successful, drive more top line, drive more bottom line?’” he said.

Developing Talent

Building a better internal talent pipeline is another priority, particularly for general manager roles.

Smith said it’s been upsetting to learn how often certain positions are filled through external hiring rather than promoting from within.

“We’ve got to get the point that we’re growing our own talent,” he said.

As a result, the company has set a goal that 75% of its future general managers will be sourced internally, he said.

Someone can interview well for a general manager job or a director of finance or sales position in a hotel, but the chances of success are better if that person already works for the company where there’s firsthand knowledge of their work and training, Smith said.

Building a solid talent pipeline at the property level also helps solidify job satisfaction and lower turnover. He cited general manager turnover as a particularly terrible thing for hotels, since it dings performance, the team loses a leader, and finding a new person takes valuable time.

Aimbridge’s job, he said, is to put general managers in place and make sure they’re happy, while finding the next wave of leaders and developing their skills.

He drew on his own experience to illustrate how important it is to build and retain talent in one place.

“I didn’t have to go anywhere else to get promoted,” he said of his career at Marriott. “I didn’t have to quit Marriott and go to another company.”

And Aimbridge’s size is definitely an advantage when it comes to giving new hospitality employees experience in many types of hotel jobs that they might otherwise need to company-hop to get.

“Imagine you can do it all in one company,” he said. “This is where our size is a competitive advantage. Because we’re large enough that we can say, ‘Listen, you can work in a select-service hotel and become a general manager and then transfer to a full-service hotel.”

Labor Strategy

Aimbridge’s overall staffing should be one of its three biggest competitive advantages, Smith said.

Turnover at Aimbridge is down, and it’s trending in the right direction again, he said. The company will continue to focus on retaining talent. A lot of people are retiring out of the workforce, and everyone is competing for good talent.

In recent years, Aimbridge initiated several employee-oriented programs as part of its attraction and retention efforts. It offers daily pay, allowing all employees to request up to 50% of their earned hours in their wages anytime during that pay period. It also provides flexible scheduling to employees and, in certain markets with enough property density, shift sharing in which employees of one hotel can pick up hours at another nearby Aimbridge-managed hotel.

These strategies help the company stay ahead of the curve, something Smith said is critical. He’s particularly excited about apprenticeship programs, which he called a helpful career path for young adults not pursuing four-year degrees, and other people a chance to retool their skills in order to change careers.

“We need to train people for jobs in the future,” he said.

Labor issues are top of mind for company’s Aimbridge’s size.

The company recently has run into challenges negotiating a new contract with Unite Here Local 11 for several of its hotels in the Los Angeles area. In January 2024, Aimbridge signed a memorandum of understanding with Unite Here Local 11 for six properties. Later that month, the union announced a boycott campaign against Aimbridge-managed hotels in the area.

When asked about the status of its negotiations, Smith said Aimbridge is focused on being a good steward of its hotels. The main things are doing what’s best for the owners of its hotels while also protecting the people that work for Aimbridge.

“If it’s a union hotel, then how do we work with the union?” he said. “Instead of fighting them, how do we work with them to figure out what is best for the people that work for them?”

Aimbridge has a responsibility to the hotel owners to make sure the properties are represented properly, he said. It also must make sure the associates working for Aimbridge are treated fairly and are taken care of well.

When asked for comment on its negotiations and allegations of sexual harassment six female employees reported at two Aimbridge-managed hotels, Unite Here Local 11 co-President Kurt Petersen said in a statement that it was “despicable” how Aimbridge’s leadership is drawing out the labor dispute and not taking these accusations seriously.

“If dozens of other bigger and more popular hotel brands can agree to give their workers the Olympic wages and protections they deserve, then Aimbridge should be no different,” he said. “Moreover, the ridiculous response to the letter sent to the CEO after women came forward is a clear example of how the company does not value workers or women.”

When asked about the sexual harassment allegations, Aimbridge released a statement saying, “Every day we set out to create a safe, healthy, and positive work environment for our associates, and will not stand for harassment of any kind. As soon as allegations were brought to our attention, we immediately launched a thorough investigation and took actions reflective of our zero-tolerance policy.”

Credit Hotel News Now

April 7 2024

Hotel Brands: Complete Guide to the Top Hotel Chains

What are hotel brands?

Hotel brands are unique identities created by hotel chains or individual hotels to stand out in the market. They represent a mix of services, designs, and experiences tailored to different types of guests, such as luxury seekers or budget travellers. These brands help hotels attract loyal customers, showcase what makes them special, grow their revenue, and compete effectively in the busy hospitality sector.

However, not all hotel brands carry the same level of recognition, value, or distinctiveness. Some brands have become household names, renowned for their exceptional service, iconic design, and consistent quality across locations. These leading brands often command higher prices and a loyal following. In contrast, lesser-known or emerging brands may struggle to make their mark, competing on price or niche offerings to attract guests.

The value and distinctiveness of a hotel brand can significantly influence its market position and the perceptions of potential guests, making brand development and management a critical aspect of hotel operations.

1. What are hotel brands?
2. How can luxury hotel chains inspire your hotel brand?
3. What makes a hotel brand the best in the industry?
4. Top hotel brands: Biggest hotel chains in the world
5. Marriott Hotel Brands
6. Hilton Hotel Brands
7. IHG Hotel Brands
8. Hyatt Hotel Brands
9. Wyndham Hotel Brands
10. Accor Hotel Brands
11. Choice Hotel Brands
12. Best Western Hotel Brands
13. Pet friendly hotel brands

How can luxury hotel chains inspire your hotel brand?

In the hospitality industry, taking inspiration from the best, even those who may be competitors, is a strategy for success. There’s an old adage that good authors borrow but great authors steal; the idea being that you shouldn’t be afraid to be inspired by the excellence around you, or even outright copying what you know works. By observing and integrating the high standards, innovative amenities, and unique experiences offered by luxury hotel chains, your hotel can elevate its offerings.

However, wholesale imitation is hardly the foundation for a unique and powerful hotel brand. The key lies in not just mimicking these elements but reinterpreting them in a way that aligns with your brand’s unique identity and values. This approach allows you to blend the best practices from top-tier hotels with your distinctive flair, setting your property apart and creating an unparalleled guest experience.

What makes a hotel brand the best in the industry?

Every hotel is unique, but uniqueness is not enough to be counted among the best. It’s certainly a factor for a hotel brand to stand out, but no matter what your niche is, there are some consistent aspects that are key to mastering to be one of the best hotel brands in the industry.

Exceptional customer service

Exceptional customer service is the cornerstone of a leading hotel brand, turning ordinary stays into memorable experiences. The best hotels invest in training their staff to embody the brand’s ethos, ensuring that warmth, attentiveness, and personalisation are at the heart of every guest encounter. By making guests feel valued and understood, hotels can foster loyalty and positive word-of-mouth, setting themselves apart in a competitive industry.

Prime spot/locations

A prime location is a pivotal attribute of top hotel brands, enhancing accessibility and enriching the guest experience with convenience and charm. Being situated in the heart of a city, near major attractions, business districts, or breathtaking natural landscapes, means guests have the world at their doorstep. This strategic positioning not only caters to the practical needs of travellers, ensuring ease of movement and time efficiency, but also immerses them in the local culture, cuisine, and sights.

The best hotels leverage their location to offer unique experiences, from stunning views to exclusive local partnerships, making each stay not just a visit, but a destination in itself.

Loyalty programmes

Loyalty programs are a defining feature of leading hotel brands, rewarding guests for their continued patronage with a range of benefits and exclusive experiences. These programs are designed to foster a sense of belonging and appreciation, offering perks such as room upgrades, late check-outs, and special member-only rates.

Beyond the tangible rewards, the best loyalty schemes create a community, inviting guests to be part of a story that extends beyond their stay. They leverage personalisation, recognising individual preferences and celebrating milestones, to deepen the guest relationship. By investing in loyalty programs, hotels not only encourage repeat business but also turn satisfied guests into brand ambassadors, amplifying their reputation through positive, word-of-mouth endorsements.

Innovative technology

Innovative technology sets leading hotel brands apart, offering guests a seamless and modern experience from booking to check-out. These hotels integrate cutting-edge solutions, such as mobile check-in, digital room keys, and personalised in-room technology, to streamline operations and cater to the digital-savvy traveller.

Beyond convenience, technology is used to enhance the guest experience with features like customisable room environments and AI-driven concierge services. The best hotels use technology not just for efficiency but to create memorable moments, whether through virtual reality tours of local attractions or apps that curate personalised city guides. By embracing innovation, these hotel brands not only meet the expectations of today’s guests but also anticipate the needs of tomorrow’s, securing an audience for the future.

Sustainable practices

Sustainable practices are increasingly becoming a hallmark of the best hotel brands, reflecting a commitment to environmental stewardship and social responsibility. These hotels adopt green initiatives such as energy-efficient lighting, water conservation systems, and waste reduction programs to minimise their ecological footprint.

Beyond operational changes, they often incorporate local materials and cultures into their design and offerings, supporting local communities and preserving heritage. The leading brands communicate their sustainability efforts transparently, engaging guests in their mission by offering options like linen reuse programs and locally sourced dining.

By integrating sustainability into the core of their operations, these hotels not only contribute to the well-being of the planet but also resonate with the growing number of travellers who prioritise eco-friendly and ethical choices in their accommodations.

Great reputation

A great reputation is a powerful asset for top hotel brands, built on a foundation of consistent quality, exceptional service, and memorable guest experiences. It’s the result of every positive review, recommendation, and return visit, woven into the fabric of the brand’s identity. Leading hotels invest in maintaining high standards across all touchpoints, from the attentiveness of staff to the cleanliness of rooms and the quality of dining. They actively manage their online presence, responding to feedback and engaging with guests long after their stay has ended.

A stellar reputation not only attracts new guests but also fosters loyalty among existing ones, creating a virtuous cycle of positive experiences and endorsements. In the competitive hospitality industry, a great reputation sets a hotel apart, making it not just a choice but a destination in its own right.

High quality dining and entertainment

High-quality dining and entertainment are key elements that distinguish premier hotel brands, offering guests an immersive experience that extends beyond their room. These hotels feature gourmet restaurants helmed by renowned chefs, showcasing culinary excellence with innovative menus and locally sourced ingredients. Dining becomes an event, with settings that range from intimate and atmospheric to grand and theatrical. Entertainment options are equally diverse, ranging from live music and performances to exclusive events, ensuring guests have access to unique cultural experiences without ever leaving the hotel.

By providing exceptional dining and entertainment, top hotel brands elevate the guest experience, turning a stay into a memorable journey of sensory discovery and indulgence.

Top hotel brands: Biggest hotel chains in the world

Now you know what makes a hotel great, but what businesses epitomise greatness? Below, you’ll find the top largest and most successful hotel chains from which to take inspiration.

Marriott Hotel Brands

Marriott International boasts a vast network of over 3,700 properties worldwide, catering to a broad spectrum of travellers from luxury to budget-conscious. The company’s commitment to quality, innovation, and guest satisfaction has solidified its standing in the hospitality industry, making it a go-to choice for both leisure and business travel.

Who owns the Marriott?

Marriott International, Inc. is the parent company behind the Marriott Hotel Brands, a leading global lodging company with a portfolio that includes a wide range of hotel brands catering to different market segments.

When was Marriott founded?

Marriott was founded by J. Willard and Alice Marriott in 1927. The company started as a root beer stand in Washington, D.C., and has grown into one of the largest hotel chains in the world.

Which hotel brands are part of Marriott?

Marriott International’s portfolio extends across a variety of brands, each tailored to different types of travellers. Key brands include:

Marriott Hotels & Resorts: The flagship brand of Marriott International, known for its service and innovation in the upscale segment.
The Ritz-Carlton: Part of Marriott, this luxury brand is renowned for its refined elegance and personalised service.
Residence Inn by Marriott: A brand that offers extended stay accommodations with spacious suites and home-like amenities.
Sheraton Hotels & Resorts: Acquired by Marriott International, Sheraton is a global hospitality icon with a presence in major cities and resort destinations.
Westin Hotels & Resorts: Also part of the Marriott family, Westin is known for its wellness initiatives, including its signature Heavenly Bed and fitness programs.

Frequently asked questions about the Marriott hotel brand

Is Hyatt part of Marriott? No, Hyatt is an independent hotel brand and not part of Marriott International.
Is Wyndham part of Marriott? No, Wyndham is an independent hotel brand and not part of Marriott International.
Is Hilton part of Marriott? No, Hilton is an independent hotel brand and not part of Marriott International.
Is Hampton Inn part of Marriott? No, Hampton Inn is a brand under the Hilton portfolio.
Is Omni part of Marriott? No, Omni Hotels & Resorts is a standalone hotel, separate from Marriott.
Is Four Seasons part of Marriott? No, The Four Seasons is not part of Marriott International.
Is Intercontinental part of Marriott? No, InterContinental Hotels Group is not part of Marriott, and is known for the InterContinental brand itself and Holiday Inn.
Is Waldorf Astoria part of Marriott? No, Waldorf Astoria is part of Hilton Worldwide, not Marriott International

Hilton Hotel Brands

Hilton Worldwide encompasses over 4,800 properties across the globe, offering a wide range of options from luxury to more accessible accommodations. The company is renowned for its innovative approach to hospitality, guest services, and loyalty programs like Hilton Honors. Through its extensive brand portfolio, Hilton continues to be a prominent choice for travellers worldwide, offering memorable experiences and exceptional service.

Who owns the Hilton Hotels brand?

Hilton Worldwide Holdings Inc., commonly known as Hilton, is an American multinational hospitality company that owns and manages a broad portfolio of hotels and resorts.

When was the Hilton brand founded?

Hilton was founded by Conrad Hilton in 1919, with the purchase of his first hotel in Cisco, Texas. Since then, Hilton has grown into a leading global hospitality company.

Which hotel brands are part of Hilton Hotels?

Hilton’s portfolio includes a diverse range of brands catering to different segments of the market, such as:

Hilton Hotels & Resorts: The flagship brand, known for its commitment to hospitality and innovation.
Waldorf Astoria Hotels & Resorts: A luxury brand offering unique experiences in iconic destinations.
Hampton by Hilton: Focused on providing quality, consistent accommodations and amenities.
Holiday Inn: Not part of Hilton, but a brand under the InterContinental Hotels Group (IHG).
Sheraton Hotels & Resorts: This brand is part of the Marriott International portfolio, not Hilton.

Frequently asked questions about the Hilton hotel brand

Is Holiday Inn part of Hilton Hotels? No, Hyatt is not part of Hilton, but a brand under the InterContinental Hotels Group (IHG).
Is Sheraton part of Hilton Hotels? No, this brand is part of the Marriott International portfolio, not Hilton.
Is Hyatt part of Hilton Hotels? No, Hyatt is an independent company, not affiliated with Hilton.
Is Staybridge Suites part of Hilton Hotels? No, Staybridge is part of the IHG family of brands, not associated with Hilton.
Are Hilton and Marriott the same? No, they are different and independent hotel brands.

IHG Hotel Brands

IHG boasts over 5,900 hotels worldwide, providing a wide range of options from luxurious InterContinental resorts to convenient Holiday Inn Express locations. The company is known for its commitment to quality, innovation, and guest satisfaction, making it a key player in the global hospitality market.

Who owns the IHG Hotels brand?

InterContinental Hotels Group (IHG) is a global company headquartered in the United Kingdom, owning and operating a diverse portfolio of hotel brands around the world.

When was IHG Hotels founded?

IHG was officially formed in 2003, but its roots can be traced back to 1777 with the establishment of Bass Brewery, which later diversified into hospitality and acquired the InterContinental brand in 1988.

Which hotel brands are part of IHG?

IHG’s collection includes a variety of brands tailored to meet different guest needs and preferences, including:

InterContinental Hotels & Resorts: The luxury flagship brand known for its world-class services and prestigious locations.
Holiday Inn: One of the most recognized hotel brands globally, offering friendly, reliable accommodations for families and business travelers.
Crowne Plaza Hotels & Resorts: Catered towards business professionals and meetings, providing premium services in major urban centers.
Hotel Indigo: A chain of boutique hotels, offering unique designs that reflect the local culture and history.

Frequently asked questions about the IHG hotel brand

Is IHG the same as Hilton? No, IHG is an entirely separate entity from Hilton and operates its own unique portfolio of hotel brands.
What does IHG stand for? HG stands for InterContinental Hotels Group, reflecting its flagship brand and global presence in the hospitality industry.

Hyatt Hotel Brands

Hyatt is renowned for its innovative approach to hospitality, emphasising thoughtful and caring services. With over 1,000 properties in 68 countries, Hyatt continues to expand its presence, offering a diverse range of experiences from luxury resorts to convenient city hotels. The company’s dedication to guest satisfaction and loyalty is reflected in its World of Hyatt program, which rewards frequent travellers with exclusive benefits and experiences.

Who owns Hyatt Hotels?

Hyatt Hotels Corporation, an American multinational hospitality company, owns and manages the Hyatt portfolio of brands. The Pritzker family played a significant role in the company’s development, with Thomas Pritzker serving as executive chairman.

When was Hyatt Hotel founded?

Hyatt was founded in 1957 by Jay Pritzker when he purchased the Hyatt House motel near the Los Angeles International Airport. Since then, Hyatt has grown into a global hospitality brand known for its commitment to genuine service and guest care.

Which hotel brands are part of Hyatt Hotel?

Hyatt’s brand portfolio caters to various market segments, including:

Park Hyatt: Luxury brand offering sophisticated and elegant accommodations and personalised services.
Hyatt Regency: A major brand within the Hyatt portfolio, known for its exceptional service and amenities for business and leisure travellers.
Andaz: A collection of boutique-inspired luxury hotels, reflecting the unique culture and spirit of their surroundings.
Hyatt Place and Hyatt House: Brands designed for casual hospitality and extended stay needs, providing modern comforts and conveniences.

Frequently asked questions about the Hyatt hotel brand

Is Hyatt part of Hilton? No, Hyatt is independent and is not part of the Hilton Hotels group.
Is Hyatt part of Marriott? No, Hyatt is not part of Marriott and is, in fact, a competitor of Marriott.
Is Hyatt part of Bonvoy? Bonvoy is the loyalty program for Marriott International, and Hyatt has its own loyalty program, World of Hyatt, which is not affiliated with Bonvoy.

Wyndham Hotel Brands

With over 9,000 hotels in more than 80 countries, Wyndham Hotels & Resorts boasts a vast and diverse portfolio designed to meet the needs of every type of traveller. From upscale accommodations to budget-friendly stays, Wyndham’s brands are united by a commitment to delivering exceptional service and value. The company’s focus on accessibility and customer satisfaction makes it a trusted name in hospitality, offering experiences that cater to a wide range of preferences and travel needs.

Who owns Wyndham Hotels?

Wyndham Hotels & Resorts is an American multinational hotel and resort chain headquartered in Parsippany, New Jersey. It is one of the largest hotel franchisors in the world and a leading hotel management company.

When was Wyndham Hotel founded?

Wyndham Hotels & Resorts was established in 1981 by Trammell Crow in Dallas, Texas. The company has since evolved into a global hospitality provider with a broad portfolio of hotel brands.

Which hotel brands are part of Wyndham Hotel?

Wyndham’s diverse portfolio caters to a wide range of travellers and budgets, including:

Wyndham Grand: An ensemble of distinguished hotels offering refined experiences in iconic destinations.
Ramada by Wyndham: A large multinational hotel brand known for its commitment to high-quality accommodations and a warm, welcoming atmosphere.
Days Inn by Wyndham: Offers affordable lodging options with a focus on value and convenience.
La Quinta by Wyndham: Known for providing bright, welcoming accommodations and friendly service at great value.
Super 8 by Wyndham: A budget hotel chain that offers basic amenities and comfortable lodging.

Frequently asked question about the Wyndham Hotels and Resorts brand

Is Wyndham part of Marriott? No, Wyndham operates independently and is not affiliated with Hilton or Marriott International.

Accor Hotel Brands

Accor’s global presence spans over 110 countries with more than 5,100 properties, making it a powerhouse in the hospitality industry. The company is committed to innovative hospitality, sustainability, and exceptional guest experiences, ensuring that every stay is memorable. From luxury resorts to budget-friendly hotels, Accor’s portfolio is designed to meet the needs of every traveller, making it a go-to choice for diverse travel experiences around the world.

Who owns Accor?

Accor is a French multinational hospitality company that owns, manages, and franchises hotels, resorts, and vacation properties. It is one of the world’s leading hotel operators and the largest in Europe.

When was Accor founded?

Accor was founded in 1967 by Paul Dubrule and Gérard Pélisson with the opening of their first Novotel hotel in Lille, France. The company has since grown to become a global leader in the hospitality industry.

Which hotel brands are part of Accor?

Accor’s extensive portfolio includes a wide range of brands catering to various segments from luxury to economy, such as:

Sofitel: Accor’s flagship brand of luxury hotels, known for its blend of French elegance and local culture.
Pullman: Targets the business traveller segment with upscale accommodations and meeting facilities.
Novotel: A midscale hotel brand that offers modern, easy living spaces for both business and leisure travellers.
Ibis: A well-known economy brand that provides comfortable and affordable accommodations with a consistent quality standard.
Raffles: Offers a thoughtful, luxurious experience with enchanting hotels that are the epitome of service and elegance.
Fairmont: Renowned for its grand and iconic hotels that offer guests unique experiences and timeless memories.

Choice Hotel Brands

Choice Hotels International operates more than 7,000 hotels across 40 countries and territories. With a commitment to delivering value, quality, and exceptional service, Choice Hotels caters to a wide spectrum of travel needs, from economy to upscale. The company’s award-winning Choice Privileges loyalty program offers members benefits and rewards across its extensive network of properties, enhancing the guest experience and fostering loyalty among travellers.

Who owns Choice Hotel?

Choice Hotels International, Inc. is an American hospitality holding corporation which is the owner and franchisor of several hotel brands. It is one of the largest and most successful lodging companies in the world.

When was Choice Hotel founded?

Choice Hotels originated from a 1939 merger of seven motel owners to form Quality Courts United, which is considered the first hotel chain in the United States. The company was renamed Choice Hotels International in 1990.

Which hotel brands are part of Choice Hotel?

Choice Hotels boasts a diverse portfolio catering to a wide range of travellers, including:

Comfort Inn and Comfort Suites: Mid-range hotels known for their warm, inviting accommodations and value. Comfort Inn is part of the Choice Hotels family, directly owned and franchised by Choice Hotels International.
Quality Inn: Offers affordable accommodations with genuine service, appealing to both business and leisure travellers.
Sleep Inn: Designed to provide a pleasant stay with modern rooms and amenities at a great value.
Clarion: Targets travellers seeking full-service facilities, including meeting and banquet spaces, in a midscale hotel setting.
Econo Lodge: One of the best-known names in budget hotels, offering basic accommodations at an affordable price.
Cambria Hotels: Represents the upscale segment within Choice Hotels, offering contemporary, locally-inspired accommodations.

Best Western Hotel Brands

Best Western Hotels & Resorts operates in over 100 countries and territories worldwide, with over 4,700 hotels under its brand umbrella. The company is known for its commitment to providing quality accommodations and excellent service at a great value. Best Western’s award-winning loyalty program, Best Western Rewards, offers members points that never expire and can be used for free nights, gift cards, and more. Through its diverse brand portfolio, Best Western continues to cater to a wide range of travel needs, from budget-friendly stays to upscale retreats, ensuring a consistent standard of hospitality and service across the globe.

Who owns Best Western?

Best Western Hotels & Resorts is a privately held hotel brand with a unique membership model, where each hotel is independently owned and operated by its respective owner. This structure allows for local flair and commitment while benefiting from the global presence and standards of the Best Western brand.

When was Best Western founded?

Best Western was founded in 1946 by M.K. Guertin as a referral system among the hotels in California. The brand has since expanded globally, becoming one of the largest hotel chains in the world.

Which hotel brands are part of Best Western?

Best Western’s portfolio has evolved to include a range of brands tailored to meet various market segments, including:

Best Western: The flagship brand, offering comfortable, quality accommodations for leisure and business travellers.
Best Western Plus: Provides an enhanced level of comfort and amenities for guests looking for a little extra during their stay.
Best Western Premier: Targets the upscale market with refined and stylish hotels and superior guest services.
Vib: A boutique urban hotel concept, focusing on convenience, technology, and social engagement.
GLŌ: A midscale boutique hotel brand, designed with a focus on modern, sleek design and a unique guest experience.
Executive Residency by Best Western: Offers extended stay accommodations with spacious rooms and kitchenettes, blending the convenience of hotel services with the comforts of home.

Pet friendly hotel brands

The demand for pet-friendly accommodations is on the rise, with more and more hotel chains recognising the importance of welcoming four-legged family members. Understanding this trend, several leading hotels have stepped up their game, offering exceptional services and amenities tailored specifically for guests travelling with pets.

1. Kimpton Hotels

Kimpton Hotels welcomes not just dogs and cats but any pet regardless of size, weight, or breed, at no extra charge. Each hotel offers unique pet amenities such as pet beds, food, water bowls, and mats. Kimpton also hosts a nightly wine reception where pets are more than welcome to join the fun. Their approach is a testament to their belief that pets are integral members of the family, ensuring they receive the same level of hospitality as human guests.

2. Best Western

Best Western is another chain that rolls out the welcome mat for pets, with over 1,600 pet-friendly hotels across North America. They require a nominal fee for pet guests, which varies by hotel. Best Western hotels provide a comfortable stay for pets, with some locations offering dedicated pet areas, treats, and disposal supplies to ensure a convenient and enjoyable stay for both pets and their owners.

3. Loews Hotels

Loews Hotels offers a very accommodating pet policy through their Loews Loves Pets program. They provide amenities such as gourmet room service menus for cats and dogs, prepared by the hotel’s executive chef. Additionally, they offer pet beds, litter boxes, scratching posts, leashes, and collars. Pets are greeted with a welcome package that includes treats, bowls, and toys to make their stay as comfortable as possible.

Some other pet-friendly hotels include:

Radisson Hotels
Bonvoy
Hampton Inn
W Hotels
Crowne Plaza
Doubletree Hotels
Country Inn and Suites
Riu Hotels

What hotel chains allow pets for free?

While some hotels charge a pet insurance fee or similar, some hotels have differentiated themselves in the market by including a pet’s stay in the cost of their owner’s stay. Some examples are the aforementioned Kimpton Hotels, as well as Aloft Hotels (with dogs up to 40 pounds allowed to stay free) and Red Roof Inn (one pet per room staying for free).

By Dean Elphick

Dean is the Senior Content Marketing Specialist of SiteMinder, the leading technology provider delivering hoteliers unbeatable revenue results. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at SiteMinder. Through content, Dean aims to provide education, inspiration, assistance and value for accommodation businesses looking to improve the way they run their operations achieve their goals.

Credit: SiteMinder

April 5 2024

10 Creative Ways Hotels Can Boost Revenue Through Upselling

In the competitive landscape of the hospitality industry, hoteliers are constantly exploring innovative ways to increase revenue and enhance the guest experience. Upselling presents a lucrative opportunity for hotels to maximize their profits while providing added value to guests. By implementing creative upselling strategies, hotels can drive additional revenue streams and foster guest loyalty. Here are ten creative ways hotels can engage in upselling:

Personalized Room Upgrades: Offer guests the option to upgrade their room to a higher category based on their preferences or special occasions. Personalized recommendations can make the upsell more appealing and increase the likelihood of conversion.
Exclusive Experiences: Create unique and exclusive experiences such as private dining on a rooftop terrace, personalized spa treatments, or guided tours of the local area. These premium offerings can be upsold to guests seeking a memorable stay.
In-Room Amenities: Showcase a selection of curated in-room amenities such as luxury bath products, gourmet minibar selections, or personalized welcome gifts. Guests can choose to enhance their stay by adding these special touches to their stay.
Dining Packages: Offer guests the option to upgrade their dining experience with packages that include breakfast in bed, chef’s tasting menus, or wine pairing dinners. Highlighting these culinary experiences can entice guests to elevate their dining experience during their stay.
Leisure and Wellness Enhancements: Promote wellness and leisure activities such as yoga classes, fitness sessions, or spa treatments that guests can add to their itinerary. Upselling these experiences can cater to guests looking to relax and rejuvenate during their stay.
Local Experiences: Collaborate with local vendors and attractions to offer guests unique experiences such as guided tours, cooking classes, or cultural excursions. By showcasing authentic local experiences, hotels can upsell guests seeking to immerse themselves in the destination.
Room Service Enhancements: Enhance the room service experience by offering special promotions such as late-night snack menus, themed afternoon teas, or cocktail kits for in-room mixology. These enticing options can drive additional revenue through upselling room service offerings.
Celebration Packages: Create celebration packages for special occasions such as birthdays, anniversaries, or romantic getaways. These packages can include amenities such as champagne, flowers, and personalized decorations to enhance the guest’s celebratory experience.
Upgrade Bundles: Offer bundled packages that combine room upgrades, dining credits, and spa treatments at a discounted rate. By providing value-added bundles, hotels can encourage guests to upgrade their stay and indulge in a variety of amenities.
Loyalty Program Enhancements: Reward loyal guests with exclusive upselling opportunities such as complimentary room upgrades, early check-in/out options, or priority reservations at hotel facilities. By offering tailored upselling benefits to loyal guests, hotels can incentivize repeat bookings and foster long-term guest relationships.

By implementing these creative upselling strategies, hotels can not only increase their revenue streams but also enhance the overall guest experience, leading to higher guest satisfaction and loyalty. Embracing innovation and personalization in upselling initiatives can differentiate hotels in a competitive market and drive sustainable growth in the hospitality industry.

Credit eHotelier

March 22 2024

How Hyatt's Andaz Brand Is Delivering Laid-Back Luxury to Hotel Guests

Travelers in the luxury lifestyle hotel segment still want all the bells and whistles, but they also want levity, experimentation and fun, according to Crystal Vinisse Thomas, Hyatt Hotels Corp.’s vice president and global brand leader.

Andaz, a brand under Hyatt’s Boundless Collection, recently unveiled its first global brand refresh in eight years called “Be Like No One’s Watching.” Vinisse Thomas spearheaded the campaign.

The Andaz luxury lifestyle brand first launched in 2007.

According to the Hyatt’s website, there are 29 Andaz resorts open across the globe and 17 in the pipeline, including the Andaz Doha, Andaz Miami Beach, Andaz Turks & Caicos, Andaz Libson and Andaz Bangkok.

The desire among today’s travelers to mix opulence with lightheartedness helped guide the Andaz campaign.

“We wanted to showcase Andaz not just as a hotel brand, but a place that empowers guests to unlock new sides of themselves, ones they may have never known or were too afraid to explore before,” she said in an email interview. “We tried to tap into these ideas through as many facets of the campaign as we could.”

Vinisse Thomas said her team has infused feedback from its guests and loyalty members, including catering to the expectations that new generations have for experiences at Andaz properties.

“We’ve incorporated small changes; for example, every hotel now stocks plant-based milks in line with changing consumer preferences and dietary preferences. But we also have larger considerations — what do millennials, Gen Z or even Gen Alpha look to us to bring to the table? They often want hotels that feel sophisticated without being stuffy. They don’t mind alternative, quirky decor and unconventional experiences as long as they reflect the local destination. Even within the marketing, they’re looking for brands with authenticity and diversity. We took all of this into consideration as we crafted the campaign,” she said.

As the sea of luxury brands deepens across the industry, Andaz is digging into the core of what “luxury lifestyle” actually means to consumers as well as what it means to Andaz.

To bridge that connection, Vinisse Thomas said a brand must know who they are and what they stand for. Andaz used storytelling to drive the campaign and welcome everyone’s personal style.

“‘Be Like No One’s Watching’ is about harboring unfulfilled desires and ambitions and having the rare freedom to unleash them when you travel. These are incredible and authentic emotions that we all experience but hotel brands rarely highlight in their interactions with guests,” she added. “By focusing on these universal and genuine feelings, we hoped to create a message that resonated with audiences emotionally and distinguished Andaz from other luxury lifestyle brands.”

She said it was also important to integrate local culture at each of Andaz’s hotels.

As part of the campaign, the brand introduced experiences in which guests could immerse themselves in unique cultures — from leaving a creative mark through graffiti art at Andaz Prague to embracing a desert safari at Andaz Dubai The Palm, Vinisse Thomas said.

“Leaning into the journey of transforming and exploring your identity during travel is something we know everyone can relate to. That shared connection allowed us to highlight the unique and locally inspired ways each Andaz property could help guests do just that,” she said.

Credit: Hotel News Now

March 9 2024

How Accor's Reorganization Into Two Distinct Entities Has Streamlined Operations, Owner Relations

French hotel firm Accor’s recently completed corporate reorganization is a mark of how it looks at the industry — and how executives plan to capitalize on the shifting dynamics of travel and hospitality.

In the words of Jean-Jacques Morin, Accor’s group deputy CEO and division CEO for premium, midscale and economy: “Now, the next step is for us to get the juice.”

Late last year “was the last stage of a multiyear, multi-phase reorganization of Accor. Yes, it was messy at times, but now we have a fantastic set of reorganized assets and the recognition that the industry is so many different animals,” Morin said during a strategy update from the French firm’s Fifth Avenue offices in New York City.

In its full-year 2023 earnings results, Accor reported a record €1 billion ($1.08 billion) in earnings before interest, taxes, depreciation and amortization, a 49% increase versus 2022. For the same period, revenue increased 20% to €5 billion.

Some of that is a result of the hotel industry bouncing back from the calamitous months of the pandemic, but Morin said it’s also a testament to the refocusing of Accor’s operations.

The company’s hotel operations are now in two divisions: luxury and lifestyle; and premium, midscale and economy, managed by a new organization of regional CEOs.

The two-pronged strategy allows the company a “much better feel as to what the hotel business is about to do,” Morin said.

One example is how Accor learned that hoteliers in Australia have become more friendly to franchising.

“In the end, franchise is a good thing as long as you can adapt. Discussions with owners are fluid, and you will see that in the mix. [Franchising] is a little less than 30% of rooms, but it will rapidly grow,” he said.

Morin said the strategy is to put more focus on brands but with fewer brand standards.

“Previously, we had solutions by region and brand. All were different, so what we figured is how to take the best of what we had, not to have 10 variations. The goal is a better night’s sleep,” he said. “In luxury, there is no franchising. There we want to go further in protecting brand equity, and the best way to do that is with a hotel management agreement.”

Martine Gerow, Accor’s group chief financial officer, said being fluid also makes sense financially.

“Management franchise fees have increased, and, yes, we expect them to increase more,” she said.

Chasing Corporate

Another see change — something the hotel industry might have taken for granted in 2019 — is the return of corporate travel, although the nature of it has changed.

“We have decided to create a luxury sales team focusing on large, corporate accounts. The reason for this is we felt this segment is an opportunity, and we have had success,” Gerow said. “A change we have seen this year is the increases in corporate negotiated rates. That’s the first time in a while. Corporate is returning to travel, although the long intercontinental trip in 24 hours has probably gone.”

Gerow said Microsoft is a good example of a company that has shifted its resources to better serve client demand.

“We now have one Microsoft account worldwide. Yes, a lot of that is in Paris as that is where a lot of our people are, but not always. The focus is on the account,” not the geography, she said.

Morin agreed that focus is the critical attribute.

“Working on the basics again, which we moved away from during our expansion. The significant reduction in some brands’ brand standards, some by around 70%, helps get over the line, even if that might be counter to protecting brand equity,” he said, citing such Accor brands as Mövenpick, Pullman and Swissötel.

He said Accor believed it did not have its fair share of those brands in some markets, but now it has the right teams, the right products and the right thinking.

The two divisions are marked by different operating philosophies, the executives said.

“Luxury is not managed by geography but by brand,” Gerow said.

She added Europe is beginning to see the return of conferences and events, but the focus in the U.S., a relatively small market for Accor, needs to be different.

“In the U.S., you need recognition of brands and then distribution. You need scale, but there is potential for us,” she said.

That potential will continue to be largely in Accor’s luxury and lifestyle brands.

“Eighty percent of the U.S. premium, midscale and economy market is in the hands of five or six players. To get access, you need to be super-surgical and super-smart, but in luxury and lifestyle, it is a different play,” she said.

Morin said in China the focus changes yet again.

“We can employ different models, but the right way to move the needle is to have partnerships. Again, the only place we do not do that is in luxury and lifestyle,” he said.

Gerow said criticism of Accor’s pruning of its portfolio is misjudged.

“We’re always scrutinizing our hotels to see if they should remain in the network. That’s a huge benefit to existing and new owners, although maybe not to the [profit and loss account],” she added.

Credit Hotel News Now

Feb 19 2024

Hotel brands: Who owns what?

Are you fascinated by the glitz and glamour of the hotel industry? Do you dream of a career where you could work anywhere from a quaint boutique property to a soaring glass-walled skyscraper? With over 18 million guest rooms worldwide, the hotel sector offers boundless opportunities for ambitious hospitality professionals.

But with mega-brands owning an ever-larger share of properties, navigating this dynamic industry can feel overwhelming.

This comprehensive guide breaks down the top hotel chains, groups, and conglomerates, detailing key facts and statistics to help you research potential employers or education pathways.

The evolution of hotel brands and chains
How do hotel brands work? Franchising vs. management agreements
What are chain hotels? Different types of chain hotels
Top hotel groups: Key facts and stats of leading hotel brands in 2024
How to pick the right hotel chain for your hospitality career
Mega-brands driving career opportunities in hospitality

The evolution of hotel brands and chains

Simply put, a hotel chain consists of multiple properties united under the same branding. For guests, sticking with a reputable brand takes the guesswork out of the accommodation experience, so they know what standard of amenities and service to expect.

Behind the scenes, brands maximize their profits through economies of scale. By centralizing operations like reservations, marketing, staff training and procurement across locations, they leverage their size while allowing individual properties to focus on delivering great on-site experiences.

Many chains and brands don’t actually own the hotels in their portfolio. Instead, they franchise the brand or manage the property for independent owners.

The franchise model is hugely popular in hospitality, making up over 67% of chain properties in the U.S. Owners pay an initial fee then ongoing royalties to license everything from branding to management software to loyalty programs. In return they gain powerful global distribution and marketing capabilities.

Over the past few decades, the hotel landscape has changed dramatically thanks to massive industry consolidation. Mergers and acquisitions have enabled a handful of multi-brand conglomerates to dominate the market across segments from luxury to budget.

In the early 2000s, there were over 20 major hotel companies. Fast forward to today and the 10 largest groups control a staggering 65% share of U.S. room supply.

What’s fueling this rapid consolidation? As competition grows ever more intense, scale and distribution advantages are more important than ever. Combining forces through M&A enables hotel firms to expand their footprint, benefit from pooled resources and loyalty members, and cross-sell brands to a wider audience.

For travelers, the explosion of choice can feel both thrilling and paralyzing. For hotel owners and staff, consolidation provides opportunities to align with established players but also intensifies competition – including from sister brands. And for hospitality students and aspiring managers, understanding this complex web of brands and owners is key to charting your career journey.

How do hotel brands work? Franchising vs. management agreements

If you assumed hotel brands directly own and operate the majority of properties flying their flag, think again! Contrary to popular belief, mega-chains predominately utilize franchise and management contracts to expand their empire with minimal capital investment.

Let’s break it down:

A hotel brand essentially acts as an umbrella identity for a chain or collection of hotels, unified by brand standards, amenities, design, and service. The brand creates recognition, shapes guest expectations and differentiates the hotels from competitors.

Most hotel brands don’t directly own the hotels but rather engage in management agreements, franchising or licensing arrangements in return for a fee and adherence to brand standards. This asset-light strategy spreads risk and enables rapid growth. Marriott, Hilton and Hyatt are prime examples of brands largely relying on this model.

Franchising

This is the most prevalent partnership structure, used by powerhouses like Marriott, Hilton and Hyatt to fuel rapid growth. Franchisees pay an initial fee and ongoing royalty payments for the licensed use of globally recognized brands, reservation systems, marketing campaigns, loyalty programs and other services.

While day-to-day operations are handled independently, franchises must adhere to brand standards around things like decor, amenities and guest experience. For owners, the trade-off of less autonomy brings powerful distribution and operational efficiencies.

Management agreements

Under these contracts, hotel owners engage branded management groups to operate properties on their behalf. Services typically span marketing, branding, reservations, procurement, human resources and accounting. Remuneration models include base + incentive fees generating around 2-7% of total revenue for operators.

Contracts run 10-15 years on average and brands often secure an option to purchase the asset outright. While owners retain ownership control, brands still influence certain property elements to align with portfolio standards.

So why choose big brands? Recognition, scale and access to global reservation systems are compelling advantages, especially alluring for independent conversions. Consolidation will likely only accelerate this trend.

Still today over 66% of hotels worldwide remain independently operated. For owners prioritizing distinction, character and local market connections over distribution reach, independence endures as a viable route.

What are chain hotels? different types of chain hotels

Simply stated, a hotel chain brings multiple lodging properties together under the umbrella of common branding, standards and marketing. Chain hotels are comprised of multiple properties of the same brand located in various geographical areas. For travelers, chain hotels provide the reliability of knowing what standard to expect when booking across the brand’s locations.

Chains allow hotel brands to grow rapidly, penetrate new markets while benefiting from economies of scale regarding purchasing power, distribution, marketing and back-end technology. On the other hand, hotel groups describe companies that own a collection of multiple hotel brands.

Among branded hotels, the main classifications include:

Full-service chains

These range from luxury resorts to business-focused convention hotels. Guests can expect loads of amenities like multiple restaurants, pools, event venues, room service and concierge support. Staffing levels run high and properties skew towards the polished and professional. Think brands like JW Marriott, Hilton and InterContinental.

Select service chains

Offering a more streamlined service model, these hotels focus amenities on the basics like comfortable rooms, internet access and breakfast. You’ll find options like Courtyard by Marriott, Holiday Inn Express and Best Western Plus positioned as “essential-plus”, nestled between limited service and full service.

Boutique chains

BYO-personality is the mojo here with offbeat interior design, hyper-social lobbies and locally-rooted perks setting the vibe. Size skews intimate. You’ll often find collections of independently-owned properties aligned specifically by aesthetic over amenities. Examples include Kimpton, Ace Hotels and Canopy by Hilton.

Resort chains

Lush grounds, recreational facilities and programming come standard at these properties catering primarily to leisure travellers seeking an all-inclusive convenient escape. Expect beachfront, ski or golf resort settings along with family-friendly amenities galore. Brands like Club Med, Sandals and Atlantis dominate here.

Extended stay chains

When overnight turns into a week or month, amenities and service shift to suit long-duration guests. In-room kitchens, laundry units, discounted weekly rates and easy access parking make life smooth. Brands specializing in this niche include Staybridge Suites, Candlewood Suites and Hyatt House.

Hotel Industry Consolidation: What Does Hotel Industry Consolidation Mean For Travellers And Hoteliers?

No question about it – consolidation has dramatically concentrated power among a cluster of hotel mega-chains. While the multi-brand nature of conglomerates creates an illusion of consumer choice, competition has objectively diminished.

Waves of mergers and acquisitions amongst major hospitality players are fueling hotel industry consolidation. Consolidation enables hotel groups to expand their brand portfolios to cater for broader market segments and capture greater market share.

As a result, a handful of hospitality giants have emerged owning a vast array of hotel brands. Smaller brands struggle to compete, facing high barriers to entry. However, industry consolidation also provides tremendous career opportunities within mega hotel groups.

The pros:

Global scale yields negotiating power and cost efficiencies
Loyalty programs drive substantial guest retention
Big data & analytics strengthen decision-making
Highly professionalized training develops talent

The cons:

Reduced competition enables rate hikes and fee creep
Individuality suffers under rigid brand standards
Staff face grueling routines with little job variation
Heightened rivalry across sister brands drives stress
Interestingly, increased dominance from chains seems to have fueled a resurgence for
independents leveraging distinctiveness. Boutique and lifestyle hotels now represent over 50% of properties in development pipelines.

Opportunities exist for independent hotels at both ends of the pricing spectrum, where personalized experiences trump scale efficiencies.

Top hotel groups: Key facts and stats of leading hotel brands in 2024

Several hospitality behemoths lead the hotel industry today by number of rooms and properties under their brand umbrella.

Marriott International is the world’s largest hotel company, encompassing hotels spanning from luxury to economy. Hilton, IHG, Accor and Wyndham also rank amongst the top five by properties and rooms.

Key hotel industry statistics 2024

Total number of hotel rooms: 18+ million globally
Projected industry value 2024: $540 billion
Global hotels counting 10+ rooms: 700,000+
Hotel rooms in construction pipeline: 3+ million
Direct hotel employees globally: 25+ million

Below are the 10 largest hotel chains, providing an overview of their brand portfolio diversity, properties, geographical reach and statistics.

#1. Marriott International Inc. Brands

Most extensive hotel portfolio globally from luxury to economy properties. Unmatched scale provides vast training & growth opportunities.

Properties: Over 8,700
Locations: 139 countries
Brands: 40
Rooms: 1.5 million+
Employees: 130,000
Revenue (2022): $20.4 billion
Loyalty Program: Marriott Bonvoy
Development pipeline: Over 500,000 rooms

The world’s largest hotel group remains at the forefront of the industry by continually expanding its unrivaled portfolio of brands. Following its 2016 acquisition of Starwood Hotels, Marriott now spans all segments from luxury to premium selects.

Flagship brands include:

Luxury: Ritz-Carlton, St. Regis, W Hotels
Premium: JW Marriott, Sheraton, Westin
Select Service: Courtyard, Aloft, Element
Extended Stay: Residence Inn, TownePlace Suites

An innovative leader, Marriott recently debuted home-sharing platform Homes & Villas and new lifestyle brand Moxy, while its Bonvoy loyalty program soared past 173 million members in 2022.

#2. Hilton Worldwide Holdings Inc. Brands

Iconic multi-brand group offering exceptional training & benefits. Wide range of segments from luxury to focused-service.

Properties: 7,000+
Locations: 122 countries
Brands: 22
Rooms: 1 million +
Employees: 420,000
Revenue (2022): $8.0 billion
Loyalty Program: Hilton Honors
Development pipeline: 400,000+ rooms

Hilton remains a hospitality powerhouse nearly a century after its founding in 1919. Its portfolio appeals to virtually all traveller segments under brands like Waldorf Astoria luxury residences, DoubleTree by Hilton mainstream hotels, and Hampton by Hilton budget-friendly accommodations.

Vast global scale aside, the company is also one of the industry’s most admired employers thanks to strong training programs, diversity initiatives like its Open Doors pledge for refugees, and flexibility offerings like remote work and sabbaticals.

#3. Intercontinental Hotels Group PLC Brands

Global hotel giant providing strong training and inclusive work culture across portfolio.

Properties: 6,000+
Locations: 100+ countries
Brands: 17
Rooms: 880,000+
Employees: 325,000
Revenue (2022): $3.89 billion
Loyalty Program: IHG Rewards
Development pipeline: 268,000 rooms

Despite its recent sale of voco, Kimpton and Regent brands, IHG retains an enormously valuable portfolio of both established and upscale brands. Flagships like InterContinental Hotels & Resorts in the luxury segment and Holiday Inn Express in midscale drive consistent profits thanks to high guest loyalty.

Rapid growth in underpenetrated markets like China positions the company well for future expansion while a strategic focus on expanding its luxury footprint signals more acquisitions could be on the horizon.

Meanwhile, first-of-their-kind brand concepts like EVEN Wellness cater to shifting demand with a hotel experience designed entirely around healthy choices.

#4. Wyndham Hotels & Resorts

Renowned as the world’s largest hotel franchisor. Diverse economy portfolio supplemented by upscale brands.

Properties: 9,000+
Locations: 95 countries
Brands: 24
Rooms: 810,000+
Employees: 13,900
Revenue (2022): $1.60 billion
Loyalty Program: Wyndham Rewards
Development pipeline: 228,000 rooms

Franchise giant Wyndham commands an enormous midscale and economy footprint across the Americas and Europe. The 2018 acquisition of La Quinta instantly boosted its U.S. scale while also positioning its premium brands like Trademark for growth.

Wyndham Rewards loyalty program now exceeds 95 million members, providing a goldmine for driving repeat reservations across its portfolio.

Flagship brands include:

Luxury: Dolce Hotels & Resorts
Upscale: Wyndham Grand
Midscale: Wingate, La Quinta
Economy: Super 8, Howard Johnson

With over 20 brands ranging from luxury to budget, Wyndham has opportunities to suit just about every traveler – and hotelier – looking for scale, distribution and operational efficiencies.

#5. Accor Hotels

Europe’s largest hospitality group. Acquisitions expanded brand portfolio spanning luxury to economy plus extensive lifestyle brands.

Properties: 5,300+
Locations: 110 countries
Brands: 40+
Rooms: 777,000+
Employees: 240,000
Revenue (2022): $2.6 billion
Loyalty Program: Accor Live Limitless
Development pipeline: 300,000 rooms

Paris-based Accor brings its signature French hospitality flair to a vast spectrum of luxury and lifestyle hotels. The group has aggressively expanded its global footprint, snapping up storied brands like Fairmont, Raffles, Swissôtel, and sbe Entertainment Group.

Alongside proven midscale properties like Novotel and Mercure sits Accor’s fast-growing collection of distinctive brands like SO/, Mondrian, and Hyde. Meanwhile, Accor Live Limitless rewards program keeps guests hooked with unique lifestyle experiences.

With historic European brands and fresh lifestyle concepts, Accor straddles heritage and innovation. Add in strategic partnerships with hotel giant Huazhu Group in China along with co-working space provider Wojo and you have a company charging towards the future.

#6. Choice Hotels International INC

Properties: 7,000+
Locations: 40+ countries
Brands: 12
Rooms: 570,000+
Revenue (2022): $1.4 billion
Development pipeline: 1,800 hotels

Choice leads the midscale hotel space with proven flagships like Comfort Inn and Quality Inn driving impressive profit margins through tightly optimized operations. Strategic focus areas like corporate travel, leisure destinations, and international growth rack up results– for example, milestone openings of both its 1000th property in Europe and 500th Comfort brand hotel in the LatAm region occurred in 2021.

Guest loyalty also remains paramount at Choice thanks to initiatives like personalized rewards promotions and loyalty bonuses to keep business travelers coming back.

#7. Huazhu Group

China’s largest hotel group. Booming domestic travel enabled huge nationwide growth across multiple economy brands.

Properties: 8,000+
Locations: 17 countries
Brands: 14
Rooms: 829,000+
Revenue (2022 revenue): $805 million
Development pipeline: 2,950 hotels

Already China’s largest hotel group, Huazhu has set its sights on becoming one of the top multinational chains in Asia and beyond. Its three main brands give it strong positioning: HanTing Hotels in the economy segment; Hi Inn targeting young budget travelers; and Joya serving the upscale market.

Rapid expansion plans call for quadrupling its international hotels including recent select openings in Singapore and Thailand. Partnerships with Accor and Sunac China cement Huazhu’s ambitious global growth strategy.

#8. Indian Hotels Company

Properties: 220+
Locations: 4 continents
Brands: 22
Rooms: 33,000+
Revenue (2022): $630 million
Development pipeline: 50+ hotels

South Asia’s largest hospitality company, IHCL is also one of the region’s most respected employers thanks to its Tata leadership commitment to sustainability and social conscience. With luxury flagships like the iconic Taj Hotels and growing portfolio of Ginger budget hotels and amã Stays & Trails homestays, this Mumbai-based powerhouse appeals across the spectrum.

Strategic priorities like expanding brand footprint in North America, consolidating market share in India, and driving digital innovation paint the picture of a forward-focused company ready to think big.

Discover legendary properties like The Taj Mahal Palace ranked by Condé Nast Traveler among the Top 10 City Hotels in India.

#9. Radisson Hotel Group

Rapidly growing hotel giant following recent acquisitions and openings further cementing global footprint.

Properties: 1,700+
Locations: 120 countries
Brands: 8
Rooms: 100,000+
Revenue (2022): $967 million
Development pipeline: 200,000+ rooms

This Brussels-based company has undergone major restructuring including a rebrand from Carlson Rezidor Hotel Group to Radisson. The new strategic roadmap has an intense focus on the US, specifically targeting massive expansion of its Radisson Hotels and Radisson Blu brands along with fresh lifestyle concepts like Radisson RED.

Sustainability is also a key pillar going forward with commitments covering everything from responsible construction and renovations to eco-labelled hotel linens.

#10. Louvre Hotels Group

Properties: 1,600
Locations: 54 countries
Brands: 7
Rooms: 150,000+
Revenue (2022): $661M
Development pipeline: 300 hotels

Paris-based Louvre made two game-changing acquisitions in recent years, snapping up Sarovar Hotels and Resorts in India to catapult its South Asia footprint as well as Spain’s Hoteles Plateno. Add in an asset-light growth strategy and you have a lean expansion machine powering 10% annual growth in hotel numbers.

Flagships like Golden Tulip midscale and luxury Campanile hotels drive results while innovative offerings like LG’s Smart Room feature Amazon Alexa assistant and mobile keyless entry through an app. Talk about hospitality innovation!

How to pick the right hotel chain for your hospitality career

With mega-brands dominating hospitality, scoring a job with an industry titan seems a savvy career move for aspiring hoteliers. Hilton, Marriott, and others promise everything from celebrity clientele to exotic transfer opportunities.

However, before committing, carefully vet potential employers for fit. Between corporate bureaucracy, narrow job scopes and mass layoffs when times get tough, the grass may seem greener working for a giant chain.

Here are key considerations as you evaluate hotel companies:

Growth trajectory

Analyzing the expansion strategy of hotel groups offers clues to internal promotion prospects. Dynamically growing portfolios (I’m looking at you, TRU by Hilton with 200+ pipeline US hotels) suggest far greater upward mobility than static or shrinking ones.

Employment reviews

Anonymous feedback-sharing sites like Indeed and Glassdoor offer genuine insights around corporate culture, leadership confidence, work/life balance, and more – so use them. Watch for red flags like micromanagement or high turnover rates.

Location variety

Global footprints like IHG span over 100 countries. If exploring far-flung destinations inspires you, prioritize broadly dispersed hotel groups boasting an international menu of placement possibilities.

Staff support

Progressive policies and practices around compensation, benefits, well-being, diversity, and sustainability speak volumes about an employer’s compassion. Generous parental leave, fertility benefits, reduced single occupancy fees, and easy room point transfers for staff travel all make a difference.

As the world’s largest hotel operator, Marriott International offers unmatched global opportunities combined with a people-first values-based culture reflected in supportive perks like employee sabbaticals. No wonder Marriott ranked #16 among Fortune World’s Most Admired Companies in 2023!

The future looks bright for hospitality pros committed to continual skill building in areas like emotional intelligence, creativity, and cognitive flexibility regardless of employer.

Mega-brands driving career opportunities in hospitality

The expansive growth across hotel companies provides tremendous opportunities within hospitality globally. By pursuing an education specializing in hospitality, whether at the undergraduate, graduate, or executive level, you gain key skills and global connections to reach your career aspirations. As hospitality rebuilds, explore how you can positively impact this dynamic industry.

Not sure how to get started? Here are 8 lucrative career paths in the hospitality and tourism industry and how to choose a culinary and restaurant management course.

Whether at an international luxury resort or a charming boutique property, every hospitality environment shapes skills, insights, and connections to equip your future success.

Now confidently go explore this dynamic world of hotel empires and carve out your career niche! Check-in anytime at EHL Insights as your informational concierge along the journey.

Credit EHL Insights

Feb 19 2024

Taylor Swift is Coming - Is Your Hotel Ready for It? - By Kelly Johnson

Are you ready to dazzle your Taylor Swift fans with a fantastic experience at your hotel? As we approach her much-expected concerts in Australia and Singapore, hotels must prepare for the surge in demand, deliver exceptional customer service, and prioritize guest satisfaction.

Everything Taylor Swift touches turns to gold. In 2023, her tour stopped in 20 North American cities that broke records and was even said to boost the economy by $4.6 billion. Fans flocked to these cities in droves, which positively impacted the local economies. Naturally, Swifties must eat, utilize transportation, and of course, book accommodations. It’s no wonder that her concerts are creating a hospitality phenomenon. In Chicago, hoteliers experienced the “TSwift Lift” firsthand, as the first two days of Swift’s shows resulted in record hotel bookings for the city, an average of 44,383 per night. The TSwift Lift is real and hoteliers quickly realized they’d be in trouble if they weren’t well prepared for a fully booked property. Let’s discuss some ways to prepare and avoid bad blood with the Swifties as they descend upon APAC in the coming weeks.

According to a recent article on STR’s Data Insights Blog, Taylor Swift’s impact on hotel room revenue in the US is remarkable. The article highlights that her tour has already contributed to a staggering $208 million in hotel room revenue. By drawing in thousands of fans to each tour stop, Taylor Swift’s presence creates a surge in demand for hotel accommodations, resulting in increased revenue for hotels in those destinations. Pittsburgh and Nashville doubled their RevPAR from shoulder weeks, while eight markets overall reported RevPAR premiums of 50 percent or higher. It was anything but a cruel summer for the cities on the tour lineup.

How Hotels Can Capitalize on the Positive Impact of Taylor Swift’s Tours?

Hoteliers know all too well how important it is to provide the best guest experience. Guests are more likely to leave a review when they have an experience to remember – both positive or negative. This means that hotels need to be prepared to handle the influx of fans and provide exceptional customer service to ensure a positive experience for concert-goers. Many hotels impressed guests by going above and beyond by offering pop-up shops with Taylor Swift merchandise, specialty menu items at on-site restaurants, or decorating with a Swift theme throughout the hotel. From check-in to concierge services, hotel staff must be attentive, efficient, and accommodating to meet the heightened expectations of Taylor Swift’s enthusiastic fans.

In the era of online reviews and social media, guest reviews hold major importance for hotels. This is a delicate topic because we all know that guest reviews hold a lot of weight during the booking process. And how do you get your guests to leave a review? The answer isn’t as tough as you think – just ask for it. In a recent study, guests were asked why they didn’t leave a review and the answer was surprising – they didn’t know where to leave it or were never sent a survey. TrustYou has an easy solution! Prepare and send out a post-stay survey to your guests. Positive guest reviews can boost a hotel’s reputation and attract more visitors in the future. Conversely, negative reviews can have long-lasting consequences. Too busy to respond to all of those reviews? Shake it off with TrustYou’s responseAI, which allows you to quickly respond to guest reviews in the tone and language that fits your brand. You’ll thank us later.

Taylor Swift’s tours have proven to be a force that extends beyond the music industry, leaving a lasting impact on the hospitality and hotel industry. With her Eras Tour breaking records and generating significant revenue for hotels, the influence of her tours cannot be underestimated. By focusing on revenue growth, customer service, and the importance of guest reviews, hotels can leverage the “Taylor Swift Effect” to their advantage.

Credit: HNR Hotel News

Feb 12 2024

Hotel Brand Overload: The Coming Shakeout

The rise of brands has been the dominant trend in the global hotel industry over the past four decades. During this time, many hotel owners sought brand representation, while most brands themselves exited the business of owning or operating hotels.

Starting with some three hundred brands at five price points, the hotel chains have repeatedly created brands that subdivided those price points.

With brands now numbering over a thousand, hotel owners and guests face a “sea of sameness” among many of the brands in today’s markets. In some cases, one brand is only marginally distinguishable from another, and the challenge is to discern the differences.

One outcome of this growth is greater bargaining power for independent operators who can use social media to attract guests. Another outcome is a search for additional brand concepts, including lifestyle brands.

To continue growing, brands will increasingly have to use technology and also apply research and development to assess their brand concepts. In sum, brands must find a way to differentiate themselves and develop “tribes” of customers who identify with particular brands.

The past fifty years have seen a power shift between hotel owners and hotel brands at all levels. In the late 1970s, owners had the power and brands that didn’t own their own hotels were begging for business. Today, brands have the power, with owners begging to affiliate. One manifestation of this power shift is the presence of an “area of protection,” also known as a “radius clause,” in hotel management and franchise agreements. Thirty years ago, the establishment of an area of protection was more the rule than the exception. Today, it is more the exception than the rule.

Two factors underlie this power shift—increased room supply, and consolidation of numerous brands under one umbrella. The approximately 10 million hotel rooms that were available in 1990 had grown to about 17 million rooms by 2020. In 1990, most firms held a handful of brands in their portfolios, typically fewer than 10, but today Hilton carries 19 brands, Marriott 32, Accor 43, Hyatt 29, and IHG 19, for a total of 113 brands among the top five firms. While many brands are well conceived and reasonably successful, others are struggling.

In an earlier era, a brand would report its financial ratios by citing occupancy percentage, room rates, and revenue per available room. Those ratios still underlie the brands’ success or failure, but the key measure- ments today are the number of rooms that a brand represents and growth in that number. To give just one example, early in 2024 Marriott reported some of the following outcomes. In that report, its system included 9,000 properties and more than 1.6 million rooms. In 2023 Marriott reported adding a company record 91,000 rooms. As part of its 2023 growth, the company acquired the City Express brand, which added 150 properties and 17,500 rooms. Other publicly held hotel companies can make similar reports to shareholders.

This power shift from owners to brands has led to brand bloat, brand blurring, and brand burden, reflected in higher fees. As I discuss below, this bumper crop of brands has led to a “sea of sameness” that threatens the viability of existing brands, confusing guests as well as owners. I foresee a battle between brands and hotel owners in the years ahead, with brands demanding stricter adherence to brand standards and owners holding brands account- able for the return on brand investment—a coming shakeout in which some owners and brands will part ways and some brands will go extinct. In this article, I discuss how we got here, where we are, and where we are headed.

Credit: HNR Hotel News

Feb 9 2024

Tips for maintaining mental health and wellness in hospitality

In the dynamic and demanding world of hospitality, where late nights and long hours are the norm, maintaining good mental and physical health is essential for your long-term success and well-being.

For the millions of people employed worldwide across the industry, it often becomes a way of life and a community as much as it is a career in Hospitality. Working with a great team to deliver incredible experiences for customers under time pressure can be exhilarating and satisfying. However, it’s also essential to maintain a healthy balance between work and rest.

For Hospitality Management students and aspiring professionals entering this fast-paced industry, the importance of monitoring and prioritising your mental health cannot be overstated. To make sure you stay well under pressure, we’ve compiled some valuable tips essential to achieving a healthy work-life balance, avoiding or correcting a toxic workplace, and navigating the challenges of an industry that never sleeps.

But first, let’s take a quick look at a few key points illustrating why mental and physical health in hospitality is key to having a long and successful career.

Understanding the challenges of the Hospitality industry

Ask any restaurateur or hotelier; the hospitality industry is famous among professionals for its intense nature. From managing high-stress situations in the kitchen to dealing with customer expectations, professionals often find themselves under pressure. Plus, many hospitality businesses operate for long hours, which means employees are at risk of interrupted sleeping patterns. Sleep deprivation is linked to all kinds of physical and mental illnesses, from diabetes to depression. Acknowledging these challenges and risks is the first step toward fostering a culture of mental well-being in your workplace.

Recognising the signs of stress and burnout

Long hours and irregular schedules can take a toll on the mental and physical health of even the most experienced hospitality professionals. It’s crucial to recognise signs of stress and burnout early on, particularly among your staff if you happen to be a manager. Encourage self-awareness among your colleagues and employees, keep an eye out for the red flags of unhealthy workplace culture, and seek support when you notice symptoms in yourself.

When you have a balanced approach to work and life, your hospitality career can be incredibly rewarding, dynamic and sustainable. Follow these tips to ensure you have a long and healthy career ahead of you.

Strategies for managing stress in a Hospitality workplace

1. Build self-care into your schedule

In an industry where taking care of others is a priority, it’s easy to neglect personal well-being. Your health and wellbeing is important; remember to prioritise daily acts of self-care, including adequate sleep, proper nutrition, spending time with loved ones and regular exercise. Small, consistent efforts can significantly impact your overall mental health over time.

2. Effective time management

If you’re feeling overwhelmed and you keep missing important dates or losing track of tasks, you might benefit from the use of some organisational tools and management strategies. Develop effective time management skills to balance work and personal life, such as setting realistic goals, prioritising tasks, and learning to delegate when necessary. Efficient time management strategies can reduce stress, particularly if you’re not someone who’s naturally organised.

3. Building a supportive network

Don’t fall into the ‘I’ll be fine if I manage it myself’ trap. If you’re struggling, reach out to trusted colleagues, managers or peers. If you’re still studying hospitality, use the university network to build a support system. Professors, colleagues, and peers can offer valuable insights, share experiences, and provide emotional support. Connecting with like-minded individuals fosters a sense of community and solidarity, and people around you may be able to recommend strategies or services that can help.

Promoting a healthier work-life balance

4. Establishing work-life boundaries

Although this may be difficult in some roles, such as for a Head Chef, it’s really important to set clear boundaries between work and personal life in hospitality. Although your workmates often naturally become your friends in hospitality, make sure you set aside time for your friends and family outside your working community. Try to avoid bringing work-related stress home and create dedicated time for relaxation and leisure activities. This separation is essential for maintaining a healthy work-life balance.

5. Continuous learning and growth

Choose a role, workplace or career where you can grow and work towards your own future. It’s important for your mental health to feel a sense of professional and personal development, to have your own career goals and to be working towards these ambitions. Continuous learning not only enhances professional growth but also allows for better adaptation to changes, reducing the impact of stressors.

6. Seeking professional help when needed

It’s important to recognise when professional help is necessary. If stress and mental health challenges persist over time regardless of your circumstances, you could benefit from seeking professional support. Many universities offer counselling services that can provide assistance and guidance, and in Australia, everyone is eligible for some amount of subsidised therapy.

Avoiding or correcting toxic work environments

7. Recognise the ‘red flags’ of a toxic or exploitative working environment

Stress can also be a natural and healthy response to working in a toxic or exploitative environment. In this case, stress is a clear message from your body to leave an unsafe situation, and you should pay close attention to it. No hospitality professional should feel obligated to endure abusive behaviours from staff, employers or customers, such as shouting or threats, discrimination, withholding or docking of pay, harassment or abuse, personal insults, or the neglect of employee mental or physical health. The first step to understanding if your stress is the natural response of your body telling you to leave an unsafe environment is to recognise these red flags of a toxic workplace.

8: Leave, fight or fix a toxic work environment

If you’ve come to the realisation that your work-related stress is a natural response to a toxic environment or a workplace offering bad conditions, you have three options for correcting this situation, depending on your role within the business.

Consider leaving and finding work in a better environment. In fact, high turnover is a particular issue and a red flag in hospitality and employers should take note.
If you’re committed to a long-term relationship with an employer, but you feel you’re getting a raw deal in pay or conditions, you can approach your employer to ask for improvements directly, join a union or organise collectively with other professionals in your industry to fight for better conditions.
If you’re a hospitality manager, hotelier, restaurateur or business owner, it’s your job to take care of employees and to provide a happy and healthy work environment in your establishment. If you notice high rates of employee turnover or other signs of employee dissatisfaction, it may be time to improve your workplace conditions or pay. After all, there’s ample research demonstrating that happy employees are more productive and better for customers and for your business.

The world of hospitality may be fast-paced and demanding, but with the right strategies and a supportive workplace, it’s certainly possible to stay happy and healthy. By acknowledging the unique challenges, developing effective coping mechanisms and challenging bad workplace practices, hospitality professionals can work together to foster a culture of well-being in the industry that never sleeps.

Credit eHotelier

Jan 19 2024

Google’s removal of third party cookies will punish independent hotel marketers

By Max Starkov

Hospitality & Online Travel Tech Consultant

This month Google announced it was removing its support of third-party cookies for Chrome users. Why is Google doing this? Not purely out of user privacy concerns and government regulations. The search engine giant simply no longer needs third-party cookies since it already has the largest first-party database in the world and, together with Facebook, already controls more than 50% of advertising spend worldwide.

Google and Facebook have built humongous “walled gardens” with billions and billions of logged in users and their first-party data and they know exactly who their customers are.

What does the elimination of third-party cookies mean for hotel marketers?

The privacy moves by Google, Firefox and Apple, as well as government privacy regulations like EU’s GDPR and California’s CCPA underscore the importance of first-party data, which allows hotel marketers to establish direct relationships with their potential, past, present and future customers.

Will the elimination of third-party cookies affect the major hotel chains like Marriott with its Everest-sized first party data derived from its 192 million loyalty membership? Or Expedia with their 185 million reward members? Hardly.

So who will be the biggest losers from the elimination of third-party cookies? Independent hotels, midsize and smaller hotel brands and chains that do not have well-structured, well-centralized first-party data and the technology to manage and utilize it across the organization, including in marketing, customer service, operations, and revenue management.

First-party data in hospitality is the customer data (past guests, website users, opt-in email subscribers, lists of corporate travel managers, meeting planners, wedding and event planners, SMERF group leaders the property has been doing business with or at least in communications with, etc.) that comes from the PMS, CRS, WBE, CRM program, from the property’s website, opt-in email sign-ups, even customer lists sitting on laptops of sales and marketing personnel.

How do you manage your first-party data?

The answer is very simple: by investing in CRM technology and guest appreciation/reward program.

The CRM system allows the independent hotel to collect, store and manage all of the property’s first-party customer data – online and offline data – and have it cleansed, de-duped, enriched and appended automatically in real time thus creating “a single source of truth” of the customer. The CRM data feeds can be used in guest communications, guest services, CRM communications and marketing automation and drip marketing campaigns in the pre-, during- and post-stay, email marketing, personalization and digital marketing, loyalty marketing initiatives, etc. to improve dramatically the customer experience, efficiency and profitability.

Industry examples of CRM technology are Cendyn CRM, SHR Allora CRM, Revinate CRM, etc.

Credit: hospitalitynet

Jan 18 2024

How Google's Elimination of Third-Party Cookies Could Affect Hotel Marketers

Digital Marketing Expert Encourages Hoteliers To Engage Agency Partners, Trusted Sources.

The “Cookie Apocalypse” is upon us, and hotel marketing and distribution experts should prepare for what’s to come, according to one digital marketing expert.

In early January, Google announced it’s moving forward with removing third-party internet cookies for Chrome users. These plans have been in the works for years; it was originally set to take place in 2020 but was postponed due to complaints by the ad industry and privacy advocates.

Just 1% of Chrome users, about 30 million people, are being affected now through a test rollout. Google plans to eliminate cookies for all users by the end of this year.

A move like this could potentially cause a shake-up for hoteliers’ digital marketing strategies.

Speaking during an interview with the Hotel News Now Podcast Network, Tim Peter, founder and president of Tim Peter & Associates, which provides strategy and digital marketing consulting services, said this change is driven primarily by the European Union and privacy advocates in the U.S.

“This is really an attempt to reduce the amount of information that advertisers, not just Google but all advertisers, can gather about people,” he said.

Peter said the hotel industry might not see a sizable change right away. That’s not to say, however, that hoteliers shouldn’t take some proactive steps now.

“What’s really key is paying attention to the effectiveness of your advertising and of your marketing channels to see if you notice any difference in what’s being reported,” he said. “The particular challenge here is, in very, very early tests, it looks like the problems that people are seeing at the moment are not with how messages are targeted to users and more about the ability to attribute the effectiveness of those ads to the people they’re showing them to.”

Peter said the biggest mistake hotel marketers and distribution and revenue strategists could make right now is having a knee-jerk reaction.

“You want to work with your agency partners, you want to work with some trusted resources to say, ‘What’s actually happening here?'” he said.

Taking the time to understand whether a decline in performance is related to a browser tracking issue or due to a specific marketing campaign suddenly not performing well is important, he said.

In Peter’s experience, hotel marketing campaigns don’t tend to fall off a cliff all at once but rather as a gradual decline over time.

“If you see a big drop-off all at once, especially as we get later in the year when [Google] rolls this out to a wider set of people, that’s probably more a sign of attribution and you want to take a chance to look at that,” he said. “If your top-line numbers are moving in a big way, that’s a bigger problem and you probably want to react a little more quickly.”

Hoteliers often have to operate with the mindset of doing more with less, and in the future less data could be available on groups of customers due to this “Cookie Apocalypse,” he added.

For Hotel News Now’s full conversation with Tim Peter, listen to the podcast above and subscribe to the Hotel News Now podcast on Apple Podcasts, Spotify or wherever you find podcasts.

Credit: Hotel News Now

Jan 4 2024

Reciprocal visa-free policies fuel surge in business travel between Malaysia and China

Malaysians can enjoy 15 days of visa-free entry to China for business, holidays, or visiting relatives and friends, reciprocated by Malaysia offering a 30-day visa-free entry for Chinese citizens. This positive development aligns with the 50^th anniversary of diplomatic relations between the two nations.

Mint Leong, managing director of Sunflower Holidays, disclosed that her company has secured several significant incentive groups from China, each exceeding 1000 delegates, scheduled to visit Kuala Lumpur from March 2024 onwards.

Additionally, Sunflower Holidays has also received numerous incentive inquiries for group sizes averaging 500, to popular destinations including Kuala Lumpur, Genting, Penang, Langkawi, and Sabah.

As for outbound groups to China, Leong shared that China’s weak renminbi and flight accessibility has generated interest from the Malaysian corporate sector for incentive travel, where corporates will start travelling from March onwards.

She added: “We are now seeking Chinese partners to promote off-the-beaten-track places such as Suzhou and Wuxi for both business events and leisure segments.”

At the state level, Penang Tourism and Creative Economy committee chairman Wong Hon Wai shared that there were plans afoot to organise roadshows with Penang’s industry players in China this year, aiming to further promote Penang as a business events and leisure destination.

Jan 4 2024

Vietnam aims to attract between 17 and 18 million international visitors this year

Vietnam’s tourism industry aims to attract between 17 and 18 million international visitors this year, according to the Vietnam National Authority of Tourism. The body estimates total tourism receipts will reach circa VND840 trillion (US$34.7 billion) in 2024, its representatives said at a press conference, according to a recent statement.

Based on figures in a report presented at the briefing, Vietnam welcomed 12.6 million international visitors in 2023, up 244.2 percent year-on-year. The 2023 figure represented about 70 percent of the 2019 number, the period before the onset of the Covid-19 pandemic. Total tourism revenue in 2023 was estimated at VND678 trillion.

Vietnam has a casino industry, but most venues are only open to foreigners.

The country’s main tourism source market last year was South Korea, which accounted for 3.6 million arrivals, followed by China, which supplied 1.7 million visitors.

According to Vietnam’s tourism authority, by the end of 2023, the country had 3,921 international travel businesses, an increase of 1,027 compared to 2022. The country was host to about 38,000 tourist accommodation establishments with an aggregate of 780,000 rooms. Among the venues, 247 were five-star hotels, offering in total about 80,896 rooms.

Jan 4 2024

Jumeirah Group to Invest in Its Brand and Double Its Portfolio by 2030

Jumeirah Group, the luxury hospitality company and member of Dubai Holding, has set out ambitious plans to double the size of its portfolio by 2030, building on its strength in the UAE and further expanding its portfolio into key global markets. Plans include upweighting its presence in Europe, leveraging its strong base in London, Capri, Mallorca and Geneva to acquire luxury properties in other major cities as well as exploring opportunities in the US. The Group will also look to capitalise on the strong growth potential of the Asia Pacific market to extend its current reach beyond its properties in China, Bali and the Maldives.

The growth plans are part of Jumeirah’s Mission 2030 strategy which will also see an evolution of the brand with a renewed focus on delivering distinct guest experiences and new ancillary businesses to complement its ultra luxury positioning. Launching in 2024, this will include the integration of wellness into the entire guest journey based on the principles of lifelong learning, longevity and inclusivity, as well as a re-imagined family experience with a focus on education, self-discovery, environmental stewardship, cultural immersion and the arts.

Katerina Giannouka, Chief Executive Officer of Jumeirah Group, commented: “The luxury landscape continues to evolve in response to consumer demand, particularly from younger millennial and Gen Z audiences, and as a brand we need to continually innovate to stay relevant. Mission 2030 is a strategic plan that is designed to evolve the Jumeirah brand from a regional success story to a global leader in ultra luxury hospitality. It focuses on four key areas – international expansion, brand and product development, operational excellence and ancillary business – with an overall aim to sustainably double the size of our portfolio by 2030 and enhance our brand experience to meet the diverse and evolving needs of our guests.”

Sustainability is integral to every aspect of Mission 2030 under the Group’s three pillars: Planet, People and Governance. With a focus on decarbonisation of operations, eco-conscious building design, strong governance on supply chain, diversity and inclusion, Jumeirah is especially committed to preserving biodiversity given the location of its hotels in fragile ecosystems.

The announcement comes after a busy year for Jumeirah Group with the acquisition of Le Richemond in Geneva, the completion of residences at the highly anticipated Jumeirah Marsa Al Arab in Dubai, the opening of Jumeirah Makkah – the Group’s first property in Saudi Arabia – and renovations at Jumeirah Dar Al Masyaf, Jumeirah Mina A’Salam, and Malakiya Villas, in Dubai.

Next year, Jumeirah Group plans to continue its growth trajectory alongside the planned opening of both Jumeirah Marsa Al Arab in Dubai and Jumeirah The Red Sea in Saudi Arabia, as well as Le Richemond in Geneva which is currently closed for a complete renovation.

Dec 19 2023

8 pricing strategies for hotels during the holiday season

The holiday season marks a period of increased travel, festive cheer, and heightened demand in the hospitality industry. For hotels, this time offers a golden opportunity to implement effective pricing strategies that not only cater to the surge in guests but also optimize revenue generation.

1. Dynamic pricing model

Implementing a dynamic pricing model allows hotels to adjust rates based on demand fluctuations. During peak holiday periods, consider adopting a revenue management system that factors in various parameters such as historical booking data, competitor pricing, local events, and even weather forecasts. By dynamically adjusting rates, hotels can capitalize on high-demand periods, maximizing revenue without deterring potential guests.

2. Tiered pricing and packages

Offering tiered pricing or bundled packages tailored for different guest segments is a savvy approach. Create attractive holiday-themed packages that include accommodation, festive meals, entertainment options, or exclusive amenities. This not only adds value for guests but also allows hotels to upsell services and capture diverse customer preferences.

3. Early booking incentives

Encourage early bookings by offering incentives such as early-bird discounts, complimentary upgrades, or exclusive perks for guests who confirm their reservations in advance. This strategy not only secures bookings but also helps in revenue forecasting and inventory management.

4. Limited-time offers and flash sales

Leverage the sense of urgency associated with the holiday season by introducing limited-time offers and flash sales. Use targeted marketing campaigns across digital platforms and social media channels to promote these time-sensitive deals, driving immediate bookings while creating a buzz around your hotel.

5. Flexible cancellation policies

While maintaining revenue is crucial, offering flexible cancellation policies during the holiday season can be a winning strategy. Providing guests with reassurance and flexibility in changing their plans due to unforeseen circumstances can encourage more bookings, as travelers often seek peace of mind when making holiday arrangements.

6. Value-added services

Enhance the perceived value of your offerings by including complimentary services or experiences. Consider adding complimentary breakfast, spa credits, local tour packages, or family-friendly activities, enticing guests to choose your hotel over competitors.

7. Targeted marketing and segmentation

Segment your audience based on demographics, interests, or past booking behaviors. Craft targeted marketing campaigns that resonate with specific audience segments. Tailoring promotions and content to cater to different guest preferences can significantly increase engagement and conversions.

8. Monitor and adapt

Continuous monitoring and analysis of pricing strategies and their effectiveness are vital. Regularly assess the impact of implemented strategies, gather guest feedback, and adapt your pricing tactics accordingly. Flexibility and responsiveness to market changes are key to optimizing revenue during the holiday season.

Summary

Implementing these pricing strategies effectively will position your hotel as a sought-after destination during this festive period while ensuring a profitable season ahead.

Unlock the potential of the holiday season and elevate your hotel’s revenue by deploying these smart pricing strategies tailored to meet the needs and expectations of your guests.

Not to forget you may offer Vouchers as well to attract potential guests during this peak festive season.

Source eHotelier

Dec 15 2023

Inspire to be cash flow positive by end of 2024: COO

Mohegan Inspire Entertainment Resort (pictured) in South Korea, which had a soft opening on November 30 for non-gaming amenities, is likely to be “cash flow positive” by the end of 2024, says Jody Madigan, chief operating officer of its promoter, Mohegan Tribal Gaming Authority.

He was speaking on Thursday during the earnings call for the United States-based group’s fourth-quarter fiscal results to September 30.

The first phase of Mohegan Inspire has been described as a US$1.6-billion project.

Mr Madigan stated he had been present for the launch, and that post-opening, there had been “good foot traffic on the weekends” at the resort, near Incheon International Airport.

The COO stated that he was “happy to report that our team performed flawlessly” for two large-scale events held at Mohegan Inspire shortly after opening.

Reviews – including on social media – had all been “raving about the quality of property, and the service of our team,” said Mr Madigan.

Raymond Pineault, chief executive of Mohegan Gaming, said in prepared remarks that the company – which has the bulk of its business in the U.S. – achieved adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$399.9 million for fiscal-year 2023.

He said this was “the second highest in our 27-year history, compared with adjusted EBITDA for fiscal 2022 of US$403.9 million, which was the highest to date.”

The CEO added: “We continue to see growth in our digital gaming segment and with the recent soft opening of Mohegan Inspire on November 30th, our diversification efforts will further enable Mohegan [Gaming] to achieve strong results.”

The group’s chief financial officer (CFO), Carol Anderson, said on Thursday’s call that the company was not expecting to need further funding to “complete construction and development of the project” in South Korea.

“As previously announced, we agreed to make an additional investment of up to KRW155 billion, or approximately US$119 million in the aggregate, to fund costs to complete Mohegan Inspire,” she reiterated.

The CFO said that as of September 30, Mohegan Gaming’s total debt – excluding unamortised debt issuance costs and discounts – was US$3.27 billion, up US$176.2 million from the June quarter.

Mohegan Inspire formally applied “last week” for a permit to run gaming for a foreigner-only casino to be opened at the venue, and faces a “two-month” wait for approval, which might come between February 2 and 8, 2024, just before the February 9 to 12 lunar new year holidays in that country.

That is according to an official at the Ministry of Culture, Sports and Tourism – a public department with a role in overseeing the casino sector – in response to a GGRAsia enquiry.

Source： GGR Asia

Dec 13 2023

Should restaurants offer dynamic pricing?

A recent discussion on LinkedIn promoted this post. As a regular restaurant eater I have always been surprised that dining establishments are offering fixed pricing – rain or shine – that is the same every day of the week, every season, even on public holidays.

Why the same appetizer, salad or main dish cost the same on a Tuesday evening (super low demand at many restaurants) and Saturday evening (super high demand). At 6pm and 8pm? Or meal pricing for the last available table at the restaurant? The same questions for pricing for drinks and cocktails at the bar.

Travel consumers are used to paying different prices if travel booked at different times or paying premium for more coveted inventory. Ex. Airline seats booked in advance vs last minute or hotel rooms with sea view vs parking lot. So why not pay premium for the most coveted restaurant tables or most desired times at the restaurant?

Analytics can easily identify high vs low demand. F&B revenue management should start using dynamic rates, it’s no brainer!

At the minimum, F&B should introduce variable pricing using the simplest formula for differentiated pricing: Ex. Standard demand=100%; high demand=120%; low demand=90% of the standard price, etc. A simple, but effective variable pricing example from Australia was offered by Larry Mogelonsky, P. Eng., where restaurants offer prices that are 10% higher over the weekend and 15% higher on public holidays.

Happy Hour is variable pricing that typically involves selected items from the menu, not the full menu. Dynamic pricing is real-time pricing based on real-time demand plus customer data, which should come from the restaurant CRM and partially residing with the table reservation vendors like Open Table, etc. Ex. Why offer the same pricing to a regular patron and an out-of-towner who would never visit the restaurant again?

Variable pricing is a good start that any restaurant should have before implementing dynamic rates and before restaurant-specific RMS enter the sector. One such startup RMS (Restaurant Management System) vendor is DynamEat, offering dynamic pricing and Smart Menus technology. DynamEat is already live in some Radisson hotels and will soon be available for all the properties. All the concerns of the F&B management that clients won’t accept dynamic pricing were proven wrong.

Restaurant RMS improves profits and inventory management, as well as staff compensation and service delivery.

Just imagine what could be achieved by using an AI-powered F&B RMS and dynamic pricing based on real-time demand and real-time customer data derived from the restaurant CRM!

Source hospitalitynet

Should restaurants offer dynamic pricing? | By Max Starkov (hospitalitynet.org)

Dec 11 2023

Customer Service Excellence in the Luxury Segment: How to Stand out

In this article, we shine a light on:

Consumer trends that are transforming the luxury segment
The ten commandments of luxury brand service strategy
Practical ways to build customer service excellence
Relevant KPIs to measure customer experience in the luxury segment

The luxury sector is growing steadily and creating great opportunities for brands to enter the market or grow their audience. But it’s no longer all about being flashy and pricey, today’s luxury shopper is more influenced by personalization, innovation, conscious consumerism, and an emotional experience. So while today’s luxury industry is broader and more accessible than ever before, it’s also more challenging. To meet the high expectations of today’s discerning luxury buyers and stand out from the crowd, brands must achieve customer service excellence.

Business is booming again for luxury brands

In the last few decades, consumption in the luxury segment has increased considerably and steadily:

In 1995, this industry had 90 million customers;
In 2013, the figure rose to 330 million;
Today, approximately 400 million people make purchases of this kind.
60% of these people say they are willing to increase their spending in this
segment if they find options they like.

Post-pandemic, the global luxury industry recorded sales of €1.15 trillion in 2021 and it continued to grow by around 20% in 2022, with the same growth expected this year. Luxury hospitality, luxury cars, and personal luxury goods represent over 80% of the total market.

Plus, the industry is evolving in response to changing consumer demands:

Millennials and GenZ shoppers created all of the growth in the luxury sector last year.
Trends like quiet luxury and save-to-splurge spending habits are growing.
Socially responsible, sustainable luxury purchases are more desirable than ever.
Technology has opened the doors for greater personalization and made luxury shopping available to nearly everyone on the planet.

It’s a great environment for business. But it’s not for every brand. As the consumption ticket has grown, so has the competitiveness. There is a large audience out there that spends and invests in the luxury segment, but brands can only get a slice of the pie if they achieve customer service excellence.

The value of luxury customer service

To understand the impact of customer service on business success, we’ll go to the experts who created EHL Advisory Services’ Definitive Guide to Service Excellence, which states:

“According to a study by McKinsey, 71% of buying experiences are based on how customers feel they are being treated. This means that a large percentage of business success stems from how a customer is made to feel, not just how happy they are with their purchase or service.”

Indeed, if around 70% of all shopping experiences are based on how the customer feels treated in all industry sectors. Imagine how much more important it is for an audience that is making a significant expenditure and seeking status, exclusivity, and unique experiences.

In fact, 89% of luxury customers consider the quality of service as important as the product itself.

Given this context, we’ll deconstruct the luxury segment to analyze its key principles and the practical actions you can take as a leader to achieve Customer Service Excellence.

The decalogue of the luxury segment: 10 pillars of service strategy

Before getting into practical matters, you should assess whether you are considering all the pillars of Excellence in Customer Service in the luxury segment. We can summarize the essence and challenges of the luxury industry in 10 major principles that you can use as a conceptual foundation for your future actions.

1. The luxury consumer is not just anyone

Luxury consumers represent approximately 5% of the world’s population, so using general demographic data to try to understand them is a serious mistake. Conducting focus groups, cross-referencing data among your leads, and other more focused measurement methods are key.

2. Reputation is your primary asset

A Harvard Business Review report found that a decrease of one star in the average rating on review sites like Yelp can result in a 5-9% reduction in sales for luxury-associated businesses, such as Michelin-starred restaurants. And bad reviews can damage the reputation of a luxury brand for a long time. A study by ReviewTrackers found that 94% of consumers avoid a brand with bad reviews. This is a general statistic; imagine how much worse it is within a luxury niche!

3. Innovation and exclusivity go hand in hand

It’s not about having the most expensive furnishings to receive your clients or including materials like gold or diamonds in certain products. That’s only ostentation and barely a small part of exclusivity. As Suzanne Godfrey, an independent brand and marketing consultant and lecturer at EHL, once said, “Luxury brands are leaders, not followers”. Today, luxury users perceive a brand as exclusive if it offers different options, is at the forefront of the market, and has innovation as its mindset.

4. Quality is in the small details

Luxury segment consumers are selective and seek exceptional experiences and exclusive products. These customers value quality over quantity, seek exclusivity, and are willing to pay more for it. Additional service and personalized reception, with taste and subtlety, can make a big difference.

5. A consumer who demands the best is not indifferent

Authenticity and sustainability are becoming increasingly important, with 71% of luxury consumers seeking products that reflect these personal values. This statistic underscores the evolution of the luxury consumer towards social and environmental consciousness.

6. It’s Not all about status: Emotions matter too

In the luxury segment, emotions can weigh more than material status. For example, Ferrari is not just a car manufacturer; it’s an emotional experience. People don’t buy a Ferrari solely for its status but for the passion, prestige, and excitement the brand evokes. Sporting heritage and constant innovation are values that people see in this brand, beyond the price of its cars. “The most beautiful car is the one that is yet to be made”, Enzo Ferrari used to say.

To better understand the role of the brain and emotions in the consumer decision-making process, check out this EHL blog article about the neuroscience behind customer service.

7. Controlled exclusivity versus growth

It’s important to maintain a balance between exclusivity and accessibility. Exclusivity is essential in luxury, but you should also be approachSable and welcoming to your clients. With that in mind, luxury brands can offer limited-edition products and unique experiences to maintain a sense of exclusivity, while also offering an enjoyable, intuitive online shopping experience to reach a larger audience. Consider some of these examples of best practices in the luxury hospitality industry.

8. Inspiration is a duty

To achieve or maintain the status of a luxury brand, you must aim to inspire your customers with beauty, creativity, and innovation in everything you do. In the general industry, referencing other brands is very useful to standardize elements like price, quality levels, and service scope.In luxury, it’s not. To stand out in the luxury crowd your brand has to be different, be what your customer demands, and create a brand personality that resonates with your specific niche, even if it’s a tiny niche.

9. The value of time is more important than the cost

The value of time in the lives of high-class individuals is an essential consideration. These individuals often have tight and busy schedules, with professional and social commitments demanding their attention. As a result, time becomes a scarce and precious resource.

To avoid wasting your valuable customers’ time, consider the principles of service design and the way it impacts the whole customer experience of shopping, purchasing, and any follow-up required. Make it easy and quick to seek assistance and get answers to important questions, and make the payment process as seamless as possible.

10. In luxury, marketing and sales must be 360°

From personalized in-store service to exclusive events and engaging online content, luxury brands must create an interconnected world that immerses customers in their narrative and lifestyle.

Here’s some advice from the luxury watch industry: “Forty percent of people buy only one watch in their lifetime; it is, therefore, vital to be in the right place at the right time when it comes to marketing activities. Podcasts, Youtube, and Instagram are the preferred digital channels to drive interaction and visibility in our main markets.” Brian Duffy, CEO, Watches of Switzerland.

5 Practical actions to build customer service excellence in the luxury segment

Considering the conceptual pillars of Excellence in Customer Service in the Luxury Segment, consider strategic actions such as:

1. Segment your customers and determine their luxury profile

Don’t follow standard market measures. Dive into the specific reality of the luxury world and, once there, perform a much more precise segmentation. For example, you can collect and analyze data to understand what kind of luxury customer you have:

Know-it-all: Considers themselves an expert in a sector and seeks the best and most exclusive within it.
Investor: Prioritizes luxury but with financial awareness. Wants to feel they added value to his wealth.
Hedonist: In a good economic situation and wants to indulge themselves. Not looking for ROI or wealth contribution but a sensation of the highest level.
Conservative: Consumes in the luxury segment but thinks it through carefully. Has an analytical and slow buying process.
Disillusioned: Has spent a huge amount of money on luxury brands and feels they’ve been disappointed most of the time. Maybe the issue isn’t quality but wanting something much more personalized.

2. Conduct tests, no matter the cost

Failures resonate in the minds of luxury consumers for a long time. A strategy misaligned with the customer’s profile can significantly damage reputation.

That’s why you should test and retest before officially launching a product or communication line. Conduct A/B tests, simulate products with digital animation, and explore other alternatives to be of great help.

3. Be a luxury consumer yourself!

Are you already living a luxurious lifestyle? You need to understand your customers’ perspectives, so immerse yourself sensually in what they experience every day.

It can be a very enjoyable form of training! Stay at five-star hotels, dine at the best restaurants, drive an exclusive car… these are small sensory stimuli to understand your customers’ interaction with the luxury universe.

4. Hyper-focused staff training

Like you, your employees need to understand how the customer in this segment acts, thinks, lives, and breathes. One way to help your staff practice interactions with VIP customers is to conduct role-playing exercises and simulations. Additionally, you can reach out to experts in customer experience to design and deliver specialized training measures for the luxury segment.

Also, it’s important to define a true purpose within luxury that your employees can connect with. For example, show how luxury creates unforgettable family moments and unique connections.

5. Align your KPIs with luxury

In the luxury segment, your Key Performance Indicators (KPIs) are not the same as everyone else’s. Think about Customer Service Excellence metrics that are truly relevant within the luxury segment:

Index of Satisfaction in Exclusive Events Experience: Create a framework for evaluating your customers’ perception and experience.
Customer Word-of-Mouth Value: Evaluate the impact of your customers’ recommendations on new customers and additional sales.
Purchase Exclusivity Index: Measure how many exclusive or limited-edition products a customer buys in relation to their total purchases.
Expectations Met Index: Ask your customers about their expectations before making a purchase and then evaluate if those were met or exceeded.

In broad terms, the luxury segment departs from generalities, standardization, and scalability (producing as much as possible with the minimum possible resources) of the general market.

And this should be taken into consideration in every action you undertake as a leader, from a customer profile study to the selection of KPIs for your strategy.

This article originally appeared on EHL Insights.

Dec 4 2023

International Tourism to end 2023 close to 90% of pre-pandemic levels

International tourism is on track to recover almost 90% of pre-pandemic levels by the end of this year. According to the latest data from the World Tourism Organization (UNWTO), an estimated 975 million tourists travelled internationally between January and September 2023, an increase of 38% on the same months of 2022.

The newest UNWTO World Tourism Barometer also shows:

World destinations welcomed 22% more international tourists in the third quarter of 2023 compared to the same period last year, reflecting a strong Northern Hemisphere summer season.
International tourist arrivals hit 91% of pre-pandemic levels in the third quarter, reaching 92% in July, the best month so far since the start of pandemic.
Overall, tourism recovered 87% of pre-pandemic levels in January-September 2023. That puts the sector on course to recover almost 90% by the end of the year.
International tourism receipts could reach USD 1.4 trillion in 2023, about 93% of the USD 1.5 trillion earned by destinations in 2019.

The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts

UNWTO Secretary-General Zurab Pololikashvili said: “The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts. This is critical for destinations, businesses, and communities where the sector is a major lifeline. ”

The Middle East, Europe and Africa lead recovery

The Middle East continues to lead the recovery by regions in relative terms, with arrivals 20% above pre-pandemic levels in the nine months through September 2023. The Middle East remains the only world region to surpass 2019 levels this period. Visa facilitation measures, the development of new destinations, investments in new tourism-related projects and the hosting of large events, help underpin this remarkable performance.
Europe, the world’s largest destination region, welcomed 550 million international tourists over the period, 56% of the global total. That represents 94% of pre-pandemic levels. The rebound was supported by robust intra-regional demand as well as strong demand from the United States.
Africa recovered 92% of pre-pandemic visitors this nine-month period, and arrivals in the Americas reached 88% of 2019 numbers this period, as the region benefitted from strong US demand, in particular to Caribbean destinations.
Asia and the Pacific reached 62% of pre-pandemic levels this period due to slower reopening to international travel. However, performance among subregions is mixed, with South Asia recovering 95% of pre-pandemic levels but North-East Asia only about 50%.

The World Tourism Barometer includes more focused data on regions, as well as sub-regions and individual destinations.

Tourism spending strong

Strong demand for outbound travel was reported by several large source markets this period, with many exceeding 2019 levels. Germany and the United States spent 13% and 11% more respectively on outbound travel than in the same nine months of 2019, while Italy spent 16% more through August.

The sustained recovery is also reflected in the performance of industry indicators. Drawing on data from IATA (the International Air Transport Association) and STR, the UNWTO Tourism Recovery Tracker details a strong recovery in air passenger numbers and tourist accommodation occupancy levels.

Against this backdrop, international tourism is well on track to fully recover pre-pandemic levels in 2024 despite economic challenges such as high inflation and weaker global output, as well as important geopolitical tensions and conflicts.

Nov 28 2023

Dealing with online harassment while traveling

51% of female social media users have experienced online harassment whilst travelling. Out of these 51%, 70% have received sexual images, and 55% getting sexual comments.

This was discovered in a recent survey carried out by WayAway on 1,148 travellers from the USA.

Daisy Dyke, a digital nomad, blogger behind Daisy’s Travel Diaries, and a contributor to Business Insider, shares her thoughts on the topic.

I’ve been travelling full time for 13+ years to 60+ countries so have experienced sexual harassment across the globe countless times. From the odd cat call, a creepy stare, a hand up my skirt from a random passerby, a leg or bum touch on public transport, being grabbed in a club, being locked in a taxi, having men expose themselves to me, generally made me feel very uncomfortable.

But, I tend to brush them off as they are few and far between, plus I don’t know what else to do? Who would I tell, how should I act without encouraging or escalating the behaviour when I’m alone in a country where, often, I don’t even understand what the man is saying to me?

Online harassment though is a whole new ball game I’ve had to deal with a lot since growing on social media this year. My travel account has grown from 6K in January to nearly 70K now. This has lead to a lot of incredible opportunities but also a whole new level of hate, harassment & abuse which, maybe naively, I was not prepared for:

“Bruh, she’s had a continental train ran through her,”

“Bet is whistles under a gust of wind,”

“I imagine a grand canyon now between your legs,”

“I can smell your 🐟🌮from here,”

“She looks like a 50yr old meth head,”

“Look at those wrinkles, she’s going to die alone,”

Also, the odd cheeky slide into my DM’s: “I’m going to smash you when you get here.”

Although I play it off a lot of the time, as I know they are just stupid men (& sometimes women) writing them, it does still instil some fear of, “what if these men find me in real life.” Especially, when I am travelling the world solo, vulnerable and alone. This scares me.

What’s upsetting also is how entitled and justified these people feel in sharing their thoughts. They often say “If you’re online then you’re asking for it,” — to me, it’s like them saying, you exist so you deserve it.

Well I’m here to say you DO NOT deserve it. Any of it. You deserve to feel empowered, confident & to travel in peace.

SO, what to do about it? The horrid truth is — there is not much we can do. Trolls are like cockroaches, you kill 1 and 100 more come out to comment.

There have also been times where I have reported comments which are insulting, sexist and vile. But Instagram & Tiktok rarely take any action and I’ve had countless reports coming back saying these comments “Do not violate community guidelines.” But they do, they violate me, as a woman. As a human.

So for now, take all the control you can: blocking, reporting, deleting & sometimes (in my case) exposing the creeps.

There are also steps to take to aid safety whilst travelling solo. Such as:

NEVER EVER post my current location on my stories or posts. I will always film the location I am in, then, when I am away from there I will add it to my story. I also make it very clear to hotels and hostels I collaborate with, that I will NOT be sharing the location or name of the accommodation until I have left. I have never had anyone dispute this.

NEVER put exact arrival times, flight numbers, bus numbers etc. You don’t want an unwelcome creep waiting to meet you.

Connect with other female solo traveller communities online to support each other.

I will forever encourage you to live the life you choose. We cannot let fear stop us. So take back all the power you can, be careful & remember, solo travelling is the most empowering, incredible, amazing thing you’ll do and for every vile person, you will meet 100 good ones.

There is a long way to come for social media platforms in terms of ensuring a safe space for people. Also, as social media grows, so will the hate, the abuse & peoples entitled feeling of “it’s a free world to comment how I like, love.”

So, this post is not to instil fear. It’s to raise awareness and say if you are experiencing harassment, you’re not alone. Let’s unite, share & support each other on our quest to strut around the globe with confidence and the knowledge that through all the online hate, there is also an online army of like minded people who support each other & cheer each other on every step of the way.

Credit WayAway Blog

Nov 22 2023

The Hotel General Manager: Time for a New Job Description? By Dr Demian Hodari

The hotel General Manager (GM) is the person ultimately responsible for a hotel’s performance. A GM’s ability to make decisions and take action will thus have an important impact on his or her hotel’s operational and strategic results. GMs, however, may not always have the autonomy to make these critical decisions as the hotel’s owner and/or hotel management company (HMC) may in fact limit this through their own decision-making interventions.

Through a survey of 116 hotel general managers working in independent and chain-managed upscale and luxury European hotels, we examined how much autonomy GMs actually have to make operational, financial, strategic, marketing and human resource decisions. We also examined the impact that hotel size and GM education and experience have on the GM’s independence.

Our findings suggest that while GMs report relatively high levels of autonomy in their position, these levels do vary substantially across individuals, and particularly across functional responsibilities, management structure and hotel size, and the degree of human capital.

It’s all about the function

We found that there were significant differences in the average level of autonomy across the different areas. The most autonomy was reported in marketing, followed by strategy, human resources, hotel operations and finally finance. Our findings confirmed previous research that finance is the area of least autonomy. However, we were surprised to find that hotel operations, although generally considered a core competency for most GMs, was ranked second-to-last on the autonomy scale.

In other words, if GMs are generally given vast control over operational issues, why did they rank this so low in terms of their autonomy? We were further surprised to find that the GMs we surveyed also reported “strategy” as the second highest area of autonomy. This finding intrigued us because strategy’s emergence as a GM competency is, according to most previous research, very recent and most GMs have reported little academic training in the area.

Independent VS chain hotels

We also found that GMs of independent hotels did in fact have more autonomy than their counterparts in HMC hotels. Leeway was given to GMs regarding operational, marketing and HR decisions; yet, they had little say when it came to financial or strategic issues. We suspect that this is because HMCs are known for their centralized policies and focus on economies of scale, both of which appear to reduce GM independence. Owners who contract an HMC for its management know-how expect the company to make and implement better decisions, and to guide the hotel GM, all of which is meant to result in improved operating performance.

Size matters

We discovered that the effect of hotel size on autonomy is substantially different for independent and HMC-operated hotels. In independent hotels, GMs of smaller properties had more autonomy than GMs of larger ones. We believe that this is because such owners may wish to remain more involved in the management of their larger (and thus more expensive) hotels, which is sometimes referred to as “ego-ownership of trophy assets.”

However, hotel size had no impact on the level of GM autonomy in HMC-operated hotels. In follow-up interviews, many of our respondents suggested that this was because HMCs implement the same type of management model regardless of the type, scale or location of the hotel.

Education or experience? Both!

We found that within independent hotels, GMs with more managerial experience did in fact have more autonomy across all five functional areas, but education did not have a similar effect. In HMC hotels, meanwhile, neither experience nor education had an effect on GM decision-making authority. We then looked at this issue by combining education and experience and found that while there was no change in independent hotels, there was a significant impact in HMC hotels. This means that GMs running HMC-operated hotels who are better educated and have more experience have substantially more autonomy than other GMs.

So what?

The study has some important implications for GMs, owners, HMCs and hotel/business school programs in continued education.

Given that lower autonomy is often associated with greater job burnout, choices about education and training could also have important career implications for managers. Individuals seeking to attain the oft-coveted role of GM may benefit by focusing on, at least in the earlier stages of their career, on the traditional areas of hotel operations, marketing, and HR. Indeed, it appears that owners and HMCs expect their GMs to focus on and excel in these areas. This does not mean that finance and strategy should be neglected, but rather that skills in these areas may not be the deciding factor for being promoted to GM.

Those seeking to become a GM may also want to consider whether they are more likely to work for independent or HMC-operated hotels. Those interested in HMC-operated hotels are encouraged to earn advanced degrees along with extensive managerial experience as this combination appears to be valued by HMCs. Alternatively, GMs with extensive experience but limited education may be better served by following the independent hotel path as hotel owners do not seem to value education to the same extent.

Similarly, managers should consider the level of autonomy that they actually want in their job. Those who are content to have limited decision-making freedom may be better suited to working in large HMC-run hotels, while individuals seeking a high degree of autonomy would appear to find smaller and/or independent hotels as the best fit.

HMCs and owners would also benefit from considering the level of involvement they desire to have at the property level, and the ensuing amount of autonomy they are willing to grant their GM. HMCs and owners may find a better fit with GMs whose aspirations with regard to autonomy align with their own views. One clear implication is for realistic recruitment whereby owners and HMCs openly discuss expected autonomy levels with prospective GMs.

Dr Demian Hodari – Associate Professor of strategic management at EHL

This article originally appeared on EHL Insights.

Nov 21 2023

What Is a Luxury Hotel by Today’s Standards?

Historically, the idea of “luxury” in the travel and hospitality space has typically been associated with all the pleasures of staying at five-star hotels such as the Ritz Carlton’s or Four Seasons’ of the world, who are widely popularized and known for offering the most posh travel experiences.

The value was originally found in the creation of ease and feeling of complete and utter relaxation, highlighted by pampering and ultra upscale amenities.

As some may still find this ideal to hold true, over the past few years, we in the hospitality space, have seen a significant shift in the industry that has transformed and redefined what “luxury” now means in today’s standards for the current travel consumer.

What is Luxury?

The dictionary defines the word “luxury” as a state of great comfort and extravagant living. What that means for the travel and hospitality industry, is the idea of offering extravagant and sometimes over-the-top accommodations, married with creating the ultimate level of relaxation and comfort for guests while they are traveling. Traditionally, there has been a very materialistic approach to what defines luxury for the discerning traveler, with the expectation that these experiences should mirror the living situation found in the homes of the uber rich. Upscale guestrooms, top-tier amenities, exceptional fine dining, high-end spas and treatment options, along with other material offerings have become standard across the luxury hospitality space.

Luxury services for hospitality have traditionally been associated with notable five-star brands that offer an exceptionally high level of quality, comfort, and exclusivity. The idea that the average consumer could not afford this level of service created even more demand and excitement, as guests are willing to pay a high price tag for the limited nature of the product. This idea of luxury was designed to appeal to people who are willing to pay extra for these exclusive experiences that are truly special by nature – as not everyone can afford to appreciate it.

Although the luxury traveler still enjoys the comforts and exclusivity associated with staying in a high-end property, the expectations and wants from their stay have begun to shift away from high-end accommodations with well-known brands and instead to prioritizing unique and meaningful experiences.

The Shift in Market – Luxury Redefined for the Modern Traveler

The most discerning travelers are less focused on luxury through materialistic offerings. There has been a significant shift in the market for a new emerging thought process and perception that has allowed additional brands who were not specifically categorized in this luxury space before to now enter.

Luxury travel is no longer solely defined by extraordinary physical spaces and exclusive material offerings. Today’s luxury travelers yearn for unique experiences that are immersive, allowing them to gain a deeper understanding and sense-of-place in a more hands-on and interactive way. Sightline Hospitality is a great example of a company that is paving the way with multiple ownership groups in this newly defined view of luxury. Although Sightline Hospitality isn’t known to be a “luxury operator,” in traditional terms, the third-party management company committed to truly living the lifestyle of this newfound definition for “new luxury” travel. Consumers are not looking for only the high-end leisure offerings, but are also interested in unique, out of the ordinary experiences – and are willing to pay a higher price for it.

This altered landscape has brought about a new definition of luxury travel, one that goes past upscale guestrooms and fine dining and focuses on the intangible elements of unforgettable moments. Luxury is getting transformed and redefined from physical spaces and material offerings into experiential travel and Sightline Hospitality’s vast portfolio of unique, independent hotels are now fitting the bill on what is considered luxury. Focused on highlighting the culture of each property and using each property to create a sense of place, the San Francisco-based company’s executive team and creative trailblazers are inspired to push the limits of possibility to deliver individualized solutions and big-ideas that embody the individuality of each property that also serves the needs and earnest curiosity of guests.

Dr Demian Hodari is an Associate Professor of strategic management at EHL.

This article originally appeared on EHL Insights

Materialism, No More. It Is All About the Experiences

Connectivity has become key with discerning travelers. Whether it is a desire for personal growth, genuine connections, or experiential learning, luxury travelers are increasingly in search of unique opportunities to connect with destinations-and the people and culture amongst them-on a deeper, more authentic level. This has been seen through the rise of the “experience economy.” The experiential value of one’s trip has been shown to be held to a higher regard than cost attributed to it – and the luxury traveler is willing to spend more for those experiences that they deem truly one-of-a-kind and special.

One experience that has reigned supreme for discerning travelers has been activities that are cultural-focused. Cultural immersions have become a cornerstone of what luxury travel is today. Guests aren’t just looking for a comfortable place to stay while visiting an area, instead, travelers are looking for hospitality stays that offer more. Hotels are expected to act as an integral part of the communities and reflect the local culture in which they reside. From hosting wine tastings in Napa Valley to catching one of San Francisco’s Cable Cars or offering surfing lessons in Waikiki’s crystal-clear waters, Sightline Hospitality’s diverse portfolio focuses on the essential experiences that welcome guests not solely to their room, but into the fabric of the local community and culture.

The focus on highlighting and celebrating each property’s individuality brings together people, places, and possibilities – which in return, will ultimately create soulful stays that make a lasting impression on visitors long after their departure. This cultural immersion can include a number of aspects, but one that reigns true time after time is incredible culinary experiences. Food is the heart and soul of a destination and allows travelers to really learn about traditions through tasting and learning about authentic dishes. Having culinary offerings at a property can bring guests a fresh perspective and deep connection and understanding of the place they are visiting.

But, culinary is not the only way to bring this feeling; offering opportunities to further connect with the local community through volunteer work or educational experiences like Sightline Hospitality’s International House Hotel’s striking second floor MAGDALENA Gallery and the nation’s largest BANKSY mural – sharing the rich history of New Orleans – can also bring this sense of cultural appreciation.

Another experience that stands out for luxury travelers that hotels can incorporate in their programming are personalized experiences. As every traveler is different, one size does not fit all, therefore tailor-made itineraries are imperative with a luxury expert to create customized experiences that cater to every guest’s unique interests. This will ultimately make that once-in-a-lifetime trip that travelers are yearning for with this new definition of what luxury properties are. Hospitality is all about building these deep connections with guests. This customizable offer will create big moments that truly resonate with the luxury traveler and, as a result, will make them want to come back to stay year after year.

Luxury Hotels in Today’s Standards

Luxury is no longer defined solely as materialistic offerings, but rather unique and authentic experiences. The expectations and desires of discerning travelers will continue to redefine and evolve what luxury travel is, however, the importance of unique and extraordinary experiences will continue to be a strong focal point for hotels to offer travelers for years to come.

Source: hospitalitynet

Nov 20 2023

7 last-minute ideas to sell vouchers this holiday season

Let’s dive into the sleigh of swift strategies and tips on how you can offer vouchers to drive ancillary revenue.

1. Personalized holiday cheer

Send to your past customers with a festive email, blending warm holiday wishes with exclusive vouchers. Make it personal, make it special – because every gift should be as unique as the season itself.

Sprinkle your message with holiday tinsel, luring customers everyday from everyday gifts to something special – a holiday!

2. Seasonal packages that pop

Wrap up your vouchers with tempting seasonal deals and popular services. Picture this: a summer spa escape or an exclusive local experience. Try to whip up custom packages that ignite curiosity and demand.

Create different packages to attract guests or sell via vouchers.

3. Treat yourself, it’s the Season

While everyone’s busy gifting others, remind your guests to indulge themselves too! Craft offers that invite them to treat themselves – because ’tis the season of self-love.

4. Cash flow wonderland

Vouchers aren’t just gifts; they’re instant cash flow magic. Guests pay now, redeem later, and you enjoy an immediate boost to your business cash flow.

5. Design and storytelling extravaganza

Wrap your vouchers in holiday magic! Infuse creative designs that capture the spirit of the season. Whether it’s a Christmas tree or a touch of Himalayan charm, make your vouchers irresistible at first glance.

6. Flash deals, beyond the norm

Deck the website with more than just the usual holiday sales. Introduce flash voucher sales for the spontaneous souls, available now but redeemable during your off-peak season.

7. Rescuing abandoned carts

Turn missed opportunities into golden moments. Target those almost-booked guests via social media and email. Tempt them back with exclusive last-minute deals and offers they can’t resist.

In a bow

Gift vouchers are the perfect ribbon to tie around your last-minute holiday campaign. Sure, you might’ve missed a few early shoppers, but it’s never too late to make a grand entrance. The gift of travel isn’t just for the holidays – it’s a year-round enchantment waiting to unfold.

So, unwrap the possibilities, sprinkle that holiday magic, and let your vouchers steal the spotlight!

This article was first published on 7 last-minute ideas to sell vouchers this holiday season

Nov 20 2023

Hotel Brand Executives Bullish on China’s Economic Recovery

Third-Quarter Earnings Results Surpass 2019 Levels for IHG, Hilton

Here are some highlights from hotel company earnings calls on the continued recovery in demand from China:

Tony Capuano, President and CEO, Marriott International

“Cross-border travel continued to strengthen, helping drive RevPAR growth in the third quarter. Asia-Pacific, again, saw the most meaningful quarterly increase in international visitors, aided by global events like the Women’s World Cup and improved airlift. The percent of global room nights from cross-border guests was about 1 percentage point below 2019 levels of approximately 20%.

“The most upside is still expected to come in Asia-Pacific as international airlift to China improves. International airlift in Greater China was roughly 50% of 2019 capacity at the end of the third quarter and is expected to improve to around 60% by the end of the year.”

Chris Nassetta, President and CEO, Hilton

“You will have a very strong start [for revenue per available room growth] in China in 2024. There’s a lot of noise about China and their economy, but from a travel and tourism point of view, in China it’s very strong now. … from a pure RevPAR year-over-year-growth point of view, China and thus Asia-Pacific will lead the charge.”

Kevin Jacobs, CFO and President of Global Development, Hilton

“In the Asia-Pacific region, third-quarter RevPAR was up 39% year-over-year, led by the continued demand recovery in China. RevPAR in China was up 38% year over year in the quarter and 12% higher than 2019. The rest of the Asia-Pacific region also saw significant growth with RevPAR, excluding China, up 40% year over year.”

Mark Hoplamazian, President and CEO, Hyatt Hotels Corp.

“Demand in China is extremely strong, and international travel is steadily recovering. I think the first quarter was down 60% to 2019. Second quarter was down 40%; third quarter was down something like 19% or 15% — something like that, mid- to high-teens.

“We’re seeing a steady increase in international inbound, which is really encouraging [and] a little surprising to me, actually, because air cover and air schedules are still well below where they were before. The relevance of that is that the inbound international travelers are spending more. So there’s a lot of demand; performance in hotels is really good.

“We’re seeing very strong, continuous pipeline growth but also new openings for UrCove, our upper-midscale brand, and also other projects being completed and under construction. I feel really good about the short term.

“Now, there is a dichotomy between more private-sector developers and those that have state-owned enterprises either backing them or controlling them. There’s a big dichotomy there because those who are private and depend on the debt markets are having a very tough time.

“The debt contraction, the availability contraction, is still with us and will remain with us for some time. It’s going to take the Chinese government a while to work through the bad bank issue that they’ve got with Country Garden and Evergrande. But in the foreseeable future, I’m actually optimistic that we’re going to be able to maintain both net-rooms growth but also pipeline growth.”

Elie Maalouf, CEO, IHG Hotels & Resorts

“In China, development activity is also coming back, with 37 hotels signed, 24 of which are in the Holiday Inn brand family. That is almost 7,000 rooms, the highest quarterly signings number since 2021. Again, we expect more in [the fourth quarter].

“China is demonstrating an excellent rebound in trading. Overall, we expect close to a 4% increase in network systems growth by end of the year.

“Third-quarter revenue per available room increased 10% versus 2022 and 13% versus 2019. … Greater China continued its excellent rebound with RevPAR now above 2019, which the Americas achieved in the second quarter of last year; and Europe, Middle East, Asia and Africa in the fourth quarter.”

Hubert Wang, President and Chief Operating Officer, MGM China

“[In] Macau, I believe that the recovery is going to continue. The government issued their forecast for next year during their budget season. And we are looking at a [gross gaming revenue] number for next year around $27 billion for the entire year. And this is quite consistent with our belief, our expectation and the market consensus as well.

“Now, I think yes, in China, there is some softness in its overall macroeconomic situation. The GDP growth is around 4% to 5%, which is at the trough, if you look at the long-term window period. But I believe that Macau is not [a] … reflection of the average GDP growth or spending pattern in China.

“We, as a town, cater to about 30 million visitations a year. The unique visitation is probably less than half of that. It’s still a very small number in the grand scheme of population in China. …

“Macau is positioned to cater to the group with high spending.”

Editor’s note: Chris Nassetta serves on the board of directors for Hotel News Now’s parent company, CoStar Group.

Credit: Hotel News Now

Nov 17 2023

Singapore Based Capella Hotel Group Looking at Middle East, Europe

The latest version of Capella Hotel Group is expanding across the Asia-Pacific region, with plans to grow into Europe and the Middle East, but President Cristiano Rinaldi said it’s not simple growth that makes Capella special.

Rinaldi, who has been with the Singapore-based hotel company since 2020, said it’s the attention to detail and focus on luxury that sets Capella apart.

Speaking on the Hotel News Now podcast, Rinaldi said the real goal is to “keep creating wonderful experiences for our guests.”

“We always position ourself to a degree in a niche of experience travel, to be very honest,” he said. “I think we’ve been really crafting the art of creating these experiences way before the pandemic. That’s something Capella has always done rather successfully.”

Capella Hotel Group was founded in the early 2000s by long-time Ritz-Carlton head Horst Schulze, but since Schulze’s departure and the company’s sale to Pontiac Land, it has embarked on a new era, moving to a headquarters in Singapore, focusing on growth in Asia and establishing two distinct brands: Capella Hotels & Resorts and Patina Hotels & Resorts.

Since then, the company garnered several awards for its properties and brands. As recently as September, Capella Syndey in Australia was named Hotel of the Year in the AHEAD Awards Asia, and Capella Bangkok and Capella Singapore both ranked in The World’s 50 Best Hotels 2023.

“To me, those awards are a statement and a validation to what we do on a daily basis,” Rinaldi said.

Source: Hotel News Now

Nov 15 2023

Record-High Counts in China’s Hotel Construction Pipeline

Upscale and Upper Midscale Chain Scales also Reach Peak Totals in Q3

In the Q3 2023 China Construction Pipeline Trend Report by Lodging Econometrics (LE), at the end of the quarter, China’s total construction pipeline reached a record high of 3,720 projects with 686,017 rooms, up 3% by projects and unchanged by rooms year-over-year (YOY). The record-high projects in the total pipeline can be attributed to the number of upscale and upper midscale chain scale projects, which both hit project and room count peaks this quarter. The upscale chain scale ended Q3 with a total of 850 projects/198,277 rooms, and the upper midscale chain scale has 1,222 projects/194,515 rooms. Combined, these two chain scales account for 53% of projects and 55% of the rooms in China’s hotel construction pipeline.

At the close of the third quarter, there are 2,661 projects/480,538 under construction, up 5% by projects YOY. Projects scheduled to start construction in the next 12 months stand at 356 projects/65,606 rooms. Projects in early planning are up 9% YOY, reaching a record 703 projects with 139,873 rooms.

Brand conversions also reached record high project and room counts in Q3. Conversion totals in China increased 44% YOY by projects and 36% YOY by rooms, with 156 hotels/24,885 rooms. Construction starts and new project announcements (NPAs) each grew substantially YOY, standing at 205 projects/35,455 rooms and 310 projects/49,874 rooms, respectively.

Cities in China with the largest pipelines, at the Q3 close, are Chengdu, with a record-high 144 projects/29,207 rooms; Shanghai, with 121 projects/23,222 rooms; Guangzhou, with 108 projects/22,686 rooms; Hangzhou, with 90 projects/18,917 rooms; and Wuhan, with 90 projects/12,540 rooms.

Through the third quarter of 2023, 468 new hotels, accounting for 75,491 rooms, have opened in China. The LE forecast for new hotel openings expects another 310 hotels with 44,313 rooms to open in the fourth quarter, bringing the forecasted new hotel openings to 778 new hotels with 119,804 rooms by year-end.

The LE forecast for new hotel openings for 2024 expects 983 new hotels with 156,814 rooms to open by year-end. In 2025, the forecast is for 899 new hotel openings with 169,363 rooms.

Hannah Paoletti
Media Relations Manager
+1 603 427 9556

Lodging Econometrics

Nov 14 2023

8 hospitality industry trends in 2024 and tips to stay ahead

The hospitality industry has always been at the forefront of adapting to changing trends and customer preferences. As we approach 2024, it’s evident that the industry is on the cusp of significant transformation.

Staying ahead in this dynamic environment is crucial for hotels, restaurants, and other hospitality businesses.

Let’s look at the emerging hospitality industry trends for 2024 and tips to help you remain competitive and deliver exceptional experiences to your guests.

1. Personalized experiences

Imagepool restaurant — One of the most significant trends in the hospitality industry is the emphasis on personalization. In 2024, guests are seeking unique and tailored experiences that cater to their individual preferences. To stay ahead, invest in customer relationship management (CRM) systems and data analytics to gather insights about your guests. This information can help you customize everything from room decor to dining options to create unforgettable, personalized experiences.

2. Sustainable practices

3. Contactless smart technology

The pandemic accelerated the adoption of contactless technology, and it’s here to stay. From mobile check-ins to touchless payment options, guests expect a seamless, safe, and convenient experience. Ensure your hotel or restaurant is equipped with the latest technology to meet these demands.

Smart technology is making waves in the hospitality industry, with the likes of chatbots, robots, and various forms of artificial intelligence gaining popularity. These advancements offer hoteliers the ability to provide guests with instant, personalized information and recommendations. Furthermore, facial recognition technology is revolutionizing the way guests access services, and smart hotel rooms, connected through the Internet of Things, empower visitors to tailor their experience using a mobile app or their voice.

Not to forget online distribution (Cloud-based Channel Manager) is non-negotiable in today’s time.

4. Data security

Protecting guest data is non-negotiable. Ensure your systems are secure and compliant with data protection regulations like GDPR. Trust and security are paramount in the hospitality industry. Robust data security measures are essential to safeguard customer privacy, maintain compliance with regulations, and preserve the integrity of the business.

5. Storytelling marketing

Finally, embrace storytelling in your marketing efforts. Share your brand’s story, mission, and values with your guests. People connect with brands that have a compelling narrative, and this can set you apart from your competitors.

6. Wellness and health-centric services

In 2024, the focus on wellness and health will be stronger than ever. Offer wellness packages, fitness amenities, and nutritious menu options to cater to health-conscious guests. Additionally, consider partnering with local wellness providers to offer spa treatments and yoga classes for a holistic experience.

7. Multifunctional spaces

Adaptability is key. Multifunctional spaces that can be transformed for various purposes are a significant trend. Create spaces that can host conferences, weddings, and social events, allowing you to tap into multiple revenue streams.

A growing trend in the hospitality industry is the conversion of hotel lobbies and cafes into shared workspace areas. Hotels are recognizing the evolving needs of modern travelers, many of whom seek flexible and comfortable spaces to work and connect while on the go. By offering free Wi-Fi, comfortable seating, and convenient amenities, hotels are not only attracting guests but also business travelers and remote workers looking for a change of scenery. This transformation of traditional hotel spaces into multifunctional hubs reflects the industry’s commitment to meeting the diverse demands of its clientele.

8. Online reputation management

The digital era demands strong online reputation management. Encourage guests to leave reviews on platforms like TripAdvisor, Yelp, and Google. Address feedback promptly and professionally to maintain a positive online image.

Online reputation management has become an essential aspect for businesses to maintain their image and attract guests. The hospitality industry, particularly hotels, heavily relies on guest feedback and online reviews. Hence, hoteliers need to be conscious of their online reputation and use review management tools to monitor and respond to guest feedback effectively.

This article was first published on https://blog.staah.com/featured/8-hospitality-industry-trends-in-2024-and-tips-to-stay-ahead.

Nov 13 2023

Gary Neville’s Relentless Developments Announce W Hotel and W Residences to Open 2027 in Manchester

Gary Neville’s £400m (S$665million) St Michael’s development in the very heart of Manchester will be home to W Residences in a major deal with Marriott International

W Residences come with all the amenities and services of a W Hotel. First occupancy expected in 2027.

The former Manchester United and England footballer is working in partnership with property developer, Salboy, and his Relentless Developments team to launch the city’s very first branded residences alongside a 5 star W Hotel.

After retiring from professional football, Gary Neville established himself as a property magnate and businessman as well as acquiring a rapidly growing media profile as a popular commentator for international broadcasters Sky Sports, BBC, ITV and more recently, Netflix.

The arrival of W Residences to his flagship St Michael’s scheme will see hotel-inspired living offered at all St Michael’s 217 apartments, offering buyers the opportunity to purchase a permanent residence within Manchester’s most exclusive postcode.

The luxury residences will offer owners all the amenities and services of a W Hotel, including 24-hour concierge (W’s whenever/wherever service), round-the-clock in-residence dining, laundry and dry cleaning.

Located within the development’s iconic 41-storey tower, the residences will feature alongside a 162-room W Hotel which is set to open Q1 2027. W Manchester will bring bold design, distinctive dining and always-on programming to the city as well as having a pool, it will include signature W spaces, such as the Living Room, W Lounge, W Wellness and FIT gym.

W Residences Manchester are the brand’s first outside London and one of only 20 worldwide. The globally renowned brand joins a raft of international companies at the transformative St Michael’s development including Nikkei restaurant brand, Chotto Matte.

Located within Manchester’s architecturally-inspiring and historic civic quarter, St Michael’s connects the Spinningfields business district with Chinatown and the city’s designer retail stores.

Gary Neville, Director at Relentless Developments, said: “W Hotel and W Residences are going to put the distinctive 41-storey tower that is No.2 St Michael’s on the global map.

“There is no better home for W Hotel in the North of England than Manchester. This is a bold city which continues to defy expectations and which embodies the same values of originality and passion that have made the W Hotel experience world-renowned.

“Situated alongside this, W Residences Manchester will be immersive, design-forward homes that will set a new standard in hotel-inspired living and massively raise the bar for city-centre home ownership.

“I’d like to thank Marriott International and our developer partner, Salboy, for seeing the potential in this scheme and remaining committed to our vision.”

Simon Ismail, Co-founder & MD, Salboy Group, added: “The W brand became famous for vibrant, diverse, urban locations like Manchester. Salboy is really proud to be working alongside Relentless Developments to launch and deliver Manchester’s first branded residences and a truly 5-star international hotel.

“W Residences Manchester will offer a residential living experience and level of service unlike anything in the city right now. From a dedicated concierge handling anything you need at any time, to world-class interiors and top specification fixtures and fittings plus your own secure lift. Not to mention all the benefits of the W Hotel including the restaurants, the gym, pool, spa and relaxing in your own residential lounge or W living room.

“Something will always be happening, whether it’s art pop ups or music experiences, right here in this super prime Manchester location.”

Jaidev Menezes, Regional VP – Mixed-Use Development EMEA, Marriott International, commented: “We are delighted to work with Salboy and Relentless Group to launch our newest residential development under the W brand in Manchester.

“There is a growing demand for luxury living in Manchester and this project in the St. Michael’s mixed-use development will deliver that with its vibrant design and impeccable service for its residences and hotel.”

Ruben Koh, Senior Director, Co-Head of International Residential Sales, Savills Singapore, said: “The W Residences will be the first ever branded residence in the heart of Manchester, it will provide residents with a luxury lifestyle never before experienced in the North of England.

“Located in the heart of the city of Manchester it gives its residents the very best access and convenience to experience Manchester.”

Adrian Lim, Senior Director, Co-Head of International Residential Sales, Savills Singapore, said: ” We are thrilled to introduce The W Residences to the vibrant city of Manchester. As the first-ever branded residence in the heart of this iconic city, it is set to redefine luxury living in the North of England and promises an extraordinary lifestyle that has never been seen before in this region.”

Sales will launch in Singapore on 11-12 November at an exclusive event hosted by Savills Singapore. The event will take place from 11am to 6pm at The St. Regis Singapore, Embassy & Consulate Rooms (Ground level).

Source: Hotel News Source

Nov 11 2023

Radisson Hotel Group wins a trio of “Best Hotels – Resorts Awards” in Vietnam

Radisson Blu Resort Phu Quoc named “Leading Beach Resort” and wins “Vietnam’s Leading General Manager” title, and Radisson Resort Phan Thiet claims “Vietnam’s Leading Boutique Resort” award.

Radisson Hotel Group is celebrating after two of its popular beachfront properties in Vietnam – Radisson Blu Resort Phu Quoc and Radisson Resort Phan Thiet – were honored at the “Best Hotels – Resorts Awards” 2023, a prestigious annual award ceremony organized by Wanderlust Tips travel magazine held on 20 October 2023.

Radisson Blu Resort Phu Quoc achieved the “Vietnam’s Leading Beach Resort 2023″ award, in recognition of its fantastic facilities and guest experiences. Set directly on Bai Dai Beach, this stylish seafront resort is gaining a strong reputation among domestic and international guests alike, for its spacious rooms and suites, large lagoon pool and diverse dining venues.

Mr. Nikholas Bauer, General Manager of Radisson Blu Resort Phu Quoc, was named as “Vietnam’s Leading General Manager 2023” – an important accolade that reflects his outstanding leadership and commitment to creating exceptional guest journeys.

These awards mark the latest successes for Radisson Blu Resort Phu Quoc in 2023 after it was named as the “Best Pool Villa Resort” and “Best Resort Service” in Vietnam in the Haute Grandeur Hotel Awards.

Also at the Best Hotels – Resorts Awards, Radisson Resort Phan Thiet was named as “Vietnam’s Leading Boutique Resort 2023“. Under the exemplary leadership of General Manager, Prakash Ganesan, the resort scaled a new peak of success. Featuring 76 roo

ms and suites, all nestled in a prime beachfront setting on Vietnam’s southeast coast, this is an enchanting option for golfers, couples and families alike.

Andre de Jong, Area Senior Vice President, South East Asia & Pacific, Radisson Hotel Group, said: “We are delighted to win these three impressive awards, and I would like to congratulate the teams at Radisson Blu Resort Phu Quoc and Radisson Resort Phan Thiet for their commitment to excellence. At Radisson Hotel Group, we always strive to create the best possible guest experiences, and these awards give us confidence that we are succeeding. We look forward to raising the standard of Vietnamese hospitality even higher in the future.”

The Best Hotels – Resorts Awards were created to recognize world-class hotels and resorts around the world for their effort and performance. These international honors are based on the collected reviews and evaluations of influential people in the luxury sector, including affluent globetrotters and the editors of Wanderlust Tips, the acclaimed travel magazine.

Nov 10 2023

Melco Resorts & Entertainment joins the Sustainable Hospitality Alliance as first member headquartered in Asia

Established in 2004, Melco is a renowned developer, owner, and operator of integrated resort facilities across Asia and Europe. Headquartered in Hong Kong and with operations in Macau, the Philippines, and Cyprus, Melco is positioned as a founding member of the Alliance for the Territory.

Melco stands out for its innovative properties in luxury hospitality and entertainment, as well as its collaborations with globally renowned brands, making it a leader in providing exceptional guest experiences that cater to a diverse range of clientele. The company’s unique blend of design, entertainment, and quality sets it apart, solidifying its position as the global leader in premium integrated resorts.

As a one-of-a-kind developer and operator, Melco partners with some of the world’s greatest talents in entertainment, architecture, cuisine, art, wellness, sport, and hospitality to deliver unparalleled experiences. With a workforce of over 16,000 dedicated colleagues, Melco actively contributes to the communities in which it operates. The company’s five integrated resorts in Macau, the Philippines, and Cyprus are spearheading sustainability initiatives within the industry. Chairman & CEO Lawrence Ho is leading the charge to achieve carbon neutrality and zero waste across its resorts by 2030.

The Alliance brings together leaders from the hospitality industry, strategic members, and partners like Melco to address key challenges affecting the planet, local destinations, communities, and people. Together, they harness the collective power of the industry to deliver Net Positive Hospitality. During the Alliance’s recent Mainstreaming Net Positive Hospitality Summit, members and partners made commitments to drive the sector towards a more regenerative and inclusive future, as part of the organisation’s 5-year strategy.

Lawrence Ho, Chairman & CEO of Melco Resorts & Entertainment, comments:

“Realised through positive engagement and action, Melco’s aim is to inspire our guests by showing them a sustainable future is a better future. We fully stand by and support the Sustainable Hospitality Alliance’s commitment to creating a sustainable and responsible hospitality sector, and are excited and honoured to become the Alliance’s founding member in Asia. We look forward to our collaborative efforts to contribute towards the sustainable future that is crucial.”

Glenn Mandziuk, Chief Executive Officer of the Sustainable Hospitality Alliance, expressed his enthusiasm for the Alliance’s new Asia Pacific Founding Member, stating:

“I am thrilled to announce Melco as our newest member. Having the global leader in premium integrated resorts in the Asia Pacific region join forces with the Alliance is a significant milestone. Sustainability lies at the core of Melco’s business strategy, combining their social and environmental achievements and ambitions in their Above & Beyond strategy. By aiming to eliminate the impact of their resorts on the climate by 2030 and leading circular economy approaches to address global plastic waste, Melco’s strategy aligns seamlessly with our Pathway to Net Positive Hospitality. We are excited to collaborate and assist Melco in accelerating its Sustainability programme, making them a benchmark for our industry and beyond.”

With nearly 50 donor members and a reach of over 7 million rooms, the Alliance brings together engaged hospitality companies, the wider hospitality value chain, and strategic partners to tackle key challenges affecting the planet, people, and places worldwide. Through strategic industry leadership, collaborative action, harmonisation of metrics and regenerative solutions, the Alliance is dedicated to accelerating the path to Net Positive Hospitality. It leverages the transformative power, innovation, and resources of the industry, guided by the four pillars of people, planet, place, and prosperity.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment, with its American depositary shares listed on the NASDAQ Global Select Market (NASDAQ: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. Melco currently operates Altira Macau, an integrated resort located at Taipa, Macau and City of Dreams, an integrated resort located in Cotai, Macau. Its business also includes the Mocha Clubs, which comprise the largest non-casino based operations of electronic gaming machines in Macau. Melco also majority owns and operates Studio City, a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of Melco currently operates and manages City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila. In Europe, Melco operates City of Dreams Mediterranean in Limassol in the Republic of Cyprus . Melco also continues to operate three satellite casinos in other cities in Cyprus (the “Cyprus Casinos”).

Melco Resorts & Entertainment is majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

About the Sustainable Hospitality Alliance

The Sustainable Hospitality Alliance brings together engaged hospitality companies and the wider hospitality value chain, along with strategic partners, to address key challenges affecting the planet, people and places around the world.

Through their strategic initiatives and global networks, they develop practical programmes and resources to create a prosperous and responsible hospitality sector that gives back to the destination more than it takes.

Their members represent over 50,000 hotels spanning 270 brands – totalling over 7 million rooms – and include world-leading companies including Accor, Choice Hotels International, Hilton Hotels & Resorts, IHG Hotels & Resorts, Marriott International, and Wyndham Hotels & Resorts, as well as regional brands. Their network also includes other parts of the hospitality value chain, including owners, investors, suppliers, and other partners to further drive joined up action on sustainability, and accelerate the industry on the path to Net Positive Hospitality.

Nov 8 2023

Thailand tourism showcases ‘Meaningful Relationship’ marketing concept

The Tourism Authority of Thailand (TAT) is using the WTM 2023 as a platform to launch its new ‘Meaningful Relationship’ marketing concept to a worldwide tourism industry audience.

The Amazing Thailand Press Conference was helmed by Minister of Tourism and Sports, H.E. Ms. Sudawan Wangsuphakijkosol, and TAT Governor, Ms. Thapanee Kiatphaibool, as well as TAT executives.

Ms. Thapanee said:“ The new ‘Meaningful Relationship’ concept is designed to encourage travellers to engage in a meaningful connection with Thailand.”

“When travellers form a relationship with the people they meet and the place they visit, they will have an opportunity of creating lifelong friends”

The concept will be incorporated into TAT’s ongoing promotion of Thailand as a sustainable and responsible tourism destination.

TAT has developed and implemented its own Sustainable Tourism Goals (STGs) in line with the 17 Sustainable Development Goals (SDGs) by the United Nations Development Programme.

TAT’s STGs encompass the entire tourism industry in a Sustainable Tourism Acceleration Rating (STAR) system.

Businesses that comply with goals attain a corresponding number of stars.

Currently, there are 251 businesses with STAR certifications in Thailand.

TAT also held the annual Responsible Thailand Awards.

They recognise sustainable Thailand tourism in six categories such as Animal Welfare, Nature, Community-based Tourism and Hotel, Eco Lodge/Eco Hotels.

This year, the winners are Mahouts Elephant Foundation, New Heaven Reef Conservation Programme, Kao Thep Pitak Community Restaurant, Devasom Khao Lak Resort, Elephant Hills, and Pattaya Elephant Sanctuary.

TAT’s partner, the Thai Ecotourism and Adventure Travel Association (TEATA) in collaboration with Tourlink, has developed seven carbon-neutral travel routes for travellers to explore Thailand. while helping reduce the impact on the environment.

Featured destinations include Bangkok, Ratchaburi, Phangnga, Trat, Phetchaburi, and the three Isan provinces of Udon Thani, Nong Khai, and Loei.

For the UK market, TAT will place focus on potential segments with higher spending, a tendency to stay longer, and those wanting to explore local areas.

These segments include luxury, wellness and responsible travel.

From 1 January – 31 October 2023, Thailand recorded over 21.6 million arrivals and generated over THB927 billion.

The top five markets are Malaysia, China, South Korea, India and Russia.

The UK market contributed 617,017 tourists.

Nov 6 2023

Langham Hospitality Group grows presence in the Greater Bay Area

Langham Hospitality Group (LHG) has signed a management agreement with Parkland Group for The Langham, Foshan, a brand-new hotel to be based in China’s Greater Bay Area. Part of the One Sanlong Bay development – which includes luxury residential units as well as Grade A and prime-commercial office spaces – Foshan’s first high-rise urban resort is scheduled to open in 2028.

“The Greater Bay Area is a key international powerhouse where Langham Hospitality Group enjoys a strong and growing presence with all of our brands represented. Introducing The Langham to the first-tier hub city of Foshan is an important strategic move for us in this context, and one that will set a new benchmark for luxury experiences,” said Bob van den Oord, Chief Executive Officer, Langham Hospitality Group.

Mr. Guo Dongfeng, Vice Chairman of Parkland Group said: “The partnership with Langham Hospitality Group will ensure that we deliver an innovative and unique luxury hotel in an outstanding location that will attract and cater to both local and international visitors.”

Foshan has exceptional local transport links, and the resort is next to the Foshan Tanzhou International Convention Centre. The city is 25 minutes from Guangzhou South Railway Station, 40 minutes from Shenzhen, one hour from Guangzhou Baiyun Airport, and two hours from Hong Kong,

The Langham, Foshan will feature an extensive number of meeting and event spaces including one of the largest ballrooms in the city, spanning 800 sqm.

Cantonese dining will be offered in T’ang Court, a sibling of the 3-Michelin starred Black Pearl establishment with the same name in Hong Kong. The Langham’s signature afternoon tea will offer the British classic. Chuan Spa, LHG’s proprietary wellness brand based on the principles of Traditional Chinese Medicine, will also find a new home there.

Foshan is known as the birthplace of Cantonese Opera, the cradle of Kung Fu and home to the family of Bruce Lee. The southern edge of Foshan boasts the peaks, caves, and the waterfalls of scenic Mount Xiqiao.

Langham Hospitality Group

Nov 3 2023

APAC Hotel Recovery Now on Par with the Rest of the World

While other parts of the world began their post-pandemic recovery earlier than Asia Pacific, recent data suggests that the region is accelerating its recovery process and could potentially reach levels seen in Europe and America.

Demand catches up with the rest of the world

Year to date through August 2023, hotel occupancy rates surged past 90 percent of the 2019 comparable levels across most subcontinents worldwide. Notably, the occupancy indices in Asia Pacific subcontinents closely aligned with those in most European subcontinents and North America, ranging from 91 to 100. This indicates that demand in the Asia Pacific region has reached comparable levels to other parts of the world that began their post-pandemic recovery journey much earlier.

While uncertainty surrounds the possibility of a full return of Chinese outbound demand throughout the region, there is a growing demand in domestic tourism, as past data revealed that leisure markets China, specifically Hainan and Sanya, took the top spots in terms of RevPAR recovery over the summer period across all global markets. Moreover, more recent data for the 2023 National Day Holiday has shown that the region’s occpancy performance has edged close to pre-pandemic performance, showing more evidence of growing domestic demand.

Forecast: APAC recovery matching EMEA’s pace

Combining the forecast data for the remaining months of 2023, Asia Pacific markets are poised to recover at a pace similar to that of EMEA markets, with the exception of Melbourne, Beijing, and Guangzhou, which are expected to lag behind 2019 levels.

Other than demand-side factors that drive growth in APAC, such as increased demand from Chinese tourists, RevPAR growth in the coming years is more likely to be driven by rate increases. This is due to multiple reasons, such as events, inflation, and cost increases. All things considered, data shows more positive signs compared to the end of 2022.

This article originally appeared on STR.

Nov 1 2023

Centara Hotels & Resorts launches one-stop approach for MICE events

Centara Hotels & Resorts has launched a one-stop approach to MICE events dedicated to delivering unforgettable experiences that engage and inspire.

New Agenda: Meetings Redesigned is targeted to welcome both domestic and international clients with a range of creative meeting, culinary and team-building concepts, alongside sustainable venues in fascinating locations, from convenient city-centre hotels to stunning heritage sites and world-class beach destinations.

The initiative aims to set a new standard for MICE gatherings across four key pillars:

· Starting with Centara’s One-Stop Meeting Guru service, personalised end-to-end event management with a single point of contact to ensure seamless communication, planning, coordination and execution onsite.

· Centara’s in-house F&B team designs unique and immersive Creative Catering and dining experiences to reinforce and strengthen participation, with tailored ideas that can include a sensory-driven “Dinner in the Dark”, a power lunch on a Maldivian submarine, casual beach barbecues, a Thai food stall journey, MasterChef-inspired cooking challenges, and a create-your-own cocktail bar, amongst others.

· Team-building Redefined sees teamwork reach new heights as Centara partners with globally renowned training provider, Asia Ability, to develop bespoke team-building programmes that foster resourcefulness, knowledge-sharing, and active participation through workshops, community outreach activities and beyond.

· Sustainability efforts include offering greener meeting options with sustainability, convenience and eco-conscious amenities into one package with the use of LED and natural lighting, low-flow taps, waste separation, eco-friendly materials and locally-sourced produce to reduce carbon emissions throughout its venues.

Centara also offers Earth Care Activities, including the ‘Plastics Only, Please’ beach clean-up campaign, to empower teams to give back and reaffirming the brand’s commitment to the environment.

“New Agenda: Meetings Redesigned reinforces Centara’s commitment to delivering outstanding MICE events tailored to the ever-evolving needs of our clients,” said David Good, executive VP – Hotel Operations of Centara Hotels & Resorts. “With innovation at our core, we are proud to offer venues and experiences that not only inspire, but also contribute to a more conscious and sustainable future.”

Centara Hotels & Resorts:

Oct 30 2023

Social media marketing tips for smart hoteliers

There is no definitive guide to social media marketing because social media is constantly evolving. But the tips in this blog can help you always stay ahead of the curve.

1. It’s all about knowing your audience

If you understand your target audience and their interests, that’s half your battle won on social media. Start by digging into the people who currently follow you on social and engage with your content (see Facebook and Instagram Insights for this information!). Who are they? What are their shared characteristics? Consider traits like age, location, language and hobbies.

Overlap information from social media channels with your other channels to create personas of your ideal customers. Then align your social media messaging to talk to these ideal guests.

2. Be authentic

Authenticity is worth gold on social media where users don’t care for ultra-polished posts or lengthy words. They want something that is different, even if unpolished and messy. Be real – post the bloopers of serving guests or laundry gone wrong. Making the connection is important when it comes to social media.

3. Choose your platforms wisely

You can’t be everything to everyone, everywhere. Choose the social platforms you want to be active on widely – based on your target audience and their preferred channel. Remember, do few, do them well.

4. Audience-led content

Tell your brand story – sure, but in a manner that your audience wants to hear them. Tailor your content to suit their needs and mix your brand message in it. If you need inspiration – see a Nike ad. It’s never about the brand, but how it makes its customers feel – empowered.

5. Posting etiquettes

Don’t be offensive – there is a fine line between humour and being rude. It’s easy to cross over on the other side on social media and the repercussions can be disastrous for a brand. Posting regularly and on the right time is not just good for optimisation – or getting maximum engagement – it is important to meet your guests’ expectations.

6. Be responsive

If you have a message in your inbox, respond quickly – a maximum of 24 hours, although a few hours is better. If your audience is engaging with your post, participate in the conversation with them.

7. Get serious about videos

As short-form videos skyrocketed in popularity in 2022, many brands started to dip their toe in the format. Social media managers were tasked with creating videos on the side to complement their other social efforts. Now it is almost a full-time job to keep up with the consumer appetite for videos. Arm your employees (the right ones!) with access to your business social accounts and a smartphone, and create authentic video content.

Remember in all your content, videos or photos, highlight your services in action or what’s around your property.

8. Showcase testimonials and reviews

Word-of-mouth marketing isn’t going away—it’s just getting a makeover. Data from multiple sources shows that consumers like to see brand social content that features real customer testimonials and product demonstrations. So rather than catchy slogans and marketing spin, focus on providing your audience with authentic content from real customers they can relate to.

9. Be human

Be authentic. Build an emotional connection with your audience. No one wants to buy from a brand… most buy into the story. Tell your story, don’t sell rooms. Take a stand on issues that matter to your audience and bring personality into your storytelling.

10. Partner with creators

Your job is to provide a great service. If social media content creation is coming in the way, hand it over to professional creators who have domain knowledge and the following to take your message further.

Remember, you can even turn your staff into content creators and distributors.

11. Have a process

Create a content plan and allocate a budget to promote it – half the battle is won if you know what you are doing and when. Next, have an approval process in place that is seamless so no one person holds back regular posting and content creation.

12. Keep testing

Digital media, especially social media, keeps evolving. Make sure you keep testing social media channels, content types, frequency of posts etc. Testing is the only way to optimise in the digital world, remain relevant and get desired results.

Critical to testing is data and insights. Use analytics and insights from social platforms, website and booking engine, channel manager and PMS to see what’s working and where you need to make improvements.

13. Keep an eye out on competition and market

Stay alert for trends and viral content doing the rounds. Where applicable, adapt your strategy to it. And much like pricing, be aware of what the competition is doing on social channels so you can match their sentiment where needed.

Wrapping up

Social media marketing can be hard work. But the benefits are difficult to ignore. If you don’t take it seriously, you’ll undoubtedly miss out on leads. Use these social media marketing tips to fine-tune your strategy until you’ve created a winning strategy. Just remember, social networks are made for conversing with others. If you don’t make your audience a top priority – you won’t see results.

This article was first published on https://blog.staah.com/featured/social-media-marketing-tips-for-smart-hoteliers.

Oct 29 2023

Is the Annual Budget Process Still a Necessary Evil for Hotels?

For hotels, the annual budget process is like a high-stakes poker game in which the owners keep their cards close to their chest and the operators try to guess what cards they’re holding and if they’re bluffing. By the time everyone shows their hands and the year kicks in, the game has often changed significantly, and all bets are off.

Does it have to be this way? Today, more data than ever is available to enable operators to budget and forecast based on current conditions rather than rely on outdated projections. But will this serve the needs of owners?

For insights, HotStats reached out to hospitality leaders around the world. We asked them, “Is the annual budget process still a necessary evil for hotels?” Here is a condensed, edited roundup of their responses.

Ajay Singla, Senior Vice President Finance, Fairmont Hotels & Resorts

My personal opinion is we should be more guided by 12 to 18 months or two years of rolling forecasts based on what is happening in the market today rather than being influenced by a budget that was done in September, is valid until next December, and is based on what was happening in the market nine months ago.

That would be more productive. And I think ownership would also be more interested in a rolling forecast scenario. But we have an obligation in our management contracts. And ownership has many obligations from a hotel operations and financial ability point of view. They have loans, interest, debt service payments, etc. They need to know how much cashflow hotels will generate. So, we have to live with it.

The objective for us, the operator, is to harmonise what ownership expectations are and how we can achieve them while still meeting guest experience, product, and brand requirements. At the end of the day, we are brand operators, so we have to make sure that the brand promise is also delivered to the guests because that’s what matters the most for us in terms of bringing the guest back again and again.

Elena Ladisova, Vice President, Brookfield Asset Management

Yes, I definitely do. I mean, what gets measured, gets done, and it sets a benchmark. That kind of logic hasn’t really changed. It’s true that there’s a lot of volatility, and I think month by month forecasting becomes much more important than before. But budgets are still something where you can plan ahead and plan your cash flow at the early stage, and then obviously you adjust for the forecast. So, I think forecasting is gaining more importance over time.

Joe Pettigrew, Chief Commercial Officer, Starwood Hotel Asset Management

I think the budget process is still useful. Obviously, it has many uses for banks, lenders, and other investors for setting targets, goals, and bonuses, etc. But the most useful aspect is that it is the one time of the year that you all have full alignment on what your strategy is going to be for the next year.

So, assuming the macro environment is going to be X and our current market share is Y, what are we going to do differently next year in order to improve our market share? What cost initiatives will we implement to get to the NOI that we need to get to? The discussion around how we’re going to do that is so useful and valuable … and the budget process is the most natural time and place to do it. So, I think the annual budget process is very valuable. I don’t see it as a “necessary evil”.

Paul Nisbett, Chief Financial Officer, EMEA, Valor Hospitality Partners

Well, it’s a necessary evil because every bank requires it. Investors require it.

Regardless of whether we like it or not, you need a stake in the ground for legal requirements and compliance. But I think most people will move to a rolling 12 months.

So, the fact is that all this is really a stake in the ground and a review process that has to happen for different stakeholders in the business. But actually, if you don’t use it and put it on the shelf and don’t keep it live, you’re not gaining anything. So, the rolling position becomes more important.

Amy Stevens, Group Director Revenue and Distribution, Rocco Forte Hotels

Absolutely, it is a necessary evil because you have to have parameters to measure or you will have no goal post and no idea of where you’re going to be. The flipside is it is not a set-in-stone number. As an industry, we tend to treat it as such. But it’s just a snapshot in time of what we knew then, what we thought was going to happen, and things that we could get data on. That could change. For example, who knew Russia was going to invade Ukraine? That completely upends the entire strategy, the numbers, and everything you came up with.

So, it is a necessary evil. But I do think as hoteliers we need to take a step back and remember that this is why we forecast. The budget is a point in time. With forecasting, it becomes more important to be proactive and to adjust to changing realities, particularly in a post-Covid environment.

Pete Sams, Chief Operating Officer, Davidson Hospitality Group

The budget process is a chance to step back and create a plan. That strategic plan is really more critical to me than the budget. It speaks to where we belong in the marketplace, how we are going to improve our standing, and how we are going to generate the results that we aspire to.

The budget is the financial support behind that plan. You enter the year and understand that you’re going to update it every month and constantly reevaluate half of what you assumed may be incorrect, whatever that number may be.

How do we adjust on the fly? We focus on a rolling 12-month forecast at all times. So, we’re always looking into the future, beyond just the calendar year, and that is a valuable exercise with our budget process.

In the end, budgeting is absolutely critical. It presents an opportunity to sit down with your respective ownership groups and truly articulate your understanding of the business, the plan, how you’re going to get there, and to make informed requests. Be mindful of the fact that it will be inaccurate to some extent, ideally for the better, but articulate how you’re going to get there and then be prepared to adjust and adapt.

David Hart, Chief Executive Officer, RBH

From our point of view, it shouldn’t be. We already run a monthly rolling forecast process, and we forecast 12 months out. Ultimately, when we come to the annual budget, we find that the lion’s share of the work has been done. So it’s not the one-off effort that it used to be.

In terms of whether it’s a necessary evil, investors and funders still require it … From my point of view, it shouldn’t be, but it fundamentally is because there are so many stakeholders involved in the process. Until they all get over the line of not needing it, then it’s going to be difficult to change the process. But for us it’s less onerous because of how we forecast.

Michael Grove, Chief Operating Officer, HotStats

I think the annual budget process is a good discipline. It’s basically a strategy meeting. You start with a half-year of actual data and use the forecast to project the rest of the year’s data. Then you build the budget on the back of that based on assumptions about what will happen over the rest of the year and throughout next year. Then you review performance monthly throughout the year. Some budgets aren’t signed off until January, after the year has already begun.

But things move so much from budget time to the actual year from the cashflow and operational perspective that it makes sense to have more regular review. The forecast has become automated based on run rates, which for me, misses the element in the budget process of revisiting the strategy and operational efficiencies. Maybe quarterly or half yearly reviews are the middle ground.

Owners have a different perspective, however. This is the necessary part. The budget is needed for financing, funding, and planning. The reality is, from an operational perspective, hotels need to update budgets more regularly. That’s why at HotStats we’re committed to providing benchmarking data on a monthly basis, allowing hotels to continually compare and improve their performance against the market.

Oct 28 2023

Hotel companies step up their HR game to win intense talent war

Hilton has developed a recruitment procedure that allows candidates to use their smartphones to book interview slots and record a pre-screening presentation. The company has also implemented an AI-driven assessment tool that screens candidates who are a better fit for the job traits, Hilton culture, and the hospitality environment.

Patsy Ng, vice president for human resources – Asia-Pacific, Hilton, said: “To attract talents to join us, we need to focus on delivering a great candidate experience and will leverage recruitment technology to achieve that. We have reduced the number of touchpoints for candidates’ online applications and introduced new tools such as HireVue and Traitify to enable same-day hires, which for high volume jobs has become a critical competitive advantage.”

Hilton has several Team Member Resource Groups (TMRGs) to support staff at work and at home. The Women’s TMRG, for instance, is a community of allyship where female team members can tap on different leaders for support and counsel.

Over at Onyx Hospitality Group, compulsory training will come into effect in 2024. All staff must complete 60 hours of training every year in order to advance on their personal career track in the organisation. This requirement is part of the new Onyx Academy, which will launch with instructor-led as well as online courses that are jointly developed with a range of partners such as eCornell and Harvard Business School Online.

There will also be cross-training opportunities, where staff may be assigned to work and learn at other properties.

Yuthachai Charanachitta, owner and CEO of Onyx Hospitality Group, said: “At the end of it all, they will be better ready to move forward on their career track.”

Completion of courses will earn participants certification with reputable institutions.

He believes the programme will appeal to the younger generation, as they “want to learn and rise up quickly in the company, and the academy provides such career development opportunities”.

Meanwhile, Pan Pacific Hotels Group (PPHG) has engaged human resources consulting firm Mercer to study how work processes could be redesigned with practicality, staff well-being and resource considerations in mind.

The project involves scrutinizing all processes across departments, from front office to kitchens.

Choe Peng Sum, CEO of PPHG, emphasises that a strong work culture remains critical. “To have a strong workplace culture, every team member needs to feel like they own the business.”

Performance incentive schemes come in handy to encourage staff buy-ins. Across PPHG’s hotel operated restaurants, for instance, team members enjoy profit sharing.

“Some individuals can make up to 40 per cent more of their monthly income,” said Choe, who added that team members have become very motivated to come up with innovative ideas to excite and impress guests.

“We have 6,000 staff all over the world. If everyone feels that they own the business, I can sleep well at night,” remarked Choe.

Oct 25 2023

Revenge Travel is over – Even in China, Says CEO of InterContinental Hotels Group – CNBC

Pent-up travel demand – which drove global travel recovery following the Covid-19 pandemic – is over, said Intercontinental Hotels Group CEO Elie Maalouf.

“People started traveling really by the end of 2020 as restrictions started to lift,” he said. “So we’re really past revenge travel — even in China.”

The company’s latest quarterly update showed travel demand remained strong during the close of the summer travel season.

“We think we’re in a sustainable place,” Maalouf said. “Our bookings for groups and meetings going into 2024 and beyond are the strongest we’ve seen in a very long time.”

“We’re pleased with the demand that we’re seeing from travelers … and hope it continues,” he added.

Occupancy levels in the third quarter at IHG hotels was 72% — just 1% shy of pre-pandemic levels, according to the quarterly update. But average room rates have jumped well above 2019 levels — up nearly 6% in Greater China, 15% in the Americas, and 24% in Europe, Middle East, and Africa (EMEA) and Asia.

But rising rates are barely keeping up with inflation, said Maalouf.

“Room rates have not really exceeded inflation in any of our markets,” he said. “I think people’s willingness to travel is exhibited by the fact they’re willing to pay.”

Oct 23 2023

China Recovery Underpins IHG’s Improved Performance in Third Quarter

Group and Business Travel Aid Overall Earnings

Elie Maalouf, CEO of IHG Hotels & Resorts, said a rebound of hotel performance in Greater China underlined continued improvement across its global estate in the third quarter.

Maalouf, who started in the role on July 1, said in his first quarterly earnings presentation that 12 months ago the pandemic still was affecting business in China.

“This is another strong trading performance, the fifth quarter of subsequential improvement, with excellent rebound in Greater China, which, too, has completed its post-pandemic recovery,” he said.

He added across IHG’s portfolio, average daily rate remained “very robust,” and occupancy was up 4% year over year to 72% in the third quarter and down only 1.3% from the same quarter in 2019.

Also providing confidence are increases in signings and business travel, which Maalouf said would soon reach full recovery.

Michael Glover, chief financial officer, said business travel revenue increased by 6% year over year, while group bookings revenue was up 8%, although that metric lags 2019 numbers by 9%.

“Two-thousand rooms were opened in [Europe, Middle East, Africa and Asia] in the third quarter, and 5,000 added to the pipeline, and we expect a significant uptick in openings in the final quarter of the year, traditionally our strongest quarter for signings,” he said.

Glover said 40% of hotels in the development pipeline are in the luxury and lifestyle segment.

“China is demonstrating an excellent rebound in trading. Overall, we expect close to a 4% increase in network systems growth by end of the year,” Maalouf said.

“We’re acknowledging short-term financing challenges, but supply will return, as it does in every cycle. Our 125 conversion signings this year is a record,” he added.

Glover said the first hotel under IHG’s Garner brand, launched in August, is due to open by the end of 2023.

Maalouf said the firm “opened nearly 8,000 rooms across 50 hotels in the quarter and added [16,800] rooms to our pipeline across 123 properties. Year to date, signings are up by 16%.”

“Third-quarter revenue per available room increased 10% versus 2022 and 13% versus 2019. … Greater China continued its excellent rebound with RevPAR now above 2019, which the Americas achieved in the second quarter of last year, and Europe, Middle East, Asia and Africa in the fourth quarter,” he said.

Third-quarter RevPAR increased 10.5% year over year. By region, the metric increased 4.1% in the Americas, 15.9% in EMEAA and 43.2% in Greater China.

“Pricing remained very robust,” he added. “It was also pleasing to see rooms revenue growth for each of leisure, business and group travel.”

“For two years, always there seems to be something that can be worried about. The adverse consequences everyone predicted have not happened in the economy and for our company. We are not blasé to this, but the U.S. consumer did not soften even following several Federal Reserve decisions.

“The same can be said in China, where people are earning and traveling. We’re not seeing any cracks in their desire to travel, but [recovery and travel desire are] an all-region play,” he added.

“[Glover and I] spent a week there a couple of weeks ago, and we left feeling very confident,” he said, noting that more than 1.8 billion trips were taken by plane, train and car during the recent mid-autumn holiday in China.

Glover said Chinese guests are traveling in good numbers to Southeast Asia and increasingly into Europe, but their presence in North America remains muted.

“China into U.S. is less than 1%, but agreements between the countries will increase air lift, so it is not a huge effect on us. … We see a tailwind going forward,” he said.

Maalouf said loyalty program data shows North American guests make up about 10% of IHG’s total base in Europe, and that group constituted approximately 50% of bookings made from North America.

He joked about his new home since taking up the CEO role for the British firm.

“I have residence in London now, so I do not count as a North American visitor anymore,” he said.

As of publication time, IHG stock was trading at 61.54 pounds sterling ($74.68) a share, a increase of 34.9% year over year. The London Stock Exchange’s FTSE 100 index was up 7% over the same period.

Source: Hotel News Now

Oct 20 2023

9 easy ways to boost hotel guest satisfaction

Why guest satisfaction matters

Guest satisfaction matters because it impacts reviews, which directly affect your bottom line.

The fact is, people trust recommendations from other people more than they trust your hotel advertising. When choosing a hotel destination, 50% of travelers rely on advice from family and friends. And 49% turn to social media.

Moreover, a mere 1-point increase (on a 5-point scale) in a property’s review scores can support an 11% higher daily room rate.

When your property delivers memorable guest experiences, you’re rewarded with repeat business and loyal brand advocates who share their great experiences far and wide. This ultimately drives your future growth.

9 easy ways to improve guest satisfaction in hotels

1. Simplify the booking process

You can improve your relationship with guests by making it fast and easy for them to complete a reservation. Start by recognizing that 30% to 40% of online travel sales happen on mobile devices. So, make certain your website design is mobile first.

In addition, your guests get inspired by images and posts on places like Instagram and Facebook. Use a platform that makes it easy to monitor and connect with guests over social media. And reduce steps by linking your social media accounts directly to your booking engine.

One final tip: Include a prominent click-to-call (CTA) button for seamless access to your call center.

2. Use guests’ preferred communication channels

Your guests may initially contact you through email, move to text or live chat, and then finish up with a phone call. Throughout it all, 86% of them expect it to be a seamless conversation across channels.

To keep your guests happy, you need a flexible marketing solution that works on all channels your guests like to use. It should also collect and organize guest data into one place that’s easily accessible by all guest-facing team members.

3. Create personalized experiences

Your guests want to feel unique and known by name, with nearly 9 out of 10 travelers looking for personalized experiences during their stays.

Luckily, advanced technology can give hotel staff instant access to rich guest profiles that allow them to tailor guest experiences. For instance, if you know a couple is celebrating an anniversary, you can surprise and delight them by offering to have chilled champagne and chocolate-covered strawberries waiting when they arrive.

4. Address concerns 24/7

Delays in responding to guest issues or complaints can be detrimental to your guest satisfaction level. On the flip side, resolving problems quickly can be quite beneficial.

According to a Deloitte survey, hotel guests are 40% more likely to promote a positive experience at your hotel when their issue is fixed in a timely manner.

5. Collect and act on feedback

Another great way to ensure your guests are happy is to simply ask them. You can send guests mid-stay and post-stay surveys. The feedback you receive lets you see exactly what you’re doing right and where you can improve.

The right solution helps you quickly correct any issues, preventing negative reviews before they occur. It also makes it easy for guests to turn positive feedback into positive reviews.

6. Respond to reviews

According to a Tripadvisor study, 4 out of 5 travelers (81%) read reviews before booking their hotel. This is easier when you leverage a solution that consolidates them all in one place and makes it easy for you to respond quickly.

And your personalized, polite, and fast response is important for maintaining high guest satisfaction, particularly for negative reviews. It turns out that promptly and courteously responding to negative reviews matters to travelers.

7. Stay in touch

The guest experience doesn’t end when your guests check out. The right technology lets you send regular email newsletters and promotions to further build those relationships.

The best email marketing tools automate this process and allow for segmentation. This is crucial, with research from Hubspot showing that subscriber segmentation is the most effective strategy for email marketing campaigns.

With segmentation, you can customize offers and news based on guest data. For instance, you can send information and promotions about kid-friendly activities to your guests that travel with their families.

8. Reward loyal guests

According to Kalibri Labs, Ioyalty-related bookings account for more than half of total hotel bookings in the US. With the right technology platform, you can easily see which of your guests visit most often and/or spend the most on property.

You can build greater customer loyalty by recognizing and rewarding these high-value guests with special perks that speak to their preferences. As a result, they’ll feel valued and are more likely to become brand evangelists, spreading the word and further boosting guest satisfaction.

Oct 14 2023

Centara and SCG Energy join forces to pave the way for ‘Smart Hotels’ with renewable energy

Centara Hotels & Resorts, Thailand’s leading hotel operator, has formalised a Memorandum of Understanding (MOU) with SCG Cleanergy Company Limited, a service provider of solar energy solutions for industrial sites, hotels, hospitals, and department stores across Thailand. This significant partnership marks Centara’s dedication to embracing the “Smart Hotel” concept by integrating “Smart Energy”, a sustainable and clean electrical technology, throughout its extensive portfolio of hotels and resorts.

Under the terms of this MOU, Centara and SCG Cleanergy are embarking on a transformative journey to research and plan solar energy usage through the integration of “Smart Grid”, a smart electrical network operated by the SCG Cleanergy Platform.

This pioneering initiative will commence with Centara Grand and Bangkok Convention Centre at Central World serving as the inaugural pilot property to utilise renewable energy from SCG Cleanergy as its primary electricity source. The installation of rooftop solar panels capable of generating 861.35 kilowatts of electricity, is expected to reduce over 540 tonnes of carbon dioxide equivalent emissions annually. This clean energy venture is an integral component of Centara’s comprehensive 10-year sustainability plan spanning from 2020 to 2029. This multifaceted strategy seeks to lower the brand’s impact across four key areas by reducing energy consumption, water usage, greenhouse gas emissions, and the amount of waste sent to landfills by 20% compared to the baseline year of 2022. These ambitious goals underscore Centara’s continued dedication to sustainability and responsible environmental stewardship.

Centara Hotels and Resorts

Oct 10 2023

InterContinental Hotels & Resorts unveils a distinctive global brand evolution

InterContinental Hotels & Resorts, the world’s first and largest international luxury hotel brand, is embarking on an exciting new chapter with the launch of an extensive global brand evolution announced today.

This transformative journey is driven by the brand’s long held belief that travel can expand minds and connect cultures, enhanced by cutting-edge technology, innovative design, and the exceptional talents of InterContinental’s diverse team members.

This holistic evolution includes new offerings and experiences, a fresh brand culture, unique brand differentiators, and a game-changing food and beverage and hotel design strategy tailored to the traveller of tomorrow.

With InterContinental hotels in the world’s finest cities from Rome to Shanghai, and 93 new hotels and resorts in the pipeline, these concepts will shape the future of InterContinental.

Tom Rowntree, Vice President of Luxury Brands at IHG Hotels and Resorts, said: “This isn’t a rebrand or repositioning; rather, it’s a comprehensive transformation from start to finish of InterContinental, ensuring we stay at the forefront of crafting a luxury experience for the modern luxury traveler. Collaborating with our 215 hotels worldwide, we are committed to delivering precisely what todays and tomorrows guests, owners and colleagues require.”

New initiatives include scientifically backed food and beverage programmes aimed at helping guests reduce travel fatigue while ensuring dining options reflect differing guest needs throughout the day. All guests will also receive access to the Timeshifter, a jet lag app which enables travelers to use the latest circadian science to adjust quickly to new time zones. InterContinental is collaborating with neuroscience-based designer Isabelle Sjovall to revolutionize guestroom spaces to enhance the restorative process needed for travel fatigue and reimagine other versatile physical spaces so they can seamlessly adapt to evolving needs at different times of the day.

The concierge, at the heart of cultural exploration, will play an even more significant role. InterContinental will develop innovative Concierge Galleries in hotel lobbies, transforming them into epicentres of unrivaled local, cultural knowledge.

Going far beyond the standard concierge desk, these new outposts will more closely resemble a luxury boutique, bringing together interactive displays, library spaces and informative features, in some cases even art installations or designer pop-ups.

InterContinental Hotels & Resorts will further elevate micro-occasions for guests who wish to enjoy any number of life’s milestones, from birthdays to baby showers, through its brand-new Incredible Occasions programme.

The Incredible Occasions programme will help signpost bookable spaces around the hotel, where groups of guests can enjoy privacy while celebrating memorable moments. Unlike grand settings or spacious ballrooms, each intimate space will include programming and packages, consisting of amenities and experiences, such as beautiful tablescapes, decadent candlelit dinners or private masterclasses which can be offered.

InterContinental will also unveil Celebration Suites across its global portfolio. These are reimagined spaces designed specifically to help guests elevate life’s most special moments, from lavish dinner parties to landmark birthdays.

The brand evolution focuses on further elevating quality design and timeless style under the umbrella of “Cultivated Elegance”.

InterContinental’s diverse style domains cater to different traveller preferences, from idyllic escapes such as InterContinental Maldives to romantic getaways at InterContinental Rome Ambasciatori Palace to unique stays at properties such as Bill Bensley-designed InterContinental Khao Yai.

Melissa Messmer, Global Head of Design for Luxury Brands at IHG Hotels & Resorts, said: “Each InterContinental hotel or resort is an experience-driven bespoke concept, tied together by our new Design Pillars that form the strength of our brand design style, Cultivated Elegance.”

IHG Hotels & Resorts currently has a portfolio that spans over 479 properties in more than 70 countries.

IHG Hotels & Resorts

Oct 6 2023

5 tips to get more hotel reviews

Five top tips for getting more reviews from your guests:

1. Just ask

This may seem obvious, but statistics show that “65% of consumers left reviews in response to requests from a business.” Get your team involved in actively asking guests for reviews. Aside from just encouraging reviews, get your staff trained to spot opportunities with guests to enhance your online presence, such as offering to take photos for a group of travellers or creating photo-friendly moments throughout the guest’s stay.

2. Do more than what’s expected

We know it’s not always easy to go above and beyond for every guest’s every stay, but having moments where you can delight your guests could be the difference between them leaving a review or not. According to a study by BrightLocal, “81% of consumers are “likely” or “highly likely” to leave a positive review if they feel the business went above and beyond to ensure an exceptional experience.”

3. Make it easy for your guest to leave a review

Leaving a review can be time-consuming and not top of the list of priorities for most guests, but making it easy and simple for them to leave a review will go a long way in getting those reviews. Try placing strategic QR codes around the hotel, and after the guest has left, you can send them a post-stay email prompting them to leave a review. Again, make it simple by including an easy-to-follow link to leave a review.

4. Show that you care about feedback

Often guests don’t understand the importance of leaving a review. To encourage future guests to leave reviews – and to make those who already have felt heard and acknowledged – it is important to continue to engage with your guest’s feedback. Responding to all reviews is of paramount importance. It can have a positive impact on the way potential guests review your management team and a positive impact on your SEO.

Engagement with reviews shows potential guests that you value feedback and are committed to continuous improvement. Furthermore, you can share the reviews on your social media and on your website as a form of social proof, indicating to future guests that their reviews mean something to your hotel.

5. Remind guests again to leave feedback after their stay

While some guests may be eager to leave reviews, others may need an additional nudge. If you don’t remind them or prompt them to share their experience they may simply forget. Implementing a proactive review request strategy can make a huge difference. For example, Portmeirion Village saw a massive 569% increase in the number of reviews they received on Tripadvisor when they began sending GuestRevu post-stay surveys with Tripadvisor integration.

In the highly competitive landscape of the hospitality industry, mastering the art of collecting online reviews is a strategic move that can set you apart from the competition. By actively engaging your guests, providing exceptional experiences, simplifying the review process, and demonstrating your commitment to feedback, you’ll not only boost your online reputation but also gain valuable insights to improve your service.

Oct 5 2023

H World, formerly Huazhu, produces economy hotels with more than 1,000 hotels in China signed during 2Q2023 alone

What’s behind the name change from Huazhu Group to H World Group in June 2022?

As H World Group may not be so widely known outside China, let me first give a brief introduction.

Our founder (executive chairman Qi Ji) is a serial entrepreneur. He also co-founded Trip.com and Home Inns & Hotels Management. I have never in my life met anyone who brought three companies successfully to NASDAQ (laughs).

The first H World hotel was the economy HanTing Hotel in the suburbs of Shanghai, opened in 2005. Ji already had the vision then of creating a different hotel company. He is an engineering and computer science major, so he always believes that technology can change the hotel industry.

So, we really are using technology in all our operations and our management system to revolutionise the industry.

How is H World revolutionising the hotel industry in China?

We focus on technology-enabled economy and midscale hotels. Around 86 per cent of our rooms are limited service hotels, hence we are able to automate them. We are also going into select service. We do have a portfolio of full service hotels and a few ultra-luxury hotels in China through the acquisition of Deutsche Hospitality, but economy and midscale remains our core. (Note: the acquisition of Deutsche Hospitality was completed in January 2020. H World Group also holds the master franchise for Mercure, Ibis and Ibis Styles, and an agreement to co-develop Mercure and Novotel, in China.)

Most of our hotels are ‘manchised’ (a model that combines management and franchise). We develop all our operating systems internally – the CRM, RMS, PMS, staff management, etc – so we can keep everything in our own ecosystem, which is important. As a result, we have the largest membership programme with 218 million members. The next largest is maybe Jin Jiang (International), probably below 200 million. Marriott (International) has less than 190 million (a check with Marriott shows it has 182 million Bonvoy members globally). Our members account for 76 per cent of nights spent in our whole system – so, technology has enabled us to develop traffic.

We also automate almost everything. Members can book online through our app, choose or change rooms online, check in automatically at the lobby, produce the key and go to their room, order services such as laundry online, request for extra pillows and our robots – we have lots of them now running around in our hotels – will deliver and call them to pick up the items outside the door. Basically, you can do practically everything online.

What is your staff to room ratio?

Half of the industry standard. We still spend quite a lot of time thinking about how we can further use technology to improve efficiency.

We also try to make life easy for our franchisees. Each of our brands has a clear design and the hotels are highly standardised. We have a very big supply chain management; we even source construction companies for them (franchisees). So, if you are a lazy franchisee, you don’t need to do too much – you just need to get the location and pay for the model. As you know, with the managed franchise model, we recruit the hotel manager, train the staff and send them to the hotels to deliver our standard.

We are proud that we have revolutionised the Chinese hotel industry and we are still growing very fast.

Limited service is still the biggest market no matter where, even in the US, because only a small portion of people can afford luxury.

I travel a lot internationally and I believe our limited service products are among the best in the world.

When you compare our products such as HanTing with, say, the motels in the US or Europe, ours are much better products. We keep our rooms clean and extremely efficient, and we constantly push out a new version of our brands and ensure people will love them.

I noted that in the first half of the year you closed 302 low-quality economy soft brand hotels, and HanTing 1.0 properties, as part of your drive towards quality growth.

Yes, we are not looking to pump up our number of rooms. We tried that before and learnt from the Oyo effect (the group still has a small stake in the budget hotel player). We tried to imitate their business model and created a soft economy brand but it didn’t turn out well. The business model is just distribution: you come onto my platform and I charge you a fee. We found a lot of the hotels were just not up to our standard. Some were badly managed. It’s more damaging to our reputation.

You already have 8,622 hotels in operation as of June 2023. I saw that you signed 1,054 new hotels in China in 2Q2023 alone, a jump from 561 signings in 2Q2022. These are excluding the economy soft brand hotels. Is it still a lot of room to grow, especially in secondary-tier cities?

We find that more and more customers in China, and more so in the US, like branded hotels, even in the lower end. In the US, 70 per cent of hotels are branded. In China, I saw a newly-published number from an association that 38 per cent are branded, compared with 26 per cent in 2019. You can see it’s increasing fast.

During Covid-19, many independent hotels closed shop. They learnt it’s quite difficult to make money in such (an unprecedented) down cycle. People began to understand they needed a consistent brand and a solid distribution system. This benefitted us actually.

Are you growing fastest in Tier 3-4 and below cities?

China is a huge single market. There are four Tier 1 cities – Beijing, Guangzhou, Shanghai, Shenzhen – followed by the Tier 2 cities, which are the capital city of each province, and we are quite well covered in many of these cities. It’s important to go into every corner where we can have our hotels, thus we’ve set up a target of about 2,000 counties we think are possible for our expansion. Currently, we’ve covered close to 1,100 cities and counties, so still quite a lot of blank spots for us to go into.

During Covid-19, there’s less business, so we did some internal restructuring and set up six regional offices – in east China, south, central, west, north and north-east – to penetrate those places.

How’s the situation in China now? What are your views on reports of China’s cooling economy and China’s property crisis?

Actually, business is excellent for us. As you saw, our first-half earnings were the best ever.

We did not feel a slowdown. We benefit if there is a consumption downgrade as demand for our types of hotels grows stronger. We also benefit from revenge consumption, and there was some of that as reflected in the Spring Festival, for example.

There are lots of projections about how China’s GDP is going to grow. I’m not an economist, so it’s difficult for me to comment. What I want to stress is our business model is inelastic. If the business environment is good, we do well. If the business is challenged and people do not have that much money to travel, they will come to our hotels because these are really mass market products.

We do not see a slowdown in our demand. This year, we’re going to do quite well and we believe this trend will continue for our hotels.

But we don’t see Chinese travellers coming back in full force yet. What’s your take on the outbound market?

There are several reasons. One, (the number of) people who could afford outbound travel is not a huge amount (versus domestic travel). Second, the international flights are not fully recovered. The third is the visa issue – a lot of people cannot get visas. So, it’s a different play from the domestic mass market.

You’ve opened an office in Singapore. Are you planning to expand your brands in Asia?

We already have a JI Hotel (in Singapore), which opened during (the pandemic). It did quite well during the (recent) F1 event.

I think some of our brands that are universal, like JI and Orange, could be expanded. It depends on the market and on the owners.

Is Thailand an opportunity, since it’s the biggest market for Chinese travellers who are already familiar with your brands?

Yes, we do like Thailand, also Vietnam – actually the whole South-east Asia because our members like to go to these countries.

You joined the company in 2021 as CEO of international business, from CapitaLand and Temasek in Singapore. You were then promoted to H World Group CFO in December 2022. How do you find the hotel business in China?

(Laughs) It’s very interesting and I meet very interesting people, especially at property level. They are so passionate and pay attention to every detail. I really like to interact with them – it’s better than dealing with data centres!

H World 华住

Source: TTG Asia

Oct 3 2023

New York’s Historic Waldorf Astoria Inches Into New Era

Landmark Hotel Has Been Under Renovations Since 2017 To Add Luxury Condos

One of the most iconic hotel properties in New York, The Waldorf Astoria hasn’t housed a single guest since its Chinese ownership decided to shutter the building in 2017 and convert a significant portion of its rooms into luxury condos.

Six years later, there has been some recent movement on the property, including recently approved plans for a revamped ballroom space, but the most up-to-date timeline still doesn’t call for the property to reopen until 2025.

Here’s what you need to know about the world famous hotel and its path to reopening.

The Waldorf Astoria was sold by Hilton in 2014 for $1.95 billion to China-based Anbang Insurance agency with Hilton signing a 100-year deal to maintain the branding and operations of the property.
The 47-story building is located at 301 Park Ave.
Hilton’s Waldorf Astoria Hotels & Resorts brand now has a portfolio of 34 hotels across the globe, including the New York hotel.
The hotel closed in 2017 for renovations and is converting a large amount of the hotel’s space into 375 luxury condos, which were reported to cost in the range of $18 million a piece for buyers. At the time of closure, the property had more than 1,400 guest rooms but is expected to reopen with just 375.
Immediately after the hotel’s closure, the New York City Landmarks Preservation Commission unanimously voted to protect “several interior spaces.”
The Waldorf Astoria is now owned by Beijing-based Dajia Insurance Group, a financial group created after the Chinese government took over the financially troubled Anbang Insurance Group and the company’s chairman was arrested under corruption charges. Dajia has been steadily selling off its other hotel assets.

In early 2023, company executives announced the property will not reopen until 2025 at the earliest. Previously it was suggested the hotel could reopen in 2024.

Most recently, the Landmarks Preservation Commission unanimously approved plans in August to change the hotel’s grand ballroom, one of the several protected spaces on the property.

The New York Post reported in 2022 that costs for the projects have ballooned to roughly $2 billion, twice the original estimate.

Source: Hotel News Now

Oct 3 2023

Rosewood Hotel Group Commits to Branded Residences for the Long Term

More than 50% of Rosewood Hotels and Resorts’ existing portfolio and development pipeline include a branded residence.

Brad Berry, vice president of global residential development at Hong Kong-based Rosewood Hotel Group, said the decision to develop residential components starting in 2008 felt like a natural progression for the company.

It was evident there was space for the branded residential business to grow. And it did.

Rosewood Hotels & Resorts has 14 Rosewood Residences open and operating that are situated within or directly adjacent to a hotel or resort. Eleven residences are currently in the pipeline.

In the past year, the company announced its new stand-alone residences include the Rosewood Residences Kamala in Phuket, Thailand; Rosewood Residences Naples in Naples, Florida; Rosewood Residences Lido Key in Sarasota, Florida; Rosewood Residences Hillsboro Beach in Hillsboro Beach, Florida; and Rosewood Residences Beverly Hills in Beverly Hills, California.

“I’ve been involved in this business for many years, both on the developer side and the brand side in a variety of capacities and … it’s real estate at the end of the day, and that’s a business that’s going to go forever. This little nugget of that [real estate] business is really pretty special from a hospitality and hotel standpoint,” he said.

“The one thing that we have done is focus in the past couple years on the stand-alone [residences] business, which is a branded residential building or group of homes without a hotel. We can continue to see that growing as well. But we like both of those, whether it’s a mixed-use or a stand-alone,” he said.

They key components that Rosewood looks for in a branded residential deal are alignment with the development partners, a robust real estate and hotel market that needs luxury accommodations, and interest in the market from current owners.

Though the real estate business can be cyclical, Berry said: “If you stick with it in the long term, then I think people will benefit, and developers will benefit. We’re in it for the long term.”

Developers look to brands such as Rosewood for a track record of mitigating risk, creating confidence and generating demand, he said.

Berry said Rosewood doesn’t have a preference between developing a stand-alone residence or one with a hotel, but a stand-alone allows the brand to enter in more “real estate markets” that aren’t necessarily a great fit for a hotel.

“Or you could infill in a market where you already have an existing hotel … in some of the big U.S. cities and European cites,” he added.

There currently isn’t a large supply of branded residences in Europe, Berry said, and Rosewood sees plenty of opportunity there in urban centers.

The challenge, however, is dealing with a larger amount of older buildings that come with zoning hurdles.

“It’s exciting; we kind of have become a steward of these older, iconic buildings,” he added.

The average development timeline for an existing building is two years, while a greenfield development can take up to five.

Rosewood will continue to focus on expanding in Asia and North America, and there is untapped potential for the brand in South America. The company has a residential and hotel in São Paulo, Brazil, that is performing well, he said.

Source: Hotel News Now

Oct 1 2023

Guest Satisfaction: 8 Ways to Improve It

A modern hotelier knows that the crux of success isn’t just about good interiors or fine dining; it’s about how guests feel during their stay. That feeling, often intangible yet unmistakable, encapsulates what the industry terms as ‘guest satisfaction’.

It’s more than a mere metric; it’s a narrative of guest’s experience. A tale of moments where the hotel met or outdid their expectations.

What is Guest Satisfaction?

Simply put, it’s the barometer that gauges how pleased guests are with a hotel’s offerings and services. It’s founded on three core Q’s:

Quality
Quantity
Quickness

The equation is simple here: high-quality service + the right quantity of amenities + quick responsiveness = peak guest satisfaction.

Imagine a cramped room, devoid of essential amenities, and service that’s slower than a snail’s pace. The feeling of disappointment looms large, doesn’t it?

This highlights how crucial the trio of quality, quantity, and quickness is in defining guest satisfaction in the hospitality industry. When these three elements align, hotel customer satisfaction soars, and when they don’t, the very essence of the guest’s experience falters.

Why does Guest Satisfaction matter?

Satisfied guests become ambassadors, their word-of-mouth referrals catalyzing new footfalls and ensuring repeat business.

To put it in perspective, without a reservoir of satisfied guests, hoteliers can find themselves shelling out 5 to 25 times more money just to reel in new customers.

But the repercussions stretch further. By elevating hotel guest satisfaction ideas into strategy, hotels not only foster loyalty but also sidestep potential crises. Being proactive, anticipating hurdles, and tailoring services with precision can save countless hours and mitigate stress for both staff and management.

How to measure Guest Satisfaction?

Guest Satisfaction Surveys (GSS)

Hotels can extend a digital link, allowing guests to share experiences and rate services on varied facets. This method ensures a comprehensive guest satisfaction score, exclusive to the property’s archives. Consolidate this feedback and your average satisfaction rate is at your fingertips.

Online Reviews on OTAs

Understanding the underlying sentiments behind Online Travel Agencies (OTAs) reviews can make a world of difference. You can pinpoint areas of your service that shine and those that require attention. It’s about turning feedback into an actionable roadmap for enhancement. It provides insights into guest satisfaction in the hotel industry across categories, be it room amenities, culinary delights, or ambiance.

8 ways to enhance Guest Satisfaction

1. Online Reviews: Over 40% of travelers share their experience online after a pleasant stay. Monitoring platforms like Tripadvisor, Expedia, Google, and Booking.com is essential. A higher review rating can significantly influence booking decisions. Be proactive; embrace both commendations and critiques.

2. Customer Satisfaction Surveys: The digital version of the age-old feedback form, surveys offer insights directly from the guest. Metrics like:

CSAT (Customer Satisfaction Score): “How would you rate your overall satisfaction with your stay?”
CES (Customer Effort Score): “How easy was it to interact with [property name]?”
NPS (Net Promoter Score): “How likely is it that you would recommend us to a friend or colleague?”

These scores offer a comprehensive guest satisfaction meaning, pointing to areas of improvement.

3. Online Reputation Solutions: The digital influx has resulted in an avalanche of online reviews. Using online reputation management tools like Quoality can help streamline, organize, and act on feedback. This holistic approach amplifies guest satisfaction in the hospitality industry.

4. Website Live Chat: A real-time solution to real-time queries! A live chat feature can bridge the information gap, offering instant answers and ensuring a seamless booking experience.

5. Social Media: Social platforms are the new-age concierges. Engage with your audience, run polls, ask for suggestions, and be a part of the conversations with tools like Linkfluence and Mention. Social engagement can redefine guest satisfaction in the hotel industry.

6. Digital Messaging Platforms: Why wait till checkout? Send automated text messages during a guest’s stay, seeking feedback. A timely intervention can remedy any dissatisfaction, ensuring a memorable stay.

7. Hotel Upselling Software: Offering room upgrades or spa sessions can not only increase revenue but also enhance the guest experience. It’s a gentle nudge to make their stay special. It’s not just about upselling; it’s about elevating their experience with the help of a leading upselling software like Quoality.

Conclusion

While technology has provided an array of tools to measure and enhance satisfaction, the foundation remains rooted in genuine human interactions, attentive service, and the drive to exceed expectations. Remember, every guest carries with them a narrative, a set of desires, and an idea of the perfect stay. By tuning into these narratives and aligning our services accordingly, we not only ensure their satisfaction but also secure their loyalty. After all, a satisfied guest is the best brand ambassador any hotel can hope for.

Source: HNR Hotel News

Sept 29 2023

PATA Welcomes Noor Ahmad Hamid as New CEO

The Pacific Asia Travel Association (PATA) is pleased to announce the appointment of Mr. Noor Ahmad Hamid as its new Chief Executive Officer, effective October 1, 2023. Noor’s appointment for a three-year term will usher in a new era for PATA as one of the world’s most influential industry associations dedicated to promoting responsible travel and tourism within the Pacific Asia region.

A Malaysian citizen, Noor, 60, has had a distinguished 35 years career in Travel & Tourism, including the last 13 years specialising in the critical Meetings, Incentives, Conventions and Exhibitions (MICE) sector.

PATA Chairman, Peter Semone, said, “We extend a warm welcome Noor to the PATA family. He is clearly the right person for this job at the right time. His extensive experience in association management, particularly in the trade association sector, and his deep understanding of the Asia Pacific region make him the ideal leader for PATA in this crucial period of change and challenge. The Executive Board unanimously supports Noor’s appointment and looks forward to working with him to build a more resilient, responsible, responsive, sustainable, and stronger travel and tourism industry.”

Noor commented, “I am deeply humbled by this opportunity and extend my heartfelt gratitude to PATA Chairman and Executive Board for their trust and support. I pay tribute to PATA’s founders and leaders, past and present, and applaud the members for their steadfast support over the years.”

He added, “The Asia-Pacific travel and tourism industry is rebounding faster than anticipated. But this is an era in which crises have become the New Normal. Helping the PATA membership deal with them will be equally as important as helping them capitalise on the many opportunities. I believe PATA’s long history and collective strength makes it well placed to deliver value, stability and sustainability in a rapidly evolving New World Order.”

Noor’s inaugural engagement as CEO will be at the prestigious PATA Travel Mart, scheduled from October 4 to 6 at Pragati Maidan, New Delhi, India. He looks forward to connecting with host destination officials and members, chapter and youth leaders, exhibitors and buyers, partners, members of the media, and the entire travel and tourism community.

Born in the state of Perak, Malaysia, Noor graduated with a diploma in Tourism Administration from the MARA Technological University (UiTM), Malaysia. In 1984, he joined the Malaysia Tourism Promotion Board (now Tourism Malaysia) and served there for more than 16 years in the Public Relations, Marketing, Domestic Promotion and Convention departments. He was also based in its Los Angeles, USA office for four years.

After a brief stint at an events management company specialising in international sporting events, Noor joined a Malaysian government-affiliated company focussing on hospitality and tourism investment.

In 2009, Noor joined the International Congress and Convention Association (ICCA) as the Regional Director of Asia Pacific where he served for 11 years gaining enormous experience in the nuances of not-for-profit association management. During his tenure, membership in Asia Pacific grew substantially to become the largest regional bloc within ICCA.

In 2019, he was appointed COO of Malaysia Convention and Exhibition Bureau (MyCEB) and played a key role in the post-Covid recovery of Malaysia’s business events industry

In 2022, he was inducted into the Events Industry Council Hall of Leaders, the most prestigious award in the global business events industry, the only Asian recipient alongside distinguished professionals from America and Europe In 2018, he received the China MICE Leaders Award from Meetings and Conventions China for his contributions to the Asia Pacific region.

PATA

Sept 28 2023

Thailand Convention and Exhibition Bureau (TCEB) aims the country to become a high value-added MICE destination

In a bid to build up Thailand’s image as a high value-added destination, TCEB seeks out opportunities that enable event owners and organisers to tap into high-potential future industries while also making it easier to discover more authentic and localised activities that meet the demands of a new generation of MICE visitors.

TCEB’s new focus on future opportunities is supported by insights from a recent study “MICE Foresight” that revealed the future-oriented opportunities and authentic experiences to be among the top buying criteria.

TCEB President, Mr. Chiruit Isarangkun Na Ayuthaya, said: “As an advocate for Thailand’s MICE industry, TCEB keeps a close eye on how Thailand stands out.”

Towards this end, TCEB is drawing on its experience in promoting MICE Cities as well as its collaboration with the Office of the Eastern Economic Corridor (EEC) who is in charge of driving the country’s strategic industrial sectors.

The following projects illustrate TCEB’s pivot towards future opportunities and authentic experiences:

Promoting Pattaya as the business hub of the EEC

In addition, TCEB has also collaborated with the City of Pattaya to create a special “City Package” for MICE which was launched at IT&CMA 2023 during 27-28 September.

Promoting the gastronomy of Phuket

TCEB is building on Phuket’s status as a UNESCO Creative City of Gastronomy and the city’s own gastronomy promotion campaign to create a fine-dining experience called “Food for Faith” as part of TCEB’s Festival Economy initiative. Inspired by the island’s Vegetarian Festival and co-created with some of Phuket’s most celebrated chefs. A showcase of creative ideas and a fusion of wellness wisdom curated from the island’s culture, “Food for Faith” will introduce visitors to a new side of Phuket and help establish it as an island paradise par excellence for MICE.

Promoting Chiang Mai as the gateway to Thailand’s best coffees and teas

Fresh from celebrating Chiang Mai’s win as a “World Festival and Event City” from the International Festivals & Events Association (IFEA) in 2022, TCEB has embarked on a new project with Chiang Mai and Chiang Rai to develop a multi-faceted coffee-and-tea route for MICE visitors.

Thailand Convention and Exhibition Bureau

Sept 20 2023

Manish Nambiar appointed Managing Director of Siam Kempinski Hotel Bangkok and Vice President Operations, South East Asia Kempinski Hotels

A veteran hotelier with almost 20 years of experience with Kempinski, he joins one of Kempinski’s flagship properties from his executive role as Area General Manager of Africa since 2021. In his previous position, he oversaw the operations of all Kempinski properties in the Africa region and was based at Kempinski Hotel Gold Coast City Accra, in Ghana.

Manish started his career path with Kempinski S.A. as a food and beverage specialist in Tanzania, East Africa in 2004 and enhanced his expertise by opening various Kempinski properties in the Middle East and Africa.

As the Vice-President of Operations for South East Asia, Manish will be responsible for the execution of operations, including service, operational brand standard delivery and the quality of all Kempinski hotels in the region. He will be based at Siam Kempinski Hotel Bangkok and will lead four other stellar properties in South East Asia.

‘I am proud to join an iconic landmark and flagship property of Kempinski and contribute to Thailand’s incredible reputation for warm hospitality and Bangkok’s dynamic hospitality community’, he said.

Like all hotels of the luxurious European hotel group, Siam Kempinski Hotel Bangkok is a member of the Global Hotel Alliance (GHA), the world’s largest alliance of independent hotel brands, and offers a wide variety of benefits to members through the KEMPINSKI DISCOVERY Loyalty Programme.

Kempinski Hotels

August 30 2023

KEY ELEMENTS OF A USP (Unique Selling Proposition)

There are three factors that determine a hotel’s USP and only three.

Location.
Comfort.
Value.

A good USP integrates all three elements to form a clear concept of the hotel. If you are unique (and positively so) on all three points your USP is perfect. But that’s rare (in fact so rare if this is the case you don’t need any marketing at all). You’ll often find one of these points is totally unique and the other two are passable. It can happen that only one is great and the other two are not good at all, then put all your focus on what’s great as that could be enough to drive people to your hotel.

Let’s go over these three points a bit more.

LOCATION

With your location you are telling the future guest that your hotel is going to save them time if you are not in the city center then show them how easy it is to reach the city center from your hotel. If there’s a direct subway line to the city center or other point of interest then use it to your advantage. If you’re just too far from anything of interest then you can still use it to your advantage but we’ll cover that in the other points.

COMFORT

The decoration and interior design fits in there. But remember you need to tell your future guest how they will personally benefit from it. Essentially you need to tell them how it will make their life better. Ultra comfortable beds in a luxury setting, 24 hour service, voted the friendliest staff in the city are all great ways to take advantage of comfort. However pictures say a lot about comfort and large images of the rooms and the comfort will do more than many words.

VALUE

This doesn’t need too much explanation. Is your hotel going to save them money? That doesn’t mean you’re going to only be cheap, it means that you could be the best value money can buy – while still having a high average daily rate. Remember that it’s about customer perception and that’s not necessarily objective. Here’s where a bad location can be an advantage, your hotel may not be in the city center but because it’s a bit further away it’s cheaper for a much better quality. Just like the classic ad campaign by Avis “We’re only number two but we try harder.” A hotel can use its negative position as an advantage in comfort and value.

SUMMARY AND HOTEL USPS

Everybody needs a USP – because guests aren’t interested in staying somewhere that isn’t the best nor the cheapest. As hoteliers and marketers it’s your job to find out where you are the best and how you are the cheapest in a particular sector.

August 28 2023

A Beginners Guide to Lead Generation for Hotels

If you’re in the hotel business, then you know that generating leads is essential to your success. After all, without leads, you won’t have any guests! That’s why we’ve put together this beginner’s guide to lead generation for hotels.

Let’s cover some of the basics of lead generation, including what it is, why it’s important, and how to do it the right way. By the end, you’ll have a better understanding of how to generate leads for your hotel business and be on your way to more guests (and more business)!

So, let’s get started!

What is lead generation?

Lead generation is the process of attracting and converting strangers into potential customers or guests. In other words, it’s how you get people to come to your hotel.

There are several ways to generate leads, including online and offline marketing techniques, as well as word-of-mouth referrals. You just need to find the lead generation method that works best for your business.

Why Is lead generation important?

Lead generation is an essential aspect of any successful business or marketing strategy. This is because it helps to identify and target potential customers who are likely to be interested in a particular product or service. By generating leads, businesses can reach out to a larger audience, increase brand awareness, and drive sales and profits.

Many factors contribute to the importance of lead generation. First, it allows businesses to better understand their customers’ needs and preferences. This information can then be used to develop more effective marketing campaigns that speak directly to these needs and interests.

Second, lead generation makes it possible for companies to connect with consumers at all stages of the buyer’s journey—from initial interest through conversion and beyond. This enables businesses to engage with potential customers at exactly the right time and in a way that resonates with them most effectively.

Third, generating leads helps companies build strong relationships with their customers over time. By building trust and credibility through regular interactions, businesses can establish themselves as thought leaders in their industry, gain valuable referrals, and nurture long-term customer loyalty.

Overall, lead generation is an important tool for success in today’s competitive business environment. It enables companies to effectively engage with prospects across multiple channels and build meaningful relationships that drive results for years to come.

How to generate leads for your hotel business

There are several ways to generate leads for your hotel business. Some of the most effective methods include:

1. Identifying your target market

The first step in generating leads for your hotel is to identify your target market. Who are you trying to reach with your marketing efforts? What type of guest are you trying to attract? After you’ve identified your target market, you can start targeting your marketing efforts specifically toward them. This will help you generate more qualified leads who are more likely to convert into guests.

2. Using SEO to drive traffic to your website

Another great way to generate leads for your hotel is to use search engine optimization (SEO) to drive traffic to your website. By optimizing your website for specific keywords that your target market is searching for, you can increase the chances that they’ll find your website when they’re looking for hotels in your area. When they already find your website, all you need to do is provide them with a way to contact you (more on that in a minute) and you’re well on your way to generating a new lead!

3. Providing a way for guests to contact you

Once you’ve driven traffic to your website, you must provide visitors with a way to contact you so that they can inquire about booking a stay at your hotel. The best way to do this is to include a contact form on your website that visitors can fill out with their information. After submitting the form, their information will be sent directly to you so that you can follow up with them and try to close the sale.

4. Using paid advertising

Another great way to generate leads for your hotel is through paid advertising. There are several different platforms where you can place ads (such as Google AdWords or Facebook Ads), and each platform has its own set of targeting options that allows you to reach specific audiences with your ads.

Paid advertising can be an effective way to generate more leads because it allows you to reach people who are already interested in what you have to offer.

5. Staying in touch with past guests

Of course, remember past guests! These people have already stayed at your hotel and had a positive experience, so they’re more likely than anyone else to book another stay in the future.

Stay in touch with them by sending them periodic emails or postcards letting them know about any special offers or promotions that you’re currently running. You could also invite them to your corporate events or make them aware of any changes or improvements that you’ve made to your hotel.

By staying in touch with past guests, you’ll be able to generate repeat business and create loyal customers who will continue booking stays at your hotel for years to come.

Wrapping up

Generating leads is essential for any hotel looking to succeed in today’s competitive market. By using the methods described above, you can start generating leads for your hotel business and putting yourself on the path to success.

Source: eHotelier

August 22 2023

Six Hotel Sales Strategies To Increase Occupancy And Revenue

A hotel sales strategy is a plan of action designed to increase hotel revenue and bookings. It involves identifying target markets, setting sales goals, and creating a plan to achieve those goals.

Here are six hotel sales strategies to increase your revenue.

1. Understand your target audience

It is important to understand who your guests are in order to provide relevant offers and guest experiences and find the right channels to reach them. Once you know who your target audience are, it will be easy to plan your sales strategy and offer deals to attract them to your hotel.

2. Use social media marketing

Here are some ways to use social media marketing for hotels:

Choose the right platforms: Not all social media platforms are created equal. Identify which platforms your target audience uses and focus your efforts on those platforms. For example, Facebook and Instagram are popular platforms for travel-related content.

Create engaging content: Use high-quality photos and videos to showcase your hotel’s amenities and unique features. Share interesting and relevant content such as travel tips, local events, and food recommendations.

Utilize user-generated content: Encourage guests to share their experiences at your hotel by using hashtags or tagging your hotel in their posts. Share user-generated content on your hotel’s social media channels to showcase positive guest experiences and promote your hotel.

Offer promotions and deals: Use social media to offer exclusive promotions or deals to your followers. This can encourage them to book directly with your hotel instead of through third-party booking sites.

Engage with your audience: Respond to comments and messages promptly and in a friendly manner. Use social media as a way to build relationships with potential guests and provide excellent customer service.

Collaborate with influencers: Partnering with influencers can be a powerful way to promote your hotel to their followers. Identify influencers who align with your hotel’s brand and values, and work with them to create sponsored content.

Monitor analytics: Monitor your social media analytics to track the success of your social media efforts. Use this data to refine your strategy and improve your social media presence over time.

3. Partner with local businesses

Partnering with local businesses such as tourist attractions, restaurants, and shopping centres can help attract more guests to your hotel. Offer discounts or special packages to guests who visit these businesses.

Here are some steps to follow when partnering with local businesses:

Identify relevant businesses: Identify local businesses that are likely to attract potential hotel guests. This might include tourist attractions, restaurants, shopping centers, and transportation providers.

Reach out to potential partners: Contact potential partners and introduce yourself and your hotel. Explain the benefits of a partnership and how it can be mutually beneficial. For example, you might offer to promote the partner’s business to your guests in exchange for them promoting your hotel to their customers.

Offer exclusive deals or packages: Work with your partners to create exclusive deals or packages that are only available to guests who visit both your hotel and the partner’s business. This can encourage guests to stay at your hotel and visit the partner’s business, and vice versa.

4. Offering promotions and deals

Here are some examples of promotions and deals that hotels can offer:

Discounted rates: Offer special rates for specific times of the year or days of the week. For example, hotels might offer lower rates for weekday stays or during the off-season.

Package deals: Create package deals that include extras such as free breakfast, spa services, or tickets to local attractions. This can add value for guests and encourage them to book directly with the hotel.

Last-minute deals: Offer last-minute deals for guests who book within a certain timeframe. This can help fill rooms that might otherwise go unoccupied and increase revenue.

Group discounts: Offer discounts for group bookings, such as weddings, conferences, or other events. This can attract large groups of guests and increase revenue.

Gift cards or vouchers: Offer gift cards or vouchers that can be used for future stays or amenities such as restaurant or spa services. This can encourage guests to return to the hotel and increase revenue.

5. Provide exceptional customer service

Exceptional customer service is critical to the success of any hotel. Train your staff to provide personalized, attentive service to guests, and respond quickly and efficiently to any issues or concerns they may have.

Here are some tips for providing exceptional customer service:

Greet guests warmly: Greet guests with a smile and a warm welcome. Use their name if possible and offer assistance with their luggage.

Be attentive to guest needs: Anticipate guest needs and offer assistance whenever possible. This might include providing extra towels or pillows, offering recommendations for local attractions, or arranging transportation.

Respond promptly to guest inquiries: Respond quickly and professionally to guest inquiries and concerns. This might include answering questions about hotel amenities, resolving complaints, or addressing maintenance issues.

Provide personalized service: Treat each guest as an individual and provide personalized service based on their needs and preferences. This might include offering a specific room type, providing a welcome amenity, or catering to dietary restrictions.

Follow up with guests: Follow up with guests after their stay to ensure they had a positive experience and address any concerns they may have had. This can help build guest loyalty and encourage repeat business.

Empower staff to provide excellent service: Train hotel staff to provide excellent service and empower them to make decisions that benefit the guest. This can help create a culture of exceptional service throughout the hotel.

6. Monitor online reviews

Online reviews can greatly influence a guest’s decision to book a hotel. Monitor and respond to online reviews promptly, and use feedback to make improvements to your hotel’s amenities and services.

Here are some tips for monitoring online reviews effectively:

Claim your listings: Claim your hotel’s listings on popular review sites such as TripAdvisor, Yelp, and Google My Business. This will allow you to respond to reviews and update your listing with accurate information.

Set up alerts: Set up alerts for new reviews so that you can respond in a timely manner. This might include email notifications or using a reputation management tool that aggregates reviews from multiple sites.

Respond to reviews: Respond to reviews, both positive and negative, in a professional and courteous manner. Thank guests for their positive feedback and address any concerns or complaints they may have had. This can help show that you value guest feedback and are committed to improving the guest experience.

Address issues raised in reviews: Use feedback from online reviews to identify areas where the hotel can improve. This might include addressing issues such as cleanliness, maintenance, or service.

Encourage guests to leave reviews: Encourage guests to leave reviews by including links to review sites in post-stay emails, on your website, or in promotional materials. This can help increase the number of reviews and provide a more representative picture of the guest experience.

Conclusion

Hotel sales strategies should be monitored regularly to ensure they are achieving the desired results. This might involve tracking metrics such as occupancy rates, revenue per available room, and guest satisfaction scores, and making adjustments to the sales strategy as needed.

Source: eHotelier

August 21 2023

Six Technologies That Boost F&B Revenue

With hotels focused on increasing revenue per available room (RevPAR), food and beverage (F&B) revenue is often an overlooked source of financial opportunity for properties.

Hotels and resorts can’t afford to ignore their F&B offerings, and successful properties invest in innovative technology solutions that expand their F&B reach and create new revenue streams to improve their bottom line.

As reported in a survey by the International Association of Conference Centers earlier this year, while location and price rank the highest to planners, a hotel’s F&B takes the third spot on their priority list during site selection. Today’s F&B solutions offer more choices to guests in terms of anytime access and flexibility in ordering, elevating their experience on property and further personalizing their stay, and help hotels optimize operational efficiency and retain their strongest employees.

1. Digital Menus

Digital menus can provide guests with a clear view of ingredients and nutritional information, and they can offer upsell opportunities for the hotel. Guests can easily make choices on dynamic menu boards updated in real-time. If the restaurant is out of a food item, it will not appear on the menu, and the property avoids disappointing the guest and wasting their time.

Many digital menu solutions allow users to create menus with supplied templates or create their own designs with high resolution images, dynamic pricing, and menus with auto-updates at scheduled times. Venues can program rotating menus and promotional prices or seasonal specials. Connecting the digital menus to the property’s F&B point-of-sale system on the back end ensures all prices and images are auto-updated so guests are viewing all selections, nutritional information, and pricing in real-time.

2. On-Demand Food and Beverage (F&B) Service

A guest-facing order-and-pay solution is a revenue stream that many properties are missing out on because they do not extend their F&B service beyond the walls of the restaurant. Through on-demand F&B service, guests can access menus from multiple food and beverage outlets across the hotel property, can conveniently pay via their mobile device, and have food ready for pickup or delivered wherever they are on property by scanning a location-specific QR code – whether in their room, by the pool, or in the spa. This extends the convenience of anytime ordering to meet the guest on their terms.

With the right F&B solutions partner, properties can improve operational efficiency. On-demand menus can be updated in real-time to avoid guests ordering items that are no longer available, and venues can be displayed or hidden on the solution to coincide with their operating hours. On-demand solutions help improve the level of service provided, as allowing the guest to order directly ensures order accuracy, the guest doesn’t have to wait for staff to take their order, and the order goes straight to the kitchen without delay. An on-demand solution can also recommend upsell items, increasing the average ticket.

3. Self-Service Kiosks

Self-service kiosks allow resorts to expand their service reach by providing F&B outlets and grab-n-go markets with a quick self-serve and self-pay option for guests. This technology has seen rapid adoption at grocery stores, and more recently, with unassisted bag drop at airports. For hotels, kiosks provide guests the freedom to browse menus at their convenience, from anywhere on property, without requiring staff interaction. This is especially appealing to guests where the control of self-service and moving quickly through lines is held in high regard.

4. Point of Sale (POS) with Mobile Functionality

While on-demand F&B service provides guests with a self-service option, mobile POS solution allows staff to take F&B service to guests who desire a more personal service experience. Resorts are finding that mobile point-of-sale solutions for food and beverage service dramatically increases profitability by allowing staff to cover more tables in a shorter period, reducing staff stress, and allowing the resort to operate in situations with limited staff availability.

Through full POS functionality offered on a tablet, staff can offer F&B service to guests in areas like the pool deck, on the casino floor, in the spa, or in the lobby. Menus, ingredients, and specials are updated in real time, and orders go immediately from the tablet to the kitchen reducing errors. This is another opportunity where technology increases efficiencies yet also creates another high value interaction point with the guest.

5. Contactless Payment

Solutions that allow guests to scan a QR code on their food bill to pay their check or give them the option to pay on their mobile device are convenient and time-saving for guests and staff. Guests don’t have to wait for a server to return to process their credit card, providing the added security of ensuring the guest’s credit card always stays in their possession. Guests have now been conditioned to expect flexible payment options like contactless payments. As a result, properties have seen a rise in adoption especially within the last year.

6. Inventory and Procurement (I&P) Solution

One area that many hotel properties forget to prioritize is inventory and procurement. A large portion of a property’s operating costs are related to food purchases and optimizing how supply is managed on an ongoing basis. I&P solutions help staff manage and predict inventory needs, manage food costs, and limit food waste.

Why F&B is More Important than You Think

Aside from its impact on property revenue, hotel F&B is one area that can make an immediate impression on the guest, build loyalty, and affect the property’s reputation. Food experiences play a critical role in guest stays as can be witnessed on vacation social posts. A bad food experience, whether unavailable food choices, ingredients not being displayed, or poor service, can lead to negative reviews of a stay. Even if every other aspect exceeded guest expectations, a bad food experience can damage a property’s rating. This also plays an expanding role in terms of contribution to RevPAG.

F&B is also important for hotels focused on meetings and events business. According to the International Association of Conference Centers, “Accommodating guests’ dietary needs is a great opportunity for upselling. No attendee wants to forgo a meal because of an allergy or a food sensitivity, and rarely do they want to make a fuss about their dietary restrictions…Venues that can serve vegan, vegetarian, gluten-free, and dairy-free options will be more attractive to planners even if they are more expensive.”

Properties can’t afford to ignore the importance of F&B in driving loyalty and ongoing hotel revenue. When they provide a variety of F&B offerings delivered through innovative technology tailored perfectly to a guest’s preferences, properties see an increase in spend and a positive impact on the guest experience.

Hotels that offer guests the ability to choose how they want to order food – whether face-to-face with their favorite server in a fine dining restaurant or delivered to their cabana at the pool – will see a direct increase in F&B revenue and better reviews for the property and in the form of tips to their servers.

These properties are retaining their best team members, they are extending the reach of service to capture more orders, they are better managing their food and labor costs due to improved operational efficiency, and helping to forge a lasting bond with guests who receive an exceptional experience through their food and beverage interactions.

About Agilysys

Agilysys is well known for its long heritage of hospitality-focused technology innovation. The Company delivers modular and integrated software solutions and expertise to businesses seeking to maximize Return on Experience (ROE) through hospitality encounters that are both personal and profitable. Over time, customers achieve High Return Hospitality by consistently delighting guests, retaining staff and growing margins. Customers around the world include: branded and independent hotels; multi-amenity resort properties; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. The Agilysys Hospitality Cloud™ combines core operational systems for property management (PMS), point of sale (POS) and inventory and procurement (I&P) with Experience Enhancers™ that meaningfully improve interactions for guests and for employees across dimensions such as digital access, mobile convenience, self-service control, personal choice, payment options, service coverage and real-time insights to improve decisions. Core solutions and Experience Enhancers are selectively combined in Hospitality Solution Studios™ tailored to specific hospitality settings and business needs. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys

Source: Hospitality Net