??? Hotelier’s Hub: 3rd October 2023
Dawn Gribble
?? Hospitality Marketing Expert | MCIM | Founder HospitalityMarketingHub.com ?????
In this week's Hotelier's Hub Newsletter
? Grab Your Favourite Drink, and Let’s Check In!
?? Optimism for Global Hospitality Heading into Final Quarter of 2023
The global hospitality industry is experiencing optimism as we approach the final quarter of 2023. According to Amadeus' Demand360 data, hotel occupancy levels have been 10% higher than 2022, and reservations for Q4 2023 are trending 11% ahead of last year.?
RevPAR has also increased by an average of 17% globally, with France leading the way at 123% above the worldwide average. Europe has seen strong occupancy, overtaking the US, with on-the-books reservations for Q4 currently 20% higher. The report highlights the impact of events like Beyoncé's Renaissance World Tour and the Rugby World Cup on hotel demand.
Key features:
?? Traveler Spending Set to Increase in 2024
In a recent survey conducted by Squaremouth, it was found that travellers are spending more on their trips than ever before, with expectations of further increases in spending next year.?
The survey included over 4,000 customers and revealed that almost 90% of travellers spend more than their usual travel expenses. 82% of respondents anticipate that their travel spending will either increase or remain the same in 2024, setting the stage for potentially record-breaking spending in the travel industry next year.?
Factors contributing to this expected expenditure increase include:
?? Qatar Airways Is Adding 18 New Airports to Its Network
Qatar Airways has unveiled plans to add 18 new airports to its network, aiming to reach 250 destinations worldwide.?
By the end of 2023, Qatar Airways will add service to Phnom Penh, Cambodia, and Ras Al Khaimah, United Arab Emirates. Additional destinations planned for next summer include Medan, Indonesia; Chittagong, Bangladesh; Osaka, Japan; Juba, South Sudan; Kinshasa, Congo; and Buenos Aires, Argentina. The expansion will bring the airline's reach to 185 airports globally. However, aircraft manufacturing delays may delay some expansion plans until 2025 or 2026.
In addition to its expansion plans, Qatar Airways invests in alternative fuels and aims to use sustainable aviation fuels (SAFs) for 10% of its fuel supply worldwide by 2030.?
?? Hilton Says It Is Working to Disclose Hidden Fees
Hilton Worldwide Holdings is working to ensure the upfront display of mandatory fees on all its platforms. The move comes in response to criticism faced by hotel operators over misleading ad practices and hidden fees.?
The bipartisan Hotel Fees Transparency Act aims to crack down on these practices and set federal guidelines for pricing. Marriott International and Airbnb have taken similar actions.?
Hilton advocates for all platforms that advertise and sell their inventory to display all fees consistently. Updating technology is underway, and Hilton aims to provide consumers with accurate and transparent information during the booking process.
?? Marriott International Continues Affordable Midscale Growth with Announcement of Four Points Express by Sheraton
Marriott International is expanding its affordable midscale offerings with the launch of Four Points Express by Sheraton. The new brand aims to cater to the growing demand for reliable and affordable accommodation in Europe, the Middle East, and Africa.?
Four Points Express hotels will provide clean and comfortable rooms, breakfast, and complimentary Wi-Fi at an affordable price, delivering a seamless and efficient experience for business and leisure travellers. The brand has already signed deals for three hotels in the UK and Turkey, with plans for future locations in Poland, Belgium, and the UK.?
The brand will leverage Marriott International's distribution systems and award-winning Marriott Bonvoy loyalty program to provide an effective pricing strategy for hotel owners and drive meaningful growth.?
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???? Saudi Arabia Says Its 100 Million Visitor Goal Is 'No Longer Sufficient'
Saudi Arabia has decided to increase its visitor target from 100 million to 150 million by 2030, as announced by Mahmoud Abdulhadi, Deputy Minister of Destination Enablement at the Ministry of Tourism.?
He stated that the previous goal needed to be revised and that the country has been performing well above expectations. In 2022, Saudi Arabia saw 16.5 million inbound visitors, with 77.8 million domestic visitors, leading to a 45% increase compared to 2019. The leisure sector has grown significantly, accounting for 38% of all visits and 41% of spending in 2022.
The Saudi Crown Prince unveiled a mountain tourism project called Soudah Peaks, situated at the highest peak in the country. This project, to be completed within ten years, will encompass hotels, holiday homes, shops, and restaurants. Soudah Peaks will have 2,700 hotel keys, 1,336 residences, and 80,000 square meters of commercial space. It is the second mountain tourism project initiated by the Crown Prince, complementing the Trojena project planned for the Asia Winter Games in 2029.?
?? European Hoteliers Commend the Decision in the Booking Holdings-Etraveli Group Merger Case
The European Commission has blocked Booking Holdings' acquisition of the Etraveli group. The European hotel industry has applauded this decision.?
The merger was considered to harm the tourism ecosystem, particularly the accommodation sector. The decision recognises the concerns raised by HOTREC, an industry body representing European hoteliers, regarding Booking's market power. HOTREC expressed concerns that the merger would further strengthen Booking's dominance in the hotel market, as its market share has increased from 60% in 2013 to 71% in 2021.?
The HOTREC distribution study revealed that more than half of hoteliers feel pressured by OTAs to accept terms and conditions that they would not voluntarily offer, including cancellation policies and special discounts. HOTREC also mentioned implementing the Digital Markets Act, which will introduce a ban on price parity clauses and provide business users with improved access to data generated by their listings.
?? Amid MGM, Caesars Incidents, Attackers Focus on Luxury Hotels
A recent cyber campaign targets luxury hotel and resort chains, using sophisticated tactics to spread info-stealing malware. The campaign, discovered by researchers at Cofense Intelligence, involves reconnaissance emails and instant messages to lure employees into responding. Once a response is received, the threat actors follow up with phishing messages that bypass email security analysis.?
These messages contain trusted cloud domains, password-protected archives, and large executable files that disrupt analysis. The campaign's ultimate goal is to steal employees' login information.
The campaign has seen a notable increase in phishing emails in recent months, focusing on luxury hospitality chains. Attackers use familiar lures, such as booking requests or reservation changes, and use trusted platforms like Google Drive to host malicious files. By using large file sizes and sophisticated techniques, the attackers aim to bypass security measures. Organisations are encouraged to educate employees on phishing concepts and block downloads from sites not typically used for legitimate business purposes.??
?? Food Waste: AI Supporting Accor Hotels
Accor, a global hospitality leader, is leveraging artificial intelligence (AI) and joint measurement efforts to reduce food waste further. The company encourages its properties to measure food waste using Ga?a, a dedicated online reporting tool unique to Accor hotels.?
The tool helps hotels accurately quantify their waste and track the impact of sustainability initiatives. So far, 71% of Accor's properties have adopted the platform. They plan to expand it to all hotels with catering operations by 2025. Accor is also collaborating with three AI-powered startups to reduce waste at its properties, and specific training modules are designed to raise awareness and combat food waste among the kitchen teams.
Damien Perrot, Accor's Global Chief Design, Technical Services & Innovation Officer SME, said, "We're working to optimise F&B margins by 6% and save an average of €800 in waste per hotel per month."
?? Ritz-Carlton Revels in Travel's Transformative Power with 'Leave Better'
The Ritz-Carlton Hotel Company has launched its first global brand campaign in over a decade, titled "Leave Better." The campaign emphasises the transformative journey guests experience during their stay by showcasing metaphoric transitions like buds blossoming, seasons changing, and oysters revealing pearls.?
Through its partnership with the Condé Nast network, the luxury hotel chain aims to reach a global audience with its multi-million dollar investment. This campaign follows the recent revamp of over 100 Ritz-Carlton websites and the expansion into new markets, including Mexico City, Melbourne, and Fukuoka.
The Ritz-Carlton's CEO, Team One, states, "What sets The Ritz-Carlton apart is what guests take away from their stay: the epiphanies, new perspectives, and transformations." The campaign runs in multiple languages across various countries, including the U.S., Japan, China, Germany, the UAE, and Saudi Arabia.?
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That’s a wrap for the week!?
Please don't hesitate to contact me with any feedback or suggestions for future topics. Here's to Your Success ???
An insightful roundup of hospitality news! It's encouraging to see the optimism for global hospitality as we head into the final quarter of 2023, coupled with the projected increase in traveller spending for 2024.