Travel and Hospitality Newsletter 2024

Hello to all my fellow hoteliers and travel enthusiasts! ????

It's been a while since my last article, as I took a break and embarked on a journey to India in December'23. During my trip, I had the pleasure of staying at the renowned Taj Coromandel in Chennai, India. This hotel holds a special place in my heart as it's where my career in hospitality began way back in 1993. It was a nostalgic experience reconnecting with some of my former colleagues who haven't lost their magic and are still excelling in their roles. ?

My time in India also provided me with the opportunity to engage in enlightening conversations with senior figures in the Indian hotel industry. Witnessing the continued growth and progress in both the hotel and travel sectors was truly encouraging. ????

Here's to a fantastic 2024 and the exciting journey ahead! ????

UK and Global Hotel Market Trends for 2024 ????

As we journey through the ever-evolving world of hotels in 2024, a handful of exciting trends are painting the landscape, not just in the UK but across the globe. These trends are like puzzle pieces, fitting together to create a vibrant picture of what the future holds for the industry

.Eco-Friendly Vibes Everywhere ??

• Sustainability is no longer a side gig; it's at the heart of hotel life. In 2024, hotels are all about going green. They're conserving water, cutting down on energy use, and sourcing their goodies sustainably. It's not just about saving the planet; it's also about pleasing eco-conscious travellers. In the UK, you've got cool stuff like the Green Tourism Business Scheme, and globally, you've got fancy certifications like LEED and Green Globe.

Tech-Savvy Adventures ????

• Tech is our trusty sidekick in making guests smile. Think contactless check-ins, digital keys, and friendly chatbot helpers. AI and data magic even let hotels pamper you with tailor-made experiences, like your own personal butler, but virtual.

Business Travel Bounces Back ????

• Business travellers are dusting off their suits and heading back on the road. Meetings in person are back in fashion, and hotels are ready. They've got flexible spaces and fancy tech to host both real and virtual gatherings. Big cities like London and Manchester are buzzing, and it's happening worldwide.

Bleisure is the Name of the Game ??????

• Work or play? Why choose when you can do both? Travellers are mixing business with pleasure, and hotels are joining in the fun. Co-working spaces and leisure delights are on the menu. Airbnb's watching from the sidelines as hotels serve up unique experiences.

Wellness is the Word ??♀???

• Health and wellness are hot topics. Travellers want more than just a spa; they want in-room fitness gear, wellness retreats, healthy eats, and ways to keep their minds zen. Hotels are stepping up their wellness game, and it's happening everywhere.

Price Flexibility is Key ??

• Hotels are getting smart with pricing. They're using fancy data to keep their prices in check, adjusting on the fly to make sure you get a great deal. This is a big deal in popular places in the UK and around the world.

Direct Booking Bonanza ??

• Hotels want you to book with them directly, with no middlemen involved. They're rolling out the red carpet on their websites, offering exclusive deals, and sliding into your social media and email with sweet offers. It's a trend from posh boutique hotels to the big chains.

Bonus: UK Hotel Industry Rocks in 2023! ??????

In 2023, UK hotels had a smashing time with international guests. A whopping 17% more international folks checked in, making up over half of all stays. Globally, international bookings soared by 33%. The US, Germany, France, Australia, and Italy were the top sources of visitors. And yes, rates went up, but travellers are booking way in advance. Advance Planning is the new cool, with a lead time of 41 days.

???? London Hotel Occupancy Hits Pre-Pandemic Heights for the First Time! ??

In December, London's hotels smashed pre-pandemic records, marking a remarkable turnaround ??. Recent data reveals that the city's hotel occupancy rates soared past those of December 2019, and this achievement coincided with the grand openings of some posh hotels in the heart of London ??.

According to the RSM Hotels Tracker, London's hotel occupancy rate reached an impressive 80%, up from the 78.3% recorded in December 2019. This number is way ahead of the 70.1% seen across the rest of the UK ????.

But that's not all! The average rate for a room that was booked also rose to a whopping ￡234.47, surpassing pre-pandemic levels ??.

Chris Tate, the head honcho for hotels and accommodations at RSM UK, credited part of this success to fewer transportation hiccups, thanks to fewer strikes disrupting travel plans ??.

The latter part of 2023 saw the debut of several swanky hotels in London, including the billion-pound Peninsula London ??, wrapping up the year on a high note for the capital's hotel industry. Tate emphasised how the industry adapted to economic challenges, with consumers leaning towards experiential spending rather than buying stuff ??.

Thomas Pugh, an economist at RSM UK, hinted that the influx of visitors to London might be a sign that the UK avoided a year-end recession, driven by strong spending on experiences despite weak retail sales. However, he warned of a challenging first half of the year due to high-interest rates and inflation, but there's a silver lining on the horizon ???. Pugh predicts a brighter outlook in the latter half, with expectations of lower inflation, potential interest rate cuts, and tax reductions, all of which could boost consumer spending and be a boon for the travel and hotel sectors ??.

Source: Yahoo

?? Ongoing Pleas for Permanent VAT Reduction Face Government Opposition ??

After the temporary VAT discount wrapped up in March 2022, there've been cries for a sustained lower VAT rate. However, government officials have stood their ground. In April 2022, Lucy Frazer, Financial Secretary to the Treasury, responded to a parliamentary query by saying that with restrictions easing and demand going up, it was necessary to phase out temporary tax breaks to shore up public finances. She pointed out that any VAT changes had to consider the broader financial impact, mentioning over ￡50 billion in VAT relief requests since the EU referendum, which would require either tax hikes, increased borrowing, or spending cuts elsewhere.

Fast forward to January 2024, and Financial Secretary Nigel Huddleston has reaffirmed the government's position, stating there are "no intentions to modify the VAT rate for the hospitality sector. ??????? More info at this UK parliament briefing

UK Hospitality Sector Faces Challenges with New Visa Policy

According to the Guardian's recent article,? ???? The UK's hospitality sector, already dealing with staff shortages, is facing more challenges due to changes in visa policies by the Home Office ??. Skilled worker visas now require a higher salary of ￡38,700 instead of ￡26,200 ??. This could make it even harder for the sector to access the essential migrant workforce it relies on ??.

Rob Davies and Jasper Jolly, in a recent article from The Guardian, shed light on the struggles faced by the industry ??. For instance, Gusto's restaurant in Edinburgh had to reduce its operations because it couldn't find skilled staff, including pizza chefs ??. This highlights how much the industry depends on skilled migrant workers, who often rely on the government's skilled-worker visa scheme ???.

However, the government's new policy aims to reduce migration by 300,000 per year, without proper consultation with the hospitality industry ??. This decision seems to prioritise political goals over the industry's economic needs, potentially harming its recovery post-COVID and during the ongoing cost of living crisis ??. UK Hospitality and businesses are worried about how this will affect their operations and the broader economy ??. They stress the struggle to find staff, especially during a nationwide labour shortage ???.

The hospitality industry, crucial for the UK's economy, is calling for a reevaluation of these visa policies to ease the burden on the sector ??.

Global Travel and Tourism's Economic Impact and Popular Destinations: Trends and Projections 2024

???? Let's dive into the world of global travel and tourism and the exciting trends and projections. ????

According to a fabulous report by the Statista Research Department dated January 30, 2024, the global travel and tourism sector had a bit of a tumble in 2022, with its contribution to GDP being a whopping 23% below its pre-COVID-19 levels in 2019. ?? However, fear not, it still managed to inject a staggering $7.7 trillion into the global GDP in 2022. And guess what? Projections are painting a rosy picture, with expectations of it bouncing back to a whopping $9.5 trillion in 2023, although still a smidge behind the pre-pandemic figures by about 5%. ????

Now, let's talk about the big players in this game. The United States and China, tag-teaming-like champs, emerged as the top contributors to GDP from travel and tourism in 2022. ???????? Germany, the UK, and Japan weren't far behind, showing just how crucial travel and tourism are to their economies. ????????????

Moving on to international tourism! Despite a bit of a bumpy ride, France took the crown as the most popular destination, with nearly 50 million international visitors in 2021. ?????? And not to be outdone, Mexico and Spain were hot on their heels, each attracting over 30 million tourists. ???????? Talk about the enduring charm of these countries, right? ??

Now, let's fast forward to 2024, specifically the realm of business travel. According to the recent Global Business Travel Association survey, things are looking up! ???? A whopping 60% of respondents are feeling optimistic, expecting more travel, and two-thirds anticipate higher spending in 2024. ???? But there's a twist! With remote and hybrid work models in play, 40% of companies are reevaluating their travel policies. They're pondering the types of meetings that require travel, how often employees need to schlep to the office, and what expenses are allowed for transportation, accommodations, and per diems. ????

Now, here's the cherry on top: 27% of companies say accommodating hybrid/remote work has bumped up their travel costs, while 37% haven't seen a change. ???? The survey also highlights the top priorities for business travel in 2024: sales/account management meetings (36%), external conferences and industry events (20%), and internal meetings (20%). Looks like a strategic shift is underway, reflecting the evolving needs of business travel in our ever-changing world. ????

This all goes to show the resilience and adaptability of the business travel industry as it navigates through the twists and turns of rising costs, economic uncertainties, and the new normal of work. ??????

?? Annual Trends & Predictions Survey ??

Duetto has just revealed the findings from its latest Trends & Predictions Survey for 2024 ??, and it's all looking quite positive! Here are the key takeaways from the Duetto Outlook & Trends 2024 Survey:

1?? Group bookings are making a comeback ??

2?? There's a strong focus on boosting direct bookings ??

3?? Investment in technology is on the rise ??

Let's dive deeper into the insights:

?? Optimising Group Business ??

More than half of the participants (51.8%) plan to increase their revenue in 2024 by fine-tuning pricing strategies for both group and transient segments. Nearly 40% are digging deep into their sales pipeline and analysing it to enhance forecasting accuracy and pricing recommendations. ??

?? Channel Management Strategies ??

Managing booking costs by channel is gaining importance, scoring 4.3 out of 5 in significance among revenue leaders. The survey reveals that 60.7% now consider this aspect more crucial than before. Revenue leaders are focusing on:

• Better channel management ??
• Efforts on group, corporate, and direct bookings ??
• Strategic engagement with OTAs and tour operators ??

?? Direct Business Drive and Tech Investments ??

There's a noticeable shift towards promoting direct bookings, with investments prioritised in the hotel's website, metasearch, loyalty programs, OTAs, and GDS. Interestingly, 60.7% of respondents increased their tech spending in 2023 compared to 2022, and 71.4% expect further increases over the next three years. ??

?? Top Revenue Management Trends for 2024 ??

The survey highlights profitability, automation, integrated systems, total revenue per available room (TRevPAR), and ancillary revenue as the top trends for revenue management in 2024. ????

David Woolenberg, CEO of Duetto, is quite optimistic about the future. He sees the resurgence of group business, the shift towards direct bookings, and increased tech investments as promising signs for the hotel industry. ????

?? The UK’s Most Anticipated Regional Hotel Openings in 2024 ??

As we bundle up through January, we're eagerly looking forward to our UK getaways in the upcoming year. From tranquil lakeside lodges to luxurious skyscrapers in the heart of London, 2024 promises a diverse selection of new hotels. Here's a sneak peek at some of the exciting openings:

??? Cotswolds Waters, Gloucestershire:

• 63 lakeside apartments in 110 acres of woodland
• Perfect for holiday getaways or private residences
• Enjoy low-impact activities like swimming and paddle-boarding
• Access to Lakes by YOO facilities next door
• Rates: To be confirmed

??? Ruby Stella, London:

• Set in historic Clerkenwell
• Dickensian bookish vibe with tweed furnishings
• Rooms with essentials like Marshall amps and aromatherapy toiletries
• Rates: To be confirmed

?? Six Senses London:

• Located in the former Whiteleys shopping centre in Bayswater
• Offers a sprawling spa with a 20m swimming pool and relaxation room
• 110 rooms and suites for guests
• Rates: To be confirmed

?? The Hoxton, Edinburgh:

• Opens in Haymarket across 10 Georgian townhouses
• Features cool hotel rooms, self-contained apartments, a restaurant, and gallery
• Rates: From ￡175

?? Art'otel Hoxton, London:

• Located in Hoxton, featuring street artist D*Face's work
• Offers an immersive art gallery, rooftop bars, and panoramic views
• 48 rooms with bespoke art and two Banksy originals on display
• Rates: From ￡400

??? Mandarin Oriental Mayfair, London:

• Exclusive stay in Mayfair with Michelin-starred Korean-American chef Akira Back's restaurant
• Rooftop terrace with central London skyline views
• 50 rooms with soothing tones and floral motifs
• Rates: From ￡925

?? The Newman, London:

• Stylish space reflecting Fitzrovia’s village feel and Art Deco aesthetic
• Modern European brasserie with natural light
• Opens in late 2024
• Rates: From ￡595

?? Treehouse Manchester:

• Opens in April with nature-inspired interiors and rooftop restaurant
• Pet-friendly with a ground-floor eaterie focused on zero-waste
• Rates: From ￡199

?? Mollie’s Manchester:

• Located in the reimagined Old Granada TV Studios
• Offers budget-luxe rooms and a retro-American diner
• Rates: From ￡120

?? Baliffsgate, Northumberland:

• Set in a stone-fronted former school overlooking Alnwick Castle
• Features a contemporary fireplace-lined restaurant
• Rates: From ￡190

??? The Store, Oxford:

• Housed in the former Boswells department store
• Offers modern minimalism with period features
• Rates: To be confirmed

?? Teffont House, Wiltshire:

• Set in the former Howard’s House Hotel, built in 1623
• Features an orangery dining room, Bramley spa, and walled garden
• Rates: To be confirmed

?? No.124 by Guesthouse, Brighton:

• Located in a Regency-style townhouse overlooking the English Channel
• Rooms with record players and help-yourself pantries
• Rates: From ￡295

??? Gallivant Littlestone, Kent:

• The second branch of The Gallivant near Camber Sands
• Emphasis on beach access, local food, and impeccable style
• Rates: From ￡250

?? 100 Princes Street, Edinburgh:

• Celebrates Scottish explorers' heritage with tartan prints and murals
• Offers 30 rooms with views of Edinburgh Castle
• A fine collection of whiskies for nightcaps
• Rates: From ￡330

??? Avington Lakes, Hampshire:

• Lakeside lodgings near Avington Park
• Romantic shepherd’s huts, lakeside cottages, and multi-bedroom retreats
• Activities include fishing, electric biking, and clay pigeon shooting
• Rates: To be confirmed

Which of these exciting hotels will be your first choice for a 2024 getaway? ????

I am excited to embark on this exciting journey together! Stay tuned for more updates, trends, and insider insights as we explore the ever-evolving world of hotels and travel in 2024. ???? Feel free to reach out anytime to share your thoughts, questions, or your own hotel stories. Our door (and inbox) is always open. Cheers to an unforgettable adventure ahead! ?????"

Let me know if there's anything else you'd like to add to my next newsletter or if you have any other requests.

?? Stay tuned for an exciting unveiling of our reinvented hotel distribution soon this Spring 2024! ??

Cheers to a fantastic year for fellow hoteliers! ?????

Sources: Travel Weekly, Guardian news, Forbes, Evening News, Siteminder, Duetta, Hotel Management network, The Caterer, UK parliament website and many more