Hotel bookings may be seeing a dip, but that doesn’t mean rate is suffering because of it. In fact, many hoteliers are finding pricing power despite facing some challenges, whether they be political or natural (disaster) in nature.
Here are three pieces of recent research that hotel owners and operators should keep top of mind as they move throughout the year and plan their revenue-management strategies.
Rate Growth Holds Steady Despite Booking Declines
Average daily rate is up 2.7 percent across all travel segments during the first quarter of 2019, according to TravelClick’s March 2019 North American Hospitality Review. That growth was led by group travel, which was up 3.8 percent. Transient business was up 2.1 percent, while transient leisure travel rose 2.2 percent.
Read more at Hotel Management.
Hospitality Net - Hospitality Rate Growth Remains Steady Despite Booking Declines Across North America
Transient reservation pace showing the sharpest decline throughout 2019
NEW YORK - TravelClick, an Amadeus company, today released new data from the Company's February 2019 North American Hospitality Review (NAHR). According to this data, average daily rates (ADR) are up 2.7 percent across all travel segments during the first quarter of the year, led by group travel, up 3.8 percent. Similarly, the transient business and transient leisure travel segments are also up 2.1 percent and 2.2 percent, respectively. However, bookings have taken a dip this quarter, down -4.5 percent overall. Revenue per available room (RevPAR) is down, as well, except for group travel, which is slightly up 0.5 percent. Transient reservations are slowing.
Despite ongoing efforts to generate RevPAR growth through average daily rates increases, sharpening declines in advance reservation pace have created a negative RevPAR environment this quarter, the first in ten years," said John Hach, TravelClick's Senior Industry Analyst. "Since the beginning of this year, forward-looking booking pace continues to weaken, especially within the transient reservation segment in many North American markets. This reinforces the need for hoteliers to continue their marketing to maximize bookings."
Read more at Hospitality Net.
Since its acquisition by Amadeus in August, TravelClick has rolled out one of its first solutions aimed at informing hospitality marketing campaign planning and maximizing bookings.
“Amadeus has a fantastic vision and ambition in hospitality and a great set of products,” said Greg Sheppard, SVP of business intelligence & data products, TravelClick. “When we combine that with TravelClick’s products and a great team, we are all very excited for the future. We are working hard on developing a solutions portfolio that will allow us together to serve an even broader range of hotels with technology that suits their business needs best.”
Read more at Hotel Business.
Early this year, news broke that the Henn-na Hotel in Sasebo, Japan was laying off half of its workforce. What made this news particularly interesting was that the Henn-na Hotel was staffed almost entirely by robots.
When the Henn-na Hotel opened its doors in 2015, many in the hotel industry were watching the property with great interest. It “employed” more than 240 machines, which covered a wide variety of job duties, including checking guests in, delivering luggage, and serving as in-room concierges. Certainly, the almost fully robotic staff was something of a novelty that the hotel leaned into—for example, guests could check in via an animatronic velociraptor wearing a hotel uniform—but there was also the question of whether any lessons could be ascertained from an almost fully automated property. Judging from the piece in the Wall Street Journal about these “layoffs,” one such lesson was that a human touch is absolutely necessary when running a hotel. Despite the pitfalls of a fully robotic workforce, in moderation, technologies like artificial intelligence, automation, and big data have the potential to transform how a hotel operates—and they have been steadily working their way into hotel operations for years.
Read more at Lodging Magazine.
TravelClick, an Amadeus company, announced it is extending its Guest Management Solutions (GMS) with the addition of Demand360 to its Campaign Advisor toolkit. Building on last year’s email send time optimizer, Campaign Advisor now allows hoteliers to take the guesswork out of marketing by providing recommendations on when to run marketing campaigns based on predictive occupancy in the market.
Demand360 is the hospitality industry’s competitive market intelligence product providing forward-looking reservation metrics and position compared to your competitive set by segment and channel. Hoteliers using both TravelClick’s GMS and Demand360 products will have access to current and projected occupancy data versus competitive sets to best identify the most valuable time periods to run campaigns, allowing them to avoid offering discounts and packages during peak market occupancy and deploy marketing campaigns when they need it most.
Read more at Travel Daily News
Hotel Technology News - TravelClick Unveils AI-Powered Target Marketing Solution Aimed at Helping Hoteliers Drive More Direct Bookings
TravelClick is announcing this week the beta launch of Campaign Advisor, a capability that is part of its Guest Management Solutions (GMS) platform. The new solution, which has been in development for the past year, is designed to allow hoteliers to better target their marketing and drive more direct bookings.
The goal, which is ambitious by any measure, is to automatically determine the best “send time” for each guest each guest algorithmically, and then execute on that understanding. To what extent the new solution will be able to consistently deliver against that goal right out of the gate is to be determined.
The new solution, which is expected to be released later this year, will give hoteliers the ability to set allotted windows of time to send marketing campaigns.
Read more at Hotel Technology News
Rooms sold through both GDS and Brand.com channels were up 6.4 percent and 2.0 percent respectively in the fourth quarter of 2018.
TravelClick, an Amadeus company, today announced that global distribution system (GDS) hotel bookings experienced a record year in 2018, generating over 75 million annual reservations globally, up from 70 million in 2017. The company noted that this global GDS growth coupled with sustained increases in average daily rates (ADR), contributed to impressive revenue per available room (RevPAR) for North American hoteliers as they kicked off the New Year.
According to TravelClick's North American Distribution Review (NADR), in the fourth quarter of 2018, Rooms sold through both GDS and Brand.com channels were up 6.4 percent and 2.0 percent, respectively, over the same time last year. However, Online Travel Agency, Hotel Direct and Central Reservation Office (CRO) channels decreased -2.3 percent, -5.8 percent and -16.4 percent, respectively. Across all distribution channels, ADR for Q4 2018 increased by 2.3 percent over the previous year. The Hotel Direct, Brand.com, CRO and OTA channels had the highest ADR growth in Q4, up 4.0 percent, 2.7 percent, 1.5 percent and 1.2 percent, respectively, year-over-year.
Read more at China Travel News
Oakwood has signed a new strategic partnership with TravelClick, which is owned by Amadeus.
Oakwood hopes the deal will place it at the forefront of online booking capability, enabling seamless integration with mainstream travel and online booking platforms as well as travel management platforms.
The revamped platform will allow consumers and business travelers alike to book immediately online – a major shift in preferences in a rapidly-changing industry.
“The new, strategic partnership between Oakwood and TravelClick is truly significant in its potential to transform access and availability to furnished and serviced apartments and is an important next step in our long-term technology initiative,” said Chris Ahearn, chief executive officer, Oakwood.
Read more at Breaking Travel News
Continued Rapid Expansion of Demand360® International Data Providers Helps Hotels Gain Their Fair Share of Bookings
NEW YORK – November 14, 2018 – TravelClick, an Amadeus company, today announced NH Hotel Group, a world-leading urban hotel operator with close to 400 hotels and nearly 60,000 rooms in 30 markets, joined TravelClick’s Demand360® program, a Hotelligence360® solution. This marks the continued rapid expansion of TravelClick’s Demand360 program, which gives hoteliers unique access to forward-looking demand data and allows hoteliers to develop optimal strategies for maximizing revenue.
Amadeus's presence in the hospitality sector has grown following the purchase of TravelClick for $1.52 billion in August.
"Hospitality IT offers a $7 billion addressable market that we believe offers tremendous potential for Amadeus and we regard as a strategic priority for growth," said Francisco Perez-Lozao, SVP of hospitality, Amadeus. "TravelClick brings us a portfolio of powerful products, complementary to our own; access to the strategically important mid-chain and independent market; and a global team with great expertise and experience, especially in sales and account management.