Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. European Hotels Continue to Perform
Key performance indicators for hotels in Europe showed continued gains year on year in September, with a 3.7% increase in gross operating profit per available room to €96.80, second only to the peak recorded at hotels across the region in June at €105.07.
Revenue per available room was up 3.3% to €152.31 with total revenue up 2.5% to €220.98. Achieved room rate grew 4.2% to €185.43 which offset the 0.7-percentage-point decline in room occupancy to 82.1%.
GOPPAR has been on an upward trajectory all year, having now increased by 10.4% in the nine months to September 2018, against the same period in 2017, with profit conversion for the month recorded at 43.8% of total revenue.
Full story at Hotel News Resource.
2. Euromonitor Unveils 3 Megatrends Shaping Future Travel
Euromonitor International unveiled the three megatrends it sees shaping the future of travel at World Travel Market in London earlier this month. These were:
- The Joy of Missing Out #JOMO, fuelled by a desire to unplug and enjoy live experiences.
- Taking Action on Plastic Waste, including the clamp-down on the use of plastic straws.
- Access Economy, where goods and services are traded on the basis of access rather than ownership. Airbnb for example.
Talking about the findings of the Euromonitor report, Wouter Geerts, travel research consultant at Euromonitor International said, “Going hand in hand with these trends, travellers continue to look for ever greater personalisation and authentic experiences. As destinations become overcrowded and fast-paced lives are the new normal, expectations will focus on bespoke and off-the-beaten-track destinations. We expect the desire for greater personalisation to continue and grow throughout 2019.”
Full story at AP News.
3. UNWTO Report Reveals Outbound Tourism Potential from GCC
The Gulf Cooperation Council, which is made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, spent more than $60 billion on international tourism in 2017, and boasts a per-capita international tourism spend that is 6.5 times higher than the global average, a new report by the United Nations World Tourism Organisation and the European Travel Commission has revealed.
The Gulf Cooperation Council Outbound Travel Market found that European destinations have most benefited, thanks to growth in air connectivity between the GCC and Europe.
Full story at Breaking Travel News.
4. MENA Hotels Impacted by Revenue Declines
A decline in revenues and escalating costs led to hotels in the Middle East & Africa recording a 34.8% year-on-year decrease in profit per room in September, according to the latest data from HotStats.
Hotels in the region recorded their second lowest GOPPAR of the year at $37.82 for September, with a 15.4% drop in RevPAR to $88.73. TRevPAR dropped 13% to $159.66.
Full story at HospitalityNet.
5. UK Hotels Take A Profit Hit
The end of summer saw a drawing in of profits to coincide with the drawing in of days, as hotels in the UK saw GOPPAR drop 4% to £68.26 in September. The drop in profit was attributed to a 1.3% decline in rooms revenue, which fell to £105.77.
According to Michael Grove, Director of Intelligence and Customer Solutions, EMEA at HotStats, the decline was “unsurprising due to the relatively stagnant UK economy, with GDP growing by just 0.5% in Q3 2018, and the UK being slow to come back to work following such a celebrated summer period.”
Full story at HotStats.
6. French Hotels Take Legal Action Against Airbnb
A French trade group of hotels has sued Airbnb on grounds of unfair competition, claiming the home-sharing platform is “knowingly violating” recently imposed rules by keeping listings online even when they lack registration details.
The UMIH hotel industry body has pointed out that the total loss to the hotel industry could reach tens of millions of Euros each year. Airbnb has more than 500,000 listings in France, with 65,000 in Paris, compared with 80,000 hotel rooms in the capital. According to France24, just 38% of Airbnb’s Paris listings are currently registered. An initial court hearing has been set for 14 February, 2019.
Full story at France24.
7. Hotel Reviews Improve with Time
A study by the University of East Anglia has found that the length of time between a hotel stay and posting an online review affects the type of review given. The sooner a customer posts a review the more likely they are to focus on negative experiences. As time increased, reviewers “zoom out” and have a more positive memory of their stay.
The study also found that the geographical distance between the hotel and visitor’s country of residence, and the cultural distance between the countries also influence how they rate their experience.
Full story at Travel Daily News.
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