Pulse Report:

Hospitality Industry Stabilizes as Year Ends

December 2021

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The Duetto Pulse report regional insights below show continued recovery in most regions, although the extent of the recovery does vary from market to market and depending on accommodation type.
  • A period of stability, after a record summer travel period (and before seasonal winter lows), concluded with an outstanding Thanksgiving holiday in the U.S. Duetto data shows how the gap to normalization, benchmarked to 2019, narrowed until the end of November.
  • Likewise, performance across the EMEA hospitality sector continued to claw its way back.
  • However, RevPAR whiplash remained the trend in APAC and that sudden deceleration or change in direction appears to be a common theme for the other global regions as 2021 comes to a close.
As we look forward to a promising New Year, the forward-looking data from Duetto tells us the following: 
  • Reservation cancelation activity, especially in APAC, has ratcheted up over recent weeks, which is no surprise considering the uncertainty around the two prevalent COVID-19 variants. However, consumer interest in travel is not waning as evidenced by high volumes of availability and price shopping on brand.com websites for stay dates throughout 2022. 
  • The velocity of bookings for travel in the New Year is also holding up well, especially in Latin America where the strong booking pace has resulted in pricing power and high OTB average rate growth. 
  • Similarly, in North America, full-year 2022 on-the-books (OTB) revenue from transient reservations and group blocks, is up +119% year-over-year (YoY), driven by 77% higher demand at a 24% average daily rate (ADR) hike. Although, we should keep in mind that fluctuating market segment dynamics is a key contributor to the positively skewed ADR performance in the year ahead.

We have also looked at the data relating to different asset classes, as today most hospitality companies consist of a diverse portfolio of accommodation types. Brand proliferation into different niche market segments and the exploding popularity of short-term rentals leads us to rethink what lodging means today. Pulse shows: 

  • All-inclusive resorts, where food and beverage is embedded in the room rate, are among the most sought-after asset classes around the world, as evidenced by the highest consumer search activity for stay dates in 2022. 
  • All-inclusive also reports among the highest OTB ADR growth for 2022.
  • Casinos offering on-site gaming activities reported some of the highest booking growth rates. 
  • Hostels offering beds in shared facilities report the highest OTB revenue growth in the New Year, followed closely by ski lodgings. 
  • Outdoor recreation and short-term rentals are also reporting strong on-the-books performance for 2022, driven by increased demand and higher rates respectively.