Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Hotel Business Couldn’t Be Much Better

Similar presentations


Presentation on theme: "The Hotel Business Couldn’t Be Much Better"— Presentation transcript:

1 The Hotel Business Couldn’t Be Much Better
Hotels & Resorts Profiler 2016 © 2016 THE MEDIACENTER. All rights reserved.

2 Revenues and New Hotels on the Rise
According to American Hotel & Lodging Association’s Lodging Industry Trends 2015, total revenues for the US lodging industry increased 8.0%, from 2014’s $163 billion to 2015’s $176 billion, at 53,432 properties with million guest rooms. PKF Hospitality Research | CBRE Hotels (PKF- HR) has forecast a national occupancy rate of approximately 66% for 2016 and 2017, which would be the highest level since its first forecast (1988) and an 8th consecutive year of increasing occupancy. Another important metric for the lodging industry is ADR, or average daily rate, and PKF-HR projects ADR will increase 5.5% during and 5.8% during ADR had already increased 2.9% as of February 1, 2016, for reservations on the books.

3 Hot Hotel Brands In the world of major hotel brands, the big news for almost a year is #2 brand Marriott and Anbang Insurance Group’s, a Chinese company, competition to acquire and merge with #8 brand Starwood. As of late March 2016, Marriott appears to be the winner. Potentially making Starwood even more valuable is the late March announcement that it would be the first US- based hospitality company to acquire and operate hotels in Cuba, including Hotel Inglaterra, Hotel Quinta Avenida and Hotel Santa Isabel. The top 5 global hotel companies by number of rooms are all headquartered in the US: Hilton Worldwide, Marriott International, InterContinental Hotels Group, Wyndham Hotel Group and Choice Hotels International.

4 Guest Satisfaction Skyrockets
According to the J.D. Power 2015 North America Hotel Guest Satisfaction Index StudySM, the score of 804 for overall satisfaction was the first time it was greater than 800 during the 19 years of the study. The #1 hotels in the top 4 segments were Luxury, The Ritz-Carlton; Upper Upscale, Omni Hotels & Resorts; Upscale, Hyatt Place; and Upper Midscale, Drury Hotels. The top-ranked hotels in the other 4 categories were Midscale, Wingate by Wyndham; Economy/Budget, Microtel Inn & Suites by Wyndham; Upper Extended Stay, Homewood Suites by Hilton; and Extended Stays, Candlewood Suites.

5 Grappling with the Airbnb Phenomenon
Airbnb appears to be impacting the hotel industry, but to what extent is still being debated. Although Airbnb’s listing of 173,000 units in the US is only 3.5% of all traditional hotel rooms, some hotels say the service is limiting room-rate increases. The most troubling data come from a Pennsylvania State University School of Hospitality Management study that found full- time operators in 12 of the largest markets in the US generated almost 30% of Airbnb’s revenues during January 2016. A study from Goldman Sachs Global Investment Research revealed that the preference for a traditional hotel room among guests who stayed in peer-to-peer (P2P) lodging, such as Airbnb, during the last 5 years, declined from 79% to 40%.

6 Top 10 US Hotel TV Advertisers, 2015
National Airings Estimated TV Spend #1: Choice Hotels #2: Courtyard #3: Wyndham #4: Marriott #5: La Quinta #6: Best Western #7: Residence Inn #8: Hyatt #9: Motel 6 #10: Fairfield Inn 22,105 3,441 7,715 4,841 5,966 15,977 5,435 2,786 10,170 3,363 $29.9M $15.1M $13.9M $13.3M $13.1M $10.7M $9.8M $9.6M $9.5M $9.0M Skift (iSpot.tv), March 2016

7 Travel Tech and Surprising Destinations
A 2.5-foot tall robot named Connie near the reception desk at the Hilton in McLean, Virginia, represents IBM’s initial foray into the travel industry. It provides guests with information about local attractions, dining recommendations and hotel amenities. Starwood has joined the move towards robotic-based services with its “botlers.” They fulfill guests’ requests for towels and personal care items. Another major tech advancement is the use of mobile apps for keyless hotel room entry. According to Hotels.com, Queens, NY; Buffalo, NY; and Milwaukee, WI are forecast to be top travel destination during These cities are not only in the midst of major redevelopment projects, but also are on foodies’ radar for their diverse cuisines.

8 Advertising Strategies
To remain competitive, independent, local hoteliers must promote room quality and location in comparison to the major brands. Being located near interesting, even offbeat, local attractions and venues could help local hotels to attract more Millennials. Testimonials from hotel guests who specifically state why they chose an independent, local hotel versus a major brand can be used in various media and can help to position independents as a valued alternative. Independent, local hoteliers may find it advantageous to partner with local restaurants and/or attractions to offer and promote jointly a discounted package of room, meal(s) and tickets to differentiate themselves from the major brands.

9 New Media Strategies Independent, local hotels are faced with the necessity of having a Website that can accept direct bookings, a mobile-friendly version of their Website and the introduction of tech- based room amenities and services, all of which can be promoted via new media channels. Consumers, especially young adults, are attracted to businesses that support their local communities. Hotels might consider donating furniture and linens being replaced to homeless shelters or similar non-profits and facilities and telling the story on social media. Because word of mouth is the primary influence on affluent consumers’ for hotel information, hotels should encourage, even incentivize, these guests to post photos, videos and comments about their experience. Regular guest surveys are also good content.

10 Title Body copy


Download ppt "The Hotel Business Couldn’t Be Much Better"

Similar presentations


Ads by Google