Weekly Roundup #36: Travel, Tech and Social Media
Greetings everyone and welcome to a brand new Weekly Roundup! It’s been another busy and productive week in hospitality and we gathered a few news and stories for you. Take a look, get your weekly dose of information, and don’t forget, we are social. So feel free to follow us on Facebook, Twitter, LinkedIn, and Instagram!
Until next Friday, have an amazing weekend!
Our client, AccorHotels, announced the close of its acquisition of Mövenpick Hotels & Resorts. The Enterprise Value (EV) represents CHF 560m. (482m. euros) and encompasses 100% of Mövenpick company’s share capital, as well as ownership of the Mövenpick brand for all activities related to the hospitality business. As a world-renowned hotel management company, Mövenpick is strongly positioned to complement AccorHotels property portfolio. This marks a consolidation of AccorHotels presence in the upscale segment. Mövenpick Hotels & Resorts fits perfectly within the AccorHotels portfolio: as a well-regarded full-service brand, it fills the current gap between AccorHotels Midscale Mercure and Novotel brands and the Upper Upscale Swissotel, Pullman, and MGallery brands.
Analysis of China’s online hotel booking market in the second quarter of the year shows that almost the entire market is controlled by five businesses. Trustdata, a mobile internet big data monitoring company in China, found that Ctrip, Meituan, Qunar, Tongcheng-eLong and Fliggy accounted for 96.4% of online hotel bookings in the second quarter. The big five were also the fast-growing platforms for the quarter, suggesting that their dominance is getting stronger. The headline findings from the report said that there was a 20% increase in the number of monthly active users – 91.9 million – in the hotel booking space compared with the first quarter of 2018. This growth is coming from users in third and lower tier cities, and from those born after 1980.
Hotels in Europe recorded a 16.9% year-on-year increase in profit per room in July, primarily fuelled by a 11.3% increase in achieved average room rate, according to the latest worldwide poll of full-service hotels from HotStats. Profit per room at hotels in Europe soared once again as the World Cup continued in Russia and strong demand from the leisure segment helped fuel increases in top-line performance across the region. Whilst GOPPAR levels in July were off the high recorded in June, they remained well ahead of the year-to-date figure at 62.47 euros per available room, and represented a second consecutive month of outstanding profit growth for hotels in the region after a shaky start to the year.
Trends and Insights
This article breaks down the findings and insights from our latest guest assessment report, that we collaborated on with StayNTouch and Travel Tripper. The survey of 300 hoteliers in the United States, Canada, Western Europe, and Southeast Asia reveals that 70% say they “never or only sometimes” promote and convert upsells or upgrades at check-in. The “2018 Guest Experience Assessment Report” advises hotels to incorporate upselling options into their booking engines and also to offer them to guests at check-in. The survey also shows that hotels need to become more effective at using data to understand bookings, revenue, guest information, and other insights that can grow their business.
In the age of technology and immediacy, live chat is a great feature that can be fully leveraged for a hotel’s benefit and success. At TrustYou, we are familiar with the many uses and benefits of live chat, as we integrated it into our Guest Messaging solution. This article from HelpCrunch provides a fun and very insightful infographic that breaks down the advantages of integrating live chat on a business’ website, from an increased customer satisfaction level to more conversions and higher retention rates. Take a look for more stats and visual information about the 5 key advantages that live chat can bring to a hotel business.
While many people in the United States have already heard about California legislation, which is similar to GPDR legislation, that has been put into effect in June this year, a lot of them don’t know what it exactly refers to and how and whether it will affect them. So, if you are a hotel owner in the United States and want to make sure that you are doing everything the right way and want to find out more about the connection between GDPR and hospitality, read this extended article as it provides insightful details you should be taking into consideration. Learn more about what exactly is GDPR, if it applies to all hotels from the US, how does it affect the hospitality business, and how you can make sure that you are GDPR compliant.
Technology, Tours, & Activities (TTA) is one of the tourism industry’s fastest-growing segments. According to Phocuswright, the international travel research institute, tours and activities make up around ten per cent of the global travel market – more than rail travel, car hire, and cruises combined. The brand new Technology, Tours, & Activities segment is the first of its kind in Europe and gathers the tourism industry’s most important groups at ITB Berlin who all share the same goal: promoting and selling in-destination services. Both major players and small startups will be showcasing their innovative products in this new exhibition and meeting area in the Adventure Travel Hall (4.1). The TTA marketplace is the place to head for providers of tours, tour guides, technology, and apps, as well as re-sellers, intermediaries, and destinations.
Predictive Personalization is the concept of leveraging technology to improve the user experience and increase hotel revenue simultaneously. It’s a two-step process whereby you apply machine learning techniques to understand user behavior, and then personalize his or her experience by automatically presenting the best content and offers for that individual. You might ask yourself—isn’t that already being done? But the big leap here is that this prediction happens in real time. It’s also much more sophisticated, not based on a few simple rules, but on hundreds of variables that interact with each other. Read more in this insightful article.