Friday, April 28, 2017

Hospitality News For The Week Of 4/28/17

Rates Hold Steady in First Half of 2017 Despite Decline in Bookings

Data published in TravelClick’s April 2017 North American Hospitality Review (NAHR) indicates average daily rates are holding steady through the second and third quarters of 2017. The strength of rates holding steady comes despite a drop in future bookings. Group bookings are down by -5.9 percent in the third quarter and all travel segments are -4.3 percent lower in the same period. However, transient leisure bookings are higher by 6.6 percent through the second quarter. Full Story Here:

TrustYou Analysis Identifies Review Topics That Impact The Hotel Reputation The Most

The world’s largest guest feedback platform, TrustYou, has published an analysis of the 90 million reviews analyzed by the platform in 2016. Called the “Impact Score”, the research shows that over 95 percent of the traveling public decided where to book their hotel stays based on the online feedback they had read. TrustYou determines the impact score by combining an analysis of more than 140 categories used by guests in describing their experiences. “Service” and “Service Friendliness” were the most important categories, according to the research. Full Story Here:

Hotels shown to be susceptible to cybercrime

According to the payment systems industry’s Nilson Report, the hospitality industry continues to be targeted by cybercriminals. Between 2012 and 2015 the annual costs doubled, reaching $22 billion. The cost figure could reach an estimated $32 billion by 2020, according to the report. Of the total losses, the U.S. accounts for nearly 40 percent and includes an estimated 13 million victims of such crime each year. Full Story Here:

STR: US hotel results for the week ending 22 April

Mixed performance figures were reported by the U.S. hotel during the week of 16-22 2017, according to data published by STR. Compared to the same period last year, industry-wide occupancy was down by -0.5 percent at 68 percent. Average daily rate however was up by +1.3 percent, reaching $124.48 for the week. Revenue per available room was higher as well at $84.61 by week’s end representing a +0.7 percent increase over the previous year. Full Story Here:

Thursday, April 20, 2017

Data Science For Hoteliers - Part 2

Several decades ago, the science of hotel revenue management was in its infancy and viewed with some skepticism by long-time hoteliers. Today, the Revenue Manager has become an integral piece of any hotel’s business operations. However, forward thinking hospitality companies are moving beyond merely managing the revenue generated by each individual room of their hotel properties.

Real-time pricing and optimization is the future of hotel revenue management. Data science offers hoteliers nearly infinite data points to be applied to the revenue management equation.  The hotel data scientist of today now finds himself or herself in the position revenue managers found themselves in decades past.

Cloud-Based Revenue Management Optimization

Data science, in the form of state-of-the-art revenue management optimization, offers hoteliers nearly infinite data points to be applied to the revenue management equation. These revenue optimization tools are designed for the ever-changing challenges faced by 21st century hoteliers. A tool that provides big data; which is gathered, delivered, and analyzed in real time. Solutions that present hospitality Revenue Managers the information needed to offer hotel inventory at the most optimal rate possible at any given moment.

The revenue model of today is no longer built upon the single room as a unit, but giving each guest a unique value to the hotel. Revenue optimization is determining the individual value of the guest, and then adding that data into the equation along with internal and external price forces as well. The goal being to reach a differentiated price for each room pleasing to each hotel guest, while maximized for hoteliers.

Inline Revenue Management®

The Above Property Inline Revenue Management® module allows real-time pricing and availability adjustments based on occupancy, seasonal trends, forecast, weather, booking pace and competitive data. Each transaction is processed in real-time through the Above Property proprietary pricing engine. Maximizing your revenue through careful management of forecasting, availability controls, groups, and distribution is crucial in today’s hospitality marketplace. The Above Property Inline Revenue Management® system gives you all the tools necessary to put your revenue management techniques and strategies to work. Operating in a fully distributed cloud environment, the Above Property Inline Revenue Management module can integrate with existing systems as well as take advantage of the full suite of complementary modules within the Above Property Travel Platform.

In the last part of this series we will cover how data science can create and deliver a customized hotel experience to each hotel guest.    

Tuesday, April 18, 2017

Data Science For Hoteliers - Part 1

It is well established that the hospitality industry is extremely effective at mining data from its hotel guests. However, it is what happens with the data after its collection that can be problematic often rendering it largely ineffective for hoteliers. Hotels have a myriad of software programs, producing nearly innumerable data points. PMS systems are at the core of on-property data and attempt to manage the tangled web of information.

Yet in the current state of the world in which the hospitality industry finds itself attempting to compete hoteliers are called upon to make intelligent, fact-based management decisions. Hotels face intense competition for every dollar of revenue they bring in, from each other, Online Travel Agencies (OTAs), and the relatively new threat from Airbnb. In order to more effectively contend for the revenue available to them, hoteliers must first integrate their data systems so they can operate fully in concert with each other. Secondly, hotels need to implement user-friendly, yet nimble, revenue management software to break down the abundant distribution points so properly informed decisions may be made. Thirdly, these decisions must be made through the prism of creating customer personalization and delivering a customized experience to each guest.

The shifting marketing and sales emphasis of hotels has highlighted the need for PMS systems with significantly greater agility. The hospitality industry’s drive to personalize the hotel experience has meant that systems must now interface with guests through loyalty programs, guest marketing, customer relationship management (CRM), and even mobile apps. These are all tasks that were never even conceived of when many of the complex legacy PMS systems were originally brought on line.

The advent of hotel software hosted in the cloud has provided the required solution to these issues for hoteliers. A cloud-based, Software as a Service (SaaS) PMS system can juggle the many complex tasks and interfaces because it is designed to be fully integrated from the beginning with all other hotel systems. SaaS-based PMS systems offer hotels a multitude of advantages and improvements over traditional legacy systems. Data management is vastly streamlined because the sharing of information between systems is accomplished automatically, eliminating manual duplication. This offers hotels the opportunity to efficiently arm their staffs and management with the timely data required to properly personalize the experience of every guest, utilizing all the tools available to them.

In part two of this series we will cover the interpretation of hotel data utilizing a state-of-the art, cloud-based, revenue management tool.  

Friday, April 14, 2017

Hospitality News For The Week Of 4/14/17

U.S. Hotel Stocks Up 3.3 Percent For March 2017

The Baird/STR Hotel Stock Index has been published and indicates an increase in hotel stock value of 3.3 percent for the month of March 2017. The index ended the month at 3,876 and has seen an increase of 4.7 percent across the first quarter of 2017. The hospitality sector has outperformed the broader S&P 500, which remained flat during the month of March 2017. Full Story Here:

Chinese tourists spent 12% more in traveling abroad in 2016

The United Nations World Tourism Organization (UNWTO) has released the results of its current World Tourism Barometer. The report shows China leads the rest of the world regarding international outbound tourism. China increased its spending on outbound tourism during 2016 by 12 percent. Behind China in travel spending in order were the United States, Germany, the United Kingdom, and France. Worldwide international tourist arrivals saw a 4 percent growth rate, reaching 1.2 billion for 2016. Full Story Here:

U.S. Hotel Construction Pipeline Under Contract For March 2017 Up 14.4 Percent Over 2016

The latest hotel construction report, STR’s March 2017 Pipeline Report, indicates a 14.4 percent increase in the number of rooms Under Contract over March 2016. In March 2017 there were 571,311 rooms across 4,721 hotel projects in the United States. Hotels listed as In Construction amounted to 190,764 rooms that are part of a total of 1,449 projects. This represents a 24.4 percent increase over last year’s numbers. Full Story Here:

STR: US hotel results for week ending 8 April

U.S. hotels experienced an increase in occupancy of 3 percent to reach 70.2 percent for the week 2-8 April 2017, compared to the same period last year according to figures from STR. Average daily rate rose by 3.7 percent to finish the week at $127.89. Revenue per available room, as a result, climbed up by 6.8 percent to attain $89.84 by week’s end. Full Story Here: