Automatic - 10 Minutes News for Hoteliers - Page 204

1 min

2025 Hotel Direct Distribution Report

📈 Direct bookings offer hotels lower acquisition costs, higher revenue, longer stays, and fewer cancellations, according to a D-Edge report dated February 25, 2025. The Europe and APAC data-driven study focuses on digital marketing strategies for hotels to enhance profitability by reducing reliance on third-party channels. The report covers the impact of Google’s advertising dominance, changes in search advertising, and effects of the Digital Markets Act on hotel search visibility. Strategies to manage rising distribution costs and digital growth opportunities are also discussed. Download available at D-Edge’s website.

2 min

The changing landscape of hotel distribution

🏨 On February 25, 2025, the hotel distribution industry trend shifted towards reducing OTA reliance, aiming for direct bookings as OTA commissions hit up to 40%. Direct digital bookings are expected to surpass OTAs by 2030, with over $400 billion in revenue. Personalized experiences driven by AI and data analytics are in demand, with loyalty programs offering personalized rewards. The EU's Digital Markets Act and the EU Court of Justice rulings support a customer-first approach and rate setting freedom for hotels. Over 50% of bookings now come from mobile devices, emphasizing the need for mobile-first design. AI innovations like D3X.ai and Allora.ai are emerging in the market.

1 min

Many TMCs no longer meet the needs of modern corporate travel

🛫 On Feb 25, 2025, it was highlighted that Travel Management Companies (TMCs) fail to meet modern corporate travel needs due to outdated processes, complexity, and poor data utilization. Inefficiencies, hidden costs, and a focus on crisis management over prevention threaten their relevance. As AI-driven solutions advance, TMCs risk obsolescence without significant, revolutionary changes, including automation and real-time expense integration.

1 min

Amadeus partners with Salesforce on next-gen hotel service center

🏨 On Feb 25, 2025, Amadeus announced a partnership with Salesforce to introduce a new hotel service center solution projected to cut call times by up to 40% and boost hotels’ revenue through personalized guest promotions. The advanced system integrates Salesforce Service Cloud with Amadeus' reservation and guest interaction tools, targeting efficiency and scalability for varying hotel sizes. Innovative features include Agentforce for productivity and data analytics for context-aware upselling.

SiteMinder’s Changing Traveler Report

🏖️ In 2025, SiteMinder identifies the ‘Everything Traveller,’ analyzing 12,000 travelers in 14 countries. Findings include a preference for deluxe (27%) and superior (39%) rooms, with 36% using search engines for planning, a 12% increase from the previous year. Despite rising costs, 48% plan to increase travel budgets, and 54% favor bundled packages. Travelers also value breakfast, airport transfers, room upgrades, and would shift travel dates for perks (83% agreeable). Technological advancements in travel are recognized by 52%, yet human-led services are still preferred. 39% work during trips, with 43% each enjoying spa services and gourmet dining. Value for money is important (62% rating), showing a slight decrease. Full report available at SiteMinder.

1 min

ChatGPT enables hotels to scale personalization

🏨 On Feb 25, 2025, an article highlighted the use of ChatGPT to personalize hotel guest experiences, detailing a no-tech-needed approach with five steps: defining brand identity, segmenting guests, mapping touchpoints, customizing prompts, and continuously improving based on feedback. These steps are designed to ensure guests feel recognized and valued, which can enhance their stay and distinguish a hotel from competitors. Full details are available at Bookboost.

1 min

OTAs make huge inroads in attraction ticket sales

🎭 On Feb 24, 2025, Arival reported that Online Travel Agencies (OTAs) now represent 18% of global attraction bookings, a growth from under 10% in 2019. However, despite OTA expansion and direct ticketing site growth, a third of attractions still don't have advanced online ticketing, leaving offline sales as the top sales channel.

1 min

CBRE Hotels forecasts steady growth in 2025

🏨 U.S. hotel RevPAR is forecast to increase by 2% year-over-year in 2025 with urban hotels expecting a stronger rise of 2.8%. Occupancy rates will edge up by 0.23 percentage points, and ADR will climb 1.6% year-over-year. Business travel and international arrivals, along with limited new hotel supply, are key market drivers. The economic outlook anticipates a 2.4% GDP growth and 2.5% inflation rate. CBRE's long-term projection is a 1.5% to 3.5% annual RevPAR growth, aligning closely with STR's forecast of 1.8% RevPAR and 1.6% ADR growth for the same year. Risks include tariffs, labor shortages, and Federal Reserve policies.

1 min

Travel agency sales stay strong after record year

🏠 U.S. travel industry in 2025 sees a 5% increase in air ticket sales, reaching $9.3 billion in January. Passenger trips rise by 4% to 26.7 million, with domestic trips growing 3% and international 6%. The average ticket price in January is $557, with premium class tickets at their lowest in over three years at $1,224. Industry optimism is high due to sustained demand for business and leisure travel.

1 min

U.S. hotels struggle with staffing shortages despite wage increases

🏨 As of Feb 24, 2025, 65% of U.S. hotels face staffing shortages, with employment nearly 10% below pre-pandemic levels. Over 70% have open roles, averaging six to seven per property. Housekeeping and front desk positions are hardest to fill, at 38% and 26% respectively. Hotels are raising wages (47%), offering flexible schedules (20%), discounts (13%), and hosting job fairs (9%) to attract staff. Despite this, 72% of hoteliers see current job prospects as comparable or better than pre-pandemic times.

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