Automatic - 10 Minutes News for Hoteliers - Page 249

U.S. RevPAR to increase by 1.4% in 2024

🏨 Lodging Analytics Research & Consulting (LARC) forecasts a 1.4% U.S. hotel RevPAR growth to $99.56 in 2024 with ADR up 1.8% to $158.65 despite a 0.3% dip in occupancy to 62.8%. In 2025, RevPAR is expected to rise 2.5% to $102.02, ADR to increase 3.1% to $163.55, but occupancy to decrease 0.6% to 62.4%. EBITDA is projected to fall 0.3% in 2024 with a 3% rise in hotel values, but increase 1.2% in 2025 with hotel values going up by 2%. A cumulative 10% increase in hotel values is anticipated over five years.

3 min

Testing the impact of buy now, pay later across 150,000+ checkout sessions

💳 Yuval Shwager, Head of Product at Mixtiles, inquired about the impact of Buy Now, Pay Later (BNPL) options on checkout friction and card volume cannibalization. BNPLs now represent over $300 billion in global transactions. Stripe processed more than $1 trillion in transactions last year, about 1% of global GDP. Stripe conducted A/B tests on 150,000 payment sessions to assess BNPLs, which led to increased sales, revenue up to 14%, and higher conversion rates across a range of transaction values. Mixtiles implemented three BNPLs, resulting in thousands of dollars in increased revenue.

1 min

European demand for flights at ‘all time high’

✈️ The International Air Transport Association (IATA) noted a 7.2% increase in air passenger demand in Europe for July. On September 3, 2024, this rise was reported despite falling short of the global average of 8%. European airlines saw a 7% boost in available seat kilometers (ASKs), compared to a 7.4% global average rise. International flight demand in Europe grew by 8.3%, against an 8.1% capacity expansion. The CrowdStrike IT incident in mid-July, causing numerous flight cancellations, didn’t dampen the month’s demand.

1 min

American demand for international trips drives ‘travel momentum’

🏖 American households’ travel spending surpasses pre-pandemic levels, driven by international travel. Bank of America data (Jan-Aug 2024) shows spending per household up 10.6% from 2019, despite a slight dip compared to 2023. Europe captured 43% of spending May-Jul, while Asia's spending grew 11% year-over-year. High-income earners, above $125,000 annually, are leading the trend, opting for luxury hotels over standard accommodations this summer. View the full report at CNBC.

1 min

The summer European tourism reached a breaking point

🏕️ Visitors to European destinations in Summer 2024 are expected to surpass 2019 levels, with a 6% increase in international arrivals in Q2 alone, amid local backlash and climate challenges. Locals demand more tourism revenue for community and infrastructure, following a "perfect storm" of excessive numbers, poor behavior, and heat waves and fires, as noted by Professor Richard Butler on Sep 3, 2024.

1 min

Global hotel rates starting to rise ‘more moderately’

🏨 HotelHub reveals hotel prices in key global business cities increased moderately by 3.6% to $189/night in Q2 2024, compared to a 9.6% hike in Q2 2023. In Europe, the average was $176/night, while North America saw the highest regional rate at $218/night. New York's average hotel rate went up by 5% to $432/night. Booking lead time was 16.7 days, a 19% increase from Q2 2023's 14 days.

1 min

Offline travel market shrinking, but at a slower pace

📈 PhocusWright predicts a decline in brick-and-mortar travel agency sales, with a slowdown compared to past years as of September 3, 2024. Online travel sales growth tends to decelerate upon reaching 40% market penetration. The corporate travel sector, still largely offline due to complex policies, contributes to this trend. The effectiveness of hybrid offline-online agency models remains uncertain.

1 min

Holiday disruption at US hotels as 10,000 workers strike

🏨 Over 10,000 U.S. hotel workers initiated a strike on Labor Day, September 3, 2024, affecting services in 25 hotels across nine cities. The strike, entering its second day, corresponds with a 9% increase in Labor Day domestic travel. Hyatt and Hilton are working on fair negotiations, while Hyatt implements contingency plans. The strike could last three days.

0 min

Retail Economics and TikTok: The Power of Social Commerce: Building Brands in the TikTok Era (Short)

2 min

Dutch DPA imposes a fine of 290 million euro on Uber because of transfers of drivers’ data to the US

🚫 The Dutch DPA found Uber in violation of GDPR by transferring European drivers' sensitive data to US servers for over 2 years without adequate transfer tools, post-EU-US Privacy Shield invalidation in 2020. Uber, with a €34.5 billion turnover in 2023, faces fines up to 4% of its annual turnover. This case follows 170+ French drivers' complaints via LDH to the French DPA, leading to an investigation by the Dutch DPA—Uber's European HQ. Uber has been fined twice before by the Dutch DPA: €600,000 in 2018 and €10 million in 2023.

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