Market Trends

🌱 Banyan Group introduced Banyan Tree brand in Kyoto’s Higashiyama Ward, Japan. This luxury hotel, Banyan Tree Higashiyama Kyoto, features 52 rooms, a spa, natural Onsen, and two dining venues. The hotel is close to the UNESCO heritage site Kiyomizu-dera Temple and offers traditional Japanese architecture with modern influences by Kengo Kuma and Yukio Hashimoto. It joins Banyan Group's eight hotels in Japan and forms part of their global portfolio of 80 hotels, targeting to double their footprint by 2025.

🍴 Bret Thorn, Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality since 1999, reports on food and beverage trends and hosts "In the Kitchen with Bret Thorn" podcast. Wrote "Kitchen Dish" column for The New York Sun (2005-2008), worked in Thailand as journalist (1992-1997), and received the 2006 Jesse H. Neal National Business Journalism Award. A magna cum laude Tufts University graduate, studied French cooking at Le Cordon Bleu, Paris, and was inducted into the Disciples d’Escoffier in 2014. Lives in Brooklyn, NY.

📚 TrustYou's consumer research reveals generational differences in travel review behaviors. Millennials and Gen Z (18-39) read (84%) and write (66%) more reviews than Baby Boomers and Gen X (40-65), especially after a positive experience (37% vs. 24%). Baby Boomers and Gen X prefer hotel websites for reviews, while younger generations favor Google. For surveys, 83% of older travelers respond to emails, whereas 33% of younger ones prefer text messages. Negative reviews are considered genuine by 68% of older vs. 57% of younger travelers. Cleanliness is vital for Baby Boomers and Gen X (7/10), and Wi-Fi is crucial for 43% of Millennials and Gen Z. Younger travelers expect rapid responses to negative reviews, with 55% stating a response doesn't change dissatisfaction. The survey included 800 U.S. hotel bookers, 45% aged 18-39, and 55% aged 40-65, conducted in September 2022.

🏖️ On August 20, 2024, The Guardian discussed the concept of "the new tourist," contrasting with the old tourist's selfish approach, and emphasized embracing and learning from different cultures to combat overtourism. The idea is to transform from being consumers of places to learners and connectors within them. Full story: [The Guardian](https://www.theguardian.com/news/article/2024/aug/19/the-good-tourist-can-we-learn-to-travel-without-absolutely-infuriating-the-locals).

🏖️ On August 20, 2024, U.S. CEOs warned about declining consumer financial health impacting travel, following the highest unemployment rate since fall 2021. Despite this, the Conference Board reported more Americans plan vacations now compared to last year. U.S. hotel occupancy rates for the week ending August 10 were also up year-over-year, with over 82,000 locations monitored by CoStar Group.

🏖 By 2040, 50% of domestic tourism in the U.S. will be senior travel, catering to retirees aged 50-60, nearly 300 million people. Chinese tourism is expected to rebound to pre-pandemic levels with travel companies avoiding sharp price increases, employing healthcare professionals, and offering senior discounts. Women retire at 50 and men at 60, benefiting from four decades of economic growth. Travel services are adapting for this demographic. [Article Date: Aug 20, 2024]

🥪 Mango habanero flavor is increasingly popular in the U.S., featured in various dishes and drinks. Despite habanero's spice, these mixtures highlight the pepper's floral notes and mango's sweetness. Market research by Datassential shows a 118% menu presence growth over four years, now at 4.8%. Its popularity is notable among Gen Z, millennials, and Hispanic consumers.

☕ Starbucks, the $86B coffee giant, reported a 4% global same-store sales decline YoY, with a 6% fall in store traffic and China experiencing an 11% decline. CEO Laxman Narasimhan cites economic weakness, reflecting trends also seen in other F&B chains. Howard Schultz, former CEO, criticized the company's direction, noting the erosion of the "Third Place" concept due to mobile app sales, which account for 31% of U.S. sales. Over 34m people hold $1.7B+ on the Starbucks Rewards App, and the company recorded $215m in breakage revenue in 2023. Starbucks is investing $450 million in the Siren System to streamline barista processes, despite customer concerns over the loss of community space, recommending a focus on experience rather than transactions.

🏨 Hyatt Hotels Corp. saw group and business transient as strongest customer segments in Q2, with group room revenue up by 8%. U.S. business transient segment increased by 14%, and global RevPAR grew by 4.7% compared to 2023. Net rooms growth was approximately 4.6%, and the pipeline of executed management or franchise contracts grew by 9% YOY to 130,000 rooms. Hyatt recorded a net income of $359 million and a leisure transient decrease of 2%. World of Hyatt membership reached 48 million, up 21% from the previous year, and strategic partnerships continue to expand with recent alliances and acquisitions.