Revenue Management

🏨 Hilton CEO Chris Nassetta highlighted a spending slowdown at the lower ends of the hotel market, with economy RevPAR down 4.4% year-to-date June 2024. In contrast, luxury RevPAR is up 2.1%. Wyndham remains optimistic, citing a 2.6% annual growth in U.S. RevPAR since 2000. CoStar projects a 2% RevPAR growth for 2024 across all scales, but forecasts negative growth for midscale and economy segments. U.S. credit card debt is at $1.14 trillion. Group business recovers, with Marriott reporting 24% of room nights in Q2. New hotel supply is limited, with an annual rate of around 0.6%, and Lodging Econometrics records an all-time high of 6,095 projects in the pipeline for Q2, up 9% YOY.

💰 Forecasting and budgeting in revenue management are vital for setting hotel revenue goals. An accurate demand forecast is key for hotel budgeting, requiring historical, booking pace, and forward-looking metrics. Revenue management systems (RMS), like Duetto, can simplify this process by integrating data from various sources and generating forecasts and budgets quickly. RMS benefits include real-time data access, automatic forecast creation, data visualization, and scheduled reporting, leading to smarter cash flow management and efficiency in revenue operations.

🏨 Mews and Duetto surpassed 600 joint hotel customers, improving global hoteliers' revenue. Since the 2017 partnership, they operate in 29 countries, varying from 3-room to 800-room properties. Users report a 6% average revenue increase in the first year and a subsequent 10% RevPAR growth. Integration through Mews Marketplace is free, with 25% faster deployment than average PMS setups. Two-way data synchronization between Mews and Duetto enhances real-time pricing decisions and profitability.

🏨 In 2024, Accor, Best Western, and Wyndham are targeting the midscale market with soft brands, capitalizing on the trend among young travelers for unique, yet affordable lodging. Wyndham is adapting to the preferences of a younger generation, Best Western is tapping into the midscale and economy segments with its SureStay Collection, and Choice Hotels offers an upscale experience through its Ascend Hotel Collection. The shift comes as demand increases for reasonably priced options with distinctive character.

🌊 At the family-friendly resort located on Juanillo Beach, guests enjoy four swimming pools, a lazy river, waterslide, cabanas, and eco-friendly practices. Bahia Principe Punta Cana offers diving lessons, Jeep safari tours, and unlimited drinks at a price of $. Finest Punta Cana features a modern aesthetic with six pools, 15 bars, lounge areas, meals, and activities for $$$. Hilton La Romana provides a water park, casino, four pools, and family amenities at a price of $$$. Sanctuary Cap Cana, aimed at romantic sophistication, includes five pools, a 20,000-square-foot spa, and all food and drink for $$$$.

🍴 In July, food index rose by 0.2%, matching June. Food-at-home index up by 0.1%, food-away-from-home by 0.2%. Over 12 months, grocery prices increased by 1.1%, restaurant prices by 4.1%, surpassing the 21-year average of 3.3%. This period marks the 17th consecutive month of restaurants outpacing grocery prices. The Consumer Price Index also rose by 0.2%, bringing the inflation index below 3% (at 2.9%), the first since March 2021. Full-year 2024 restaurant industry same-store sales growth projected to be the lowest since 2016, excluding 2020.

💸 Mews and Duetto have surpassed 600 joint hotel customers, achieving global revenue growth since their 2017 partnership. Serving properties ranging from 3 to over 800 rooms in 29 countries, the integration allows dynamic pricing based on multiple factors. Customers typically see a 6% revenue increase in the first year and a further 10% RevPAR growth. There's no connection fee for Mews Marketplace users, and integrations with Duetto are 25% faster than the average PMS, fostering quicker ROI through a two-way data synchronization.

🏨 Online Reputation Management (ORM) for hotels involves monitoring and improving a brand's image online by tracking mentions, responding to reviews, and maintaining a positive reputation. Effective ORM can lead to increased bookings, higher average daily rates (ADR), and revenue per available room (RevPAR). Research indicates that 95% of travelers read reviews before booking, and hotels receive feedback that is 57% positive and 43% negative. The PDCA (Plan-Do-Check-Act) cycle is recommended for consistent implementation of new processes and improvements. TrustYou's Customer Experience Platform provides over 180 categories for tracking customer sentiment. A strong online presence, including a user-friendly website and prompt customer service response, is essential. 90% of guests expect hotels to respond to their feedback, and staff behavior strongly influences guest satisfaction and online reputation.

🏕 San Francisco's tourism industry lags in recovery, with the value of its two largest hotels dropping by $1 billion to $553.8 million. As of August 14, 2024, weekend hotel occupancy is down 22% since 2019. Visitor numbers aren't expected to rebound until 2028-2029, contrasting with a mere 4% national decline. The high cost of living in the Bay Area, the second most expensive region in the U.S. after New York City, may deter tourists.

🏨 U.S. hotel transaction volume hit $9.2 billion in H1 2024, a 23% decrease from the previous year. RevPAR remains strong, especially in urban markets with high potential for growth. Factors influencing the hotel industry include sluggish supply growth due to increased construction costs and supply chain issues, yet investor interest persists in urban and high-barrier-to-entry markets. An anticipated rise in commercial mortgage-backed security loans could stimulate hotel transactions in H2 2024.