Revenue Management

🏨 Global Hotel Alliance reported strong Q2 growth: 19.5% increase in GHA Discovery enrolments, total 27 million members, and 85% spike in Discovery Dollars redemption. Room nights climbed 13.4%, with room revenue up 10%. First half-year room revenues reached $1.3 billion, a rise from $1.1 billion in H1 2023. International stays constituted 67% of Q2 room revenue, led by the Maldives, Thailand, and Portugal. U.S. members generated the most room revenue at $110 million, with the U.K. following at $60 million. Bookings via GHA’s direct channels jumped 40%, averaging 57% higher spend per member than third-party channels.

💻 GrowthCurve Capital acquired Duetto, a leading provider of hospitality industry revenue management software, last month. Duetto plans to launch new AI products in the second half of the year, building on its success with over 6,000 properties in 60+ countries. HITEC 2024 saw the introduction of OpenSpace, Duetto's new revenue management and booking engine for meeting and event spaces. OpenSpace offers dynamic pricing and sophisticated demand predictions, considering transient business displacement and several event-specific parameters.

📊 In Q2 2024, the Guest Experience Benchmark Infographics included new data on review volume evolution over the past 3 years and average response times to reviews by star category. These exclusive insights aim to provide valuable information for the hospitality industry.

🏖️ Post-pandemic, travel demand surged, with a significant increase in luxury travel budgets. Industry research indicates a continuous rise in luxury travel interest. Tara from Resfeber Travel, Inc. highlights a trend for personalized and unique experiences. Luxury travel is defined by an acute attention to detail and unparalleled service, with the expectation of having every whim catered to. A Phocuswright survey found that 55% of travel agents' clients are affluent, seeking bespoke services. Travel agents play a crucial role, with 85% of luxury travelers preferring agents for personalized bookings. Their expertise and connections are vital for planning and support, offering access to exclusive experiences beyond the scope of average travelers.

🏨 In May 2024, the average daily rate (ADR) for a U.S. hotel room reached $158.45, just below the historic high of $159.01 from October 2023. The 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study by J.D. Power reveals varying satisfaction across hotel segments, with luxury and upper upscale showing strong scores, while limited-service segments see satisfaction decline. North American hotel guests now average nine trips annually, down from ten, but stay longer, averaging 3.43 days. Hotel brands like The Luxury Collection, Margaritaville Hotels & Resorts, and element rank highest in their segments. Full-service hotels maintain higher satisfaction despite higher rates, suggesting that investment in staff and facilities correlates directly with perceived value.

🍴 Spaghetti House, operating eight restaurants in London, saw turnover rise to £10m from £9.8m despite a challenging year. Profit margin increased from 75% to 77% due to efficient wastage control and a central distribution process. However, the group swung to a loss, contrasting with last year's profit of £334,681, which included £1m of one-off income. Adjusted EBITDA improved from -£545,321 to £52,483. A new brand, A Braccetto, launched earlier the year in Earl's Court, featuring a menu with classic regional dishes.

🏠 A 2023 Rackspace survey indicates 73% of hospitality IT decision-makers see AI as crucial to their business strategies. Marriott employs generative AI for personalized booking experiences. The Cosmopolitan's AI chatbot, Rose, enhances guest services in Las Vegas. Turtle Bay Resort's AI-powered CRM has led to a 70% email engagement rate and a 40% revenue increase. AI ensures consistent experiences across properties, with examples like standardized housekeeping and fast support through virtual concierges.

🏦 Saul Hoppenstein and James Elmore of Berkadia secured a $45.9 million loan for refinancing Hampton Inn & Suites in Miami’s Brickell neighborhood. Miami-based Hospitality Operations, Inc. is the sponsor. The loan is five-year, fixed-rate, with interest only, offered by a life insurance company. The 221-key hotel features amenities like a rooftop pool and is situated near transport links and entertainment in Miami’s financial district.