TOP NEWS

🍽 Food, Drink & Hospitality Week runs from 17-19 March 2025 at Excel London, featuring an expanded HRC event with a new Pizza & Pasta section and stages for discussions on industry trends. Robert Richardson, CEO of the Institute of Hospitality, emphasizes HRC's significance for industry professionals. The event includes Chef HQ with chef demos and interviews, plus the return of the World Catering Technology Awards with FoodBev Media. Visitors can register for complimentary trade tickets at fooddrinkandhospitalityweek.co.uk.

🐉 Tareq Bagaeen, CEO of aQedina, highlighted China's economic growth, albeit slower. Marriott and Hilton adjusted outlooks in early 2024 due to a dip in domestic travel, particularly in second-and third-tier cities. Mandarin Oriental saw a 13% year-over-year revenue increase in Asia in the first half of 2024. Marriott boasts more than 550 properties in Greater China, with significant signings in 2024. Mandarin Oriental opened its 10th property in China, the Qianmen, Beijing, in October 2024. Major hotel groups continue to expand, expecting a rebound by Chinese New Year 2025.

💸 In the hospitality industry, hotels face challenges with traditional budgeting due to rapidly evolving market demands, inflationary pressures, and operational changes such as staffing and guest expectations. To address these challenges, a dynamic budgeting approach that includes continuous re-forecasting, data-driven decisions, and collaboration is recommended. Regularly updating financial plans using real-time data, using BI tools for insights, and frequent strategy sessions can improve profitability and guest satisfaction, giving hotels a strategic edge. Embracing dynamic processes early in the year can prepare teams for the budgeting season and make them more adaptable to change.

🏨 In 2025, AI is predicted to revolutionize hospitality by automating tasks like reservations and staffing, enhancing personalized service without replacing human interaction. Technologies such as AR/VR, digital keys in wallets, and contactless services will increasingly shape guest experiences. Hotels are expected to use tech for asset monetization and diversify revenue streams. Loyalty programs will evolve into personalized experiences, and payment flexibility will drive loyalty. Enhanced in-room entertainment and robust cybersecurity will also be prioritized, with blockchain potentially securing data exchanges. ????

🏖 Club Med pioneered the all-inclusive resort concept in the late 1950s. Expansion in the Caribbean and Mexico occurred after Sandals and SuperClubs' success in the 1980s. A significant milestone was reached in 2021 when Marriott and Blue Diamond formed a partnership, followed by Hyatt's acquisition of Apple Leisure Group and Hilton establishing an all-inclusive division. Sandals International, with a return guest rate over 50%, contributed to the sector's evolution. Upscale offerings now include Sandals' first-ever Two-Story Overwater Villas in Saint Vincent and the Grenadines launched in 2024. Partnerships with experienced operators are common, such as Hyatt's with Grupo Piñero, expanding their Inclusive Collection by 30%. Accor's Ennismore launched its first all-inclusive, SLS Playa Mujeres, in November 2024. The global expansion is targeted, with Asia and the Middle East as potential new markets. All-inclusives are expected to lead global travel with their seamless, curated experiences.

🏨 Hotelogix introduced an hourly booking module for hotels, creating flexibility in check-in/check-out and affordability for guests. The hourly hotel booking segment was valued at $16.67 billion in 2019 and is expected to reach $25.62 billion by 2027. The trend is notable in the US, UK, India, the Philippines, and Southeast Asia. Hotelogix's new feature also includes packages, discounts, and late check-out options, with reports to track hourly bookings and revenue. GCGC, managing over 60 properties and 8,000 rooms, has seen an average of 750 hourly bookings, with each booking lasting about 6 hours, resulting in a 40% increase in revenue per room.

🏠 AHLA to host regional Hospitality Show events in 2025 across the U.S. Previous 2024 event in San Antonio attracted 4,800 attendees and 460 vendors. Key 2025 dates and locations include: Atlanta, Georgia on February 12; Honolulu, Hawaii on February 27; Dallas, Texas on March 13; Nashville, Tennessee on March 27; Cincinnati, Ohio on May 20; Jersey City, New Jersey on June 25; New Orleans, Louisiana with a date to be determined in September. The events aim to connect hoteliers with peers, suppliers, market data, and discuss policies affecting the industry.

🏨 Brian Chesky, CEO of Airbnb, predicts a profound impact of AI on the world, comparing it to the Industrial Revolution. Hotel industry leaders expect AI to transform guest experiences, with GenAI delivering hyper-personalized services. In 2025, a burst in group travel and stability in interest rates have been observed. Luxury and lifestyle travel is expected to grow to $369 billion by 2032. Environmental consciousness is pushing for sustainable practices. Eighty percent of investors plan to maintain or increase their capital investment in hotels over the next 12 months. The wellbeing trend continues to rise post-COVID, with a demand for holistic retreats. Interest rates and infrastructure developments, like in oil and gas markets, are influencing hotel industry transactions. Hilton anticipates GenAI to change booking processes in the coming years, while the return of Asian travelers, especially the Chinese, to pre-COVID levels remains uncertain. Overall, industry resilience and adaptability are highlighted for 2025.

🏨 On January 8, 2025, Rachel Roginsky, Principal at Pinnacle Advisory Group, gave her insights on the State of the Hotel Industry in a podcast episode for Hospitality Daily Podcast. Roginsky, a top hotel asset manager, provided her take on the research findings. The episode is a part of the podcast's content which also features other popular episodes recommended for listeners.

💾 Between 2019-2020, 63 million hospitality jobs were lost globally, and by 2022, the sector had 39 million fewer workers than pre-COVID-19. A 2024 McKinsey study across 30 countries found job vacancies in hospitality rose from 10.2% in 2010 to 11.2% in 2023. Hourly labor costs increased by 4.7% in the euro area and 5.2% in the EU in the second quarter of 2024 compared to the previous year. Research from the Cornell Center for Hospitality and Deloitte's 2024 Human Capital Trends highlights investing in employee-facing technologies boosts guest satisfaction and reduces operational costs.