They’re here, so deal with them: The hotel industry has been facing the threat of disruptors, like Airbnb and other distribution shifts, for a while, so it’s time to really face the problems—and potential opportunities—head-on, speakers said at this year’s Lodging Conference in Phoenix.
On the Airbnb front, hoteliers said the best course of action is to learn how to embrace the experience angle of a trip from the room-sharing giant. And it can’t hurt to have information-gathering conversations with the company along the way. It’s about keeping friends close and enemies closer, said Marriott International’s Liam Brown.
Hoteliers also discussed the pros and cons of new distribution platforms, such as Google, and addressed the concerns around the recent outcropping of rogue booking sites.
Speaking of distribution disruptors …: TripAdvisor’s Instant Booking platform has been slowly adding hotel brands to its inventory over the last few months, and now the company has struck a deal with Priceline Group to offer rooms from Booking.com on its site. The Wall Street Journal reports the deal came after months of negotiations and hesitation from Priceline. Following the announcement, TripAdvisor shares rose more than 20% to $81.09 early Wednesday, while Priceline shares dropped 1.9% to $1,319.
In a news release, Priceline said Booking.com will be the first brand to integrate into the TripAdvisor platform, but Priceline.com and Agoda.com brands will likely follow.
It was a good week for US hotels: In year-over-year measurements, the industry’s occupancy increased 0.5% to 71.7% in the week of 4-10 October. Average daily rate for the week was up 4.5% to $125.23. Revenue per available room increased 5% to finish the week at $89.85, according to STR data. (STR is the parent company of HNN.)
- Among the top 25 markets, Minneapolis/St. Paul, Minnesota-Wisconsin, reported the only double-digit increase in occupancy (+11.4% to 81.3%) as well as the largest increase in RevPAR (+23.4% to $102.77). ADR in Minneapolis/St. Paul was up 10.7% to $126.36.
- Houston reported the largest decrease in RevPAR, down 7.7% to US$80.53.
Hyatt says no to adult content: Marriott International just said no in 2011. Hilton Worldwide Holdings followed suit in August. Now Hyatt Hotels Corporation is the latest to say it will discontinue all adult entertainment content from its guestrooms worldwide.
As reported in the Los Angeles Times, the company’s statement said that “in-room programming choices are just one part of the guest experience Hyatt is constantly evaluating. As part of that process, Hyatt has made the decision to stop offering adult entertainment video-on-demand at any Hyatt hotel.”
Historic hotels can command premiums: New data from PKF Hospitality Research shows that U.S. hotels marketed as historic properties achieve substantial premiums in average daily rate and revenue per available room compared to their contemporary counterparts. In 2014, historic hotels had an average ADR of $262.27, 17.7% more than the $222.84 ADR for contemporary hotels. Over the next five years, RevPAR for historic hotels is expected to grow at a compound average annual rate of 4.2%, tracking closely with the nation’s upper-upscale hotels at 3.9% and 4.5% for luxury hotels. Most of the RevPAR growth is expected to stem from increases in ADR.
Compiled by Stephanie Ricca.