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Hospitality Industry Dominates Today’s Consumer Spending According to New Research

Millennials seek nearby staycation resorts over house-sharing, most travelers react to slogans that speak to value and cleanliness, and “bleisure” (mix of business and pleasure travel) is a growing trend in the evolving and strongly performing world of tourism.

These and other key findings can be found in The “2019 Southwest Hospitality Marketing Report,” developed and commissioned by LAVIDGE, a leading marketing services agency with over 35 years of experience in the travel and hotel industry. The report reveals insights around consumer preferences including: vacationers strongly resonate with ads containing practical words such as “affordable,” rely on referrals and are motivated by slogans that convey convenience.

What’s more, consumers are spending generously on getaways and trips. STR and Tourism Economics, the hotel market data leader, predicts vigorous financial growth through 2020 for the nearly $70 billion industry.

“Our hospitality research pinpoints the specific types of messages that resonate with today’s travel-minded consumers,” said David Nobs, managing director, business development at LAVIDGE. “Understanding what motivates consumers into action is critical for hospitality marketers in this competitive arena.”

Hospitality is getting more sophisticated 

Technology has also impacted how people travel, thanks to advancements in artificial intelligence like digital check-in and face-recognition systems. Future trends predict travelers seeking hospitality on-the-go and the introduction of mobile suites, and more adults-only travel.

Indeed, hoteliers are exploring adaptations of the Airbnb boom. Some now offer home sharing (as a concierge service) for travelers to go offsite for smaller trips during their stay.

The Research

WestGroup Research surveyed 450 adult consumers working and living in the Southwest United States to provide fresh insights for major hospitality marketing executives, travel professionals, meeting planners and business and leisure guests about specific phrases and tactics to market their products and services successfully.

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Trustdata Publishes Report on China’s Online Hotel Reservation Industry in H1 2019

  • China’s online hotel reservation industry maintained fast growth, with MAU reaching 100 million in Q2, while room nights reserved in H1 were up 20% year-on-year
  • China’s per capita GDP is expected to exceed 10,000 USD in 2019, accelerating the increase of new tourists and boosting the demand for hotel reservations
  • Among major platforms, Meituan maintained the No.1 position in room nights for H1 2019, followed by traditional OTA Ctrip

BEIJING, – According to the latest research from Trustdata’s Mobile Big Data Monitoring service, China’s online hotel reservation market continues with fast growth, with huge potential in the rise of online rates, compared with developed markets such as Europe, the US and Japan.

Young users are increasing, with the share of post-90s users exceeding post-80s users for the first time. The potential for the post-2000s is huge. Young users born in the 1990s and 2000s have less pressure from parenting, mortgage and car expenses. They have strong willingness to spend online, with higher demand for online hotel reservations.

Online hotel reservations have continued to penetrate in county-level markets in H1 of 2019, with 70% of new users from third and lower tier cities.

Platform Performance Insights:

  • In H1 2019, Meituan led the industry in terms of room nights reserved, accounting for 47.3% of the market, more than the total share of Ctrip, Qunar and eLong combined.
  • Meituan & Fliggy led the industry regarding number of young users, with post-90s and post-00s users accounting for more than 50%.
  • Ctrip ranked first in user retention, while Tongcheng-eLong and Meituan ranked second and third.
  • Qunar ranked first in terms of daily opens, followed by Tongcheng-eLong and Meituan.
  • OTA players around the world form a four-pole competitive landscape, and leisure travel is the key area of battle. Similar to Expedia, Ctrip has been developing for 20 years and focusing on business travel. Meituan, though young, is similar to Booking in nature, focusing mainly on the leisure and vacation market.

Trustdata, as the largest mobile Internet big data monitoring platform in China, devotes itself to becoming the most leading mobile application data content solution provider in Chinese era of big data to provide the most professional services such as data products, consultation, etc. in various fields of mobile terminal for the clients.

Trustdata covers over 60,000 Apps and 200 million monthly active users. Through acquisition, analysis and study of big data of China mobile Internet, it helps the entrepreneurs, the various fields in mobile industry and the investors to know about their application business conditions and the trend of the whole mobile application market, and helps the practitioners of this industry to better make marketing decisions on products, marketing and investment strategy. If you are in search of best western hotel app then please contact us and know more details about it.

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Dos and Don’ts: how small to mid-sized hotels should optimise revenue to drive growth

Hotels that take a strategic approach to revenue management (RM) will sell more room nights at the right price, and are better placed to thrive in a challenging environment.

Marta Varela, Director of Revenue Strategy at Barceló Hotels & Resorts, who will be speaking at the upcoming Revenue Optimisation & Growth Summit, Amsterdam, Nov 26-27, understands this. “Hotels have limited inventory which cannot be increased as desired or when demand rises. So it is important for hoteliers to accurately anticipate future demand with the objective of maximising revenues from the rooms that are available,” she says. According to Varela the most important thing is for hoteliers is to prepare the most accurate forecast and from there invest time in managing exceptions.

Also taking RM seriously is Laura Lo Mascolo, the CEO and founder of Interlude Hotels & Resorts, a collection of small boutique hotels and accommodations. With a focus on operation management, revenue and sales, Interlude’s goal is to deliver a tailor-made product with a strong experiential focus. Mascolo, who will also be sharing her insights in Amsterdam, is keen to “debunk some false myth that very small boutique hotels cannot benefit from revenue strategies”.

As Daniela Hupfield, Commercial Director, Thomas Cook Hotels & Resorts, stresses: “Increasingly revenue managers have to become control freaks. They need to know their markets and clients really well in order to manage internal expectations and avoid short-sighted decisions.”

While Interlude, Barceló and Thomas Cook are all taking a more strategic approach to revenue management, there are many small to medium and independent hotels that are missing a trick. Klaus Kohlmayr, the chief evangelist at technology firm IDeaS Revenue Solutions, estimates that there are probably around 80,000 hotels as a primary target for RM technology, and of those only 20,000 are already working with a firm like IDeaS. While IDeaS is one of the larger players, it is certainly not the only one. Rategain, Capterra and Travel Tripper, which recently merged with Pegagus, are among the others that have spotted the opportunity.

3 Dos and Don’ts At the upcoming Amsterdam show, expect to hear top tips from a range of hotel companies that are making headway with RM. Among these:

Do:

  • Invest in a good central reservation (CRS) with a two-way interface and a sound revenue management system (RMS) that is linked to the property management system (PMS).
  • Have a rate shopper, benchmark tool, online reputation service as well as a channel manager. Most of this software can also be connected to the RMS, which will ensure that any decisions also take into consideration external inputs obtained by these systems.
  • Put procedures in place to constantly check where your inventory and rates are appearing, and read contracts carefully. Limit the number of contracts you have and ensure you have strict performance criteria.

Don’t:

  • Rely solely on online travel agents like Expedia and Booking.com, or wholesalers, for your distribution strategy. It is crucial to understand and control your distribution pipeline.
  • Hand out rates willy-nilly.
  • Ignore other issues that touch on RM like ensuring regulatory compliance with the new payment services directive PDS2.

Develop your hotel mobile app to delight your guest quick and easy. It helps you empower your sales team to sell immediately.

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New Ways to Improve Business Travelers’ Guest Experience

The hospitality industry is constantly exposed to new demands from business travelers, particularly as tech-savvy Millennials have grown up into that customer segment. New technologies – like artificial intelligence and IoT –  are revolutionizing hotel guest experience permanently. This brings us to a question many hoteliers are pondering: how have business travelers needs changed and how to update the hotel for them to maximize guest experience? To help you do this, we’ve compiled some of the most relevant needs and ways to satisfy them:

1. Streamline the check-in process

Upon arrival business travelers value a fast and efficient check-in.

Implement self check-in machines and use mobile app for hotels so business travelers can avoid lines and minimize the hassle.

Offer keyless entry to a room via your guests’ smartphones so they can enter the room flexibly.

2. Make your rooms as functional as possible

It’s not a big surprise that the most important hotel feature for business travelers is wifi access that works without restrictions throughout the hotel. Today, wifi is regarded as a basic commodity; that’s why you should not charge for it. Besides wifi, rooms should also be customizable and cozy in order to provide the best possible circumstances for working.

Besides a room having an ergonomic and spacious workstation, the perfect hotel room for business travelers includes easily accessible power outlets and USB ports.

When it comes to lighting, business travelers usually work long hours and even sometimes pull an all-nighter. In addition to spotlights making reading more comfortable, adjustable smart lights also help business travelers wake up feeling revitalized.

After a long flight or a conference day the last thing a business traveler wants to do is grocery shopping. A minibar filled with complimentary healthy snacks and refreshments helps them to save time and settle into their surroundings.

3. Make their business trip safe of bed bugs

Encountering bed bugs in hotels has become one of the biggest concerns for travelers. According to American Entomologist, 34 % of hotel guests are so terrified of bed bugs that they do manual bed bug inspections when arriving to a hotel. A single report of bed bugs in recent traveler reviews reduces the one-night value of a hotel room by $38 for business travelers.

Bed bugs are gnarly parasites that can tag along travelers all the way from airports to taxis and make their way to hotel rooms. Erase the stress of your guests encountering bed bugs by making your hotels safe of them with an autonomous bed bug prevention system.

4. Offer the best possible environment for getting rest

For business travelers, it’s especially important to sleep well so that the hours in the location are used as efficiently as possible. Now that the lighting has been adjusted and the stay protected of bed bugs, a wide bed with a quality bedding ensures a good night’s sleep.

Make sure all your rooms are soundproof: nothing is more irritating than waking up to a baby crying next door.

Get an adjustable thermostat that can be controlled directly from a smartphone: some people love falling asleep in a cold room, some waking up in a warm bed. It’s all about customization!