TLDR: Too Long Didn’t Read

Hotels are striking back at Airbnb’s over tourism claims 🏨⚔️, pointing out that short-term rentals in Spain grew 135% vs. 2.5% overall tourism 📈🇪🇸. Motel One was mostly sold and aims to double its hotels in 10 years 🏨↗️. Booking is trialing AI-powered “Connected Trips” 🤖✈️, while ChatGPT now offers agentic features to book and manage tasks 🤖📲. Global hotel performance dips (ADR, RevPAR, occupancy) 📉, except luxury chains 💎🏨, while construction costs ease slightly 🏗️📊. Hilton survey reveals travelers act spontaneously and fear missing out 😎⚡, though business travel remains sluggish due to costs and admin 💼📉. Hospitality REITs track market trends 🏢📈. New resources highlight GDS fees 💳, digital accessibility ♿, executive hiring 👔, USALI budgeting 📊, and cyber-resilience 🛡️.

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0. News snippets

Not important enough to expand on, but worth hearing about

Where do we check the validity of sources? The free tool we use to do so is mediabiasfactcheck.com | Tired of taking the train to North Korea? No worries, Russia launched the “first” commercial passenger flight there.

0.5 Follow up

Where we follow up on news from previous weeks

Hotels strike back!

In June Airbnb blamed hotels for over tourism. In July the hotels strike back! With a variety of their own statistics and FACTS. Head of Melia, Accor’s PR team, and a few others have responded. Apparently, while tourism grew 2.5% in Spain last year, it grew 135% within the Short-Term-Rental sector. The battle continues. Solutions until than? Close everything and never travel again for tourist purposes, especially to Barcelona. More here.

Motel one was sold, now they will double

Motel One, Germany’s leading home bred hotel chain, was sold recently (at least 80% of it). Owner stayed as a director though. Now? The plan is to double their hotel count from 100 to 200 in 10 years. Mostly in Germany, but also worldwide. Reaching greatness one hotel at a time.

1. Big Players

Core news related to hospitality chains

Booking integrating AI for “Connected Trips”

Remember that lovely person inside a tourism office? Selling you trip packages to far away places? A picture of some beach behind them, all-inclusive trips. Nothing to worry about and of course “personalized” towards your needs (and many millions more). Well Booking is going to try to replicate that with AI. Their offer of “connected trips” has apparently reached low but still double digit share of their total number of bookings. Putting a little AI bot to help you out might boost the whole thing even more!

2. Travel tech

Core news related to the industry

AI is now doing real life actions for you

AI can now be agentic. OpenAI has released a chatgpt agent feature. You can tell it what to do and it will go online and start taking actions. Including making guest reservations or filling out some forgotten spreadsheet. The feature was demoed in the beginning of 2025, but now YOU can use it for just 20 bucks per month. The only question remains, who will you complain to, when you get booked into a bed bug ridden property on the outskirts of the city? Yourself of course, dummy. Should have written a better prompt.

3. Industry Trends

Core news related to the industry

RevPar, occupancy and ADR down globally (you are not alone)

Ever wonder how well are you performing compared to others? BUT don’t have a huge budget to subscribe to a live data pool? Fear not, for STR releases weekly market reports. US only and partially for global regions, but still. What happened in July? ADR down, RevPar down several weeks in the raw. Even globally occupancy decreased. Weekends weren’t as bad, but still decreased. Only segment that saw an increase were luxury chains. “Poor” people seem to not want to travel as much.

Cost Survey by HVS

HVS has also released a cost survey for 2025. While construction cost of hotels has still increased in 2024, the cost inflation has decreased to 3-4%. RevPar and Adr on the other hand have increased 1-2% depending on what metric you look. As a result it “makes more sense” to build hotels again. Finally the article provides current average and median costs of hotel development from land to refurb. For those who care about metrics, go here.

Hilton surveys 13 thousand lucky travelers

Hilton released a report form June based on 13 thousand surveys. Any learning’s? 78% of people are taking holidays “spontaneously”. 75% feel FoMo when traveling and 68% have an itinerary. Overall the report goes into various target groups, spending patterns and more. Check out the full report here. 55% by the way, want to not think about money when on holiday, meaning 55% are thinking about money when on holiday.

Hotel Associations happy about “The Big Beautiful Bill”

AHLA was very happy about the big beautiful bill by Trump. Why? Tax reforms that provide stability for SME properties. There are always several sides of the coin to any issue. More here.

Business travel survey pessimistic?

In the spirit of reports this month, another one was released. Specifically business travel. NOT DOING WELL. Why? Sellers are seeing a further decrease in demand, buyers are planning less. Top 2 reasons were high travel cost and increased administrative burdens. Next comes safety and even border detentions. Maybe all just excuses to jump on a zoom call instead of taking a plane somewhere? Who knows. More results here.

4. Hospitality Academia

Scientific papers from the sector. For those who want to know for sure ;)

Hospitality REITs vs the Market

A quite an exciting study was released in July. Specifically on the topic of Hospitality REITs (Real Investment Trusts). Here is the abstract of the abstract. Hospitality REITs go hand in hand with overall market situation, meaning you are not diversifying yourself from risk when investing in hospitality, you are just attaching yourself to a pretty good indicator of the economy. The data does include revenues from outside of COVID, however only 8 REITs that are publicly traded were looked at. Not a very diversified pool of data but still. Want to make money when others don’t? Don’t buy hotels. (on average)

5. Readables

Books, podcasts & the big stuff.

Tourism Economics

Another month another book. If you want to do a deep dive into tourism economics including financials, strategies and case studies, a recent academic book was released. “Tourism Economics: Financial Inclusion, Performance Strategies, and Case Studies”. An exciting read after a long week of doing check-ins.

6. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

GDS networks and commission fees

How do hotels keep GDS commission fees low? The answer lies in being a big chain that started before the 2010s. You are not in the list too bad. Just kidding. Here more.

How to make your site “Digitally Accessible”

Here a rather unique take on accessibility. Not just the wheel chair kind, but a digital one. How do you make your hotel website digitally accessible to those who can’t use your website in the regular way? Quite an interesting article referring to specific legal guidelines that need to be followed “Web Content Accessibility Guidelines 2.2”. Here the link that you can use to see whether your site complies. Full source here.

Hiring basics

Hiring is so easy right? Well, no? Here a useful guideline we found on hiring executives for your hotel business. From writing job descriptions to training your hiring staff.

Hotel Budgeting with USALI 12

No idea how to budget for 2026 or any period for that matter. Here a useful guideline going into benchmarks and USALI standards (12th edition). As always this articles are sponsored by who ever posted them, but you can still extract some useful information with out falling for any sales tactics. Missing information? Just ask ChatGPT (and always double check)

Cyber-Resilience via 5 steps

Ever got hacked? Well a casino in Las Vegas did, resulting in a total loss of 145 Million USD. Specifically via social engineering. Somebody somewhere tricked someone into giving access to data that they shouldn’t. Following article provides basic 5 steps (or at least 3 basic steps) on how to prevent it. Read it for your own good.

TLDR: Too Long Didn’t Read

Airbnb blames hotels for over tourism despite its own role in rising demand 🏨🌍🔼. Accor’s Q1 saw 45 new hotels, focusing on luxury and shifting to an asset-light model 🏨💼✨. OYO is diversifying with F&B concepts 🍽️🏨, and Marriott acquired CitizenM 🏨🤝.

AI is reshaping hospitality with self-check-ins gaining popularity 🤖🏨, and TripAdvisor experimenting with AI for recommendations 📲🧠. U.S. hotel demand surges 🇺🇸🏨, while football events and major occurrences boost bookings ⚽🏨📅.

In the EU, luxury investments are rising 💎🇪🇺, but UK hoteliers are urged to stay cautious amid economic uncertainty 🇬🇧📉. Academic insights on motivation highlight money, promotions, and appreciation as key drivers 💰📈👏. Meanwhile, a floating hotel concept offers new opportunities 🚢🏨.

0.5 Follow up

Where we follow up on news from previous weeks

Airbnb blames hotels for over tourism

Remember that time Airbnb was blocked or limited by various cities around the world due to it’s impact on rent and over tourism? Apparently its hotel’s fault. According to an Airbnb report, over 80% of stays in EU take place in Hotels. Fair enough. The only thing that report forgot to mention is that these hotels had to get a construction permit, submit statistics, pay taxes where applicable and are in buildings where the zoning permits it, unlike many Airbnbs. Regardless over tourism isn’t the result of Airbnb or hotels, its simply high demand outpacing local supply and corresponding infrastructure. Unfortunately, your city is just too nice for people around the world to miss.

Who decides which hotel has the best design?

Remember that annual Hospitality Design award? Have you ever wondered who are the juries who are “qualified” to decide whether your hotel has the best design this year? You are (as always on Le Portee) in luck. The jury for the 21st Annual Award can be seen here.

1. Big Players

Core news related to hospitality chains

Accor CEO latest interview

Accor CEO gave an interview. Unusual right? In Summary? Luxury is on the rise more than other segments. Opened 45 hotels in Q1. Argued that middle-class growth, infrastructure and demographics are the main variables impacting the industry. Extended for another 3 years as CEO. Average occupancy for the chain is 67%. 1% lower than 2019 levels. Main strategy points were making the chain asset lighter, by selling properties owned by the group and diversifying the portfolio further in different segments. More here.

A hostel gets 450 million Euro funding

Room00. Have you heard of them? Me neither and yet they are on they way to become the biggest hostel operator in Europe. All the sources about it popped up within the last year. An interesting story to follow over the next years, given they appeared out of nowhere.

Accor gets sued for privacy violations

On a surface, this sounds like generic news, BUT! But, this can likely happen to the majority of hotel operators. In a nutshell a site from Fairmont when visited would send information of the visitor to Meta (alleged). This was not included in the chain’s privacy T&Cs. While this isn’t going to bankrupt Accor, it sure might make a big dent in the bottom line of independent players. Indeed, likely fines can go up to 20 million Euros in EU, or 4% of your annual revenue. So? Check your cookies…

OYO, India’s biggest hotel group is going to offer F&B concepts

Who cares? Well, OYO at its core is management company with asset light strategy. You own a B&B somewhere, OYO comes in, gives you a brand guideline, software and suppliers for your day to day and away you go. Offering F&B would be an additional segment, that would make the model a layer more complicated. Interesting how will that look like in the years to come.

Marriott takes over CitizenM

In case you missed it, Marriott acquired CitizenM. In negotiations for a while, and announced in April. Taking place as we speak. For those who don’t know CitizenM, it was is a unique hotel offering with tiny luxury rooms. Being some of the first to use technology to get people to experience something different outside normal hotel concepts. Biggest chain in the world, buys perhaps the most innovative hotel chain.

2. Travel tech

Core news related to the industry

Front Desk not needed anymore?

“Oh leave me alone” would a seasoned hotelier say. Reception is important, dealing with people, helping them. Seeing their emotions and supporting them. “Providing Character” to an otherwise empty building, is what makes us special! Well 70% of travelers, according to a mews survey, said they would skip the front desk in favor of self-service. Now, the survey is a little bias, since only 2000 Americans were asked about their preference. This means no 80+ year old grumpy Germans or 76+ year old reluctant French were asked about their opinion of using digital check-in. Which means around 96% of European travelers were unfortunately excluded from this study. But who knows, maybe they can be converted too.

TripAdvisor using AI for trip recommendations

Remember that company who we all loved and participated it? Gaining reviewer badges and praising (or not) fine establishments around the world? Well ever since google decided to grow their own review platform, Tripadvisor has been on a slow decline. Regardless, they are now testing AI and LLMs to create trip recommendations and look for high intent individuals. Unfortunately, everybody else also has access to LLMs, thus lets see if this will make TripAdvisor the returning Hero.

Using AI to respond to reviews?

Here is a little take by TMG on how to respond to guest reviews using AI. In short, it can come up with fake policies that can obviously backfire when you are responding to an angry guest. It will likely mirror what ever it is responding to, meaning just repeat back what ever complaint the guest has (not optimal for SEO). Basically double checking the final responses and giving what ever LLM you are using, notes on how to do better will likely mitigate that.

3. Industry Trends

Core news related to the industry

Record high July 4th?

While a lot of reports show that tourists are less likely to go to US, it does not seem like US really needs foreigners visiting them that much. I know, right? A report from June showed an estimate 72.2 milllion Americans were going to travel during July 4th. A record high number. The vast majority, around 60 million will do so by car. For comparison in 2019 there were around 65,9 million in total traveling.

In the mean time hotel pipeline in the US has growtn 5% YOY. Mostly upscale and midscale hotels. Budget oriented can be probably found in Canada? Europe and other continents are showing growth too. More competition, more fun?

Europeans choose train over anything

Remember Americans choosing car as their preferred form of transport? Well apparently Europeans are switching to train. According to a survey conducted by a rail manufacturer Hitachi. (definitely not bias). There are several references about how train has major stakes in specific travel types (i.e. 2.5 hours or more), yet no absolute comparison. Yet what the article catches well is the sentiment, Europeans want to go green and train is the best way to do so. Two thirds or surveyed Europeans are even pro-banning short-haul flights. I assume these two thirds have never waited on a German DB train for 2-3 hours or had several trains cancelled on them.

Investor sentiment EU

Investors were asked about investing in EU. Specifically into hospitality, by everybody’s favourite CBRE. Result? Fuck yeah! Which cities are the current winners? funny enough London is number 1 (Brexit seems to not have impacted that). Barcelona is still 5. Locals should perhaps burn more buildings down or something. Where to invest into? Luxury and midscale, mostly. Funny enough, according to a latest HVS take on profitability for Midscale and Economy hotels, results were pretty clear. Economy is more profitable.

On the other hand, UK hoteliers were recently warned and urged to be cautious. Inflation, lack of domestic spending and GDP stagnation. But I guess London isn’t UK, right?

Football boosts hotel bookings

Remember Taylor swift concerts bringing record high numbers to hotels worldwide? What about UEFA Champions League? 32% boost was seen in Germany. Whether you want your hotel filled with football fans is another question, but 32% sounds good to me! You know what else caused a huge surge in bookings? Pope Fracis’ Funeral. So if you are chasing those ultimate events, I guess just look at your local obituary’s.

4. Hospitality Academia

Scientific papers from the sector. For those who want to know for sure ;)

Top motivational factors across industries

Remember that word Motivation? Me too, sometimes. Indeed a few scientists got together and tried to find out what factors motivate people the most. Specifically by industry. In hotels, what were the top 3 factors? You guessed right, money, promotions and appreciation. Not so difficult right? The only sector that did not have wages as number 1 factor was energy (maybe they already make enough?). Factors 2 and 3 on the other hand vary across all sectors they looked at. More here.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Distribution chart 2025

Ever wondered what tools exists out there for your perfect tech stack? Well we found something pretty insightful. A pretty full distribution tech chart filled with tools from PMS to up selling. More here.

Floating hotel

Hotel on boat? Not unique, but still an alternative to taking over real estate space that is otherwise so needed for private apartments!

UK hoteliers warned of inflation

UK Hoteliers are advised to be cautious! In case you weren’t and were just spending left and right. Jokes aside, inflation is still high, people are spending less, tariffs are also a thing. Oh and the war wars.

Independent Hoteliers pains?

A revenue management SaaS made a survey and called it “The Voice of Independent Hospitality”. In there 200 owners were asked about their pains and gains. Read up on it if this relates to you. But of course as always, don’t forget the salt.

6. Externalities

Economics, finance, geopolitics. In case you live in a cave.

• Trumps immigration crackdown is making it difficult for hotels. More here.

• A geopolitician attempts to forecast the future of tourism. More here.

• California catching up on Laws for tourism. More here.

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TLDR: Too Long Didn’t Read

Mark Hoplamazian of Hyatt was named Cornell’s Icon of the Year 🏆🏨, while Hilton added 154,000 rooms in 2024, with a new Hampton property in Africa 🏨🌍. Air traffic controllers are under scrutiny after a tragic collision ✈️⚠️, and all-inclusive hotels face challenges in Europe due to costs and regulations 🏨💰🇪🇺.

The 2025 trends suggest luxury hotels and AI-driven guest experiences are rising, with a focus on nostalgia 🏨🤖⏳. Meanwhile, tariffs on imports are expected to drive prices up 💸📈, and DOGE is attempting to access the U.S. treasury system, causing disruptions 🪙💼.

A study on psychology of pricing explores consumer perceptions 🧠💲, and research shows that robots may lower perceived service quality unless handled carefully 🤖❌🏨. Additionally, new tools are making it easier to personalize guest experiences and plan expansions 🛠️🏨📈.

0. News snippets

Not important enough to expand on, but worth hearing about

An interview featuring MMI Hospitality's CEO explores the evolution of their brand across decades | New report reveals 9 emerging trends in the event industry | For fans of "The White Lotus": check out Season 3's filming locations | In the US, tips remain taxable—the hospitality association is pushing for tax-free status, following Germany's successful 2002 initiative |

0.5 Follow up

Where we follow up on news from previous weeks

AI Computing Costs Drop Dramatically

Is AI computation becoming more affordable? A new AI model called DeepSeek has revealed computing costs far lower than those of OpenAI and its competitors. This news sent stock prices tumbling for chip and processor manufacturers like NVIDIA. The market now expects software providers, rather than manufacturers, to reap the benefits of this new technology. DeepSeek may have achieved this by reverse engineering knowledge from OpenAI's models (dramatically reducing costs in the process). But hey, what do we humble hoteliers and restaurateurs know about the complexities of AI?

1. Main Hospitality News

Core news related to the industry

Hospitality Icon of the Year!

Hyatt's CEO Mark Hoplamazian, who has led the company since 2006, has been named Cornell's Icon of the Year 2025. You can watch a 38-minute interview with him here. Fun fact: Hyatt has consistently ranked among Forbes' top 100 companies to work for since 2016. Looking to lead your own hospitality venture someday? This might be worth studying!

Hilton Adds 154,000 Rooms in 2024

Hilton has expanded its portfolio by 154,000 rooms in 2024, through both acquiring new brands like "Graduate" and creating fresh ones. They've also just launched their first Hampton property in Africa. For perspective, Marriott, the world's largest hotel chain, added 123,000 rooms in the same period.

Air Traffic Controllers Under Scrutiny

Following a tragic collision between a passenger plane and a helicopter in Washington that killed 67 people, the NTSB (National Transportation Safety Board) is investigating potential understaffing of air traffic controllers. While this might make you consider driving instead, remember that flying remains statistically safer than driving.

All-Inclusive Hotels: Europe's Challenge

All-inclusive hotels are facing more hurdles in Europe compared to regions like the Caribbean, mainly due to costs and regulations. However, Europe isn't lacking in options—Expedia lists 1,331 such resorts in the EU, compared to 432 in all of Latin America. The challenge lies in opening new properties, as the European market appears saturated, making profitable real estate deals harder to find.

2025 Industry Trends

What's on the horizon for hospitality in 2025? Reports indicate luxury hotels and investments are trending upward, while AI is boosting staff productivity. There's a push to make guest experience a measurable revenue source, and nostalgia is driving destination choices. While predictions vary widely, AI remains the common thread throughout.

2. Externalities

Economics, finance, geopolitics. All have an impact on the hospitality sector.

Tariffs = Price Increases

"Tariffs, tariffs, tariffs. WE LOVE tariffs!"—said no one ever. Trump's new tariffs on China, Canada, and Mexico are just the beginning. If you're sourcing materials from beyond your local area, expect higher costs. Even local producers will feel the impact. And heads up—the EU is next. As if the Ukraine war, COVID, and Middle East conflicts weren't enough for your bottom line! 😉

What is DOGE Up To?

DOGE is making waves by attempting to access the U.S. government's treasury payment system—a move that's already led to the Treasury head's resignation. Critics warn that if Musk disrupts the government's crucial payment infrastructure, there could be serious consequences. But hey, the show must go on!

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Psychology of Pricing

While revenue management is important, psychological factors actually drive purchasing decisions. How do customers perceive value—as cheap or expensive? A recent article in "Hotel Executive" offers valuable insights into pricing psychology, exploring concepts like anchoring effect, framing effect, pricing tiers, and decoy pricing.

Do Robots Signal Lower-Quality Service?

Planning to add robots to your service experience? Be prepared—guests expect to pay less, according to recent research on customer perceptions. The key is implementing cost-saving measures without creating an impression of reduced quality. Perhaps those robots need some snazzy uniforms? 😉

4. Readables

Books, podcasts & the big stuff.

Understanding the Stock Market

Looking to grasp the stock market's wild swings? We've found what might be the best modern explanation in "Adaptive Markets: Financial Evolution at the Speed of Thought" by Andrew W. It weaves together economics, finance, psychology, and evolutionary biology to make sense of market unpredictability.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Personalizing the First-Time Guest Experience Online

In classic SaaS blog post style (you know, the kind that ultimately promotes their product), here's a great piece about personalizing guest experiences from their first website visit. The key takeaways? Use Google Analytics to understand your visitors, implement real-time personalization, and customize pricing and offers.

EU Gatekeepers and the DMA's Impact

For EU business operators, the Digital Markets Act is essential reading. It designates tech giants like Google as "gatekeepers" and imposes specific operating rules. This article breaks down the current effects. Ironically, some unintended consequences might actually hurt smaller operators.

Langham's Path to 100 Hotels

A recent interview with Langham's SVP reveals their expansion strategy from 32 to 100 properties. The essentials? Cloud-based PMS, AI-driven pricing, AI-assisted knowledge base, and a loyalty program overhaul. It's basically the must-have toolkit for any major hotel brand looking to compete today.

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TLDR: Too Long Didn’t Read

Hospitality design awards are judged by executives and designers, but who are they? 🏆🎨. Purple Elephant Ventures secures $4.5 million for its SaaS products aimed at the African market 💼💰🌍, and Ryanair calls for a two-drink limit at airports to reduce alcohol-fueled disruptions 🍻✈️. Veltins sees growth while others report a decline in beer sales 🍺📉.

In geopolitics, the Gaza-Israel conflict shows signs of cooling off 🇮🇱🇵🇸🌍, and the Arctic is becoming more viable for resource extraction ❄️⛏️. Meanwhile, AI tools like ChatGPT face challenges with high costs 🤖💸, and hotels are looking into tech impacts on employee retention 🏨👩‍💻📊.

Lastly, academic studies are exploring innovative solutions like recycling cooking oil waste ♻️🍳.

0. News snippets

Not important enough to expand on, but worth hearing about

Easyjet now offering packages in attempt to compete with Booking and others | Premier Inn is a few points below last year, profitability to be reached via restaurant to room conversion & automation | London still number 1 in Europe when it comes to hotel inventory (160t) with 80 new hotels in the pipeline, next is Paris and Berlin. |

1. Main Hospitality News

Core news related to the industry

Who decides on hospitality design awards?

There is an annual hospitality design prize awarded to those deemed good enough. But who are the people who decide on the winners, you might ask. Worry no longer, for the answer is here. In short its Executives of various hotel chains, especially those leading design in the corresponding companies and indeed a few designers themselves. Perhaps all it takes is to attend a few FF&E design conferences, make some long term friends and next thing you know, your business might be on the list of potential winners? (At least)

African SaaS Startup getting funding

Another start-up is getting 4.5 million dollars in funding. Who cares you might say? This is basically daily news at this point, except this one might be a litte more special. “Purple Elephant Ventures”, is a tech start-up that is focused on the African continent, launching a package of SaaS products for local providers. Indeed an exciting business model, where you can simply take successful ideas from abroad, copy them and adapt to the African market. Or who knows, innovate and create software that the rest of the world might adopt later. More here.

Ryan air calling for an alcohol limit in airports

Irish are famous for their drinking (at least within some circles ;)), but their main airline isn’t too excited about it. Apparently occurrences of drunks disrupting entire flights have increased, costing Ryan air thousands of euros rerouting the plane. IAT found that 1 out every 480 flights gets disrupted like that. Conclusion? Ryan air wants to limit alcohol consumption in the airports themselves. So drink up, until you can’t anymore.

Beers sales go down, except not for Veltins

With all the talk of alcohol consumption decreasing across the board, there is an interesting exception called Veltins. 1 of top 3 beer producers in Germany. Has not only increased its beer production, but also reached its all time record last year. Why? It is a privately owner company and all the details of their sales are indeed private, nonetheless the owners commented that what has allowed them to grow was creating a more diversified offering of beers. More here.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

ChatGPT is the future! Right?

With all the hype of AI, there is perhaps one very important topic that one should know before succumbing to general hysteria and implementing into every single item they own, including AI socks. OpenAI is currently loosing money every time you use it (almost every time). Last year OpenAI made 3.7 Billion USD and lost 8.7 billion due to costs. “Compute” costs are not minimal, and the more complex the prompt, the costlier server processing power used. With half a trillion in investments, that might become a little easier, but unless electricty becomes a whole lot cheaper or AI calculations become more effecient, chatgpt might become a luxury for the few.

The Gaza - Israel war over?

Gaza, Israel conflict is finally cooling off. Both are exchanging prisoners and hopefully some form of peace can be formed. In a weird way, today the news were listed in this specific order. First, prisoners exchanged. Second, Trump allows 2.000 pound bombs to be delivered to Israel. Third, Trump is pushing Egypt and Jordan to accept Palestinian refugees. Does that sound like a recipe to long term peace to you?

Before we fly to Mars, humanity might colonize the Arctic

Global warming, is not having a positive effect on most places this days. Except, the Arctic? Due the place becoming less hostile, the Arctic might become a hospitable enough place to start mining all the juicy resources one might need to make iPhones. More here. Perhaps a hotel or 2 as well? Why go to Mars when you can open a 4 star resort in the arctic.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Employee retention impacted by software used?

A study of hotel employees showed, that 38% of staff decided whether to leave was based on what software did the business use. Specifically that of the PMS. More here. While the study is done together with a PMS provider “Cloudbeds”, and therefore can be a little bias, it still provides valuable insight.

Up cycling cooking oil waste

Using materials, others consider garbage and turning a profit, has long been quite an interesting business model. Whether its coconut shells being turned into plates or bio garbage into gas and thus electricity. A recent study takes a look into converting cooking oil waste into lubricants, oils and more. As always academia exploring new ideas, while hopefully business utilizing in real life in the future.

4. Readables

Books, podcasts & the big stuff.

Where do we get our tech news?

With this segment we wanted to remind you that Le Portee is only a humble hospitality newsletter, written and researched by people who come from the industry. NOT AI engineers or developers. If you want to follow industry tech news, we highly recommend the “Fireship” youtube channel. A weekly tech report, explaining tech news from a perspective of someone who actually understands them (at least way better than us).

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Mews CEO take on their journey so far.

CEO & co-founder of Mews, a leading PMS system for hotels & hostels has given an interview outlining his journey since the founding. In many ways a glorification of mews itself, yet some good insights into where there was a gap in the sector and how mews managed to fill it. Source here.

What do people of all ages want?

A report by Virtuoso and YouGov has looked into, for the first time, 7 generations of people traveling together. In a nutshell, one can try to offer a variety of generation specific services to people from all age groups and indeed cover a wide net. Attracting guests and customers from all ages. More here.

TLDR: Too Long Didn’t Read

In the realm of hospitality news, Hawaii has initiated a regenerative tourism bill aimed at preserving its natural beauty 🌺🏞️, while Radisson undertakes a digital transformation to enhance guest experiences with personalized loyalty programs and digital tools 🛎️💻. Meanwhile, a new report forecasts substantial economic growth of $260 billion in Latin America's travel sector over the next decade 🌎💼, and global airline traffic sees a significant uptick with international flights leading the surge ✈️📈. In environmental news, Toulon-Hyeres Airport achieves a remarkable 94% reduction in CO2 emissions, earning recognition for its eco-friendly initiatives 🌿🛫. Lastly, Lufthansa gains EU approval to acquire a 42% stake in Italy's ITA Airways, expanding its European market influence 🇪🇺✈️.

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0. News snippets

Not important enough to expand on, but worth hearing about

French elections first round took place, far right has majority | UK Elections were dominated by the labour party (left leaning), employees are excited? | Economist published the worlds most livable cities list. A great slogan for your next hotel promotion (if you are on the list of course)

1. Main Hospitality News

Core news related to the industry

Hawaii goes green?

Hawaii governor has signed a “regenerative tourism bill”. Goal is optimize the tourism industry on the island to protect its nature and beaches. How? Well they haven’t gotten their yet. The bill is there to establish a “framework”. Will keep you updated on what exactly they will be doing to turn US number 1 island destination into a sustainable paradise. More here.

Radison goes through “Digital Transformation”

Radison is undergoing a digital transformation. From migration to a single website down to improving the digital guest journey. An interview with their Global VP Raul Alvarez Barrera sheds some light on how has it been so far and what exactly has been done. Personalized loyalty program, guest app, 3D tours etc. All are now on offer. Funny enough no mention of digital check-ins. Perhaps in the next 5 year plan. More here.

Another 260 billion for the LATAM travel sector

Reports, reports, reports. Another is out. I know you are just as excited as we are. WTTC together with VFS Global have partnered together and “revealed” that tourism is going to add another 260$ Billion to the economy of Latina America in the next 10 years. A “very comprehensive” report that I am sure didn’t just look up average GDP growth annually for the continent and multiplied the current GDP volume of the travel sector by that. Unless of course they had access to some revolutionary data pool, that nobody else does. More here.

International flight traffic on the rise

Airlines traffic volume is on the rise. 10.7% to be more specific compared to last year. It is almost like a global pandemic is over, resulting crisis might be subsiding too and now people are flying again? Interestingly enough, different regions are having different upticks. While International demand is 14% higher and domestic only 4%. Maybe globalization is not going after all? We at Le Portee definitely do not know. More here.

Airport cuts CO2 emissions by 94%

Did you ever sit down and wonder, which airport in Europe won the eco-award? We didn’t either. Nonetheless, the Toulon-Heyeres got it. How? They cut their direct CO2 emissions since 2018 by 94%. Basically at 0 now. There are other prizes categorized by size. Oslo airport is the winner amongst the biggest airports in Europe for its efficiency, autonomous snow removal, baggage delivery etc. Most interesting is that Luton, the 4th least favourite airport amongst passengers in London won the award in its size category. How? With most happiest employees of course. More here.

Lufthansa buying another airline

Final topic of this week is Lufthansa getting the final approval from EU to take 42% of a major Italian Airline ITA. This adds to Lufthansa’s already pretty big portfolio of swiss airlines, brussels, Euro Wings and a few more. If you are flying in Europe you will have likely booked with a Lufthansa partner or part owned subsidiary. The EU commission made Lufthansa give up some major routes to competitors in order for them to be allowed to grow their little empire. More here.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

Oil prices going up

Oil, gas and metals. Topics you only hear off in some distant parallel world, which doesn’t influence you or your decisions. Well too bad, because this quarter ING has put a small article together outlining how the prices for Oil are highest they have been in a while. Due to potential shortages as a result of the Israel - Palestine conflict & hurricane Beryl that could disrupt oil production in the gulf of Mexico. Meanwhile OPEC (a oil producing country union) is decreasing production “as agreed” for this quarter. Impact for us small people? Higher costs for most things, marginally higher but still. Slow death is still death.

Trumps Peace plan? Russia: “Nope.”

Trump said, he can end the war in 1 day if he gets elected. The UN representative for Russia says he can’t. That is it :P. More here.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Brand transgressions and impact on guest perspective

This week a group of scientists studied the impact hospitality brands have on their loyal fans. Specifically how far can the brand go from what they promised within their CSR initiatives and guests actually becoming disloyal. Result are: are pretty far. Make guests happy and the rest can be rationalized. More here.

4. Readables

Books, podcasts & the big stuff.

Book about how Russian become what it is today

Russia this, Russia that. How about we recommend you something out of the ordinary this week. “We. The diary of the fall”. Is a book written by a “banned” Russian author Dmitry Glukhovsky, trying to outline how Russia got to where it is today. For now we could find a Russia and and a German edition. English one likely coming soon.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Top Investors into the travel sector

Have you recently started a company & just by chance it’s in the travel sector? Well Phocuswright has put together not only a list of top startups in the industry but also investors who are focused specifically on our fine economic sector. Hence check it out in case money and partners is something you are looking into improving.

Hotel Tech Annual Review

Another hotel tech annual yearbook was released. A collection of expert opinions on various hotel tech topics. Some of which were: how to deal with data leaks, personalization of offers, sleep tech and so on. An interesting array of ideas from all ends of the spectrum.

Hotel builds a guest community

An interview with the founder of a slightly different apartment hotel chain from Tokyo should provide some insight into how modern hoteliers are offering something new. “Section L” has the digital check-in and is trying to become a top employer amongst its peers. Topics we have heard of before. Something new they are offering is guests sharing travel tips with guests. When you stay with them, you become part of the community of other guests who all exchange info. More here.

TLDR:

This week in hospitality, luxury hotels show a slight rise in performance, contrasting with budget hotels experiencing a decline amid economic pressures. Booking.com faces regulatory challenges in the EU, potentially impacting its operations. Expedia plans European expansion, focusing on AI innovation and loyalty programs. Lufthansa announces a new sustainability fee starting 2025 to offset environmental costs. A&O Hostels achieves a 77% reduction in emissions and aims for carbon neutrality next year with a €20 million investment. Externalities include YouTube negotiating music rights for AI training, Julian Assange's release, and the first debate among US presidents. Academically, ChatGPT proves effective in review analysis. For readers, a recommended book explores the creation of Airbnb. In tips, Brenners Park Hotel demonstrates sustainability through upcycling, while AI tools offer revenue management, virtual consulting, and guest communication solutions for hoteliers.

0. News snippets

Not important enough to expand on, but worth hearing about

You can find lease & purchase opportunities of entire hotel properties on Ebay | Record amount of bankruptcies since 2016 in Germany | Thailand extended free accident insurance for international travelers | New International Travellers report is out by ETC

0.5 Follow up

Where we follow up on news from previous weeks

Reports, reports & more reports

On the topic of reports. Another one released by Mews. This time touching on US and guests attitude towards digital check-ins. 80% of respondents wouldn’t mind it. AND, 36% have “admitted” to go to AI models to plan their holidays. That is a pretty hefty number. The report goes into workaction and other topics, in case you are interested.

Tourism industry in Ukraine (Status Quo)

In case you missed it, Ukraine is currently undergoing a war! What trends can be seen as a result?Security is the new luxury, with hotels now featuring shelters, generators, etc. As foreign visitors drop off, hotels are wooing local tourists, business travelers, and internally displaced persons like never before. Seasonality? Gone. Mountain resorts are now bustling year-round thanks to movement restrictions and closed sea coasts. Hotels are doubling as offices, coworking spaces, and even children's camps during power outages. Inclusivity is the name of the game, as hotels upgrade to accommodate a rising number of disabled guests from war injuries. Embracing technology like never before, they're rolling out online registration, mobile keys, and smart home systems, while ensuring uninterrupted service with satellite Internet and generators. Finally, demand for aparthotels and service apartments is rising, as families prefer renting over buying new homes amidst the chaos. More here.

1. Main Hospitality News

Core news related to the industry

Luxury is up, budget is down

Depends on which side you are, the news are either positive or negative. Luxury hotels are slightly up 1.8%. While budget hotels are down 3.4 %. Why? Budget travelers are more affected by inflation and are saving as a result. While richer folk were able to gain from stock price increases and home valuations. Forecast is for that to increase further. More here.

Booking.com is in trouble

Congratulations to booking for becoming a “gatekeeper” according to EU regulators. Almost like a troll on a bridge, EU has decided booking.com is simply unsurpassable. Hence, they might have to start listing hotel’s own rates on their website as a form of giving alternative to travelers? What about other OTAs? Well hard to force the rest since their HQ isn’t in EU. Easy to say, Booking.com CEO isn’t too excited. More here.

On that note, booking is removing “No Refund” rates for its partners, unless you use their payment system. Meaning, even though the guest might have booked 3 months ago and cannot cancel, the money can only be charged from booking virtual cards on the day of arrival. A good way to promote partnership friendly environment. More here.

Expedia going to Europe

Another OTA on the list today. Surprise surprise! Expedia is planning to grow. How? You won’t guess it. AI. Innovative tool building that every other OTA is using too. The question is what makes any OTAs AI different if everybody is starting to offer it? Perhaps the answer is, if you won’t you will miss out. FoMo is a powerful thing. On the agenda is also a loyalty program and centralization. More here.

Lufthansa mandating sustainability fees

Lufthansa is charging a sustainability fee, starting 2025. They did already offer a fair that would offset CO2 emissions (at least partially), but now “due to government regulations” the airline group is going to pass on the costs to all travelers. Next thing you know, Lufthansa employees are wearing “Flew with Lufthansa, Saved the planet” t-shirt. More here.

CO2, no thanks?

Imagine being CO2 free as a property operator? Pipe dream right? Well A&O hostels has managed to cut its emissions by 77%. And is planning to bring it down to 0 next year. To achieve that goal, staff is being trained and perhaps more importantly, A&O properties are getting a 20 million Euro investment to achieve that goal. A nice way to put a spin on a renovation! Regardless a more than 2/3s cut is impressive. More here.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

What happened this week that is worth mentioning?

• Youtube is negotiating with big labels to use music to train AI → AI music to the masses it is!

• Julian Assange is free and has landed in Australia, by hiring a private jet. When is the next leak due?

• 2 US presidents had their first debate

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

ChatGPT for review analysis?

A recent paper went into using ChatGPT as a review analysis tool. ChatGPT was compared to older methods that were previously used to go into sentiment analysis and general breaking down of textual content. Guess what, ChatGPT won. So get on their platform now, ask it what you need and get to it. From our personal experience, processing really really high amounts of data is difficult, however if you own a small hotel with a few hundred reviews, this tool is perfect for you!

4. Readables

Books, podcasts & the big stuff.

Since OTAs made the news today, here is a recommendation for a book about Airbnb. Or the creation story so to speak. Full read available here.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Be eco, recycle your wallpaper

How can a hotel implement sustainability measures beyond: “Please do NOT DROP THAT TOWEL ON THE FLOOR”? Here is a fine example from a 5 star hotel in Germany. The Brenners Park Hotel & Spa has up cycled their old wallpaper and turned it into notebooks and is planning to do the same with its curtains, by turning them into pillows, vests and more. While probably a more expensive solution than buying new materials (in case you are low on cash) and perhaps not even such a high CO2 offsetting measure (no figures were mentioned in the article), yet still a good gesture? More here.

3 AI tools for hotels

On the topic of AI, here are 3 tools that “actually” making a difference for the hoteliers. One is a revenue management tool, another a virtual business consultant and the third is guest communication & check-in tool. More on them here.

TLDR: Too Long Didn’t Read

Google's dominance in online search has seemingly led to TripAdvisor losing its prominence as a travel advisory platform, with its footing slipping due to Google's algorithm changes 🔍🌐. Soho House, despite some financial challenges, seems to be on the mend with memberships growing, though other financial metrics are still shaky 🏠💼. Accor has introduced HERA, a new loyalty and rewards program, aiming to unify its brands under one platform 🛎️🏨.

Additionally, a survey by Mews reveals emerging trends in hospitality 📊🏨, while Europe revamps hotel star ratings with a focus on sustainability and self-check-ins 🌟🌿. Air India Express faced logistical issues with over 80 flight cancellations due to crew sick leave protests ✈️❌, and major players in the travel industry are seeing varying revenue levels 💰. Germany's ambitious plan to end homelessness by 2030 involves significant funding for social housing 🇩🇪🏠.

Furthermore, a study highlights the contrast between the world's most and least walkable cities, with an African city ranking as the most walkable 🚶🌍. Academia explores the economic impacts of digital home-sharing platforms 📚💻, while a recommended read delves into microeconomics and tourism 📖💡.

Lastly, tips and tricks cover the importance of digital imaging for brands 📸🏨 and strategies for successful exhibition presence in the hospitality industry 🎪🏨.

0. News snippets

Not important enough to expand on, but worth hearing about

American hospitality Association lobbyed for “illegal” Airbnbs to be regulated by local communites, perhaps local AHLA members did not enjoy random airbnbs competing with them? | OMAN seems to have record high tourism industry growth, creating more jobs and increasing the GDP | Saudi tourims chief gave an interview, explaining his learnings! A great source of info considering the location went from 0 to hero in record time! |

0.5 Follow up

Where we follow up on news from previous weeks

Google Search Claims Another Victim: TripAdvisor Loses Footing

Google's ever-expanding influence in the online search arena has seen TripAdvisor losing its footing as a leading travel advisory platform. If you remember, a while back Google was sued for pushing its own products above competitors, well apparently that was not enough. Google’s 90% grip on the search and its latest adjustments in its own algorithm might have accidentally brought TripAdvisor down. What an unfortunate, probably totally random set of events, that TripAdvisor should have totally foreseen.

Soho House Check-Up Months After Dire Report

Numbers are a bit all over the place. While memberships are growing up 17%, the rest to so much. Debt has increased (currently 664 Million), EBITDA is still in the red. Nonetheless the stock has gone up and investors seem to believe Soho House will get better.

1. Main Hospitality News

Core news related to the industry

Accor introduces HERA – a new loyalty and rewards program

Accor's introduction of HERA, a fresh loyalty and rewards initiative has been announced last week. A rebrand of their old Travel agents program that now unites all its brands and gives “Travel Advisors” an opportunity to collect points of the back of the travelers that they have advised. What can you do with those points? Well book stays yourself of course or shop online. Cash withdrawals were not mentioned.

New Hospitality Survey From Mews Unveils Future Trends

A new survey conducted by Mews has unveiled several emerging trends in the hospitality industry by asking a thousand travelers and a thousand hotel workers about their preferences. These studies have a funny way of presenting data, for example: “Nearly a third of guests stated a perfect hotel would have keyless room entry (34%)”. You could also rephrase that and say that 2/3 of all guests do not need or want a keyless room entry. Otherwise a pretty good list of top ten items is presented. With top 3 being fast internet, kind size bed & a smart tv. For more details, check out the full article here.

Hotel star rating is being revamped in Europe

Hotel standards across all EU states have been revamped ever so slightly. Focus is sustainability and self-check ins. 8 standards have been removed and now there are 239 of them. You can now have a reception less hotel with digital check-in as a 1-2 start hotel and if you have a check-in Kiosk even a 4 star hotel. Topics like changing of linen is now option or per request of guest with the goal of allowing hotels to be more sustainable. Let see how the guests see it, but exciting to see hotel standards change with time.

Air India Express Cancels Over 80 Flights on Thursday

In an unexpected logistical hiccup? Not quit. 300 people have registered sick on the same day. A case of bad cantina food poisoning? Nope. Apparently that is how locals protest. Why? Well there is a merger happening, where Tata, a giant local company has decided to bring 2 airlines together into one. Stay healthy folks!

1 industry, same sector, 3 different revenue levels.

The AMEX, UBERs & Lyft of the world have released their earnings and indicated where the revenues are coming from. For all the YoY revenue has gotten better. U.S. OTAs Pass $100B Revenue Mark for the First Time, an interesting number given the Hotel sector itself hasn’t reached record numbers. Meaning less bookings, more comissions? Finally HVS has released a small study the state of the travel market in Amsterdam. Is it good? Well RevPar for 2023 is higher than 2019. So all in all, big players are making more money, OTAs are doing well & major tourist destinations like Amsterdam are overtaking their previous records. Not a bad start for the “end” of the financial crisis?

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

How Germany Plans to End Homelessness

Germany's ambitious new strategy to end homelessness by 2030 highlights a comprehensive approach involving increased funding, support services, and legislative measures aimed at preventing housing loss and ensuring permanent housing solutions. How? With money of course. 18 billions euros are being given to the states to build social housing. How many homeless people are there though in Germany? 375 thousand+ depending on whose estimate you look. With an average price of 1.5 thousand euros per square meter for a new house, that gives an average homeless person around 32 squaremeters to live in. Not bad. Let’s see if it is that easy.

The World's Most and Least Walk-able Cities

In a recent study exploring urban mobility, the contrast between the world's most and least walk-able cities has been starkly highlighted. An African city Quelimane is number 1 in the world. The other 9 are in Europe. In the spirit of becoming more bicycle friendly, make sure you check this cities out and get your steps in during the next trip. Since car is not an option.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Economic impacts of digital home-sharing platforms

The rise of digital home-sharing platforms has introduced a wave of 'creative destruction' in the hospitality industry, reshaping lodging economics and consumer behavior. This transformation has been both beneficial, by broadening lodging options and making travel more accessible, and disruptive, by challenging traditional hotel models and regulatory frameworks. A peculiar study that looks at side effects of the shere amount of offering on the market.

4. Readables

Books, podcasts & the big stuff.

Microeconomics & Tourism

We often try to touch on more reliable sources of information. Data driven, academic studies instead of blog posts written by people like us with out a particulary in depth knowledge of the topic. So this time around we recommend a true biggy. “Economics of Tourism and Hospitality: A Micro Approach” written by Yong Chen. An economics study of our favourite industry explained through cases studies at UBER and Airbnb. Definetly an easy read during your next holiday ;)

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Digital Image for Brands

The increasing importance of digital imaging for brands in today's market cannot be overstated, with companies leveraging advanced visual technologies to enhance online presence and customer interaction. This trend is particularly prevalent in the hospitality industry, where compelling imagery can significantly influence consumer choices. Brands that effectively utilize high-quality, engaging digital content are finding greater success in attracting and retaining customers, underscoring the critical role of visual media in contemporary marketing strategies. But HOW? Fear no longer, the saving article to explain it all is over here.

Tips for a successful exhibition presence

For hospitality professionals, mastering trade show presentations can be a game changer. Effective strategies include setting clear objectives, engaging booth designs, and proactive audience engagement. The article is written by Germans who love the exhibitions! Hence, don’t miss it if you are going into the expo pit soon.

TLDR: Too Long Didn’t Read

The Solar Eclipse indeed brought more than just a celestial spectacle—it tripled U.S. hotel performance figures along its path 🌞🏨. Meanwhile, Amsterdam's new hotel restrictions signal a move to combat overtourism, potentially reshaping the city's hospitality landscape 🇳🇱🏨.

In other news, Turkey's hospitality sector anticipates robust growth 🇹🇷🏨, and a comparison between Michelin ratings and online reviews highlights differing perspectives on Paris's top hotels 🌟🗼. Additionally, proposed tax reforms in the U.S. could significantly boost hospitality investments 💼💰, but the credit card industry lobbies against fee decreases, citing potential negative impacts on travel 💳❌.

Accor's CEO addresses global crises impacting the hospitality industry 🌍💼, while academia explores the role of robotics and fake reviews 🤖📚. India's upcoming elections prompt discussions on digital influence and legislative support for Ukraine in the U.S. House of Representatives 🇮🇳🗳️🇺🇦.

Finally, tips and tricks cover battling fake hotel reviews and debunking social media myths in the hospitality industry 💡🏨📱.

0. News snippets

Not important enough to expand on, but worth hearing about

Radison Blu giant indoor acquirium blew up a couple of months ago in Berlin, the replacement? A hanging garaden of course! | Google Maps will be offering more “Sustainable” options when looking on their travel platform |

0.5 Follow up

Where we follow up on news from previous weeks

Solar Eclipse: U.S. Hotel Performance

Solar Eclipse is over, did it make a difference for hotels? Well it brought more than just awe and oddities; it tripled U.S. hotel performance figures across the path of totality. This celestial phenomenon turned ordinary locations into tourist hotspots overnight, but what happens when the sun shines again? Not a very sustainable form of growth, but an opportunity one should definitely not miss. Dive deeper into the eclipse’s impact here.

Amsterdam: New Hotel Restrictions

As if trying to limit airport flights wasn’t enough, Amsterdam introduces stringent restrictions on new hotel developments in a bold move to curb over tourism. This policy could reshape the city's hospitality landscape, prioritizing quality over quantity. Just like Barcelona its a purely political decision driven by local’s dissatisfaction with the annoying tourists. Not good, not bad, just what it is. Learn more about the new regulations here.

1. Main Hospitality News

Core news related to the industry

HVS: Turkey's Positive Outlook

Turkey's hospitality sector beams with a robust positive outlook, much like a beacon of hope in regional tourism. A recent HVS report highlights the surge in investment and visitor numbers anticipated to continue growing. Something to last? The detailed analysis suggests that strategic developments and government incentives are setting the stage for a sustained boom. Read more about Turkey’s tourism dynamics here.

Paris' Best Hotels: Michelin vs. ACTUAL Online Reviews

In a riveting comparison of elegance and expectations, Paris's top hotels find themselves under the Michelin microscope versus the raw scrutiny of online reviews. The clash between professional accolades and real-time guest feedback poses a quintessential question: what truly defines the best? While Michelin stars may glitter with prestige, online sentiments provide an entirely different picture. Almost like the movie critiques often do not match what regular people actually watch. Explore the full analysis here.

Cornell Study: Tax Reform's Impact on Hospitality

A unique study by Cornell’s School of Hotel Administration reveals that proposed tax reforms could significantly boost U.S. hospitality investments. The study praises the potential for major economic uplift from these changes. Who knew less taxes benefits businesses and their bottom line. Examine the study’s findings here.

Credit Card industry lobbying to NOT decrease their fees

While aimed at reducing exorbitant swipe fees—which collectively amount to approximately $93 billion annually—the legislation is seen by the credit card companies as a double-edged sword (who knew!?). Industry insiders argue that while lowering fees might benefit merchants, it could also undermine credit card rewards programs, potentially reducing travel by discouraging spending through these incentives. The U.S. Travel Association underscores the possible unintended consequences, “fearing” a significant dip in travel activities which could lead to a loss of about $4.3 billion in economic output. Hmm either the industry saves 93 billion in fees, or a long overdue oligopoly won’t be able to give out minuscule discounts to frequent travelers. Hard choice to make... Read more about the industry’s stance and the bill’s implications here.

Accor CEO on Global Crises

In an outspoken critique, Accor’s CEO decries the global political and economic mess impacting the hospitality industry. His call for a unified strategy to navigate these tumultuous times resonates as a stark reminder of the leadership challenges ahead. After the Accor stock dropped 10% from its peak in march (as for most other stock like Marriot & Hilton), it definitely hard in this political “turmoil”. Follow the CEO’s commentary here. While an entire paper came out studying how IHG was trying to innovate after COVID, its stock also dropped by 11%.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

India Elections 2024: Digital Influence on Politics

As India gears up for its 2024 general elections, the role of digital media in political campaigns becomes increasingly scrutinous. Experts predict a high-tech election battle where digital platforms could turn the tide. Biggest democracy in the world does not joke around. For one, the elections start on the 19.04 and end 01.06. Read more about the digital dynamics in Indian politics here. On the other hand, due to the shere size of the country, things happen like riots that cause a rerun (something westerns might be more familiar with). Overall when the largest democracy in the world votes for their own future in the coming years, we should at least listen.

U.S. Support for Ukraine: A Legislative Perspective

The House of Representatives' recent decision to extend further aid to Ukraine highlights the persistent geopolitical complexities in Eastern Europe. The war is going to keep going and US is at least partially funding the “party”.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Robots, Robots & Robots

Quite a few papers were released this week. At least alone on the topic of robotics in the industry. For one, when guests encounter robots, they can be more indulgent. Service robots can increase guest satisfaction in apparently embarrasing service encounters. Finally, an entire paper predicting service experiences by 2050 (guess what? Robots!).

4. Readables

Books, podcasts & the big stuff.

India and its elections

A bit of an unusual recommendation, but “dw” has created a whole breakdown of news explaining the Indian election and all its happenings for us innocent westerners. Several news & analysis around the biggest election of the year, for those who are interested of course! On top of that we can recommend “India After Gandhi” a book about the history of India, actually written by an Indian (a rare occurrence if you go to most western book shops).

5. Tips & Tricks / Tools & SaaS

Any new software you can use? Industry tricks you missed?

The Impact of Fake Hotel Reviews

The explosion of fake hotel reviews has stirred a significant debate about credibility in the digital age. With millions of fabricated critiques flooding platforms like TripAdvisor, the integrity of online content is under severe scrutiny. How can consumers trust what they read online? The article below attempts to answer that, definitely with out any secret ads at the end of it! Read about the battle against fake reviews here.

Social Media Myths debunked

In the digital era, hotels are debunking social media myths to effectively harness its power for engaging travelers and boosting bookings. Misconceptions such as the necessity to be on every platform or that social media appeals only to the youth hinder optimal utilization. This blog corrects these myths and offers strategies like targeted platform presence and authentic content to maximize engagement and drive loyalty among diverse demographics including Gen X and Baby Boomers. Read more about using social media effectively in the hotel industry here.

Hi there, we are trying a new style of writing, please take a look and give us a vote if you like it more not, compared to the last newsletters! ⬇️

TLDR:

1. News Snippets

   • Bocuse d’Or, Terrorism, Galapagos Fees

2. Follow Up

   • Spain's Digital Nomad Visa

3. Main Hospitality News

   • Hotel Job Growth Surges

   • Hotels in War Zones

   • Hilton's Expansion & Tech

   • Asia-Pacific Travel Trends

4. Externalities

   • Germany Legalizes Cannabis

   • Milei's 100 Days in Argentina

   • Biden vs. Trump Debate

   • Gaza Ceasefire Veto

5. Academia

   • Predicting Hotel Cancellations

   • Virtual Agents in Tourism

6. Readables

   • Task Management Strategies

7. Tips & Tricks, Tools & SaaS

   • Social Media Strategy for Hotels

     Share

0. News snippets

Not important enough to expand on, but worth hearing about

Bocuse d’Or cooking competition was on this week, Danemark won | A terrorist attack killed at this moment hundreds of people in Russia, turns out ISIS is still out there | Galapagos Islands are doubling their tourism fee in an attempt to control tourism flow, from 100 USD to 200 USD.

0.5 Follow up

Where we follow up on news from previous weeks

Spain's Digital Nomad Visa: A year after.

• Spain introduced a digital nomad visa to attract foreign talent, resulting in 300 visas issued by the end of 2023.

• Applicants face bureaucratic hurdles, such as proving social security payments in their home countries.

• The visa aims to boost the local economy but has also apparently raised concerns over its impact on housing prices and social cohesion

With 300 applicants any talk of any impact is useless. Thousands of people move from one country to another within EU on daily basis. Any talk of any meaningful impact is thus like saying “Opening up a baggage assist stand in the Airport should attract more tourists, hence higher rents in the city. Should we close the stand”. Euronews seems to be convinced otherwise.

1. Main Hospitality News

Core news related to the industry

U.S. Hotel Job Growth Surges

• AHLA Foundation reports 12% growth in hotel jobs over five years, beating national average.

• Study reveals significant entry-level job opportunities, no college degree required.

• Interactive dashboard by Lightcast aids in exploring hospitality careers.

This forecast highlights the pressing need for developing skilled hospitality professionals. In a way a bad sign for the rest of the economy where people are deciding to take the lowest paying entry jobs in hospitality, but oh well... More on this here.

EHL's "Hotels in War Times" Conference

• EHL Hospitality Business School hosts a conference on managing hotels during conflict.

• Industry experts from Kiev & Jerusalem discuss operational challenges in conflict zones

• The event underscores EHL's commitment to exploring hospitality's societal impact.

What would their conclusions be? No reason to guess. Will summarize the results next week. For more details, visit EHL's site here.

Hilton's Strategic Expansion and Technological Advancements

• Hilton predicts a 27% increase in adjusted EBITDA by 2026, emphasizing its dominant global hotel pipeline.

• The chain claims the biggest hotel pipeline in the world!

• Significant investments in technology, including AI and automated pricing, are set to revolutionize operational efficiency.

The question remains: will these strategies set a new industry standard for combining expansion with innovation or is just a gimmick for some juicy short-term stock gains? For more insights, visit Skift.

2024 Travel Trends: Asia-Pacific Focus

• Skyscanner reports a shift towards regional travel within Asia-Pacific for summer 2024.

• Interest in European travel declines among APAC tourists, with a preference for closer destinations.

• Trends indicate a return to pre-pandemic travel behaviors, with longer booking windows and traditional seasonality.

Overall though no drastic changes have occurred compared to 2023, except minor % changes in various stats. Full details on these insights are available here.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

Germany Legalizes Cannabis Cultivation

• Germany's parliament legalizes controlled cannabis distribution for adult consumption.

• Adults can grow up to three cannabis plants and possess up to 50 grams at home.

• Legislation part of Chancellor Scholz's reform, aiming to adjust drug policy and boost industry.

This is obviously another major shift amongst the EU countries and would be an interesting to trend to track to see if attracts more travel, tourism and money. More on this development can be found here.

Javier Milei's First 100 Days in Argentina

• Argentina's President Javier Milei claims early economic victories amid a challenging start.

• Milei's radical reforms face high inflation rates and legislative hurdles.

• His policies aim at fiscal surpluses, despite risking increased public discontent and economic strain.

Milei's administration is navigating a fine line between ambitious fiscal reform and the socio-economic stability of Argentina. The success of these measures hinges not only on legislative support but also on public tolerance for short-term sacrifices for long-term gains. If he and his office make it, this will mark a change after almost a 100 years of failure. For an in-depth analysis, visit The Economist.

Biden vs. Trump: Are Americans Better Off?

• In the lead-up to the elections, both Biden and Trump have revisited the "are you better off" question, drawing stark contrasts between their administrations.

• Biden reflects on the early pandemic struggles, emphasizing the dire situation before his tenure. Trump counters, claiming Americans were better off under his leadership, citing stronger national and community well-being.

• A February AP-NORC poll reveals mixed feelings among Americans regarding their current state compared to when Biden took office, with a notable partisan divide influencing perceptions of progress.

This back-and-forth between Biden and Trump underscores a deeper, ongoing debate over American well-being and leadership effectiveness. For a closer look, read the full analysis in the original document.

UN Resolution on Gaza Ceasefire Vetoed

• Russia and China veto a US-led UN resolution demanding an immediate ceasefire in Gaza during Ramadan.

• The draft aimed for a ceasefire, release of hostages, and expanded humanitarian aid but lacked support for ongoing diplomatic efforts.

• Accusations of cynicism and obstruction against Russia and China, highlighting the complexities of international diplomacy on peace efforts.

First US did not want peace, now Russia and China don’t. The incident underscores the intricate dance of global diplomacy, where strategic interests often overshadow humanitarian concerns. Further details can be found in the article.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Predictive Analytics in Hospitality

• Study develops a model to predict hotel booking cancellations, reducing revenue loss.

• Focused on anticipating guest cancellations to improve service and preserve brand reputation.

• Utilizes deep learning to analyze patterns in past demand data for proactive management.

This advancement in predictive analytics underscores the potential for AI to mitigate financial risks and enhance guest satisfaction in hospitality. The study is very surface level though and as not been tested on 1000 thousands of rooms at a time. However, still ahead of others.

Digital Revolution in Tourism: Virtual Agents

• Emergent study reveals positive impact of anthropomorphic virtual agents (AVAs) in e-booking.

• AVAs enhance user intent by boosting perceptions of humanness in digital service.

• Emphasizes on attributes of agency and emotionality, underscoring their role in user engagement.

The integration of AVAs in the tourism sector not only streamlines operations but fundamentally alters the user experience, suggesting a blend of human touch in digital interactions. Soon we might see tags, “Made by Humans” with goal of boosting sales. For more insights, explore the full study here.

4. Readables

Books, podcasts & the big stuff.

Task Management in tough environments

How does one manage teams and processes? There is an easy start to this and its called “Eat That Frog”. Check out this book if you or your team is struggling. Here is a summary for those who are short on time.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Crafting a Robust Social Media Strategy for Hotels

• Key components include audience analysis, platform selection, and content planning.

• Emphasizes on setting clear objectives, engaging content, and measuring performance.

• Offers a comprehensive guide for leveraging social media to enhance hotel visibility and guest engagement.

Delving into the realm of social media, hotels find themselves at a crossroads of opportunity and complexity. Another guide that attempts to convince you to buy “their” unique product, however who knows? You might learn something reading it! Explore the detailed strategy here.

Subscribe now

This episode of Le Portee podcast, hosted by Jeremy and Michael (Mish), delves into various topics relevant to the hospitality industry and beyond. Here's a summary of the main points discussed:

• Introduction: Jeremy and Michael introduce the podcast, emphasizing their focus on global events, academic insights, and software developments relevant to the hospitality industry.

• Airbnb Experience: Jeremy shares his recent, somewhat disappointing experience with Airbnb, highlighting issues like impersonal service, automated check-ins, and inflexible host policies. This discussion reflects broader concerns about the evolving nature of hospitality services like Airbnb.

• Sleep Tourism: Michael introduces the concept of sleep tourism, where hotels offer packages designed to enhance guests' sleep quality. This new trend caters to the growing demand for better sleep experiences, with hotels around the world adopting innovative approaches to attract guests seeking restful escapes.

• Taylor Swift's Exclusive Singapore Concert: The hosts discuss the controversy surrounding Taylor Swift's decision to perform exclusively in Singapore, skipping other Southeast Asian cities. They explore the implications of such exclusivity deals on fan access to culture and entertainment, questioning the fairness and potential trend of privatizing cultural events.

• Hilton's Expansion: Hilton's strategic acquisitions and growth plans are highlighted, including the purchase of the Graduate hotel brand and ambitious expansion in India. These moves are part of Hilton's broader strategy to diversify its portfolio and capitalize on emerging markets.

• Starlink and Cruise Ships: Jeremy discusses the introduction of Starlink internet service on cruise ships, addressing a long-standing complaint about slow internet at sea. This development promises to significantly improve connectivity for both guests and crew, enhancing the overall cruise experience.

• Academic Insights on Grand Hotels: The hosts critique an academic paper that investigates why people choose to stay in grand hotels. They question the methodology and findings of the paper, suggesting that guest perspectives might differ from those of hotel employees.

TLDR: Too Long Didn’t Read

Meanwhile, in the industry, Singapore's investment in Taylor Swift's concert sparks debate 🇸🇬🎤, Hilton expands aggressively in India and acquires Graduate Hotels 🏨💼, and sleep tourism emerges as a luxury trend 😴🌍. MSC Cruises integrates SpaceX's Starlink for faster internet 🚢🛰️, and Germany considers abolishing registration forms for hotel guests 🇩🇪📝.

In externalities, Emmanuel Macron's stance on Ukraine differs from Paris and Berlin 🇫🇷🇺🇦, and academia explores what attracts guests to grand hotels 📚🏨. For business travelers, BCD Travel's report highlights Amsterdam and New York as top destinations in 2023 ✈️🗽. If you're interested in the latest hospitality reads, check out Amazon's newly released books in the field 📚🌐.

0. News snippets

Not important enough to expand on, but worth hearing about

There Might Be a ceasefire in the Israel-Gaza Conflict | Russian Presidential Elections in Pictures |

0.5 Follow up

Where we follow up on news from previous weeks

Remember when we discussed Airbnb ratings going down?

Well, I have recently used AirB&B for a 2 night trip with friends in Tagaytay Philippines. The city is located on the verge of a semi-sleeping Volcano and offers delicacies like the traditional “Buko Pie”, a coconut pie and the famous “Bullalo Soup”, a soup with vegetables and beef. After reviewing all the choices available, my choice landed on a high-rise condo facing the volcano. After booking, I received a very, very long automatic message from the host, giving me all the information I needed for my stay.

And for me not to contact him. When I dared to ask for an early check-in, I was answered the following.

Dropping my luggage in the room a few hours before official check-in hours costs money. I’m not talking about using the room. I’m talking about dropping luggage to be able to roam freely. There shouldn’t be a cost for such a simple service. It goes against what Hospitality stands for.

Last time we discussed this subject, I argued it is regrettable that Airbnb hosts turned from kind locals, sharing their passion for their cities and tips for clients to enjoy as much as possible to mighty real estate barons not interested in meeting or communicating with their clients.

I keep believing this decrease in human customer service and the surge of prices are the reason why travellers don’t grade their stays as positively as before.

1. Main Hospitality News

Core news related to the industry

Tailor Swift & Singapore: a risk for popular arts?

Singapore defended offering undisclosed incentives to Taylor Swift for her Southeast Asia concert, dismissing exaggerated speculations. Minister Edwin Tong emphasized confidentiality, refusing to disclose figures. Speculation arose after claims by the Thai Prime Minister about $3 million subsidies per show, though Channel News Asia suggested $2-$3 million for all six concerts. Tong justified the investment citing significant economic benefits like increased tourism and local spending. Concert partnerships, like with United Overseas Bank Ltd., led to a 66% surge in credit card fees due to pre-sale ticket promotions. Criticism from Thailand and the Philippines was dismissed, with Singapore stressing the need to maintain competitiveness in the region.

Swifties storm Singapore, all the Hospitality sector smiles

During Taylor Swift's concert in Singapore, hotels like The Fullerton Hotels and Resorts and Fairmont Hotel experienced a surge in bookings. Marina Bay Sands introduced luxury packages named after Swift's songs, including the SG$50,000 ($37,230) "Wildest Dreams" package, featuring VIP tickets, fine dining, a hotel suite, limousine transfers, and tourist attraction passes. All packages at Marina Bay Sands were sold out. These offerings attracted a wave of Swift fans, with Malaysian travellers eagerly crossing into Singapore for the event. Additionally, Cebu Pacific renamed its flights to Singapore as "1989" during the concert period, reflecting Swift's birth year and her album title.

Hilton buys a new hotel brand and expands into India

Hilton has made the news twice this week. On one side Hilton is on a fast-track expansion in India, aiming to double its presence with a hotel opening every two to three months. This growth targets diverse markets, from state capitals to emerging cities, due to India's infrastructure boom. Zubin Saxena, Hilton's senior VP and country head for India, emphasizes a mix of luxury and mid-market offerings to cater to India's dominant domestic market. On the other side, Hilton's strategic move to purchase Graduate Hotels for $210 million marks a significant expansion into university-anchored towns across the US and UK. This acquisition not only enriches Hilton's portfolio but also underscores its commitment to the lifestyle space, tapping into the dynamic energy of academic communities. A new brand with a new market. For more details, visit Business Traveller's full article here.

Sleep Tourism: A New Wave of Restful Retreats

"Sleep tourism" is rising, focusing on deep, restorative sleep in unique settings worldwide. From Madrid's scientific approach to sleep at BLESS Hotel to Lake Como's Grand Hotel Tremezzo offering nature-infused sleep rituals, and London's Zedwell providing serene, soundless cocoons, this trend emphasizes sleep as a luxury experience. The article provides quite a few more examples from different parts of the world. That doesn’t mean this is now a whole entire sub-sector of our industry, yet a new creative way to upsell your way to new clients.

When it comes to the Internet: the faster the better

MSC Cruises has integrated SpaceX's Starlink technology onto 15 out of 22 ships in its fleet, with plans for further expansion. This move comes in response to increasing onboard bandwidth demands from guests' connected devices and applications. Starlink promises faster internet speeds, improved WiFi coverage, reduced latency, and lower operational costs. The first ship upgraded was MSC Magnifica in December 2022, with others like MSC Divina, MSC Grandiosa, and MSC Seaview now equipped. This technology ensures MSC Cruises can meet current and future digital needs. Sister company Explora Journeys has also adopted Starlink on EXPLORA I, with plans for its forthcoming luxury ships, including EXPLORA II, to feature this connectivity from August 2024 onwards.

No more registration forms for German hotel guests?

Germany is on the brink of a bureaucratic revolution, with the Cabinet propelling the Bürokratieentlastungsgesetz, aiming to relieve the economy by €944 million annually. A cornerstone of this legislation for the hotel industry is the anticipated abolition of the registration form requirement for German citizens. Now awaiting the Bundesrat's endorsement, this change heralds a significant shift. Markus Luthe of the Hotel Association Germany welcomes the move but remains cautiously critical, highlighting the continued registration mandate for foreign guests as a thorn in an industry seeking broader deregulation. Big Brother has decided to give us just a little room to breathe.

2. Externalities

Economics, finance, geopolitics. All have an impact on the hospitality sector.

Boots on the ground in Ukraine, Paris & Berlin disagree

Emmanuel Macron remains resolute on Ukraine, despite earlier remarks about potential troop deployment receiving European criticism. During discussions in Berlin, Macron highlighted France's readiness for action but stressed a preference for dialogue. He contrasted France's stance with Germany's cautious approach. Macron reiterated openness to dialogue with Putin, emphasizing Russia's economic stature. Regarding the upcoming Russian election, he stated he won't congratulate Putin due to opposition suppression, questioning the election's legitimacy.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Why do guests choose “Grande” hotels over others?

Why do grand hotels attract guests? What makes them unique in the eyes of the general public? Everybody has an opinion on this, usually formed right after being asked the question, but we at Le Portee appreciate academic sources, where opinions are usually put aside (at least to some extent). A study interviewed employees of the Grande Hotel do Porto and these are the results. Hotel history, tradition, its facilities and quality of service were the categories mentioned that not only attract guests but also keep employees (some) working there for over 20 years. This study unfortunately does not go to guests themselves and compare their reasons for staying, which would be a great attempt to see whether employees understand their guests well.

4. Readables

Books, podcasts & the big stuff.

Amazon “Newly Released” books in the hospitality sector

This week we wanted to recommend a list instead of a specific book. A list of new releases on Amazon of books in the field of Hotels & Gastronomie. What we might find interesting is not necessarily interesting for you, but over on this list you can whatever new readable has come out and choose for yourself. We sure have!

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Business Travel: Navigating New Horizons

BCD Travel's Cities & Trends Report unveils Amsterdam and New York as the leading destinations for European business travellers in 2023, China is low on the list (a change from pre-Covid times). With Germany and the United States topping the list of countries, the landscape of international business travel exhibits “resilience”, still not reaching pre-pandemic levels. This evolution reflects the intricate interplay of geopolitics, sustainability, and technological advancements shaping corporate travel policies. Hence, if you are planning to invest, advertise or generally attract business travel, this might be a great info to look at.

TLDR: Too Long Didn’t Read

A children's book series launched by the European Travel Commission and the University of Surrey aims to inspire careers in tourism among 5 to 11-year-olds, addressing industry staffing shortages 📚🌍👧👦, while HalalTrip pivots to cater to the next generation of Muslim travelers 🕌✈️. Lessons from Cabana's failed startup highlight challenges in the travel industry 💼🚫, and third-party management companies adapt to owners' needs 🏨💼. Outbound travel surges in 2023, with Spain reclaiming its position as the most-visited destination 🇪🇸🌍, and H World International unveils rebranding and expansion plans 🌐🚀. Tripadvisor discontinues its Plus program 🛑🌐, and airfare prices experience a significant drop post-COVID-19 ✈️💰.

In externalities, Deloitte explores American spending habits amidst inflation concerns 💵📊, Landwirtschaftliche Rentenbank adjusts loan terms amid rising interest rates 💰📈, and economists caution about Germany's growth amid budgetary concerns 🇩🇪💼. German real estate prices plummet 📉🏠, and European stocks soar to record highs, sparking debate among investors 📈💼.

Academia delves into the feasibility of solar-powered food trucks in India ☀️🚚, and Yvonne Heß recommends "The Big Five for Life" by John Strelecky for life goals 📚🎯. Green innovations in eco-friendly hotels, such as Populus and Hotel Westland, are transforming the hospitality industry 🌿🏨.

0. News snippets

Not important enough to expand on, but worth hearing about

AHLA starts a collective pledge to get the overlooked populations a 100 thousand hours of work | Geopolitics and demographics expert sheds light on the future of travel

0.5 Follow up

Where we follow up on news from previous weeks

New Children’s book released to inspiring kids?

The European Travel Commission and the University of Surrey have launched a children's book series to highlight careers in tourism. Aimed at 5 to 11-year-olds, the initiative seeks to address the industry's staffing shortages by showcasing the diverse skills and rewarding experiences tourism jobs offer. Through engaging stories and characters, these books aim to foster an early appreciation for the sector, presenting it as a viable and fulfilling career path. For more details, visit the original article. Minimum wage and extreme working hours are not part of the stories though.

Religious tourism: HalalTrip's Visionary Leap

In the spirit of religious travel, another concept has showed up. HalalTrip, under the visionary leadership of Fazal Nahardeen, makes a strategic pivot towards catering to the next generation of Muslim travellers. By entrusting the B2C domain to the youthful vigor of Raudha Zaini, the platform is set to redefine the halal travel experience. Embracing a digital-first approach, HalalTrip seeks to capture the burgeoning market of independent, tech-savvy Muslim tourists, emphasizing the untapped potential within the B2C sphere. For more details, visit the original article.

1. Main Hospitality News

Core news related to the industry

Lessons from a failed startup

Cabana's journey from inception to its wind down offers insightful lessons on the challenges of pioneering in the travel industry. Scott Kubly, the founder, reflects on the crucial decisions around venture capital, execution strategies, and the harsh realities of supply chain disruptions. Cabana's ambition to revolutionize mobile hotel experiences basically happened at the wrong place at the wrong time. COVID initially broke the supply chains, and hence couldn’t be produced. In 2022 after revamping 800 pre-orders took place, but the interest rates went up and the company couldn't finance itself anymore. But behind it all were “execution errors”. For more insights, visit the original article.

Third-Party Management Companies: Adapting to Owners' Needs

Recent years have seen significant consolidation among third-party management companies, with notable acquisitions such as Aimbridge Hospitality’s acquisition of Prism Hotels & Resorts, Raines’ purchase of HP Hotels, and First Hospitality’s acquisition of HostMark Hospitality Group.

These companies offer advantages like economies of scale, access to specialized talent, and accelerated entry into franchise agreements, making them valuable partners for property owners.

With hotel companies introducing new conversion brands, third-party management firms have opportunities to assist in converting independent properties. Their expertise and resources position them favorably in this evolving landscape. More here.

IPK World Travel Monitor: Key Outbound Travel Trends in 2023

Outbound travel surged in 2023, with notable double-digit growth across regions compared to the previous year. For instance, Asia saw a staggering 140% increase, while Europe, North America, and Latin America also experienced significant rises. Spain reclaimed its position as the most-visited destination globally, followed by the USA. Dubai received the highest satisfaction rating, according to the Destination Performance Index (DPI), indicating its popularity among travelers.Vacation trips dominated the market, constituting three-quarters of global outbound trips. Sun and beach destinations, along with city breaks, emerged as top choices, reflecting a return to pre-pandemic travel preferences. Despite rising travel expenses, air travel remained the preferred mode of transport for international travel. More here.

H World International Unveils Rebranding and Expansion Plans

Deutsche Hospitality, now rebranded as H World International, aims to bolster its global presence beyond China. Brands previously under Deutsche Hospitality, such as Steigenberger Hotels & Resorts, Jaz in the City, and IntercityHotel, are now part of the H World International portfolio.

Oliver Bonke, along with the existing executive team, leads the transition as CEO of H World International. A joint venture with Conduit House in Asia marks the beginning of H World International's expansion efforts in the Asia Pacific region. Recent agreements include signings for properties like the Montien Surawong Bangkok, Maxx Huay Yai Villa in Pattaya, and Steigenberger Resort Byoum Lakeside in Egypt, among others. Full article here.

Tripadvisor Plus: An Experiment Concludes

After over three years, Tripadvisor is discontinuing its Plus program, for those who have never heard of it, the “Plus” aimed at offering subscription-based discounts and perks to travellers. Despite efforts to attract more large hotel chains by shifting to a cash-back model, the initiative didn't meet expectations. CEO Matt Goldberg hinted at refocusing on free membership benefits to engage consumers more effectively. In a nutshell, people weren’t ready to pay for discounts (at least on TripAdvisor). For more details, visit the original article.

Skyward Trends: The Fall in Airfare Costs

The airfare landscape is undergoing a notable change, with prices experiencing a significant drop, a trend largely attributed to the adjustments post-COVID-19 and an increase in flight schedules. According to the American Express Global Business Travel Air Monitor 2024 report, certain international routes could see price reductions up to 12%. This decrease in airfare prices is further fueled by the entry of budget airlines into the market, challenging traditional carriers and pushing prices down. For more insights, visit the original article.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

Navigating Financial Waters: A Peek into American Spending Habits

In a recent exploration by Deloitte, the spotlight is cast on American spending habits amidst persisting inflation concerns. Despite a slight decrease in apprehension from 83% in summer 2022 to about 70% now, the majority remain wary about the rising costs of daily essentials. Deloitte's U.S. financial well-being index stands nearly unchanged since last year, suggesting a stagnation in financial optimism. This insight hints at a broader narrative: Americans' spending intentions have yet to bounce back to pre-inflation levels, possibly due to a lack of improvement in financial well-being. Holidays on the budget? Unlikely.

Rising Interest Rates for Subsidized Loans: Landwirtschaftliche Rentenbank Adjusts Terms

Landwirtschaftliche Rentenbank continues to adapt its loan conditions, responding to the ongoing surge in interest rates. Effective from February 29, 2024, borrowers will face revised terms as the institution makes further adjustments to its program loans. For instance, the interest rate for subsidized loans aimed at young farmers in the most favorable price category (A) has risen to 3.80% for a ten-year term and lock-in period, up from the previous 3.65%. Stay informed about these changes, especially if you are considering subsidized loan options, as Landwirtschaftliche Rentenbank navigates the evolving financial landscape. More in German here.

Economists Warn: Germany's Growth at Risk Amid Budgetary Concerns

Following the Berlin government coalition's agreement to plug a €17 billion budget hole, economists caution that investments may suffer as a consequence. Concerns arise about the adequacy of future investments in critical areas such as infrastructure, digitalization, and decarbonization, with doubts lingering over the government's ability to allocate sufficient funds.

Economic forecasts vary, with some institutions predicting a potential second consecutive decline in GDP for 2024, while others remain cautiously optimistic about growth prospects despite ongoing challenges. Detailed article her.

German Real Estate Prices Plummet

German residential property prices experienced their sharpest drop in at least 60 years in 2023, with condominiums down 8.9%, single-family houses 11.3%, and multi-family houses 20.1%.

While prices stabilized in some major cities, including Berlin and Hamburg, others like Cologne and Stuttgart saw significant declines. This variability suggests a potential turning point in the market. Experts suggest the beginning of a potential stabilization in property prices, possibly aided by anticipated interest rate cuts stimulating demand in the real estate market. Observing the coming quarters will provide clarity on whether this trend continues. More on DER SPIEGEL.

European Markets: Confidence vs. Caution

European stocks are soaring, reaching record highs and igniting a debate among investors: is it a time for confidence or caution? With the Euro Stoxx 600 Index marking consistent gains, the optimism in European markets contrasts with the cautious stance advised by some experts due to economic uncertainties. This scenario presents a dual path for investors—leveraging the momentum or safeguarding against potential economic shifts. On one hand, there is stagnant growth in the EU, on the other, manufacturing is still low. Overall, future is unknown. For more insights, visit the original article.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Solar power food trucks in India. Feasible?

On the topic of sustainability in hospitality! A lot of talk and not a lot of action if often seen in the papers we see or with the companies who proclaim to be sustainable. Well how about a study from India looking into solar powered vehicles for remote hospitality and F&B concepts and their feasibility in the real life? No problem, here you go!

4. Readables

Books, podcasts & the big stuff.

Life goals at its finest

Recommendation by our guest Yvonne Heß, an absolute pro from the world of financing & loans. “The Big Five for Life” by John Strelecky. A great take on how to find your major goals in life and pursue them and them alone!

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Green Innovations: eco-friendly hotels!

The hospitality industry is witnessing a transformative wave of sustainability with hotels like Populus and Hotel Westland leading the charge. These establishments are redefining eco-friendly practices through innovative design and construction techniques. Populus aims to become the country's first carbon-positive hotel with a design inspired by the native Aspen tree (Austria already has several(, highlighting the use of recycled materials and a significant commitment to reforestation. Similarly, Hotel Westland in Seattle's RailSpur micro-district showcases biophilic design and a palette that mirrors the Pacific Northwest's natural beauty, emphasizing a harmonious blend with the environment. If anything at all these properties are surely great at marketing!

• Discussion on a Manila luxury resort's innovative attraction to compete with Macau's gambling industry.

• Analysis of Accor's financial results, comparing current performance with past data.

• Report on strikes affecting Paris landmarks, including the Eiffel Tower, in light of upcoming Olympics.

• Overview of customer loyalty in the hospitality industry, highlighting a low return rate compared to other sectors.

• Exploration of co-branding in the cruise industry, featuring a partnership between Regent Seven Seas and Aston Martin's Formula One team.

• Examination of the growth and ratings of short-term rentals versus hotels in various cities.

• Guest Satisfaction Ratings Decline Across All Accommodation Types

• The Unique Appeal of Airbnb and Short-term Rentals Diminished:

The full newsletter with sources is available on leportee.com Otherwise our podcast is available where ever you get your podcasts!

You can find out more about our current guest over here.

To support us, you can donate over at paypal.me/LePortee

TLDR: Too Long Didn’t Read

In the follow-up, Delta Air Lines offers a specialized flight for solar eclipse viewing 🌞✈️, while European hotels witness a surge in upscale projects 🏨📈. Carnival Cruise Line orders a sustainable ship 🚢🌱, and Regent Seven Seas partners with Aston Martin F1 for luxury cruises 🏎️🚢. Okada Manila introduces a high-energy playground 🎉🏞️, and concerns arise over a 24% increase in short-term rental supplies 🏠📈. Unions threaten a strike during the Paris Olympics over Eiffel Tower financial issues 🗼💰, and U.S. hotels experience a performance downturn in January 2024 🇺🇸🏨. A Berlin court ruling could impact Airbnb properties 🇩🇪🏠, while a French court cancels plans to requisition student residences for the Olympics 🇫🇷🏢. NVIDIA's AI innovations drive market highs, signaling potential sustainability concerns 🤖📈, and the decline of billion-dollar startups prompts reflection on high valuations' sustainability 💼💰. Additionally, ESG's importance in hospitality research is underscored 📊🏨, while the hotel industry grapples with a customer loyalty crisis 🛎️❌.

0. News snippets

Not important enough to expand on, but worth hearing about

After MyTrip has implemented AI chat, conversation amount has increased

0.5 Follow up

Where we follow up on news from previous weeks

Sky-High Eclipse Chase

Delta Air Lines capitalizes on the upcoming solar eclipse by scheduling a special flight designed for optimal viewing. This strategic move not only caters to astronomy enthusiasts but also raises questions about the viability and demand for such niche travel experiences. Is the hefty price tag justified by the once-in-a-lifetime experience, or does it reflect a clever exploitation of a fleeting celestial event? Explore the full story and implications for future travel trends here.

Upscale Surge in European Hospitality

Europe's hotel construction pipeline is witnessing a record surge in upper upscale projects as reported by Lodging Econometrics. Similar to that of Middle-East. Amidst economic uncertainties, the push towards upscale development reflects confidence or perhaps overconfidence in the sector's growth. But once again, how much data is actually trackable? For a detailed exploration, visit the original source here.

1. Main Hospitality News

Core news related to the industry

Accor has a “record year”

Accor has published its 2023 numbers and everybody is very excited! With 5 billion Euros Revenue and 1 billion in EBITDA, Accor has surpassed COVID. Or has it? If compared to 2007 levels, Accor earned 8 billion and had an EBITDA of 2.1 billion with half the rooms. Indeed the stock price of Accor at the time right before the financial crisis was higher than it is now (around 47-50). So for those who have invested 17 years ago, are currently in minus (with out even mentioning inflation). Does the same apply to other big players like Marriott? Well Marriot has overtaken its own revenue from the 2007s and its stock price too. With around 240 USD at the moment and 30 USD 17 years ago. While there is surely nuance, and Le Portee is by no means a financial advisor, the “record year” is relative.

Carnival Cruise Line orders another vessel

Carnival Cruise Line charts a sustainable course with its newest fleet addition – a fourth Excel-class ship! Debuting in 2027, this 180,000-ton titan will join its siblings, accommodating over 6,400 guests. Powered by clean-burning LNG, it reflects Carnival's commitment to eco-friendly technology (at least the kind that burns gas most economically). Carnival CEO Josh Weinstein and President Christine Duffy both express excitement, highlighting the ship's role in growth and guest satisfaction. This new vessel promises an unparalleled cruise experience while navigating towards a greener future for the industry.

When the sea meets the track

Luxury giants collide! Regent Seven Seas Cruises and Aston Martin Aramco Formula One Team join forces, making Regent the first-ever Global Cruise Line Partner. Expect opulent cruises paired with thrilling F1 experiences: VIP driving encounters, exclusive campus tours, and even branding on race cars and driver suits! This partnership isn't just about logos; it's about crafting unique adventures for luxury travelers who crave both speed and sophistication. Plus, win a dream trip with the "Grandeur Prix" sweepstakes: a 10-night cruise and an exclusive F1 VIP experience in Italy! Buckle up for luxury redefined.

Resorts are picking up new ideas

Okada Manila, a 5 stars Casino Resort, ups the fun factor with “Thrillscape”! This 1,200m² playground boasts 32 high-energy obstacles, challenging your agility and teamwork. Not just for athletes, it's perfect for friends, families, and anyone seeking an adrenaline rush. Packages start at PhP 499.

Exploding Growth or Bursting Bubble?

The "Lighthouse animated hospitality data story 2024" meticulously analyzes the latest hospitality industry data, revealing a notable 24% year-over-year increase in short-term rental supplies in key markets like Riyadh, London, and Mumbai. This significant growth prompts a critical examination of the underlying factors and the potential implications for the hotel sector. With the industry at a crucial inflection point, this analysis raises important questions about market saturation, the balance between supply and demand, and the long-term sustainability of this growth trend.

The Iron Lady on strike during Paris’ Olympics?

The Eiffel Tower, with its 7 million visitors yearly, is a Parisian icon and financial powerhouse. From restaurants to souvenir shops, it generates €106 million annually. Yet, maintaining this iron lady is expensive. The 20th paint job alone cost €85 million! Unions, unhappy with financial management, threatened a strike during the Olympics. Negotiations are underway, but questions remain about cost control and the Tower's future.

Hospitality's January Slump

The latest report unveils a downturn in U.S. hotels' performance for January 2024, marking a concerning start to the year. This dip prompts an immediate need to dissect the underlying causes is it a temporary blip or a sign of deeper industry woes? The analysis from HTrends offers a pivotal insight into these performance metrics, challenging stakeholders to reassess their strategies amid evolving market dynamics. What ever the analysis, the world of travel is not all sunshine and rainbows at least not in early 2024. For an in-depth understanding, delve into the full report here.

Regulation Reversal: A New Era for Rentals?

A landmark ruling by the Oberverwaltungsgericht Berlin-Brandenburg could dramatically alter the landscape for Airbnb rentals, potentially reverting illegal holiday lets back into residential housing. This decision, affecting properties operational before the Zweckentfremdungsgesetz's (using real estate outside zoning laws) enactment, could see owners held accountable retroactively. With Berlin's Mitte district poised to review 1,700 cases, the implications are vast. Yet, the judgment isn't final. The shift hints at broader regulatory changes impacting the sharing economy. Is this the start of a trend towards reclaiming residential spaces? Read more.

2. Externalities

Economics, finance, geopolitics. All have an impact on the hospitality sector.

French court cancels decision to kick out students from their dorms

The decision was made on Thursday, August 31 by the Paris Administrative Court: students who live in government funded student residences will not have to leave their accommodation on June 30, 2024 to see them requisitioned for the Olympics. Last May, students from the Paris region shared on social networks emails from the “Crous” (government organisation running student accommodations) asking them, as part of the Paris Games, to leave their student accommodation earlier than usual. The aim: to free them up to accommodate partners and volunteers for the Paris Olympics. A win for the little guy?

NVIDIA's Market Surge vs AI Frenzy Fuels Market Highs

The S&P 500 and DOW hit record peaks as NVIDIA's AI innovations spark a market frenzy. This surge, highlighted by Reuters, prompts a deeper look into the AI sector's ripple effects on global markets. Are we witnessing a sustainable growth trajectory fueled by technological advancements, or is this a speculative bubble set to burst? Explore the Reuters coverage for a comprehensive analysis here. On the other hand, a great video analysis of NVIDIA scrutinizes the company's remarkable growth, spotlighting its innovative strides in GPU technology and AI. It delves into NVIDIA's financial health, market position, and the burgeoning demand for its products across various sectors, including gaming, automotive, and data centers. But most importantly, the price multiple is now almost a 100x. When it comes to global news, this is definetly making the waves and clearly shows how AI is already impacting stock price.

End of an Era for Unicorns

The Economist reports a pivotal shift in the startup ecosystem, marking the end of the "unicorn" era. This change prompts a critical examination of what led to the decline of billion-dollar startups and the future implications for entrepreneurs and investors. With the landscape transforming, it's crucial to question the sustainability of high valuations in the absence of profitability. Explore the in-depth analysis and its broader impact on the business world here.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

META analysis of ESG in hospitality

The article offers a bibliometric analysis of literature within the hospitality and tourism sector, focusing on Environmental, Social, and Governance (ESG) aspects. This analysis, published on ScienceDirect, underscores the growing importance of ESG factors in shaping research trends and industry practices. While there has been extensive research on ESG in the industry it is not the kind that actually seeks to define and implement it. Rather its impact on marketing, guest satisfaction and corporate governance. For more read here.

4. Readables

Books, podcasts & the big stuff.

Our favourite tool in the world notion.so has started releasing a regular podcast, where the CEO of notion interviews several other major founders and their stories and thoughts on their own businesses. A must listen for those interested in innovative companies and how they implement.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Customer Loyalty Crisis in Hospitality

An intriguing article from HotelSpeak sheds light on the hospitality industry's struggle with customer retention, the lowest across sectors. ALL 10 TOP SECTORS. It scrutinizes key factors contributing to this phenomenon, including the critical role of personalized experiences and service quality. This analysis prompts a deeper inquiry into strategies that could reverse the trend. Are current efforts by hotels to enhance guest satisfaction and loyalty enough, or is a more radical approach needed? For an in-depth exploration, read more.

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TLDR: Too Long Didn’t Read

In this follow-up, Thailand experiences a conservative shift in cannabis laws, potentially impacting its cannabis tourism industry 🇹🇭🌿. Wyndham grapples with distractions from a potential merger 💼💭, while Marriott and Hilton showcase competitive strengths in loyalty programs 🏨🔄. The upcoming solar eclipse in North America promises significant revenue for hoteliers 🌞🌑💰. SMG Holding facilitates Sircle Hospitality Group's IPO 💼📈, while the Gault & Millau brand faces legal disputes in Germany ⚖️🇩🇪. New York City's hospitality sector booms amidst regulatory changes, while airbnbs close 🗽🏨, and China's economy shifts towards value over growth 🇨🇳💼.

Academically, Iranian tourism challenges are explored 📚🇮🇷, and in tips, the private equity deal drought is discussed 💼🏦, along with practical applications of AI in travel 🤖✈️ and insights into hotel franchise fees 💰🏨.

0. News snippets

Not important enough to expand on, but worth hearing about

ITB, a major tourism exhibition is coming up, here is a recommended list of stands you should visit | Bob W gets 40 million funding in their round B | Tripadvisor might be sold soon.

0.5 Follow up

Where we follow up on news from previous weeks

Thailand's Cannabis Conundrum: A Legal U-Turn

Thailand's progressive cannabis legalization faces a conservative backlash, with new government proposals aiming to restrict use to medicinal purposes only. With 6 thousand weed dispensaries, this means a lot of people are going out of business. This shift, motivated by concerns over regulation and youth exposure, could significantly impact the burgeoning weed tourism industry and the country's liberal stance on cannabis (forecasted to be worth 8 billion USD in 2030). The potential reclassification as a controlled substance suggests a cautious future for cannabis in Thailand. A shift that shows that political changes, once again, can impact entire industries in months.

Wyndham distracted from the noise around the merger

Wyndham reports spending $75 million on preventing a hostile merger, affecting its fourth-quarter performance with net income down 18% and net revenue down 6% year-over-year. Executives cite regulatory reviews as a significant distraction, including responding to antitrust queries from the U.S. Federal Trade Commission and requests from four U.S. state attorney generals, impacting franchisee commitments and deal flow. Uncertainty surrounding the potential merger has led to a more challenging sales environment, with slower commitment from potential franchisees and alleged competitive actions from Choice Hotels, resulting in a significant decrease in new contracts awarded. More on Yahoo.

1. Main Hospitality News

Core news related to the industry

Marriott and Hilton: A Competitive Edge in Hospitality

In the fiercely competitive hotel industry, Marriott and Hilton stand out, showcasing robust growth in loyalty program memberships, with Marriott leading at 196 million members and Hilton not far behind with a 19% year-over-year increase to 180 million. Despite Hilton's aggressive expansion, Marriott's loyalty program remains more extensive. This is very likely supported by the fact that Marriot has effectively spent triple what Hilton did for guest rewards. Financially, both giants have seen significant profitability increases over the past six years, with Marriott's adjusted EBITDA margin soaring by approximately 11 percentage points. Hilton's diversity and inclusion efforts are notable, with a workforce composition reflecting global inclusivity standards. However, both chains primarily generate revenue from the U.S., hinting at a less global presence than advertised. Overall a great take by Skift, that compares to hospitality giants!

Solar Eclipse, can it bring more guests than a Taylor Swift concert?

The 2024 Total Solar Eclipse promises a significant boon for hoteliers across North America, expected to surpass the economic impact of 2017's event. Occupancies effectively doubled during the previous eclipse and RevPars almost tripled (244%). With a longer duration and covering more extensive hotel markets, anticipation builds for a substantial increase in demand. The event takes place on April 7-8, and while not too long, missing it could mean thousands of dollars of lost revenue. A great lesson in how Revenue Management planning can expand on things that perhaps can seem unconventional.

SMG Holding Facilitates Sircle Hospitality Group's IPO

SMG Holding, as IPO sponsor and investor, facilitates the IPO of Sircle Hospitality Group, a pan-European lifestyle hotel group, with a planned listing in the second quarter of 2024.

Sircle Hospitality Group boasts a portfolio of 37 hotels in 23 cities, including brands like Sir Hotels and Max Brown, with a total value of hotel real estate surpassing EUR 400 million.

The merger agreement with SMG European Recovery paves the way for Sircle Hospitality Group to emerge as a leading independent lifestyle hospitality group in Europe, aiming to open 100 hotels and elevate culinary offerings under the leadership of renowned chef Eyal Shani. More on Stock-world.

The Gault & Millau License Dispute Escalates

The Gault & Millau brand, known for its prestigious restaurant and wine guides, faces a legal tussle over its German licensing rights. Despite the Düsseldorf Higher Regional Court's dismissal of accusations against the licensee and affirming the contract's validity, Gault & Millau International insists on ceasing unauthorized use of its brand in Germany, signalling a shift of legal battles to Switzerland. If you thought your country is tough with copy rights, Germany is even “greater”, especially given its recent case where Gutenberg project (a website that promotes free ebooks, mostly of authors long outside the modern copyright laws) was sued by a local publisher.

“Optimism” in Hospitality Despite Inflation

A survey reveals 72% of Americans plan to maintain or increase hotel stays in 2024, showcasing resilience in travel desires. While hotels remain a top choice for leisure and business trips, inflation challenges the sector's full potential, affecting decisions around travel and lodging. The survey also provides insights into what accommodation types Americans prefer most and for what purpose (Leisure or Business). But we think, the key here is framing. One can, just the same way write that a whopping 28% of Americans are planning to travel less this year, which can mean a drop in RevPar for all! Perhaps what matters is, if you are an optimist.

Apaleo sets ‘new record’ for tech rollout after moving 7,500 citizenM rooms to new PMS in just 8 weeks

Apaleo successfully migrated all 7,500 rooms across citizenM's US and European operations to its property management platform in under two months, completing the switch at sites located in 18 cities worldwide. The migration was deemed the fastest onboarding for any mid-sized hotel group to date, facilitated by modern, self-service architecture, plug-and-play onboarding, and scalable project management techniques. Apaleo and citizenM collaborated closely, employing state-of-the-art program management techniques to remotely manage installations across various cities, showcasing the potential of API-first platforms to future-proof businesses and enhance guest experiences.

Luxury merch sold in hotels: your way into the “club”

New York Times has written about how fashion designers and hotels are creating “Merch” together that is a way into cool kids’ club. Marisa Coulson's move to Majorca with her cherished collection of branded hotel items unveils a narrative where luxury and identity intertwine. From Sunset Beach Hotel's cozy sweatshirt to Chateau Marmont's vintage sweater, each piece whispers tales of past glories and shared experiences. This trend transcends mere physical belongings, morphing into badges of belonging to an exclusive circle (who knew, you just had to buy a cool bathrobe to get into the club). The allure of hotel merchandise, as Brett David of Spring Street Vintage reveals, lies not just in its aesthetic appeal but in the stories it embodies and the status it confers. As hoteliers and collectors alike attest, these items are more than souvenirs; they are keys to a shared history, tokens of an exquisite lifestyle that stretches beyond the confines of a hotel stay.

A Resurgence in NYC's Hospitality Scene: A Ripple Effect of Regulation?

New York City's hotels are experiencing a significant boom, with December showcasing the highest occupancy rates among the top 25 markets in the U.S. at 86.6%. This surge, coupled with a nearly 11% increase in the average daily rate to $393 and a 15.6% rise in revenue per available room, starkly contrasts the national average. The downturn in short-term rental availability, from 13,500 listings in August to under 3,000 in December due to stringent rental laws, appears to play a crucial role. This, along with heightened holiday demand and a rebound in international tourism, paints a vivid picture of NYC's unique allure and its hospitality sector's vibrant comeback as we usher out 2023. While some lose their business, others benefit. Contrary to what the city promised though, the final ADRs will be covered by city visitors.

2. Externalities

Econimics, finance, geopolitics. All have an impact on the hospitality sector.

China: From Growth Marvel to Value Proposition

China's transition from the world's leading growth narrative to a value-oriented market underscores a seismic shift in economic expectations. With consumer confidence at a low, the Chinese government prioritizing security over sheer growth, and businesses adjusting to a new normal of moderated gains, the landscape for investors and companies globally is changing. Amidst regulatory crackdowns and a real estate sector in distress and a GDP growth ratio that is nearing Western Country levels, it can perhaps mean that China has reached its equilibrium. Hard to say, since the source above as well as others mostly base their forecasting on current data. Except for a Geopolitical expert we sourced previously, who addresses topics like demographics, which can last much longer than anything else.

Bridging the Employment Gap for Black Workers in America

A recent take by the Economist goes into America's labour market and how it has recently become a beacon of hope, significantly narrowing longstanding employment and wage disparities for black Americans. Thanks to a robust economic stretch, the unemployment rate for black Americans has dramatically reduced, reaching a historic low that nearly matches that of white Americans. This shift is attributed to various factors, including increased labour-force participation, better job prospects, and significant gains across both blue-collar and white-collar sectors, showcasing a promising trend towards reducing racial inequalities in employment. The bad news is perhaps that the entire goal of the Fed’s increasing interest rates is to decrease inflation and with it increase the costs of wages for businesses, which in a way can reverse the results above.

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

Problems of Iran tourism, from the eyes of local academics

Academia can often be a source of rather peculiar information. This time around a few fellow tourism industry specialists have published a paper on how Tourism is developing in Iran. Discussing the main problems government strategy had and proposing solutions. A very weird paper indeed, given the political image this country has in the eyes of most Westerners.

4. Readables

Books, podcasts & the big stuff.

Navigating the Deal Drought in Private Equity

The current deal famine in the private equity sector is driving significant evolution, as discussed in a recent podcast by Reuters. This challenging environment is pushing private equity firms to adapt and innovate, seeking new strategies for sourcing deals and generating value in a landscape marked by scarcity and competition. If you have time and are interested in how investing in “whatever” is evolving, look no further.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

AI in Travel: Beyond the Hype

The travel industry's anticipation for generative AI to revolutionize the sector was met with scepticism in 2023. Some are indeed predicting an initial AI bubble (similar to the initial dotcom bubble), which would then be followed by the long-term growth of AI companies. Despite doubts, industry experts highlight AI's potential to enhance traveller experiences and address operational challenges, stressing the need for practical, data-driven applications. The focus shifts towards identifying valuable use cases for AI in travel, from improving operational efficiency to personalized customer service. So if you are interested and have the knowledge to implement it yourself, check out the source above.

Hotel Franchise Fees: The HVS Guide

The HVS U.S. Franchise Fee Guide, 2023 Edition, offers an in-depth analysis of the hotel franchising industry. It examines fees across 91 hotel brands, aiding investors in making informed decisions about franchise affiliations. Whether you are a property owner yourself or a new start-up that wants to compete in a world of pain that is franchising, this is it. Except, of course, there is a fee.

1:18 - Career Longevity at CitizenM: Edouard attributes his long tenure at CitizenM to the company's support for his growth and opportunities for advancement.

3:33 - Introduction of Edouard and his Role: Edouard has overseen about 10 CitizenM hotel openings in the last year and is now focusing on a major project in Boston.

10:56 - Innovation in Hotel Openings: Edouard helped innovate the hotel opening process, focusing on efficiency and overcoming challenges like COVID-19 impacts and modular construction advantages.

14:14 - Shift to Construction and Development Focus: After years of focusing on hotel openings, Edouard is now learning about construction, aiming to reduce development timelines and costs.

18:56 - Adoption of Lean Six Sigma for Efficiency: CitizenM is exploring Lean Six Sigma to improve construction efficiency and address challenges in convincing partners to adopt new methods.

26:23 - CitizenM's Ownership and Operation Model: While primarily owning its properties, CitizenM also explores leases and management agreements to expand its presence.

31:21 - Edouard's Reflections on Pre-Opening Challenges: Sharing stories of adaptive problem-solving during hotel openings, Edouard highlights the importance of flexibility and creativity in his role.

41:44 - CitizenM's Staffing and Guest Experience Philosophy: Edouard discusses the balancing act of staffing levels to enhance guest experiences, emphasizing the value of personal interactions over automation.

49:44 - Adapting to Technology and Innovation: CitizenM's rapid adoption of new technologies, like changing PMS systems across all hotels within weeks, showcases its commitment to innovation and efficiency.

You can find out more about our current guest over here.

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In follow-ups, the European Travel Commission highlights safety and affordability as key factors for international travelers in 2024 🌍✈️💰, while Paris prepares for the Summer Olympics with high hotel bookings but significant room vacancies 🇫🇷🏨🥇.

In industry news, Europe leads in hotel sustainability reporting 🌱🏨, Soho House considers privatization amid financial scrutiny 💼💰, and staffing shortages persist in the hospitality sector 👥🏨. China sees a shift towards adventure-based travel 🇨🇳🌄, and Naples (US) attracts a younger demographic through sports-focused initiatives 🇮🇹🏟️.

Meanwhile, outside factors impact the industry, with U.S. states like Tennessee emerging as economic powerhouses 🇺🇸💼, and sub-Saharan Africa grappling with a housing crisis 🌍🏘️.

Academically, a study explores millennial preferences for job retention factors 📚💼, and in tips, Tin Inn-Hotels gain popularity for their sustainable container-based design 🌿🏨, and the travel industry shares lessons from early adoption of generative AI technology 🤖📊.

To support us, subscribe over at leportee.com or donate over at paypal.me/LePortee

TLDR: Too Long Didn’t Read

In follow-ups, the European Travel Commission highlights safety and affordability as key factors for international travelers in 2024 🌍✈️💰, while Paris prepares for the Summer Olympics with high hotel bookings but significant room vacancies 🇫🇷🏨🥇.

In industry news, Europe leads in hotel sustainability reporting 🌱🏨, Soho House considers privatization amid financial scrutiny 💼💰, and staffing shortages persist in the hospitality sector 👥🏨. China sees a shift towards adventure-based travel 🇨🇳🌄, and Naples attracts a younger demographic through sports-focused initiatives 🇮🇹🏟️.

Meanwhile, outside factors impact the industry, with U.S. states like Tennessee emerging as economic powerhouses 🇺🇸💼, and sub-Saharan Africa grappling with a housing crisis 🌍🏘️.

Academically, a study explores millennial preferences for job retention factors 📚💼, and in tips, Tin Inn-Hotels gain popularity for their sustainable container-based design 🌿🏨, and the travel industry shares lessons from early adoption of generative AI technology 🤖📊.

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0. News snippets

Not important enough to expand on, but worth hearing about

Election in Pakistan causes major unrest, opposition wants to form a government, first time in decades | ING believes we should be cheerful about the economic future in 2024 | Palestinians are preparing for the Rafah assault, conflict is long not over. |

0.5 Follow up

Where we follow up on news from previous weeks

International Travelers to Europe Prioritize Safe Destinations and Affordable Prices in 2024

The European Travel Commission's latest report reveals a cautious optimism among international travelers for 2024, emphasizing the importance of safety and affordability in choosing European destinations. With varying levels of travel intention across key markets, China is the only one with a decreased intention to travel (14% less), yet Chinese have the strongest intention to go to Europe (50%) next to Brazilians with 49%. If you want to see more, the full report also provides intended budgets by country.

Paris Summer Olympics: Three Key Trends to Consider

As Paris gears up for the Summer Olympics in 2024, a century since its last hosting, STR highlights three pivotal trends: substantial pre-bookings, with over half of hotel rooms reserved, and forecasting a vibrant summer. This event promises a significant impact on hotel performance, emphasizing the importance of advanced bookings and the potential for ADR spikes, despite a modest increase in new hotel inventory. Paris's strategic preparation, including controlled supply growth, sets the stage for a successful hospitality sector during the Olympics, at least for those who are collecting the cheques! Interestingly enough, STRs forecasts a final city-wide occupancy of 72% (a 9% increase from last year), yet still almost 30% of rooms will be vacant?!

1. Main Hospitality News

Core news related to the industry

How Europe is Pioneering Hotel Sustainability Reporting

Europe is making significant strides in the realm of hotel sustainability reporting, setting a new benchmark with the Corporate Sustainability Reporting Directive (CSRD) initiated in early 2024. This directive heralds a transformative era in transparency, compelling companies to disclose comprehensive environmental and social information. Amidst this shift, BeCause, a sustainability management and data automation SaaS firm, emerges as a key player, or someone who is likely to benefit most from this directive. “Once data collection is set up, hoteliers must ensure its accuracy and be unafraid to take accountability for their company’s entire value chain”, a truly great statement that surely won’t create a bunch of fingerpointing. So make sure you hire another consultant and allign with the sustainable economy goals of the EU or else you can get fined 10 millio Euros or 5% of turnover. In case you are worried here is a detailed breakdown of which company size has to report what. If you have smaller than 20 million turnover, you are off the hook!

Soho House Contemplates Privatization

Soho House, known for its members’ clubs and hotels, forms a committee to evaluate strategic transactions, potentially leading to the company going private. Criticism from GlassHouse Research highlights concerns over Soho House's unprofitability, debt levels, and growth strategy. Soho House responds by authorizing a $50 million share repurchase, but questions remain regarding its ability to increase revenue per house and sustain profitability. More on Skift.

67% of Surveyed Hotels Report Staffing Shortages

A survey by the American Hotel & Lodging Association highlights a significant staffing crisis in the hospitality industry, with 67% of hotels reporting shortages. Efforts to attract and retain staff include wage increases and improved benefits. As a result 80% of surveyed hotels are boosting their wages. Perhaps it is all about the money after all?

China's Lunar New Year 2024: Embracing Adventure Over Tradition

More affluent Chinese tourists are opting for experience-based trips abroad, such as adventure or cultural holidays, over traditional group tours and shopping-oriented vacations. Travel agencies are adjusting their offerings to cater to the trend, with a focus on private tours and special interest holidays, seeing significant growth in demand. European luxury brands are adapting to fewer sales from Chinese tourists and a shift towards independent travelers with higher spending power, signaling changing dynamics in the travel retail sector. More here.

A Focus on Sports in Naples Attracts a Younger Demographic

Naples, Florida, yes you heard right, is gaining attention for its strategic focus on sports, particularly with the Paradise Coast Sports Complex, which has become a beacon for youth and adult sports teams. This focus is not only enhancing local tourism but also stimulating the hospitality industry, as hotels in the vicinity note a surge in bookings and average rate increases. The complex's expansion and the introduction of new attractions like Great Wolf Lodge and ECHO Suites Extended Stay by Wyndham are poised to further transform Naples into a vibrant hub for sports and family entertainment.

Mixed Signals in Hospitality Capex Market for 2024

Higher capital costs are reducing transaction-related renovations and constraining new development, but deferred PIPs from the pandemic era are providing steady business for the capex industry. Further, the staff reductions during the pandemic have led to lean resourcing, but construction costs remain high, posing challenges for project execution. To mitigate risks and maintain flexibility, clients are advised to invest early in planning and design, cast a wide net for contractors/consultants, and build exit strategies to adapt to shifting market conditions. More on hospitalitynet.

2. Externalities

Economics, finance, geopolitics. All have an impact on the hospitality sector.

California and New York are slowing down, while other cities are catching up

It is often said that big gets bigger and small, well stays that way. U.S. states beyond the traditional powerhouses of California and New York however are prooving the opposite. The spotlight shines on Tennessee's Nashville, affectionately dubbed "the Athens of the South," not just for its historical replication of the Parthenon but for its burgeoning role as a nexus of education, living, and economic expansion. According to the Milken Institute's "Best Performing Cities" ranking, Nashville's blend of high salaries, job abundance, manageable living costs, and a thriving tech sector place it in the coveted top ten. This ascendance is mirrored by Vanderbilt University's strategic embrace of innovation and partnership with tech giants, signaling a vibrant future for this metropolitan phoenix rising from the ashes of its 2010 floods. Who knew cities can also compete for attention and growth, while bad decisions of others can cause a downturn.

How to House the World’s Fastest-Growing Population

In an eye-opening exploration, The Economist dived into the profound housing crisis gripping sub-Saharan Africa, where a burgeoning population meets a stark scarcity of affordable homes. The narrative sheds light on the plight of individuals in regions like Dakar, where dreams of homeownership are quashed by financial and bureaucratic hurdles. With an estimated 230 million people living in slums, the challenge is monumental. Yet, it's posited as an unparalleled opportunity for growth, jobs, and sustainable development. 70% of buildings demand for 2040 does not exist yet. Why? Outdated building code, low wages vs costs of buying housing, only a whooping 4% of land is registered, the rest does not exist in the land registry. Innovative solutions? Embracing incremental building and exploring alternative financing models. And of course image the potential there is for hospitality to be mixed in with the rest!

3. Academia

Scientific papers related to the topics above. For those who want to know for sure ;)

How do Millennials rate pay, when it comes to turnover?

On the topic of higher salaries, due to staff shortage mentioned above, a study from 2020 showed that generation Y lists “pay” as the 3rd reason to stay in a hospitality company. The first 2 are “work environment” followed by “empowerment”. Hence, theoretically just give the Gen Y (millennials) some great office and the power to do what ever they want, and salary does not matter as much. I can personally attest, this works 😛 The aforementioned study was only a survey and not a factual follow up with employees over the years, but still!

4. Readables

Books, podcasts & the big stuff.

Make guests happy with architecture!

How to books on Hotel Design and prevalent and we ourselves have recommended a few. This time around we found the book “The Architecture of Happiness” a pretty productive read for industry professionals alike. Ever wonder what water facet to choose or room layout, this book will help out with that.

5. Tips & Tricks Tools & SaaS

Any new software you can use? Industry tricks you missed?

Sleeping in a container: Tin Inn-Hotels are growing quickly!

Check out a new concept that is implementing trends long talked about in the industry. Tin Inn-Hotels, a rapidly expanding chain utilizing upcycled shipping containers, represents a fresh approach in the hospitality industry. Launched in May 2023, these hotels are celebrated for their sustainable design and construction. With three hotels already operational and more on the way, Tin Inn's success is underscored by high occupancy rates and positive guest feedback. Their expansion strategy focuses on selecting locations with a lack of overnight accommodations, integrating into local communities to benefit both guests and residents.

Travel Early Adopters Share Lessons After Year with Generative AI

The travel industry's early engagement with generative AI, like ChatGPT, has led to innovative applications and lessons learned (for some). Companies like Trip.com and Expedia Group quickly adopted this technology, creating chatbots and plugins to enhance customer interaction. The journey has involved refining these tools for better productivity and insights, with startups finally sharing their experiences to guide future applications. The articles provides 3 specific cases from the industry, for details click here.

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