Tripadvisor Review Analysis, Staff Retention 101, Luxury Sector struggles with modernity

Week 36 - Loads of studies this week on reasons why event locations are succesful, on sentiment of guests on tripadvisor and Chinese ability to thrive in the next decade.

TLDR: Too Long Didn’t Read

The luxury industry faces a generational shift with 80% of future consumers expected to be millennials by 2030, challenging exclusivity and sustainability. A summer sentiment analysis of TripAdvisor reviews shows staff negativity decreasing and cleanliness concerns. Some Booking.com hosts experienced payment delays. Thermal, a new venture, caters to surfers' travel experiences. Indian tourists take loans for vacations and prefer shorter trips. Factors influencing event location success include local economic development. The EU pledges significant financial support for Ukraine. China's economic path differs from Japan's due to innovation. A major court case against Google may determine its monopoly status. Employee retention relies on hiring rights, competitive salaries, growth opportunities, positive environments, transparency, and appreciation.

0. News snippets

Not important enough to expand on, but worth hearing about

Topics of hospitality discussions on various trade shows are apparently: AI, combating sex trafficking, staff shortages & of course cyber security; Biden asks Chinese tourists to come back after 30 billion USD spending turned into 17; Recent return to office spaces might boost b2b travel; Germany might take lead on debureaucratization of hotels having to submit travel guest data to the federal government, the catch is communal laws still request it;

1. Main Hospitality News

Core news related to the industry

What is going on in the luxury sector?

A recent take on luxury industry trends gives a pretty good insight into what are the current challenges that the industry is facing. In short, a generational switch is happening and by 2030 80% of luxury goods consumers are expected to be millennials and younger. There is a conflict of product, where on one hand more and more demand is rising, yet the feeling of exclusivity needs to be maintained. Finally, the demand for sustainability is starting to show amongst consumers, which is not necessarily going hand in hand with what luxury represents. For more detailed case studies, go here.

What do the reviews say happened this summer?

A sentiment analysis of TripAdvisor reviews has recently been conducted looking at summer trends in guest experiences. Five key points emerge. Firstly, negative sentiment around staff has decreased due to technology and outsourcing. Secondly, cleanliness remains a top concern, impacting all areas of the hotel. Thirdly, TripAdvisor is still trusted, but there is concern about a decreasing volume of reviews. Fourthly, positive sentiment about hotel pools has dropped due to increased travel demand and higher guest expectations. Lastly, despite some issues, the majority of summer guest sentiment remains positive, highlighting the industry's ability to provide a high level of service. The study emphasizes the importance of analyzing these insights to improve the guest experience and maintain market share.

Thousands of hosts on Booking did not get paid for July

Imagine it is peak season, and you are making money left & right, yet booking.com has a “technical” error and forgets to pay you your earnings for the entirety of the month. Your costs accumulate and you are indeed #*&ed. Well, it apparently happened this summer. Shows once again that absolute dependence on one channel of any type can put your business at a very high risk of bankruptcy.

Travel Experiences OTA, but for surfers

Would you say the travel booking experience is oversaturated with various providers? We would. Apparently not. A new company called Thermal has recently come out of beta, offering travel experiences for surfers, offered by other fellow surfers. You book a trip package with guided surfing, accommodation etc. Opportunities to capture niche markets, apparently always exist. For more here.

Indian tourist tendencies

With all the talk of India being the new China (we are surely guilty of it), what is it that Indian tourists actually want and do? For one, 21% of Indians, actually take out a loan to pay their holidays. They are more likely to travel for shorter periods than longer ones. 80%, for now, are looking to travel inward, yet 20% of Indians is basically the entirety of the EU. (at least if the whole country would be on par with the developed countries GDP per capita)

Why are some event locations more successful than others?

Another recent study by HVS looked into why certain event locations (in this case entire stadiums, attract more tourists than others). Findings? Extremely simple, given a local well-developed economy ticket demand is high, and prices are high too (i.e. New York), and with that comes lower tourist attendance. On the other hand, locations like Nashville had lower economic development and with it lower demand for tickets. Herego the highest tourist share of ticket buyers across America. Sometimes the simplest answers are the correct ones.

2. Externalities

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

What is going on in Ukraine?

The war in Ukraine, a piece of news we recon is more impactful on the rest of our lives than most others. So what is going on this week then? An interesting insight from “The Economist” shows that the EU is now spending more money on supporting Ukraine than, the US. In total? 131 billion euros. How is it more than the US? Easy, while the US & EU have almost the same short-term support programs, the EU has the same amount on top of the short term, set to be delivered long term within the next 5 years. Good or bad, a total of 237 billion USD is pledged to Ukraine. Its enitre annula GDP and a bit on top.

Is China following in Japan’s footsteps?

Looking into China’s economic performance, many compare it to that of Japan in the 90s. Rapid growth was ended by a financial crisis and a subsequent decade-long deflation. Is China destined to go the same path? According to this no. The main argument of the article is that due to a major financial crisis, the psyche of the corporate world changed and instead of recovering from a crisis and continuing with risk and innovation, Japanese firms opted for surplas financial statements that are “safe”, putting the whole economy in a sort of stasis. This is apparently not happening yet, since Chinese appetite, while having decreased in the last few years, still shows vigor. Conclusion: heavily depends on the 1 man government of Xi Jinping.

Google, to be or not to be!

While a small piece of news for now, likely a big one later. Tomorrow one of the more important court cases is starting. The state against Google. The winner gets to decide if Google is a monopoly and with it the destiny of the internet! We will keep you updated on the progress!

3. Academia

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

Ever wondered how innovation works in hospitality and what promotes it? Funny enough a recent study was released studying the process of innovation within 3 boutique hotels. Specifically the design-driven innovation. Results are rather complex but can be found here.

4. Readables

Books, podcasts & the big stuff.

Today we thought to recommend the podcast - “The Diary of a CEO”. A podcast is widely available on all platforms that interview people of all caliber with rather interesting results. If you ever wanted to hear interesting people talk about their life’s work, this one might be for you!

5. Tips & Tricks Tools & SaaS

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

Employee retention, the HOW!

Another day another take on employee retention. Why is it important? According to the article, it improves productivity, helps team building & finally improves profitability. How do you do it? 6 tips are to hire the right people (appropriate skills & future plans), offer competitive salaries, take care of employee growth, foster a positive work environment, provide transparency & show appreciation. A more detailed look is available in the article itself.