Week 19 - TripAdvisor loosing market share, Soho unprofitable, 300 Aircrew sick on same day and more!
Week 19 - TripAdvisor loosing market share, Soho unprofitable, 300 Aircrew sick on same day and more!
80 Flights were cancelled over 300 staff suddenly registering sick.
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.