Week 8 - Record year for Accor?
Week 8 - Record year for Accor?
Hospitality industry amongst the lowest in loyalty, Private Short-Term-Rentals amongst the highest on guest ratings, Eiffel tower about to go on strike and more!
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.
