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Hotel Trends - February 2014

INTRODUCTION
 KEY FINDINGS
DATA SOURCES
OVERVIEW
 OUTLOOK FOR SPENDING ON TRAVEL & TOURISM
Figure 1: Projected spending on leisure & business travel, 2012-20
Figure 2: Projected incoming receipts & domestic travel spending, 2012-20
 TREND IN HOTEL CAPACITY
Figure 3: Trend in the number of hotels in 20 leading country markets worldwide, 2011-16
BRANDING
 LEAN LUXURY
Ruby Hotels
Central locations, conversions and flexible layouts
Room design
Food & beverage is organic, healthy and local
Human resources
Reception and pricing
Streamlined processes
Social networking
Pipeline and ownership
 LIFESTYLE
Hilton tries boutique again
Marriott’s Moxy
Millennials targeted
Ikea as development partner
Pipeline
Modular construction
 HEALTH & FITNESS
IHG’s EVEN
 ALL-INCLUSIVE
Hilton
Hyatt
DISTRIBUTION
 SOCIAL NETWORKING – A NEW DISTRIBUTION CHANNEL?
 ROLE OF OTAS
Figure 4: The approximate proportion of Internet bookings directly to the hotel or chain’s website, 2013
Two ways to look at OTAs
Billboard effect
 PRICELINE/BOOKING.COM & EXPEDIA RULE
Expedia-Travelocity pact
Booking.com has the advantage
Booking gets better conversion ratios
 METASEARCH TO THE FORE
TripAdvisor
Google Hotel Finder
Figure 5: Have you heard of Google Hotel Finder?, 2013
Pay-per-click bidding
The direct channel
Other features
Carlson Rezidor’s Google partnership
 THE RISE OF MOBILE
Figure 6: Source of hotel-related traffic, bookings, room nights & revenue by type of device, 2012 & Q1/2013
Hotel Tonight
Growth in Europe targeted
Good for distressed perishable inventory
Competitive customer service
 SOCIAL NETWORKING
Booking on Twitter
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FINANCING
 BANK FINANCING
No fire sales
 IPOS BACK IN STYLE
Extended Stay of America
Hilton
Is Blackstone making money on Hilton?
Figure 7: Trend in Hilton’s share price, 12 December 2013- 30 January 2014
A rich valuation
Why so late? Why so little?
Other chains on the way
La Quinta too
SERVICE DELIVERY
 OUTSOURCING
 NO MORE RECEPTION
 GETTING RID OF ROOM SERVICE
Herb N’ Kitchen
Declining room-service revenue
Figure 8: Decline in room-service revenue per room, 2007-12
 MINIBARS ON THE WAY OUT TOO
TECHNOLOGY
Peninsula Hotels’ technology lab
Technological room amenities
Scandic offers mobile check-out
Scandic’s new tech-inspired brand, HTL
WHAT NEXT?
 INCREASED SEGMENTATION
 A COUNTERTREND TO BRAND DOMINANCE?
San Francisco hotels ditching brands
Hotel Zetta’s tech-focused concept
Radisson to lose Fisherman’s Wharf
The millennial-focused Tommie chain

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