The US hotel industry has reached a crossroads. After seven years of continual growth following its worst year since the great depression, US hotel industry performance should expect to plateau in 2017. It’s tough love time for an industry that continues to consolidate, but remains too timid to prune brand portfolios that confuse customers and commoditize lodging product through undifferentiated brand bloat. Plus, competing against rapidly growing, favorably perceived global organizations like Airbnb that structurally trade in unique, highly personalized experiences, does not result from inaction.
Trends & Pitfalls in Hotel & Travel Distribution – Applying Concepts to Golf. A presentation by Robert Cole of RockCheetah for Allegiant Airlines/Teesnap and the Milwaukee Golf Group, held at Scenic View Golf Club in Slinger, Wisconsin on February 8, 2016.
The PhoCusWright Travel Innovation Summit has 30 companies pitching a panel of judges and audience on a wide range of new travel technologies and online services. Travel Innovation Summit Bingo was invented for those attention deficit disorder sufferers who struggle to maintain focus during the six hours of demonstrations. Grab a Bingo card, find a few friends to play with, and get ready to track all the buzz words flying forth from the stage.
Travel and music share the common ability to expand horizons, introduce new cultures & change lives. Looking back at five decades of listening to music and four decades of attending concerts, I picked two groups from each decade that represent the seminal performances that impacted me most significantly. The process wound up being more than listing favorite artists or concerts – the cities and venues were also inextricably linked to the experiences.
Bob Farrell and his eponymous Farrell’s Ice Cream Parlours created a legendary brand that was known for its birthday party and special occasion celebrations enjoyed by children, their parents and grandparents alike. Farrell’s secret? He ran the operation like a bar for kids. A concept that was lost after the business was acquired.
The International Air Transport Association’s (IATA) controversial decision to adopt the Airline Tariff Publishing Company (ATPCO) XML standard based on the Farelogix Air Commerce Gateway that was supported by the now defunct Open AXIS group is misguided. Its focus is airline-centric, ensuring the airlines full control over search and booking transactions occurring within their ecosystem. Like so many other things in the world of airlines, it really should be customer focused.
The US hotel industry is recovering but still has considerable territory to cover before regaining the profitability seen in 2007 & 2008. To offer a more complete picture of the US hotel industry as a whole over the past five years, below are full year-over-year comparisons of the three bellwether metrics for the global hotel industry: Occupancy Percentage (Occ), Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR.) Additionally, a linear presentation of the same data is provided to more clearly illustrate the trends over time. Finally, the peaks and valleys for each metric are provided. This information clearly depicts the US hotel industry as showing marginal improvement over the depths of the recession in 2009, but far from nearing the heady performance of 2007 & 2008.
While the US hotel industry recovery is being highlighted by occupancy growth relative to 2009, considerable ground remains to be covered to attain the occupancy, pricing and profitability levels of 2007 & 2008. At the present time, the hotel business is hovering around 2006 levels. The combined effect of the economic downturn, increased share of online travel agencies and the related merchant model, plus a reduction in US government per diem rates will continue to create challenges for industry rate increases moving into 2011.
In 1995, Tom Patty of Chiat/Day Advertising posted an article the Five New P’s of Marketing: Paradox, Perspective, Paradigm, Persuasion & Passion. Unfortunately, the document has digitally disappeared from the Internet, so it has been recreated here to inspire a new generation of marketers. Patty’s advice was just as right then as it is today – take a look at Apple’s advertising if you want proof.