Four Trends for Beyond Revenge Travel 2.0
Larry and Adam Mogelonsky | March 2nd, 2022
Although Pre-Pandemic Profitability Will Remain Elusive, the Industry Will Make Strides Toward Recovery in 2022
Fran Worrall | January 5th, 2022
Being Opportunistic Without Being a Shark
Frances Kiradjian | April 27, 2020
By Frances Kiradjian Today’s climate may well present a new opportunity for those sitting with cash, or some form of available cash. Cash is king, always has been, always will be. We were always taught to have a rainy-day savings account just for insurance of upcoming needs or even opportunities. If you had a crystal ball or were born a true visionary, you could have imagined/envisioned how events might unfold from the first day that COVID-19 was announced. And as it started growing globally, you would’ve had enough time to figure how to make your “cash” available at the ready-set-go. This would most certainly give you a leg ...
Global Hotel Profit Rocked by COVID-19
HotStats | April 27, 2020
In the first analysis of full profit-and-loss performance since the COVID-19 pandemic swept through the global hospitality industry, March was expectedly a brutal month, with the U.S., Europe, Asia and Middle East all recording year-over-year profit drops of 100% or more, according to HotStats data, as the virus’ spread continued unabated, all but shutting down travel. To date, there are more than 2.7 million cases of COVID-19 globally, a third of which are in the U.S., where hotel performance predictably nosedived in March, after a mostly banal February. Gross operating profit per available room (GOPPAR) was down 110.6% YOY to $-12.7...
5 Business Agility Lessons Hard-Learned Amid the COVID-19 Catastrophe
Hari Abburi | April 27, 2020
By Hari Abburi If there’s one thing the global business community has learned from the COVID-19 pandemic that continues to ebb, flow and unfold on the daily, wreaking having on bottom lines in every corner of the world in its wake, it’s the outright imperative for companies to be agile “from top to bottom.” In fact, agility is rapidly establishing itself as “the great equalizer,” asserting its unbridled authority over which companies—from global conglomerates to mom and pops...and EVERYTHING in between—will survive another day. While business agility has always been a key driver and benchmark of notably successful opera...
Domestic Tourism Poised to Drive Vietnam Travel Industry Recovery as Destination Emerges First in Southeast Asia From Covid Crisis
QUO | April 27, 2020
HO CHI MINH CITY Vietnam’s tourism industry is set to lead Asia’s return to business as social distancing restrictions are lifted and domestic travel is set to return. The Vietnamese government announced the lifting of social distancing restrictions on April 24 setting the stage for the return of a domestic market of up to 70 million travellers per year that has been growing at a rate of 20% for the past five years. Speaking on The Future of Travel podcast by Bangkok-based branding agency QUO, Wink Hotels CEO Michael Piro said that the speed at which Vietnam reacted to Covid-19 revealed an underlying strength and...
New Report Shows Severity of COVID-19 Impacts on Hotel Industry
AHLA | April 23, 2020
Washington D.C. (April 23, 2020) — As COVID-19 continues to devastate the hotel industry, the American Hotel & Lodging Association (AHLA) released new data today showing that 70 percent of hotel employees have been laid off or furloughed as eight in 10 hotel rooms across the nation remain empty. As this crisis progresses beyond what anyone could have projected, the impact to the travel industry is nine times worse than 9/11, with forecasted occupancy rates for 2020 hitting record lows worse than rates in 1933 during the Great Depression. “With the impact to the travel industry nine times worse than September 11, the human toll o...
COVID-19 “The Hefty Guest”
Hala Matar Choufany | April 23, 2020
And… Suddenly, while we were projecting growth in the MEA region and applauding the ongoing efforts of governments in developing further the tourism infrastructure, improving accessibility, attracting local and foreign investments and easing off travel restrictions, we wake up to a new reality, a serious and destructive threat, and a force that is beyond imagination that will shape our future. An unexpected hefty guest checks-in that will undoubtedly leave behind significant losses and a drastic change to the traditional travel and tourism landscape. As we digest the current changes, adapt to the new norms of confining to the borders ...
The Impact of COVID-19 on Hotel Occupancy Levels in Athens and Thessaloniki
Pavlos Papadimitriou | April 23, 2020
By Pavlos Papadimitriou, Nana Boussia Introduction Imagine for a minute you are a hotel investor seeking after promising opportunities into developing destinations that you consider they have untapped potential. Looking back at the period 2012-19, Greek tourism was breaking one record after another. Following a nadir of 21 million that was caused to a great extent by the rumors about Greece’s potential economic default and the consequent negative publicity accompanied by political instability back in 2012, foreign tourist arrivals have been constantly growing since then at a Compound Annual Growth Rate of 8.4% to reach 37 million in 2...
COVID-19 Webinar Summary: 5 Key Points on Latin America
STR | April 23, 2020
STR remains committed to keeping the hospitality industry updated on the impact of the COVID-19 pandemic, and our webinar series will provide in-depth updates on world regions around the globe. However, if you are unable to watch the full recording during this stressful time, you can find a summary of key points below. Peru occupancy reflects government measures to combat the spread of COVID-19 Peru was one of the first countries in the region to implement measures to combat the spread of COVID-19. The country’s year-over-year occupancy declines eased slightly during the first week of April due to an influx of medical workers and firs...
STR: Canada Hotel Results for Week Ending 18 April
STR | April 23, 2020
HENDERSONVILLE, Tennessee—Showing further COVID-19 impact, the Canadian hotel industry recorded steep year-over-year declines in the three key performance metrics during the week of 12-18 April 2020, according to data from STR. In comparison with the week of 14-20 April 2019, the industry reported the following: Occupancy: -77.7% to 12.8% Average daily rate (ADR): -31.8% to CAD101.23 Revenue per available room (RevPAR): -84.8 to CAD13.00 Among the provinces and territories, Quebec experienced the largest drop in occupancy (-90.0% to 6.2%), which resulted in the steepest decrease in RevPAR (-92.9% to CAD6.47). British Col...
From Chaos to Coping, FIU Chaplin School of Hospitality & Tourism Management Professor Lisa Cain Offers Helpful Advice on the Challenges of Worki
Lisa Cain | April 23, 2020
MIAMI, FL. – April 2020 … Apart, isolated, inaccessible and distant – these definitions of the word remote have taken on new meaning to the millions of professionals now working from quarantined homes around the globe. The COVID-19 virus has changed the working landscape, perhaps forever. Workers are cut off from their corporate support teams, colleagues and clients. Many are faced with new responsibilities of homeschooling and managing children. All are trying to function in a time of chaos, fear, financial uncertainty and profound frustration. The hospitality industry has been especially hard hit and the Chaplin School of Hosp...
Will the Covid-19 Pandemic Presage Another Once-a-Decade Contraction in Tourism?
Yong Chen | April 23, 2020
By Yong Chen A difficult time on the horizon Had the novel coronavirus not occurred, 2019 would have been hailed as another year of stellar growth in the global tourism industry. The strongest growth would have been recorded in the Asia-Pacific region not only as a tourist-generating region but also as a destination. In particular, China had propelled the global tourism growth in terms of both tourist numbers and spending over the past decade. Chinese outbound spending outstripped that of the United States in 2012, and by 2018, Chinese tourist spending amounted to US$277 billion. A McKinsey study estimates that Chinese outbound spending was...
Is the German Hotel Market Poised to Be One of the Fastest in Europe to Recover From COVID-19?
Arlett Hoff | April 23, 2020
By Arlett S. Hoff A Short Outline of the Pandemic Response in Germany The 2019-20 coronavirus pandemic was confirmed to have reached Germany on 27 January 2020, when the first COVID-19 case brought in by a Chinese visitor at Webasto was confirmed and contained near Munich, Bavaria. The majority of cases in January and early February originated from the headquarters of a car parts manufacturer there. On 25 and 26 February, multiple cases related to the Italian outbreak were detected in Baden-Württemberg. A large cluster linked to a Carnival event was formed in Heinsberg, North Rhine-Westphalia, with the first death reported on 9 March 2020....
ProfitSword Launches Enhanced Support and Best Practices Assistance to Guide Hoteliers With Effective Business Intelligence During Ongoing Market Cris
ProfitSword LLC | April 23, 2020
Hospitality’s leading provider of business intelligence technology to bolster data management, reporting and advisory support services for customers to maximize financial stability and effective business planning abilities during coronavirus pandemic. ORLANDO, Fla. – (April 23, 2020) – ProfitSword, hospitality’s premier developer of business intelligence and data integration software, has announced the launch of a range of enhanced support services for customers in order to provide them with the analytical insight and industry expert guidance needed to make the best strategic decisions possible for their business during the curren...
12 Young Hoteliers From 8 Ownership Companies Donate 25,000 Face Masks to 11 Hospitals in 4 States
April 22, 2020
April 20, 2020 - A dozen young second and third-generation hoteliers at eight leading hotel ownership companies have collaborated to purchase and donate 25,000 protective face masks to 11 hospitals in the four states where the respective companies operate their hotels – California, Texas, Oregon, and Washington. The 12 hoteliers and their eight companies are: Taran Patel, managing partner at A1 Hospitality Group, which operates properties in Oregon and Washington Neal Patel and Avi “Sunny” Patel, founders and managing partners of Blue Chip Hotels, which operates in Texas Shirin Patel, principal at Canterbury Hotel Grou...
How Hotels Will Need to Adapt Duty of Care Policies for the Coronavirus Pandemic
Nancy Huang | April 22, 2020
By Nancy Huang Duty of Care, which for hotels is the legal obligation to ensure the safety or well-being of its guests, has always been an important aspect for hotel operations. Though many hotels are currently closed due to the coronavirus pandemic, many hoteliers are already concerned with how they will need to exercise Duty of Care once they reopen. Not only will government standards resulting from the pandemic dictate new requirements from businesses, but the public’s expectations for health and safety will also be markedly different than before. To ensure a smoother reopening for your hotel, we’ve compiled some of the most impo...
Impacts of COVID-19 on the Boston and Cambridge Hotel Industry
April 22, 2020
For 2019, Pinnacle Advisory Group estimated that Boston and Cambridge hotels generated nearly $2 billion in rooms revenue, based on a total supply of nearly 25,700 rooms, an average occupancy of 81.4 percent and an average daily rate (ADR) of $259. Over 13,300 people are employed in the hotel industry sector in Boston and Cambridge. Due to the pandemic and the stay-at-home requirements starting in March of this year, demand for hotel rooms has dropped precipitously, with many hotels closing completely and others only renting rooms to essential workers, often at discounted rates. According to the Pinnacle Perspective, Revenue Per Available ...
Making Painful Chargebacks a Thing of the Past
Larry Mogelonsky | April 22, 2020
By Larry Mogelonsky, MBA, P. Eng. (www.hotelmogel.com) In a socially distanced world, one thing we are already seeing is far fewer in-person credit card transactions because people aren’t out and about nearly as much. A lot of that traffic has moved online while some of it has shifted towards other types of less secure, card-not-present dealings like taking down a guest’s information over the phone. During this downtime we all find ourselves in, now is your chance to implement the necessary updates to ensure your payment channels are as secure as possible, while also reducing chargebacks wherein the credit card companies usually don...
Further Insights on What Hoteliers Can Do to Prepare for COVID-19 Recovery
Pierre Verbeke | April 22, 2020
By Pierre Verbeke In the previous article, I mentioned some thoughts on the position of hoteliers and restaurateurs in regards to this unprecedented crisis that the industry is facing. Now is the time to prepare and start some of the activities and conversations that might help for when things are picking up again. Have you considered all the support possibilities that the government and other official bodies have at your disposal? In some countries, you may get a lump sum to cover a part of the costs. In others, there are measures in place for continued payment of employees, up to a degree, so that you do not immediately need to seve...
Transition Technology for Hospitality – From Clean to Cleaner
Frank Wolfe | April 22, 2020
By Frank Wolfe Do you remember where you were when COVID-19 changed the world? Although it was not until several hours later that it dawned on me that it happened, I was at the Dubai International Airport. It was the typical hurry, bump and for some, shove, of any airport. As I boarded the tram, I was surrounded by a plane full of passengers departing for Iran at a gate close to mine. We were packed in a crowded train car and some were coughing, sneezing and sweating due to the temperature. After arriving at home, the next day’s headline was about all the horrible cases of COVID-19 in Iran. That was how it all became real for me…Februa...
How COVID-19 Has Affected Intentions to Travel and Perceptions in Key Global Markets
STR | April 22, 2020
COVID-19’s impact on consumer opinion and behavior seemed to evolve daily throughout March, especially with the World Health Organization (WHO) declaring a global pandemic on the 11th. To understand the effects on sentiment and future international travel plans, STR captured the views of travelers across 4 key markets: the U.S., Canada, U.K. and Australia. These four English-speaking markets make up a significant portion of global tourism receipts—20% or US$338 billion. Given these countries’ importance in the global travel industry—collectively, they account for some 462 million consumers—we examined March 2020 reactions to the ...
STR: U.S. Hotel Performance for Q1 2020
STR | April 22, 2020
HENDERSONVILLE, Tennessee—Affected late in the first quarter by the COVID-19 pandemic, the U.S. hotel industry reported significant declines in the three key performance metrics during Q1 2020, according to data from STR. In a year-over-year comparison with Q1 2019, the industry posted the following: Occupancy: -15.9% to 51.8% Average daily rate (ADR): -4.0% to US$123.76 Revenue per available room (RevPAR): -19.3% to US$64.14 The absolute occupancy level was the lowest for the industry since the time of the global financial crisis in Q1 2009. The year-over-year decline in the metric was the worst for any quarter on record. ...
Access Point Financial Launches “Navigating Hospitality Finance 2020” Information Resource for Hoteliers Facing Changing Market Conditions
Access Point Financial | April 22, 2020
Recognized hospitality lender addresses the rapidly evolving financial landscape with new blog series to provide best practices for hotel industry stakeholders ATLANTA - April 22, 2020 – Access Point Financial, LLC (APF), a leading direct lender and specialty finance company focused exclusively on the hospitality industry, today announced the debut of a new online resource entitled, “Navigating Hospitality Finance 2020,” which will appear within the Access ViewPoint blog beginning today. The informative four-part series is intended to help hotel owners and investors with an interest in hospitality to plan their best financial strateg...
COVID-19 Hotel Recovery Strategy: Top 10 Ways to Prepare Your Hotel for the Rebound in Travel Demand
Margaret Mastrogiacomo | April 21, 2020
By Margaret Mastrogiacomo As Coronavirus (COVID-19) continues to impact travel globally, it is important to observe industry forecasts and trends that will ultimately shape your recovery strategy as hotels begin to plan for the initial rebound in travel demand. According to a special forecast from STR and Tourism Economics, due to the COVID-19 outbreak, the hotel industry is projected to report significant declines across demand, occupancy, ADR, and revenue per available room (RevPAR) in 2020. While travel has come to a virtual standstill due to the COVID-19 outbreak, the market is expected to regain its footing in the latter part of th...
Unlocking Sustainable Strategic Renewal After Covid-19: Opportunities for Hospitality
Carlos Martin-Rios | April 21, 2020
By Carlos Martin-Rios Many nations, companies and individuals were still reeling from the negative effects of the financial crash that began in 2007, when Covid-19 struck affecting many economies, especially those related to the service industries. Tourism and hospitality are often among the first and hardest hit by turmoil. Families refrain from making superficial expenses. Corporations slash travel expenses. Long-haul tourism shrinks and gives way to short-haul destinations, if any. Most consumers become savvier spenders and turn away from high-end services (upscale hotels, cruises, personal shoppers, club memberships and other positiona...
