Distribution

Tech costs disrupt Sabre’s operating income

Oct 31, 2019 / Sabre
Sabre
Sabre

Sabre reported a decline in year-over-year operating income in the third quarter of 2019 – down from $136.8 million to $113.5 million - due to increased technology expenses as the company undergoes a digital transformation.

Technology expenses increased by 23% in the quarter to $259 million, part of Sabre’s $1 billion plan to enhance technology in 2019.

The company’s previously discussed technology upgrade includes a cloud migration, mainframe offload and utilization of agile development methods.

In a call to discuss earnings, Sabre president and CEO Sean Menke says that the company now has nearly 60% of its total computer footprint in the cloud.

Related: Sabre reports third quarter 2019 results

Distribution

Booking.com pledges semi-neutral role in private accommodation distribution

Oct 31, 2019 / Booking.com
Booking Holdings
Booking Holdings

The company plans to create a service called "Partner Up" - a mechanism to allow private owners to connect with property management companies so that they can receive help with their properties.

The new partner program for non-hotels is one of a number of new initiatives to improve its relationship with the private accommodation community of professional managers.

One of the new services to be introduced is a quality rating system ("first-of-its-kind") that Booking.com hopes will become as widely recognized as those used to benchmark hotel properties. Piloted since earlier this year, properties have been designated into five stars based on a number of factors, such as location, size and facilities.

Revenue Management

RevPAR growth continues to flourish for independent hotels

Oct 31, 2019 / Independent Hotels
Shutterstock
Shutterstock

For the past five years, independent properties have outpaced branded properties in RevPAR growth.

For the most recent trailing 12-month period ending July 2019, RevPAR growth for independent hotels was 3 percent compared to branded properties’ 1.1 percent.

The RevPAR growth variance is primarily a result of branded properties achieving higher occupancy levels. Branded properties achieve 360 basis points higher absolute occupancy than independent properties. Now that we are late in the cycle, occupancy levels are capping out. This makes it more difficult for branded properties to capture high-occupancy growth, while independent properties can still gain occupancy growth.

Data Protection

Hotels are not investing enough in cybersecurity

Oct 31, 2019 / Data Security
Shutterstock
Shutterstock

More than 22 million U.S. travelers self-report as being the victim of a cyberattack through their business with hotels, according to the Morphisec 2019 Hospitality Guest Threat Index.

With an overwhelming number of consumers stating that the hotels they frequent don’t spend enough to protect their information, a new report also examined how lack of trust in a hotelier’s cyber defense could impact current and future business.

Nearly half (46 percent) of respondents said their trust in a hotel’s cyber defenses does influence if they book a stay with them, the report states. That number was even higher for female guests, with 49 percent noting a lack of trust in cyber defenses impacting bookings vs. 42 percent of their male counterparts.

Download: Morphisec 2019 Hospitality Guest Threat Index

Digital Marketing

Back to basics: Metasearch

Shutterstock
Shutterstock

Metasearch is becoming more sophisticated and so should your hotel’s strategy around it.

With recent updates such as the joining of Google Hotel Ads with Google Ads and the rollout of Bing Hotel Ads, hoteliers can now stack up against the OTAs by displaying their hotel logo and price among highly trafficked results.

Metasearch marketing can level the playing field with the OTAs by providing customers with a direct booking option based on real-time rates, availability, and inventory. It also provides multiple outlets for customers to be directed to the property’s website and booking engine which plays a crucial role throughout all phases of the travel planning journey.