Market Data

STR talks slowdown strategies

Jul 23, 2019 / STR
Shutterstock
Shutterstock

The company's chief strategy officer, Elizabeth Randall-Winkle, offers ideas for getting ahead of challenges - including a possible slowdown - and behind a strategy to face them.

For the first four months of 2019, US hotel demand was exceptionally strong - it was up 2.4 percent; yet in three out of four of those months, ADR growth was a relatively weak 2 percent, something not seen in the expansion cycle since 2011.

However, because the fundamentals are still there for 2019, STR expects the second half of year to be stronger than the first half, and for growth to continue in 2020, just at a lower growth rate than in previous years.

Booking group travel will be more competitive in this situation, so it’s important to be able to choose the right groups at the right price and otherwise secure those block bookings to enable competitive pricing for the less predictable transient business.

STR: Beyond rooms revenue - profit growth continues, despite falling margins

Market Data

Asia’s big four fuel worldwide travel spend

Jul 23, 2019 / Asia Pacific
Shutterstock
Shutterstock

Overnight visitors from mainland China, Republic of Korea, Japan and Taiwan now account for 18.5% of global travel expenditure in the world’s top 200 cities, up from just 11% a decade ago.

This is according to Mastercard’s new breakout report, Global Destination Cities Index: Origins, which ranks where the most international travelers to the world’s 200 most popular tourist cities and regional centres are from.

Business and leisure travelers from the top 10 Origin markets comprise nearly half (49.1%) of all overnight international visitor arrivals to the 200 destinations and 48.4% of their total expenditure, demonstrating the potential of the insights to help shape decision-making for governments, merchants and the global travel industry which contributed a record USD8.8 trillion and 319 million jobs in 2018.

Mastercard: Mainland China and U.S. continue to drive global travel

Sales

A modern approach to hotel sales prospecting

Jul 23, 2019 / Training
Shutterstock
Shutterstock

Outdated techniques like cold-calling have moved aside to make way for more effective and comprehensive prospecting strategies.

When it comes to training hotel sales managers to prospect, many sales leaders are looking backward and not recognizing how to integrate prospecting into the real world of hotel sales in 2020.

Some leaders seem to view prospecting as a separate task on a salesperson’s to-do list. But today, sales leaders looking to build revenue need to focus on integrating principles of prospecting into their team’s daily sales activities.

Successful prospecting starts with directly connecting with prospects upon their initial inquiry, opposed to replying to electronic RFPs with a huge document. Making a personal connection fosters more success later when you want to cross-sell and ask for referrals.

Distribution

The impact of PSD2 on your hotel and direct sales

Jul 23, 2019 / Data Security
Shutterstock
Shutterstock

As with GDPR in May 2018, PSD2 is approaching fast. Here is what hotel marketers need to know and to what extent it will effect their direct sales.

PSD2 or the revised version of PSD (Payment Service Directive) is a European directive that comes into force on September 14th 2019. Briefly summarising, PSD2 states that it is no longer sufficient to simply ask for a client’s credit card for online transactions, but rather a double authentication (known as SCA or Strong Customer Authentication) is now required to authorise the transaction.

PSD2 aims, among other objectives, to make e-commerce safer and friendlier, facilitating authentication processes in order to accept new formats such as biometrics or mobile payments instead of card payments.

Related: Is the hotel industry sleepwalking into a regulatory crisis?

Distribution

How hotel marketers can align better with revenue: Part 2

Jul 23, 2019 / OTA Insight (sponsored)
Shutterstock
Shutterstock

Hotel marketers have a hefty mandate: keep the hotel filled while maintaining the right perceptions of the brand over the longer term.

This dual role of putting heads in beds and protecting the brand can cause conflict, especially between marketing and revenue. What’s really needed is a stronger collaborative mindset that better aligns marketing and revenue.

When both sides strive to do more together, there’s a clear impact on the hotel: more profitable revenue, delivered more consistently.