In today’s Siegel Sez, Doug Rice in his Definitely Doug column shares part-two of his look at experiences that travelers book, and how hotels leave so much money on the table. Technology solutions might often seem complicated, but the rewards are there. It is quite a read. Doug delves into the many revenue possibilities available that promise nice rewards with minimal investment, some require no investment other than time. Nothing wrong with happy guests, right? We thank Doug for sharing his expertise.
September and then October the industry event schedule is amazing, often nonstop. We always do our CIO Summit Labor Day week and that starts us off. By the way, if you are not a subscriber to Hospitality Upgrade, please do so now at www.hospitalityupgrade.com/subscribe. The review that Sage Hospitality’s Jeff Parker wrote for this year’s CIO Summit is amazing, everybody in the hotel industry should read it. The issue will be out in a couple of weeks so please subscribe now to receive it in print or digitally.
That was the first week of September and then a couple of weeks later it was off to The Lodging Conference in Scottsdale, which is an amazing event. I just love the opportunity to interact with the money people, and since my picture floats around the industry it was fun that so many I didn’t know (but did know me) said hello. Conversations with those who buy and sell hotels and their thoughts on technology go all over the place. A great experience and an amazing show, I was so glad I could attend.
After The Lodging Conference in Scottsdale, it was off to San Diego and the beautiful Rancho Bernardo Inn, which I have now stayed at four times over the years. Jonas Hospitality invited me to their consultants’ gathering and it was a great event. I am always honored to be invited with many of the industry’s leading consultants where vendors share their vision of the industry and the role they play in it. Jonas Hospitality was eye-opening, and with new products coming it was great that they shared it with us. I thank them for inviting me!
October is G2E, IMEX, the HFTP Annual Conference and the Fifth Annual Native Nations Gaming & Hospitality Security Conference. I just love this time of year when there are so many face-to-face gatherings that are much more valuable than the world of Zoom, which I am beginning to hate. Then again, that’s me.
Here now is part two of Definitely Doug’s look at generating revenue from guest experiences along with the latest industry technology news. I will see you at the end with this week’s attempt at you-know-what. Go WAFLR!
Rich
Definitely Doug 9/15/23: Experience Matters!
Hotels are usually the first thing a traveler books within a destination. And hotels usually know that destination better than anyone else (or any website) a guest might consult. But are hotels connecting the dots?
Aside from a few destination resorts, people rarely travel just to stay in hotels. Rather, they stay in hotels because they are traveling, whether for business, leisure, or family. Available spending data suggests that for leisure trips, hotels are secondary to experiences. By my calculation, more money is spent by leisure travelers globally on local experiences than on hotels.
The numbers are staggering: a Skift study estimates that local experiences will generate $252 billion worldwide revenue in 2024, which compares to estimated global hotel revenue of around $400 billion (maybe half of that being leisure). Most experiences offer commissions of 10% to 40% to booking agents, which can include hotels. And while intermediaries may take a piece of that commission, it is common for hotels that sell third-party experiences to earn an average of at least 10%, above and beyond any costs; in many cases it can be more. If hotels could capture just 25% of local experience bookings of leisure travelers, that would result in $6.3 billion in additional profit in an industry that earns, globally, around $40 billion a year. That would basically be found money, and it’s not chump change.
What do I mean by local experiences? They include almost anything that a traveler might do while visiting a destination: sightseeing tours, attractions, historical sites, concerts, sporting events, dining, amusement parks, water parks, zoos, aquariums, fishing charters, golf, bike or boat rentals, cooking classes, cultural activities, classes, spa treatments, shopping, and many more.
While travel (and especially leisure travel) generates bookings for experience operators, experiences can also generate bookings for hotels. Taylor Swift’s The Eras Tour is estimated to have generated $208 million in hotel revenue across 53 shows in 20 cities – and those Swifties would not have booked hotels if not for the concerts. Concerts, sporting events, and festivals are often the main reason for travel. Hotels that fully connect with the experience ecosystem can reach this audience much better than those that do not.
Douglas Rice
Email: [email protected]
LinkedIn: www.linkedin.com/in/ricedouglas
PEOPLE ON THE MOVE
VENZA Hires Stephanie Murphy as Staff Accountant
VENZA, a leading provider of data protection and regulatory compliance solutions for the hospitality industry, today announced that it has hired Stephanie Murphy as Staff Accountant. In this role, she will provide support to the Controller in optimizing financial processes to ensure the highest level of service to VENZA clients.
GUEST MANAGEMENT SYSTEMS
APS Celebrates 100th Interface Milestone
Above Property® Services (APS®), Services, a leading provider of hotel and travel technology solutions provider, has announced that it has reached a significant milestone with the launch of its 100th interface. The company’s robust suite of property management system (PMS) integrations now includes connections to most major hotel technology suppliers, making it one of the most comprehensive offerings in the industry.
RESERVATIONS & DISTRIBUTION
Travel Outlook Partners with MosaicVoice to Bring the Power of Artificial Intelligence to the Hospitality Industry’s Leading Call Center
Travel Outlook, The Premier Hotel Call Center™, is pleased to announce a partnership with MosaicVoice, a groundbreaking AI call center solution that offers real-time guidance to agents. MosaicVoice and Travel Outlook partnered to develop a revolutionary tool for Travel Outlook’s call center agents to help them handle hundreds of global clients while providing on-site level customer service. traveloutlook.com
Stoney Creek Hotels Partners with Travel Outlook, The Premier Hotel Call Center, to Boost Voice Revenue and Increase Guest Satisfaction
Travel Outlook, The Premier Hotel Call Center™, is pleased to announce that Stoney Creek Hotels (Stoney Creek), a group of 12 unique, privately owned and operated inns and hotels, has partnered with Travel Outlook to provide voice channel services for Stoney Creek. Known for its highly personalized and effective service, Travel Outlook was chosen to enhance customer service and to take advantage of upselling opportunities for the Stoney Creek brand. traveloutlook.com
REVENUE MANAGEMENT & ANALYTICS
IDeaS’ Award-Winning G3 Revenue Management Software Now Available in Spanish and French
IDeaS, a SAS company, a world leading provider of hospitality revenue management software and services, announced its flagship product, G3 Revenue Management Software (RMS), is now available in Spanish and French. The software is already available in English, German, and Chinese, with Japanese to quickly follow in the future.
GUEST FACING TECHNOLOGY
PPDS Launches New Philips Professional Soundbar Bringing Powerful Audio Experiences to Hotel Rooms with Philips Mediasuite TVs
PPDS, the exclusive global provider of Philips professional displays and dedicated AV software solutions, is delighted to announce the launch of the powerful two in one Philips Professional Soundbar HAL5023 with built-in subwoofer, designed for Philips MediaSuite TVs.www.ppds.com
Closing the Feature Gap with Nonius TV: Cloud vs. On-Premise
Nonius TV has been offering a Cloud version since 2022, and we’re excited to announce that we’ve now aligned the features to simplify your decision-making process between the two options: Cloud and On-Premise. noniussolutions.com
MARKETING
Cendyn Elevates Their Hotel Digital Marketing Offering with Seamless Integration of Google Performance Max for Travel Goals
Cendyn, a catalyst for digital transformation in the hospitality industry, is excited to announce the game-changing with Google Performance Max for Travel Goals. This integration marks a pivotal moment for its customers, promising to reshape how they connect with their audiences and drive conversions across their digital channels.
BACK OFFICE
M3 and Trintech Release New Enhancements to Streamline Financial Processes
M3, one of the hospitality sector’s #1 cloud-based accounting, financial, and data management platform in North America, and Trintech, a leading global provider of cloud-based financial close solutions for the Office of the CFO, have introduced a new API connection that seamlessly connects M3’s trial balance with Trintech’s Adra Suite. m3as.com
PAYMENT PROCESSING
Shift4 Partners with Give Lively to Offer Powerful Fundraising Solution to Nonprofits
At the Global Citizen Festival, Give Lively, a ground-breaking nonprofit fundraising platform, and Shift4, a leader in integrated payments and commerce technology, announced a partnership to the significant benefit of nonprofit organizations across the United States, too many of them burdened by cumbersome and expensive fundraising platforms.
OPERATIONS
Innovation Meets Efficiency: The Powerful Integration of TTI Scanning Solutions, RMS North America, and Solonis
TTI Scanning Solutions, Solonis, and RMS North America, are thrilled to announce the successful integration of their cutting-edge technology solutions. This integration marks a significant leap in how hotel and accommodation providers manage operations, enhance guest security, help prevent chargebacks, and have a “Do Not Rent” list that can be shared with sister properties.
SECURITY
VENZA Champions Cybersecurity Awareness Month 2023
VENZA, a leading provider of data protection and regulatory compliance solutions for the hospitality industry, today announced that it has signed on as Champion for Cybersecurity Awareness Month 2023. www.VENZAgroup.com
Highpointe Hotels Expand PCI, Data Protection Efforts with VENZA
VENZA, a leading provider of data protection and regulatory compliance solutions for the hospitality industry, today announced that the Highpointe Hotel Corporation has chosen it to provide expanded cybersecurity and compliance services. The agreement will deliver an array of premier products to Highpointe, cementing their strong commitment to maintaining exceptional security standards. www.VENZAgroup.com
CANVAS Hotel Dallas Becomes First US-Based Property to Adopt Next Generation VingCard Novel Locks by ASSA ABLOY Global Solutions
ASSA ABLOY Global Solutions, a leading provider of advanced security technology for the hospitality industry, has announced the first successful US-based deployment of its VingCard Novel door lock solution by CANVAS Hotel Dallas. www.assaabloyglobalsolutions.com/hospitality
ARCHITECTURE & INTEGRATION
Operto Accelerates PMS Connectivity with Hapi Integration Platform
Hapi, the hospitality industry’s leading platform for fast and cost-effective connectivity between technology systems, has announced a new integration with Operto, a hospitality operating system that allows hoteliers to centrally manage portfolios and automate workflows across both the back and front offices. Through the integration, Operto can ingest data from the industry’s leading Property Management Systems by writing to a single Hapi API. www.hapicloud.io www.operto.com
HOSPITALITY EVENTS & ASSOCIATION NEWS
PAS to Sponsor “A Deep Dive into the USALI 12th Edition” at HFTP’s Annual Convention October 19, 2023
Professional Accounting Solutions (PAS), a preferred provider of back office and accounting solutions for the global hospitality industry and the leading provider of Infor SunSystems and Infor EPM services, announced it is sponsoring the educational session, “On the Horizon: A Deep Dive into the USALI 12th Edition,” at HFTP’s 2023 Annual Convention to be held October 18-20, 2023, at the JW Marriott Indianapolis Hotel in Indianapolis, Ind.www.profact.com
AHLA Foundation Names Julienne Smith As 2023 Peggy Berg Castell Award Recipient
AHLA Foundation, the charitable arm of the American Hotel and Lodging Association (AHLA), honored Julienne Smith, Chief Development Officer, Americas, IHG Hotels & Resorts, as the 2023 recipient of the Peggy Berg Castell Award.www.ahla.com
HSMAI Foundation Launches Century Campaign Fundraising Initiative
The Hospitality Sales and Marketing Association International (HSMAI) Foundation has announced the launch of its Century Campaign, a five-year fundraising effort ahead of the organization’s upcoming 100th anniversary in 2027.
hsmai.org
INTELITY to Exhibit at Global Gaming Expo 2023 in Las Vegas
INTELITY, provider of one of hospitality’s leading guest experience and staff management platforms, announced that it will exhibit at the 2023 Global Gaming Expo from October 9–12 at The Venetian Expo in Las Vegas, Nevada. During G2E 2023, INTELITY will highlight the latest updates to its cloud-based Platform R5, as well as its newly updated API capabilities, both used by dozens of casinos around the world.
www.intelity.com
HFTP Announces February Dates for Inaugural Digital Horizons 360 Symposium, an Exclusive European Event Exploring Emerging Hospitality Technologies
Hospitality Financial and Technology Professionals (HFTP) is pleased to announce its new European event: Digital Horizons 360 Symposium (DH360). This invitation-only symposium will span over two-days, February 20-21, at the Palau de Congressos de Palma in Palma de Mallorca, Spain. DH360 is a non-sales event for hospitality leaders to participate in roundtable discussions on the technologies set to have the biggest industry impact in Europe.
www.hftp.org
American Hotel & Lodging Association and Hotel Association of Canada Announce Expansion of Green Key Global Sustainability Certification Program in Canada and the U.S. through Joint Venture Partnership
The American Hotel & Lodging Association (AHLA) and the Hotel Association of Canada (HAC) have signed a Letter of Intent to form a joint venture company that will own and operate the Green Key Global certification program in the United States and Canada. The announcement, made at the Lodging Conference in Phoenix, represents a pivotal moment for environmental action in the hotel industry.
www.ahla.com
AHLA Foundation Announces Expansion of Initiatives Aimed at Elevating Women in Hospitality
AHLA Foundation, the charitable arm of the American Hotel and Lodging Association (AHLA), today announced its new ForWard initiative to support the advancement of women into hotel industry leadership and ownership. www.ahlafoundation.org
HSMAI 2023 Sales Leader Forum Set for Long Beach, California
The Hospitality Sales and Marketing Association International (HSMAI) Sales Leader Forum will take place in Long Beach, CA on Nov. 8, 2023. This year’s event, organized by HSMAI’s Sales Advisory Board, will focus on “Leading the Way,” when it comes to important trends, critical insights, and evolving customers and what they mean for leading hotel sales teams today and in the future. hsmai.org
MARKET REPORTS
Double Digit Growth In Global Hospitality Industry For Q4, With Europe Leading The Way
There is a sense of buoyancy in the global hospitality industry as we head into the fourth quarter of 2023. According to new Demand360 business intelligence data from travel technology leader Amadeus, global hotel occupancy levels up to the end of August 2023 have been an average of 10% ahead of 2022. For the fourth quarter of 2023, worldwide on-the-books occupancy data reveals that reservations are trending 11% ahead of those seen in 2022. amadeus-hospitality.com
Travel Recovery Continues as Hoteliers Embrace Upselling with 70% Increase in Summer 2023, According to Mews Data Snap
Mews, an industry-leading hospitality cloud, today released the Mews Data Snap, a real-time measure of hospitality’s performance during the summer of 2023 (June, July, and August). The report also compares this year’s data to summer 2022 to pinpoint how the hospitality sector is changing. mews.com