Don't worry. Just read hotelAVE's Key Conference Takeaways
Cancel and Re-book Phenomena - tripBAM and other hotel shopping services are monitoring and informing customers of lower rates at a previously booked hotel or cluster of hotels. One large brand told us separately that 38% of their cancellations are re-booking at a lower rate. This means that the other 62% are mostly cancelling their reservations to re-book with a competitor at a lower rate. We need to start practicing what the airlines preach! We may need to rethink flexible booking policies.
NYC has 30,000 Airbnb Listings - That's double STLY and compares to 102,000 hotel rooms in the city. Including Airbnb, new transient lodging supply in New York will increase 25% for 2015. There are now 18 markets where Airbnb represents over 5% of the hotel supply. Per PKF data, Airbnb growth negatively affects hotel ADR growth.
Crowdfunding as an Equity Source for Hotels - Websites such as ProdigyNetwork.com, RealtyMogul.com, and HotelInnvestor.com are offering crowdfunding, or hotel equity raises, from $1.5 -$10+ million for properties like AKA Manhattan and Hard Rock Palm Springs. These sites are offereing equity interests to both accredited and non-accredited investors with investment minimums ranging from $5,000 to $100,000. The JOBS Act passed in April 2012, opened up crowdfunding for non-accredited investors and set the stage for significant growth in online real estate equity syndication. Gien the lack of barriers to entry, expect to see a number of these crowdfunding sites that will try to grab a share of the growing real estate syndication market.
Customer Loyalty is Abating - It's clear that loyalty programs need a significant overhaul. One study found that only 1 in 4 customers gave more than 75% of their business to their preferred brand. Generally, millennials (who will represent 50% of business travel demand by 2020) are experience seekers, not brand loyalists and are most influenced by online reviews. Technology is further complicating, or in some cases winning loyalty.
Big Data/ Predictive Analytics - Forecast and accuracy tools like Duetto, Social Tables and Averro are dramatically changing the hotel industry. These emerging tools mine data to predict future hotel demand. Industry operators now have the ability to manage revenue strategies, pricing and decisions with more conviction by using these new platforms.
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