myDigitalOffice (MDO), the world's fastest-growing hotel data platform, today released an in-depth report uncovering hotel forecasting trends that gives owners and operators a better understanding of the dynamic demand environment in 2023.
By gathering input from leading operators, MDO has created a free online resource that addresses emerging trends in the hotel industry that directly affect hotel forecasting, including changes in booking patterns, new types of travelers, and a shift in focus to the bottom line.
What was once an annual process to determine the upcoming year’s budget, hoteliers today are updating their forecasts on a weekly and sometimes daily basis, plotting demand and financial goals more than a year in advance. Experts from Outrigger Hospitality Group, Remington Hotels, Sea Island Resort, Miraval Resorts, Mandarin Oriental Hotel Group, and Dragonfly Strategists lent their expertise to identify data and trends that are likely to affect a hotel's future business outlook.
Topics in the report include:
New booking patterns to shape a hotel forecast
Emerging segments of travelers that will affect your forecast
Shifting forecasting focus to the bottom line
Determining the most accurate data for your forecast
Aligning operational departments with uniform data
“When you think of forward-looking data as only the competitor benchmarking tools, you’re missing your own internal dynamics,” says Mike Medsker, Product Head at MDO. “It’s great to see the market is up 5%, but you need to understand the trends behind the numbers and how they are going to impact your business internally.”
Knowland, the world’s leading provider of data-as-a-service insights on meetings and events for hospitality, released the quarterly update to its U.S. Meetings Recovery Forecast (MRF) and associated Top 25 U.S. Meetings Recovery Forecast (MRF25) realizing strong performance ending 2022 on a high note and shifting 2023 higher than the Q3 forecast. Click here to view the most current forecasts.
Kristi White, chief product officer, Knowland, said: “The fourth quarter outperformed the Knowland forecast by 8.4 percent, driven by top market growth. Additionally, both November and December exceeded 2019 numbers. This is the first time this has happened since the pandemic began. 2023 is poised to be a growth year, and hotels should be focused on optimizing demand and profitability.”
Knowland’s forecasts provide an overview of how the U.S. as a whole and the Top 25 Markets, specifically, will move through recovery. A breakdown of the details is below:
2023 Recovery Forecast: 110.2 percent (106.4 percent in October forecast)
2024 Recovery Forecast: 133.3 percent (129.2 percent in October forecast)
Top 25 Markets Recovery Forecast update – Four markets (Dallas, Nashville, Phoenix, and Tampa) ended 2022 fully recovered to 2019 levels. Twelve markets outperformed the October forecast, including Anaheim, Denver, Detroit, Houston, Los Angeles, Minneapolis, New Orleans, Oahu Island, Orlando, San Diego, Seattle, and St. Louis.
Recovery by the end of 2023: Thirteen markets are forecasted to achieve full recovery: Anaheim, Atlanta, Denver, Houston, Miami, Minneapolis, New Orleans, Oahu Island, Orlando, San Diego, San Francisco, Seattle, and St. Louis. Four markets (Boston, Detroit, Los Angeles, and New York) will end the year between 90 and 100 percent. The remaining four markets (Chicago, Las Vegas Philadelphia, and Washington, DC) will be under 90 percent.
Back to normal in 2024: All but two markets (Boston and Chicago) will be back to normal growth.
Knowland hosts a webinar featuring the final roll-up of 2022 recovery data as well as the forecast for 2023 today at 1:00PM ET. Register here.
Knowland will continue to host quarterly webinars reporting on the state of the industry, highlighting regional trends and booking disruptors.
About the MRF and associated MRF25: The MRF demonstrates projected industry recovery patterns and is based on Knowland’s proprietary data and regression models leveraging almost 20 million global events over the last 15 years. The MRF25 was added in February 2022 to provide the capability to search industry recovery patterns for the Top 25 U.S. Markets. The forecast uses a natural recovery model, assuming historic seasonal patterns without major market disruption, to index the recapture of meeting activity compared to baseline levels from 2019. By comparing past data to evolving data trends, hoteliers can better understand market-relevant changes–and their implications–as individual markets move into 2022 and beyond.
Top 25 Markets: Anaheim, Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, Nashville, New Orleans, New York, Oahu Island, Orlando, Philadelphia, Phoenix, San Diego, San Francisco, Seattle, St. Louis, Tampa, and Washington DC.
Cybersecurity Budgets Increase for Retail & Hospitality Industry
Information security teams have always had to do more with less, but 2023 might be the year when they are able to do more with more. Riding a three-year trend, 70% of CISOs expect their budgets to increase again this year, while 60% also expect more FTEs, according to the CISO Benchmark Reportreleased by the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC).
The annual report surveys cybersecurity leaders from consumer-facing industries to assess data about budgets, personnel, and organizational priorities.
The increase in budget and personnel reflects how cybersecurity has grown as a critical part of business operations in many organizations. This year, business disruption emerged as a top 10 (No. 7) risk that organizations currently face, up seven spots from No. 14 in 2021. Similarly, 50% of CISOs now have business continuity/disaster recovery as part of their core responsibilities, an increase of 11 percentage points since last year.
Surprisingly, although fraud in its many forms greatly impacts the bottom line, and continues to be a top risk for organizations, very few CISOs have fraud as part of their core responsibilities, according to the report.
New this year is an additional benchmark report from RH-ISAC that survey cybersecurity practitioners to understand the challenges and priorities staff have in executing daily job functions.
83% serve more than one job function, which means that employees have a valuable and diverse skill set across security operations (76%), threat intelligence (66%), and risk management (66%)
93% believe they have the necessary skill sets to perform their job effectively
“The retail and hospitality industries are constantly evolving, and so are the cybersecurity challenges they face,” said Suzie Squier, president of RH-ISAC. “The RH-ISAC Benchmark Reports provide valuable insights and actionable information for CISOs and other information security professionals to stay informed about trends and resource allocation among infosec teams.”
The companies represented in the surveys include retail, restaurants, hospitality, travel, and consumer packaged goods/manufacturing companies, and reflect more than 718,000 total locations, 3.4 million corporate employees, and $2.3 trillion in annual sales.
The full reports are available to RH-ISAC members, and summary versions of each report are available to download:
TrustYou announced that with backing from reputed technology investor Ventech, they have completed a management buyback of shares in a recent acquisition. As a result, they will no longer be under the umbrella of Recruit Group, a leading technology group based in Japan. In 2017, Recruit acquired TrustYou intending to invest and expand in the international hospitality and travel market. Recruit made moves outside of Japan to discover “Opportunities for Life” worldwide. Established in 2008, TrustYou has grown from a humble start-up and led the way in travel tech with a strong leadership team that appealed to Recruit and their principles of entrepreneurship within their business holdings and a vast portfolio of software companies. Recruit realized the potential of TrustYou, seeing that the software company established itself globally with its unique all-in-one Guest Experience platform.
Recruit was very pleased with TrustYou’s development and sees a strong future as they continue to innovate and focus on the customer journey. Since Recruit’s portfolio strategy no longer aligns with the further growth of TrustYou, the team was very supportive of the management buyout. “The opportunity to include TrustYou in our overall strategy for the last five years was a positive experience for us to lean into the hospitality sector and understand the importance of technology in travel. TrustYou has a strong foundation, and we have no doubt the company will continue to seek innovative solutions to enhance the guest experience,” says Yoshihiro Kitamura, President and Representative Director of Recruit Co., Ltd.
With new ownership comes a new vision for the company. Ben Jost, CEO of TrustYou, states, “We see TrustYou's future in helping hospitality and travel to make guests happy. Today's core focus is to provide a best-in-class platform for hoteliers, DMO's and travel partners to measure and act on guest happiness via surveys, reviews, and guest communication. We will also be very active in acquiring and building more best-of-breed technology and tools to further increase guest happiness and revenue while decreasing operational cost.”
Seeing the value in this opportunity, venture firm Ventech, with the support of Ventech Managing Partner Christian Claussen, and Jan Webering with BauwensX, led the buyout financing. TrustYou founder & CEO Ben Jost is also a significant investor in the acquisition. Rounding out the remaining capital contribution, Ullrich Kastner, Founder and CEO of MyHotelShop, also participated.
“When the opportunity presented itself to invest in Ben and the team, it was an easy decision. We see a clear path to a significant return on our investment and have complete confidence in the team, and product, to deliver outstanding results.” said Claussen.
Jan Webering, former CEO of one of Europe’s largest engineering IT Service companies, Avenga, and the new chairman of TrustYou’s board, said of the acquisition, “The new holding will focus on creating value by developing technologies that support hospitality providers in delivering an exceptional guest experience. The speed by which consumer expectations change will require dynamic and scalable technology solutions to ensure that travel and hospitality companies can consistently deliver a great experience. In the end, we are here to help make guests happy.”
Cloud5 Communications, a provider of communications and technology solutions for more than 5,000 hotels, MDUs, and commercial facilities across the Americas, has announced the rollout of its Mitel Subscription offering.
Cloud5’s new Mitel Subscription offering allows hotels to more easily and economically experience the benefits of a cloud-based PBX system. Through this offering, properties can better tailor their telecommunications to the business needs and goals of their property – choosing from a range of Cloud5 supported Mitel products and applications.
This offering also allows hotels to select the commercial framework that works best for the specific economic realities of their business. Customers can choose a CAPEX, OPEX or a hybrid model. This economic flexibility removes barriers to entry and empowers hotels to proactively make critical changes to their telecommunications systems at the point of need.
Additionally, Cloud5’s Mitel Subscription offering includes access to the company’s industry-leading, experienced, Mitel-award-winning engineering, project management, install and support teams.
“We all know that a successful hotel business includes solid technologies and systems that support guest and staff communication and engagement – telecommunications systems are a critical part of this,” said Beth Milano, Senior Vice President of Sales & Commercial Development at Cloud5 Communications. “Cloud5’s Mitel Subscription offering allows hoteliers to adapt new telecommunication solutions and services that fit the parameters and goals of their business – including design, product selection and payment. We look forward to providing the hotel industry with an easier and more effective approach to telecommunications that promises improved efficiency, lower operating expenses and an enhanced ability to elevate guest experiences.”
Cloud5 supported Mitel products and applications contained in this offering include:
Mitel Border Gateway
MiVoice Business Console
Mitel Business Reporter
SD-WAN w/4g LTE Failover
Cloud5 is the winner of several Mitel awards, including its prestigious 2022 Mitel Hospitality Expert designation as well as Mitel Hospitality Partner of the year in 2021.
Cloud5’s Mitel Subscription offering is part of a full family of telecommunications and network solutions, including the company’s own cloud-based PBX. Cloud5 is proud to offer and support solutions based on the distinct requirements and economics of its customers – ranging from large, complex full-service hotels and resorts to smaller select service properties. For more information about Cloud5’s telecommunications offerings, visit www.cloud5.com/voice-systems.
Palms Casino Resort Introduces Mobile Food and Beverage Ordering Powered by Runtriz
Palms Casino Resort, an iconic hotel and casino located in Las Vegas, has selected Runtriz, a Radius Networks company and a provider of contactless mobile guest engagement solutions for the hospitality industry, to power their mobile food and beverage ordering platform. When Palms reopened under San Manuel Gaming & Hospitality in 2022, providing the ultimate guest experience was high on their list of priorities. Runtriz has helped deliver that seamless experience for guests when it comes to in-room dining.
Utilizing custom QR codes placed throughout the property, guests can access menus specifically designed for in-room dining from a range of on-site restaurants. With the flexibility of mobile ordering, a guest can place an order while en route to their room and at any time of day. The web-based app specifically created for Palms is easily accessible on any mobile device (laptop, tablet, phone) via QR code or URL. One of the key benefits of the Runtriz Solution is communication - guests can track all orders placed via the app on their mobile device and even request status updates via email or text message.
“We are excited to leverage Runtriz to provide a frictionless way for Palms Casino Resort guests to order food and beverage and have it delivered right to their door,” says Greg Van Stone, Vice President of Food & Beverage at Palms Casino Resort. “We are seeing an immediate lift in guest satisfaction, as the Runtriz interface is easy to navigate and provides a white-glove, personalized dining experience, right in the privacy of their room.”
Another important goal for Palms was to optimize operational efficiency; the Palms team sought to acquire a significant amount of data to inform future decision-making processes. Runtriz offered the tools necessary to gather and track relevant information, enabling Palms to identify trends and implement strategic changes. These modifications not only improved the guest experience but also positively impacted their bottom line.
“We are proud to work with the innovative team at Palms Casino Resort as they reshape their digital experience,” says Alonso Vargas, SVP of Product at Radius Networks. “New technology to better service guests is a huge priority right now in the hospitality industry, and some venues are adapting quicker than others. Palms Casino Resort is investing in technology that will catapult them ahead of the competition and we are excited to be a part of their digital transformation.”