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  • 1/24/2024

    SHR's Hotel Industry Trends Report 2024: OTAs Are Back with a Vengeance

    SHR report
    The battle for direct bookings has entered a new phase as online travel agents (OTAs) ramp up efforts to establish ownership of hotel guests and their booking journeys, a new report from hospitality technology specialist SHR Group reveals1. 
     
    While OTAs and hotels have a mutually beneficial relationship, the Hotel Industry Trends Report 2024 exposes for the first time the way a recent influx of marketing spend from OTAs is fast reducing hotels’ share of direct bookings. 
     
    The share of reservations represented by direct bookings fell from 39% to 38%1 in 2023, having been stable for two years following a post-pandemic return to normal. This is the equivalent of approximately 7.8million global reservations in 2023 when applied to the worldwide hotel market2. 
     
    The 'share of’ figures cited will be higher than industry averages because they don’t include group, wholesale or other contract bookings made through PMS platforms but the trend they betray is highly significant. 
     
    In fact, the extra investment driving this change is making itself felt in other ways too. Increased bidding on key search terms, including ‘brand searches’ that identify particular hotels, has sparked a sudden increase in cost-per-click, with Google Ads rising 62.5% from $0.16 to $0.26. The impact on Metasearch is even more stark, more than doubling from $0.21 to $0.48 (up 128.6%). 
     
    In the travel arena, a metasearch engine pulls in data from lots of other websites to produce its own results for consumer queries. It organizes all the information they need — whether it's flights, accommodation, car rentals or vacation packages — on a single results page. Kayak and Trivago are both examples of metasearch engines.
     
    A knock-on effect of this is that the revenues associated with organic search have fallen 15.3% YoY, almost exactly matching the increase won by paid search — 15.5%. This, in turn, is forcing hoteliers to invest more heavily in PPC to compete with the OTAs and prevent them from claiming all of the high-intent traffic, which was historically the domain of organic search. 
     
    A consequence of OTA strategies is that indirect bookings are also attracting guests looking for longer stays. This has meant that the change in indirect bookings’ share of room nights is even more significant, climbing from 53% to 56%1 in 2023 — a change equivalent to approximately 65.6million room nights worldwide2. 
     
    The report’s findings substantiate the fact that the guest journey, lead generation and guest profile are the pivotal issues that will determine the future shape and scale of the role that OTAs play on the hospitality landscape. SHR Group warns that hotels are in danger of becoming too reliant on OTA lead generation, to the point that it becomes financially impossible to recover their current share of bookings and return on advertising spend (ROAS). 
     
    As the report makes clear, AI-powered personalization of the guest journey, greater leverage of loyalty schemes and the use of predictive analytics to reduce cancellation rates and unnecessary discounting do offer hoteliers a technological solution to the challenges they face. However, the effective window of opportunity to deploy these tools is shrinking.
     
    Rod Jimenez, CEO of SHR Group, said: “This is a turning point for the hospitality industry. Hotel technology is leveling the playing field for hoteliers and their ability to compete for leads but that return on investment won’t remain the same forever. The race to bring guests into loyalty programs and win greater influence over how and where they shop for travel, possibly for the rest of their lives, is becoming much more intense. Personalization and ownership of the guest profile are top of the agenda for the OTA and hotel operators alike.”
     
    Frank Reeves, Chief Evangelist, SHR Groups, added: “This is an exciting time to work in the hospitality technology space, and the changes you’re going to see over the next couple of years are going to be transformative. From generative AI search to hyper-personalization, the guest journey is going to be unrecognizable, but with those opportunities also come threats. Only one thing is certain, hotels who fail to deploy the latest technology will be surrendering guest acquisition to those businesses more willing to invest in it, and this could have a devastating impact on growth and profit potential.”
     
    The release of the report comes less than a month after SHR Group won two 2024 HotelTechAwards by Hotel Tech Report, namely Best Digital Marketing Agency and Best MetaSearch & Ad Tech. To learn more about SHR Group, visit www.shrgroup.com. 
     
    Download the report here. 
     
    Notes to editors
     
    1Based on analysis of SHR Group channels only. Sample respresents over 50 million room nights across more than 2,000 international hotels that are currently using one or multiple Allora products and services.
    2Extrapolation based on STR estimate of 187,000 hotels worldwide.
  • 9/13/2023

    Domino's Updates Rewards Program

    Dominos Rewards Updated

    Domino's Pizza Inc. introduces its new and improved loyalty program. 

    Domino's Rewards offers loyalty members even more opportunities to earn and redeem points across its corporate and franchise store locations. Domino's enhanced rewards program allows customers to:

    • Earn points for less
      • Loyalty members will now earn 10 points on every order of $5 or more
    • Redeem points for even more menu items – and earn free Domino's after just two orders
      • Members can redeem a variety of points for more menu items:
        • 20 points: A free dipping cup, a 16-piece order of Parmesan Bread Bites or a 20 oz. drink
        • 40 points: An order of Bread Twists or Stuffed Cheesy Bread
        • 60 points: A medium, two-topping pizza; pasta; Oven-Baked Sandwich; or a 3-piece order of Chocolate Lava Crunch Cakes
    • Earn more rewards
      • Loyalty perks are now even better, as members will have exclusive access to member-only deals, special discounts and opportunities to earn bonus points!

    "We are thrilled to give the brand's loyal customers additional ways to earn free Domino's items more often," said Mark Messing, Domino's vice president of digital experience and loyalty. "At a time when most brands are scaling back their loyalty programs and making it more difficult to earn and redeem points, Domino's is doing the opposite. We want to make it easier to reward our customers and give them more options so they can get rewarded faster."

    Marketing a LTO 

    From now until Oct. 22, 2023, rewards members can take advantage of a limited time offer to redeem 20 points for a free order of Domino's new Pepperoni Stuffed Cheesy Bread, which is normally a 40-point redemption, in celebration of the product's recent launch. 

  • 1/25/2024

    Globespan Travel Management Selects Vindow’s Platform for all their Transient and Group Hotel Business Sourcing Needs

    Vindow, a transparent marketplace for buyers and sellers of contracted hotel accommodations, is proud to announce that Globespan Travel Management, a top-tier corporate travel management firm, has selected their platform to manage all their transient and group hotel sourcing. Designed for both group and transient programs, Vindow harnesses the power of advanced data analytics to empower decision-makers with insights that are crucial for making informed and strategic buying decisions.

    Vindow’s cutting-edge platform will revolutionize the way that Globespan manages their hotel sourcing and travel program management. The platform’s user-friendly interface and machine learning features enable travel managers to extract valuable insights into traveler sentiments and anticipated trends, making it easier for travel managers to pick the best destinations and/or properties, and making it significantly simpler to negotiate and manage large-scale corporate transient programs.

    “Ultimately, we chose to work with Vindow for two key reasons: the advanced functionality of the platform, which I know will make our travel managers’ jobs much easier, and the company’s willingness to develop customizable functionality to enable their clients to manage their sourcing more effectively, according to their specific needs and goals,” said Daniel Moretta, President from Globespan. “As our client list continues to evolve into new verticals, we know that, if necessary, Vindow’s development team will be willing to support our growth by making updates to the platform which will enable us to be more effective in our sourcing, giving our clients better results, and improve our overall business success.”

    “We are very excited to help Globespan and their team take their sourcing to the next level,” said Victor Pynn, CEO of Vindow. “We built Vindow with a strong dedication to customer support and, because three-quarters of our staff are on the development team, it gives us the ability to incorporate buyer feedback into our innovation pipeline and quickly deliver solutions that solve our partners’ real-world problems. In short, this partnership will be a win/win for us and for Globespan."

    The partnership with Vindow not only equips Globespan's travel managers with enhanced options for hotel procurement and travel program management today, but also positions them as contributors to future innovations in the industry.

  • 1/25/2024

    Innrly: A New Era for the US Hotel Industry with Advanced AI and Automation

    Innrly, the brainchild of Vimal Patel, is ushering in a technological revolution in the US hospitality sector. By integrating advanced AI and automation, Innrly aims to be a pivotal player in enhancing the efficiency and guest experience in American hotels.

    Industry Challenges and Innrly’s Unique Solutions:

    The US hotel industry faces unique challenges, such as diverse staff management and catering to an international clientele. Innrly’s suite of tools, including OTA Reconciliation, automated night audits, and guest feedback management, are specifically designed to tackle these issues. Each module is crafted to streamline operations, ensuring that hotels operate with precision and care, focusing on what truly matters – the guest experience.

    Technology at the Core:

    Innrly’s technology goes beyond mere automation. By leveraging AI, the platform provides predictive insights, enabling hoteliers to make data-driven decisions. This advanced capability allows for enhanced customer service, optimized room pricing, and efficient resource allocation. Innrly’s impact is evidenced by its growing popularity among US hoteliers. The platform has shown to significantly reduce labor hours and improve operational efficiency, directly translating into increased profitability and improved guest satisfaction. Testimonials from various hoteliers highlight the transformative nature of Innrly’s technology in their day-to-day operations.

    Trends and Future Outlook:

    As the US hotel industry evolves with digitalization and changing customer expectations, Innrly is at the forefront, offering solutions that align with these trends. The platform's adaptability and innovative approach position it as a leader in the industry’s future.

    Special Offer for Industry Members:

    Innrly acknowledges the importance of accessibility and offers AAHOA members one year of free access to its OTA Reconciliation Module. Additionally, all hoteliers are invited to explore the full suite for three months, free of charge.

    Conclusion:

    Innrly represents a new chapter in hotel management in the US. With its blend of AI and automation, Innrly is not just a software provider but a partner in ensuring the success and growth of hotels across the country.

    Experience Innrly:

    For a firsthand experience of how Innrly can transform hotel operations, visit www.innrly.com and sign up for a free trial.

     

  • 1/23/2024

    easyHotel Adopts New Open Hospitality Platform Apaleo

    apaleo logo
    European value hotel operator easyHotel has successfully launched a new property management system by Apaleo across its business. 
     
    The chain, with offices in London, Paris and the Hague, has plans to open many new hotels over the next few years, and has transformed its property management technology to help it achieve that goal. 
     
    The hotel chain has become one of a growing number of hospitality providers to switch from legacy property management software (PMS) to more flexible, API-led platforms. These allow operators to add on any number of specialist applications rather than being tied to a single vendor. API applications are often household names that focus on performing one function extremely well.
     
    easyHotel has adopted the API-first, open hospitality platform Apaleo, and says two of the main reasons for the decision were the flexibility it offers and the fact it is enterprise-ready, which means new sites can be onboarded much faster — something that will be key to the brand’s expansion. 
     
    The low-carbon operator intends to capitalize on the widespread awareness of the ‘easy’ brand with continued growth across Europe — from Italy, where it currently has no presence, to Spain and France, where it sees capacity for between 10 and 15 new locations. Its existing network of over 40 hotels spans 32 cities in 11 European countries. 
     
    Louis Poisson, COO of easyHotel, commented: “Switching out our technology has been a big change but a necessary one to help aid our quick growth across Europe.”
     
    “We needed a very robust PMS and we now have a tech stack that is evolving dramatically all the time, with Apaleo at its foundation. It has fundamentally altered how we interact with customers, train staff, and manage all areas of our operations. “
     
    “It’s also very stable and customisable. This means that, when it comes to scaling, every migration and onboarding is seamless, whether it’s a new property or an existing operator we have acquired. An API-led platform gives us a foundation on which we build things on top, such as finance and e-commerce.”
     
    Following successful pilots in strategic locations, it has taken easyHotel just seven months to migrate 4,000 rooms onto Apaleo, performing up to three site migrations per week. This has already resulted in a better guest experience, happier staff and reduced check-in time, which has dropped from an average of approximately four minutes to under two minutes. 
     
    easyHotel targets city centre locations with good transport links, close to leisure and business districts. It is flexible in its approach, and incorporates sites that are new build, existing hotels or office conversions, which could be either freehold, leasehold or franchises. The company boasts the highest gross operating profit per square metre in the value hospitality category, and has just launched a new room that emits 20% less carbon than the competition over a 10-year lifecycle. 
     
    Philip von Ditfurth, Founder of Apaleo, commented: “The leadership team at easyHotel is targeting rapid growth, and the business needs an enterprise-ready platform that isn’t going to slow them down. By enabling customisation at scale, Apaleo is perfectly suited to high-growth hospitality businesses such as this. Switching a hotel to a new property management platform in only a few hours would have been unheard of several years ago, and it’s this sort of user-friendly and efficient approach that reinforces how API-first platforms put the needs of operators first compared to suite solutions.”

     
  • 1/23/2024

    InnSpire Partnership with RealTime Reservation Empowers Hotel Guests With Seamless Control of Their Property-wide Stay Experience

    mobile app

    InnSpire, the leading provider of innovative hospitality technology solutions that help drive seamless, world-class guest experiences for some of the world’s most iconic hotels and brands, has announced a strategic partnership with RealTime Reservation (RTR), a centralized inventory control and management platform that assists hotels in maximizing ancillary revenue from services and amenities.

    The new partnership integrates RealTime Reservation’s robust inventory mapping and booking capabilities into InnSpire’s award-winning mobile app solution to create a single sign-on (SSO) experience for guests. The unified interface gives guests the ability to see everything a property has to offer and book a host of property services, amenities, and experiences from their mobile phones or in-room tablets without the need to log in to multiple applications. This includes dining and restaurant reservations, as well as beach chairs, pool cabanas, spa/golf reservations and other onsite experiences.

    “Our partnership with RealTime Reservation consolidates disparate guest reservation systems at a property into a single platform that is meant to give travelers seamless and personalized command over their stay at the property from their device of choice,” said Martin Chevalley, CEO of InnSpire. “The combined solution also enables greater operational efficiency and enhances ancillary revenue for the property by maximizing guest convenience and satisfaction.”

    InnSpire’s full-featured, mobile phone-based digital guest journey application combines a host of powerful features that allow hotel guests to check-in and out remotely, securely access their accommodations using a mobile key, view menus and order in-room dining or drinks and snacks by the pool, send requests to the guest services team in real time, book restaurant and spa reservations, check their folio and access an extensive range of property information, all from their own smart phones.

    “Our integration with InnSpire creates a single guest profile that makes it simple to navigate the property’s offerings and manage all aspects of their stay, down to the details that matter most to them, like a cabana nearest the ocean or pool, for example,” said Shawn Tarter, Founder and President of RealTime Reservation. “The result is one easy-to-use branded platform, so the experience is intuitive and seamless for the guest. It also allows the property to better manage their inventory, operations, and staff resources for service fulfillment.”

     

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