Hotel trends


percent of respondents said they would ‘mostly’ or ‘always’ book their hotel with their loyalty program provider.


'Travel's next big thing' In their attempts to win over millennials,


the major operators have typically adopted the strategy of developing new concepts from scratch rather than undertake costly retrofits or upgrades of existing properties or brands. Two early front runners in the space were InterContinental’s Hotel Indigo brand, launched back in 2004, and Starwood’s brand Aloft. Tat said, the bulk of the activity has been in the past three years. For example, Carlson Rezidor Hotel Group launched Radisson RED in 2014, Hyatt launched Hyatt Centric in 2015 and Marriott’s most recent millennial-baiting brand, Moxy, debuted in March 2016, following the launch of its AC Hotels brand in 2014. Plus, earlier this year saw Hilton Worldwide launch its brand Tru to sit alongside its other millennial-friendly brand, Canopy. Other notable players in the space include Virgin Hotels. Mobile services such as check in, room


access and room service ordering are increasingly favored. As are boutique properties with interior designs which typically incorporate open-plan social spaces to help deliver a lively, upbeat atmosphere. Other key elements include healthy cuisine, wellness and good-value price points. Artificial intelligence, touted by Expedia chairman Barry Diller as “travel’s next big thing”, promises to help hotel operators and agents alike better match clients to products. At the higher end of the hotels market


“luxury travelers are… craving customized local experiences wherever they roam”, notes Virtuoso in its 2017 Luxe Report. Since the economic downturn of 2008, this trend for


Case studies


Alaska Air x x x


Moxy


Marriott has wasted little time rolling out its Moxy brand since opening the first property in Tempe, Arizona, in March 2016. As of mid-July there were 10 of them with a rapid roll-out strategy planned through 2018 and beyond. Most will be located in the US and Europe, with a few exceptions such as the gateway cities of Tokyo and Osaka in Japan, and a fair smattering of airport properties. According to its website, a Moxy is a “boutique hotel with the social heart of a


hostel”. This is a nod both to those good-value pricepoints favored by millennials and their lively atmosphere. A central hub of activity is the open plan lobby areas which the brand describes as being “like living rooms with a bartender”. moxy-hotels.marriott.com


Case studies


Hyatt Centric When Hyatt launched its ‘millennial-minded’ Hyatt Centric in 2015 vice president of brands Kristine Rose said: “We believe Hyatt Centric hotels will deliver on our guests’ desire for experimental travel.” A spokesperson explained: “The idea is that it provides guests with everything


Hawaiian Airlines x x x


they need, and nothing they don’t, delivering on the things that really matter to them.” This includes Bluetooth-enabled electronics, salon-grade blowdryers and environmentally conscious bath products, with some locations offering a full-service spa or in-room spa services from local partners. By mid-July the portfolio stood at 14 properties. Aside from one hotel in Montevideo, Uruguay, they are all located in the U.S. centric.hyatt.com


Luxury travelers are… craving customized local experiences wherever they roam


local and ‘experiential’ stays has helped fuel demand for the short-term rental model, spearheaded by Airbnb, whose average user age is now 35 years old, according to industry analyst Euromonitor. Not surprising then that new brands such as Hyatt Centric stress their properties’ local and experiential credentials.


Dark clouds For now, the U.S. hotels market is holding up nicely. In its latest lodging forecast PwC U.S. shows the first quarter of 2017 saw the strongest quarterly rate in lodging demand since Q1 2015, with RevPAR (revenue per available room being the main metric used by the global hotel industry) up by 3.4 percent. Mid-market hotels are seeing the strongest,


fastest growth, according to the analyst Euromonitor, whose latest lodging in the U.S. report forecasts they will enjoy a compound annual growth rate (CAGR) of 6 percent from 2015 to 2020, translating into $100.5 billion in sales by period end. Dark clouds may be gathering on the


horizon, however. While the Global Travel Price Outlook report released by the GBTA Foundation and Carson Wagonlit Travel forecast that North American hotel prices would rise by 4.0 percent in 2017, it cautioned that the growth would be driven by the West Coast with the East Coast, including New York City, facing “low or even negative growth”, partly due to oversupply. From a travel agent perspective, the


fact that the Global Travel Price Outlook concluded that the impact of the recent mega hotel mergers on prices won’t likely be felt until 2018 offered some good news. And with the spectre of oversupply now looking set to keep a lid on potential room rate hikes, it looks like it’s business as usual — for the time being at least.


40 | asta.org


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