The hotel sector is continuing to see strong performance in most
countries outside of Asia, with RevPAR in the United States expected to pass
2019 levels by nearly 8% this year, according
to data from STR. That trend is expected to continue in the coming years, with STR predicting
RevPAR, average daily rates and occupancy in the U.S. will grow each year
But even with this positive data, hospitality executives recognize
that they are competing with short-term rentals for consumers’
to Phocuswright, global short-term rental gross bookings are projected to
grow 20% this year to $137 billion and should exceed $184 billion in 2026. And
in the U.S., Phocuswright
finds 64% of those that booked a rental considered a hotel for their stay.
In a session at The Phocuswright Conference, Executive Panel:
Hotels – Holding the Line, hospitality executives acknowledge they need to better
understand consumer wants and needs – and to communicate more effectively about
why their properties are the right choice.
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“We need to do a better job of understanding what that trip
occasion is and what the requirements of the customer are for that stay and
then meet those needs,” says Drew Pinto, global officer for global sales,
distribution and revenue management at Marriott International.
“And it all comes down to asking questions and then being very
clear about the product that you offer.”
And says Dorothy Dowling, who served as global chief marketing officer
and senior vice president of sales for Best Western Hotel Group for more than
17 years, hotel companies need to “tell the story” more effectively – not just
regarding the products and amenities they offer, but also about the work they
are doing related to sustainability and diversity since these factors are very
important to younger generations.
“Gen Z and millennials will hold us accountable,” she says.
Panelists also discuss staffing, new revenue opportunities and how
to drive more app engagement and loyalty.
“Our mobile app is critical,” says Robert McDowell, chief commercial
officer at Choice Hotels International.
“How do you expand it so the app is the first travel app they go
to, the credit card that is associated with the loyalty program is top of
wallet. So there is an ecosystem for our set of customers that really look to
us as their travel provider and we continue to want to lean in and engage with
the full session moderated by Phocuswright Research founder and analyst
Lorraine Sileo in the video below.
Executive Panel: Hotels - Holding the Line - The Phocuswright Conference