First Quarter 2014 Global Hotel Industry Update Webinar
First Quarter 2014Global Hotel Industry UpdateWebinar
Introductions PresentersPresenters:John HachSVP, Global Product ManagementTravelClickTim HartEVP, Business IntelligenceTravelClickModerator:Barbara Taylor CarpenderPresident & CEOTaylored Alliances2
Agenda for today’s presentation:Review & analysis of first quarter hotel performanceRegional analysis of key global markets2014 emerging global and local market trendsTop five revenue management and emarketing bestpractices3
At-A-Glance Global Trends(Percent Change)OCCADRRevPAR6.8%5.1%2.9% 3.8%2.9%1.4%2.8%2.2%0.7%1.2%-1.3% -0.1%-1.4%-7.5%United StatesAmericasEuropeMiddle East-6.9%Asia PacificSource: Smith Travel Research Note: All Markets based on Euro, except United States in USD. Q1 2014.4
Highlights First Quarter 2014The Brand Website revenue contributed 20.9% of the 10 billion total revenue booked and 60 million room nightsRevenue by Channel2014 Q1Web Hotel proprietary Website or brand Web siteWeb20.9%OTA Online travel agencysuch as Expedia, Orbitz,PricelineOTA8.7%GDS17.0%CRO13.5%CRO Central reservations officefor contact center reservations viavoice, chat or emailDirect40.0%GDS Global distributionsystems Sabre, Galileo,Worldspan, AmadeusDirect Reservations taken directlyon property such as walk-ins,meetings/groups, direct call inSource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD.5
Highlights First Quarter 2014 RevenueInternationalWeb15.1%North ct49.7%OTA8.4%Direct38.1%GDS17.2%Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. North America United States and Canada6
ADR by Channel2014 Q12012 Q1ADR Variance % vs. Last Year3.6% 1772013 Q12.9%2.1% 171 166 1664.3%3.0% 1622.5% 156 156 1512.9% 147 1438.9%2.7% 139 136 14112.4% 1293.1% 1152.6%2.1%GDSCROWebDirectOTASource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD. Transient reservations.7
International ADR by Channel2014 Q12013 Q12012 Q1ADR Variance % vs. Last Year5.8% 2310.4%5.5%4.3% 219 2181.8% 203GDS 216 211CRO 19912.4%-0.1% 2054.1% 2051.6% 201 193Web 2150.9% 191Direct 191 188OTASource: TravelClick Demand360. Top 25 International markets from participating brands. Revenue in USD. Transient reservations.8
ADR by Channel Outlook*2013 Q32013 Q42014 Q12014 Q29.0%(Percent Change)8.2% 4% 2.4%2.0%1.8%1.4%1.0%CRODirectGDSOTAWeb* Outlook based on reservations currently on the books as of April 27, 2014Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD. Transient reservations.9
At-A-Glance Global Trends: s Aires-0.4%Chicago47.9%1.0%6.3%3.5%Los xico City56.1%1.4%DallasNew York13.3%1.2%-2.1%0%10%20%30%40%50%60%70%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.10
At-A-Glance Global Trends: Americas cont’dPanama City-14.8%-8.4%-7.0%-4.9%Rio de Janeiro2.3%-2.6%4.8%San Francisco-0.3%San Juan2.4%0.4%Sao 5%20%25%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.11
At-A-Glance Global Trends: 20%25%30%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.12
At-A-Glance Global Trends: Europe 7.0%Tel %Madrid17.3%6.2%0%3.4%2.8%5%6.3%10%15%20%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.13
At-A-Glance Global Trends: Middle East/AfricaAbu 7%-9.5%-31.9%-16.2%Cairo-6.4%-21.6%Cape dh1.0%0.5%5.6%-11.1%-6.1%1.8%-14.5%-13.0%Sandton and 10%0%10%20%30%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.14
At-A-Glance Global Trends: Asia 4%2.3%-4.8%-2.6%Ho Chi Minh City-3.0%Hong Kong-9.9%-9.6%Jakarta-12.5%-13.1%-45% -40% -35% -30% -25% -20% -15% -10%5.0%OCCADRRevPAR1.8%0.3%5.2%-4.7%Kuala 7%-5%0%5%10%Percent ChangeADR are in Local Currency. Source: Smith Travel Research. Q1 2014.15
At-A-Glance Global Trends: Asia Pacific 0%5%10%15%Percent ChangeADR are in Local Currency .Source: Smith Travel Research. Q1 2014.16
Shifting Reservations - TransientFirst Quarter Comparison2014 Q12013 t28.4%OTA12.3%OTA13.1%GDS20.2% 9.6 billion total revenue bookedGDS20.0% 8.8 billion total revenue bookedSource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.17
Customer SegmentationTransient Room Nights2014 Q1Wholesale wholesalers /consolidators / tour operatorsQualified affiliation discounts,such as AAA, senior discounts,frequent guest program, etc.Wholesale4.0%Retail rack, best available, nondiscounted, non-affiliated, noncontracted customer ated corporatecontracted ratesNegotiated30.2%Discount packages, promotionalrates, advanced purchase, nonrefundable ratesSource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.18
Customer SegmentationTransient Room NightsWeb25.9%OTA13.1%2014 dOTAWholesaleSource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.19
Customer Segmentation Mix2014 Q1% Room NightsGroupRetailNegotiatedInternationalNorth 0%Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. North America United States and Canada20
Performance by Customer SegmentNorthAmericaTop 25OccADR2014 Q1Top RevPAR6.6%RevPAR9.4%Source: TravelClick Demand360. Top 50 markets worldwide from participating brands.21
Loyalty vs Non-Loyalty Performance% of Transient Room Nights2014 %5%0%Brand.comGDSDirectCROOTASource: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.22
Loyalty vs Non-Loyalty ShareLoyalty. Non Loyalty60%40%2014 Q12013 Q42013 Q32013 Q22013 Q12012 Q42012 Q32012 Q22012 Q12011 Q42011 Q32011 Q22011 Q12010 Q42010 Q32010 Q20%2010 Q120%Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.23
ADR by Segment Outlook*2013 Q32013 Q42014 Q12014 Q2(Percent %2.9%2.8%2.5%1.8%LuxuryUpper UpscaleUpscale1.8%Upper Midscale* Outlook based on reservations currently on the books as of April 27, 2014Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD. Transient reservations.24
GDS Historical PerformanceHotel Bookings (In 51994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Q1Source: TravelClick Agency360. Q1 2014.25
GDS Room Nights by Region(In a2.91.71.42014 Q12013 Q11.0CanadaAfrica1.00.50.5Source: TravelClick Agency360. Q1 2014.26
GDS Performance by Region 2.9 2.8 1.3 1.2 6032014 Q12013 Q1(In Millions)(In Billions) 613 272 157 252 164 74USEuropeAspacCanadaLatin America 73AfricaSource: TravelClick Agency360. Q1 2014. USD27
GDS Performance by Country 2.9 2.8(In Billions)(In Millions) 4902014 Q12013 Q1 391 207 215 151USUK 130 157 163 148 140Germany CanadaFrance Australia 60 54 71 66SpainItaly 90 85 45 48ChinaIndia 4 3GreeceSource: TravelClick Agency360. Q1 2014. USD.28
Third Party Internet Revenue(In Millions USD) 347Expedia 267 172 194Booking 136 59 51 61 61 56 48PricelineOTA OtherHotels.comOrbitzHotwireTravelocity 33 67 60 53 45 392014 Q12013 Q12012 Q1 26 32 36 35 23 36 32Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Transient reservations.29
International Third Party Internet Revenue(In Millions USD) 38Expedia 29 20 85BookingPriceline 62 25 1 2 2 21OTA OtherHotels.comOrbitzHotwireTravelocity 18 11 9 9 6 4 4 3 1 2 1 5 5 42014 Q12013 Q12012 Q1Source: TravelClick Demand360. Top 25 International markets from participating brands. Transient reservations.30
Hospitality eMarketing&Revenue ManagementBest Practices31
Hospitality eMarketing & RevenueManagement Best PracticesSoLoMo Optimization . Don’t be left behind!Revenue Manager / DOSM United Goals & ObjectivesPricing & Inclusions through lead time and seasonalityadjustmentAdvanced COGS analysis: Determining cost as apercentage of incremental conversionLeveraging micro data and personas to maximizeconversion32
CharacteristicsMaturists(pre-1945)Baby Boomers(1945-1960)Generation X(1961 - 1980)Generation Y(1981-1995)Generation Z(Born after 1995)FormativeexperiencesSecond World War,Rationing, Fixed-genderroles, Rock ‘n’ Roll,Nuclear families, Defendgender roles-particularlyfor womenCold War, Post-Warboom, “SwingingSixties”, Apollo Moonlandings, Youth culture,Woodstock,Family-oriented, Rise ofthe teenagerEnd of Cold War, Fall ofBerlin Wall, Reagan /Gorbachev, ThatcherismLive Aid, Introduction offirst PC, Early mobiletechnology, Latch-keykids, rising levels ofdivorce9/11 terrorist attacks,PlayStation, SocialMedia Invasion of Iraq,Reality TV, GoogleEarth, GlastonburyEconomic downturn,Global warming, Globalfocus, Mobile devices,Energy crisis, ArabSpring, Produce ownmedia, Cloud computing,Wiki-leaksPercentage inU.K. Workforce*3%33%35%29%*Percentages are approximate at the time of publicationCurrently employed ineither part-time jobs ornew apprenticeshipsAspirationHome ownershipJob securityWork-life balanceFreedom and flexibilitySecurity and stabilityAttitude towardtechnologyLargely disengagedEarly informationTechnology (IT) adaptorsDigital immigrantsDigital Natives“Technoholics” – entirelydependant on IT; limitedgrasp of alternativesAttitude towardcareerJobs are for lifeOrganizational – careersare defined by employersEarly “portfolio” careers –loyal to profession, notnecessarily to employerDigital entrepreneurs –Work “with”organizationsnot “for”Career multitaskers – willmove seamlesslybetween organizationsand “pop-up” businessesSignature productAutomobileTelevisionPersonal computerTablet/Smart PhoneGoogle glass, graphene,nano-computing,3-D printing, driverlesscarsCommunicationmediaFormal letterTelephoneE-mail and textmessageText or social mediaHand-held (or integratedinto clothing)communication face ideally, buttelephone or e-mail ifrequiredText messaging or e-mailFormative experiencesFacetimePreference whenmaking financialdecisionsFace-to-face meetingsFace-to-face ideally, butincreasingly will goonlineOnline – would preferface-to-face if timepermittingFace-to-faceSolutions will be digitallycrowd-sourced33
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Looking forward, room nights on the books forthe next 12 months are up 4.6% over same timelast year.Top 50 Worldwide Markets10.0%20,000,0009.0%18,000,0008.0%Room 00,0001.0%Variance % to Last pOctNovVar % to LYDecJanFebMarFull Yr Var %35
Q2 Outlook – InternationalReservedOccupancyADR(Group Reserved,Transient co City(Group Reserved,Transient Reserved)(Group Reserved,Transient Reserved)20%LondonRevPAR0%20%9.0%18.4%4.0%As Of:April 27, 0%Q2, 3%Source: TravelClick Demand360. Top 5 International markets from participating brands. Revenue in USD.36
Q2 Outlook – North AmericaReservedOccupancy(Group Reserved,Transient Reserved)ADR(Group Reserved,Transient nverDetroitHonoluluHoustonIndianapolisLos AngelesMiamiMinneapolis St PaulNew YorkOrlandoPhiladelphiaPhoenixSan AntonioSan DiegoSan FranciscoSeattleSt LouisTampaTorontoWashington DC-10%0%10%20%30%-20%-10%10%20%30% -20% 2.8% 2.8%14.2%2.1%9.0%11.4%11.0%12.0%21.2%5.6%13.6% 4.5%Q2, 2014As Of:April 27, 1.4%4.2%3.4%6.7%6.4%4.3%8.7%0%RevPAR(Group Reserved,Transient Reserved)Variance– All MarketsNote: CAD has appreciatedversus the USD by 8% yearover year-1.1%1.2% 7.4%Source: TravelClick Demand360. Top 25 North American markets from participating brands. Revenue in USD.37
12 Month Occupancy OutlookVariance % Versus Last etroitHonoluluHoustonIndianapolisLos AngelesMiamiMinneapolis St PaulNew YorkOrlandoPhiladelphiaPhoenixSan AntonioSan DiegoSan FranciscoSeattleSt LouisTampaTorontoWashington %6.4%0%As Of:April 27, 2014Scope:CommittedOccupancy (GroupBlock TransientReserved)8.5%Mexico CityQ2, 2014 –Q1, %5.3%15.4%Shanghai11.7%Variance– All Markets-0.4%4.5%2.6% 4.2%Source: TravelClick Demand360. Top 50 markets worldwide from participating brands.38
Thank you.A recorded version of this event will be available on the TravelClick website.www.travelclick.cominfo@travelclick.com
AppendixGDS by City40
GDS Performance by Market in AfricaMarketRoom NightsQ1 2013Revenue Q1 2014Room NightsRevenue MarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue ,8161,761,6902,968609,6413,429681,888Addis irobi7,9501,727,53010,7882,310,459Cape urg2,194454,0052,755625,057Dar Es Salaam4,5681,012,5874,8921,081,744Port ,993,432Pretoria9,8101,076,54715,4671,476,419East 34,8987,583753,444GaboroneRichards 1,1665,013500,454JohannesburgKimberleySource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.41
GDS Performance by Market in Asia PacificMarketQ1 2013Room NightsRevenue Adelaide52,167AucklandBangaloreBangkokQ1 2014Room NightsRevenue ,716,190Kuala 817132,89525,676,006Melbourne2,067,315Q1 2013Room NightsRevenue 39,7586,920,090Q1 2014Room NightsRevenue d ,624Tokyo117,13929,925,732124,03230,295,969Hong 60,369ChongqingGuamHanoiHo Chi Minh CityHobart234,180Source: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.42
GDS Performance by Market in CanadaMarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue MarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue 5647148,268North nce George3,586457,6594,181504,542Deer Red Deer1,601195,5391,643193,330Fort 2,242,12216,0962,226,166Fort St John2,792409,4485,211696,757Saint 04,971628,482Sarnia3,223380,8533,728397,578Grande Sault Ste 009,182St owna6,637777,4836,056670,821Thunder minsterLondonMedicine llowknifeSource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.43
GDS Performance by Market in EuropeMarketAberdeenQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue MarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue 898,55037,1194,697,322Metropolitan ,958,837Oslo115,87025,628,332134,59728,167,049East ,068Euroairport BirminghamBristolSource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.44
GDS Performance by Market in Latin AmericaMarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue MarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue Aguascalientes5,960516,3038,888788,328Port Of Spain10,0841,885,98211,6222,217,676Belo Horizonte17,1942,328,69522,0502,481,163Porto 792,905,811Quito7,5481,131,3708,7461,398,834Buenos 157,512Ribeirao 4,8121,915,434Rio De 36,5453,395,025San 8671,991San o19,503Leon/GuanajuatoLimaCiudad Del CarmenCuritibaFlorianopolisGuadalajaraGuatemala CityManausMeridaSan Luis ,37137,3308,111,8263,813,001Santo 11Sao Jose Dos 6,247Sao ,686,128Sao ,33717,4321,684,686Tancredo Neves 8,996Mexico 1,8711,316,68515,9851,531,608NassauPanama CitySource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.45
GDS Performance by Market in Middle EastMarketAbu DhabiQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue 2119,088,024Tel Aviv ource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.46
GDS Performance by Market in United StatesMarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue MarketQ1 2013Room NightsRevenue Q1 2014Room NightsRevenue 4,73626,676,61074,1649,901,64380,71311,086,023New 225,06630,012,849239,64832,821,151New 474148,69118,637,804Oklahoma 99328,605,424231,98530,793,433Fort 94Salt Lake 6891,818,601648,677104,985,469San lis147,70117,008,847166,77519,832,034San e112,58212,550,768118,93013,621,945San Francisco403,07891,250,354431,955110,655,338Kansas City158,67718,314,067169,72719,622,641San Jose411,75471,426,726453,49487,212,617Las 26455,160,042399,69361,752,845Los Angeles900,073159,456,837957,826176,761,434St 176,312BirminghamBostonCharlestonGreenvilleSource: TravelClick Agency360. Q1 2014. Revenue in USD. Markets 5,000 room nights annually.47
Thank you.If you have questions regarding your local market GDS data, pleasecontact your local TravelClick sales representative or email us atwebinars@travelclick.com.
Hotel proprietary Web site or brand Web site . OTA Online travel agency such as Expedia, Orbitz, Priceline . GDS Global distribution systems Sabre, Galileo, Worldspan, Amadeus . 5 . CRO 8.8% . Direct GDS 49.7% . 15.9% . OTA 10.5% . Web 15.1% . CRO 14.4% . Direct 38.1% . . Prague Paris
987 Prague Hotel, Hotel Adria, Hotel Ametyst, Aria Hotel, Art Deco Imperial Hotel Praha, . Hotel Belvedere Praha, Hotel Beránek Praha, Hotel Caesar Praha, Hotel Čechie Praha, Hotel Don Giovanni Praha, Hotel Duo Praha, Hotel Elite, Hotel Elysee Praha, Hotel Esplanade praha, Hotel Expo, Hotel Extol Inn, Hotel
1. Airport Hotel 3-5 star 2. Beach Hotel 3-5 star 3. Boutique Hotel 4-5 star 4. Business Hotel 1-5 star 5. City Hotel 1-5 star 6. Convention Hotel 1-5 star 7. Family Hotel 3-5 star 8. Resort Hotel 3-5 star 9. Apartment Hotel 1-5 star Designators are awarded after the hotel has met the requirements of the respective designators.
dusİt hotel d marİn d marİn d hotel elite world prestige elite world hotel elite world business hotel elite world hotel elite world hotel elite world hotel elite world europe hotel elit word asia hotel emet thermal resort hotel . hyatt regency don plaza
Hotel Alfonso XIII, a Luxury Collection Hotel, Seville Hotel Bristol, a Luxury Collection Hotel, Vienna Hotel Colonnade Coral Gables, a Tribute Portfolio Hotel Hotel Danieli, a Luxury Collection Hotel, Venice Hotel Des Indes, a Luxury Collection Hotel, The Ha
beka, meat processing africoffee, coffee hellas can, canned foods aegean mushrooms el.pa., olive oil bef, sauces siligrado, milk processing hotels and touristic hilton hotel intercontinental hotel oriental mandarin hotel marriot hotel atlantis hotel at the palm island hotel theoxenia palace hotel president hotel grand chalet hotel sosimex ada hotel
chicago hotel hard rock hotel hotel monaco the fairmont hotel hya t r eg ncy hotel intercontinental chicago ch icago ma rriott downtown w ch ago lak esho ohio street grand avenue illinois street wacke rd ive lake mi higan c h i c a g o r i v e r the gwen hotel palomar hotel chicago loews chicago hotel trump tower virgin hotels chicago langham .
Hotel Management Management and ownership are not the same thing Hotel Management is the day -to-day running of the hotel (also called hotel operation) One person (or company) can own the hotel, and another person (or company) can manage it. The owner can buy the hotel as an investment but not know anything about running a hotel
Plaza Hotel, Kuwait - Club Med Palmeraie, Marrakech - Shangri-La Bar Al Jissah Resort, Muscat - Moevenpick Hotel, Alkhobar - Sheraton Bab El Faraj, Aleppo - Hotel du Lac, Tunis - Hotel Ginen, La Marsa - Hotel Orient Palace, Tunis - Arwami Project, Dubai - Riu Hotel Negril, Jamaica - Riu Hotel Jalisca, Vallata - Fiesta Bávaro, Santo Domingo - Hilton Santo Spirito, Miami - Marriott Hotel .
