As Occupancy Stalls, Parking Drives Hotel Revenue Growth
By Robert Mandelbaum and Todd Casper
Based on the February 2023 Hotel Horizons® report, CBRE is forecasting that total hotel revenue for the average US hotel returned to pre-COVID levels in 2022. This occurred despite the fact that the average occupancy for US hotels is not expected to exceed 2019 levels until 2026.
With occupancy levels lagging during the post-COVID recovery and guest counts depressed, hotel owners and operators have had to look for alternative sources of revenue beyond the rental of guest rooms to make up for the income deficits. For some hotels in the US, parking has become a profitable source of revenue since COVID and helped fill in the revenue gap.
The increase in parking revenue has occurred, in part, because an increasing number of hotels started to charge guests for on-site parking. In 2019, 17.0 percent of all the hotels in CBRE’s annual Trends® in the Hotel Industry database reported parking revenue. This number rises to 20.4 percent in 2022. Further, hotels that already managed a parking operation before COVID increased the price they charged guests to park their cars.
To analyze the increase in US hotel parking revenue, CBRE studied a sample of 520 hotels that reported parking revenue for our annual Trends® survey each year from 2019 through 2022. In 2022, these hotels averaged 324 rooms in size, an occupancy of 65.4 percent, an average daily rate of $245.25, and a RevPAR[1] of $157.05, versus the $163.07 RevPAR achieved in 2019. Since the sample consists solely of properties that reported parking revenue, it is skewed toward full-service hotels located in urban areas. This explains the relatively high room counts and ADRs for the sample.
Revenue Growth
Since larger, urban hotels have suffered the most during the pandemic, it is not a surprise that the average property in our sample has yet to return to their pre-COVID levels of total hotel revenue. On average, 2022 total revenue for the study sample is just 95.9 percent of 2019 total revenue.
However, parking revenue for properties in the study sample is 103.1 percent of 2019 levels. This is particularly noteworthy because the number of rooms occupied at the average property in the sample from 2022 was still 14.6 percent less than in 2019. Parking revenue, which is measured on a per-occupied-room (POR) basis, was 20.7 percent higher in 2022 compared to 2019, there is a clear indication that hotels have significantly increased the price they charge guests to park. Parking rate increases are not only an effective way to increase revenue, but they also help offset inflationary pressures on operating expenses.
Consistent with macro travel trends, resort hotels, as well as properties located in resort/destination locations, enjoyed the greatest increase in parking revenue from 2019 to 2022, both on a POR and per-available-room basis. This implies increases in both parking prices and business volume. Limited-service and extended-stay hotels appear to have benefited from their relatively strong performance to drive parking revenue during the post-COVID recovery period. Airport properties were another group of hotels that took advantage of their location to be creative and generate more revenue from their parking lot or garage.
Several factors currently influence the decisions hotel managers make as they set parking rates:
- Kastle Systems, in conjunction with CBRE, has reported that office occupancy levels in the urban core of major US markets have just returned to the 50 percent level. This has left a surplus of available parking spots in several downtown markets. A surplus of parking in urban areas can mute the ability of hotels to raise parking rates as lots and garage owners struggle to gain market share.
- On the other hand, the surplus of parking spaces provides urban hotel owners and operators an opportunity to lease multiple parking spots at nearby lots and garages at relatively low rates. Hotels can then capitalize on their lower cost basis and maximize profits.
- Like guest rooms, hotel parking spaces are not subject to long-term leases. Therefore, hotel parking lots can utilize technology and dynamic pricing techniques to maximize revenue during different market conditions.
- Hotel guests do not typically choose a hotel based on the cost of parking. However, location is frequently cited as an important factor. If guests must drive to stay at the preferred location, then the hotel gains pricing leverage.
Impact on Revenue
Despite these growth figures, parking is still a minor source of revenue for hotels. In 2022, parking revenue for the average hotel in our study sample was 3.1 percent of total revenue. However, parking revenue has grown faster (3.1 percent) than total hotel revenue (2.8 percent) from 2019 to 2022. Parking as a percent of total revenue peaked in 2020 and 2021, highlighting the increased reliability of hoteliers on this alternative source of revenue during the height of the pandemic.
When analyzing the sample by property type, parking revenue made up the greatest share of total revenue at extended-stay hotels (5.3 percent) and all-suite hotels (4.9 percent) during 2022. Urban (3.7 percent) and airports (3.5 percent) hotels enjoyed the greatest contribution from parking revenues when segregated by location category.
Parking Profits
Consistent with the increase in revenue, hotel parking profits have increased from 2019 to 2022. On average, the properties in our sample achieved parking department profits during 2022 that were 8.7 percent greater than 2019 profit levels. Resort hotels, as well as properties in resort and airport locations, achieved the greatest gains in parking department profits.
Unfortunately, parking operations are relatively expensive to run compared to other minor operated departments. The average profit margin for a parking department in 2022 was 60.2%. This is less than the 62.1 percent average profit margin for all minor operated departments. Per the Uniform System of Accounts for the Lodging Industry, the profit margins are calculated before the deduction for overhead expenses such as administration, marketing, maintenance, utilities, property taxes, and insurance.
There are several ways in which hotel owners and operators can maximize revenues and profits from parking. Managing costs, whether parking is being operated in-house or by a third party, is critical in capitalizing on this growing revenue stream.
What Should Hotel Owners be Considering?
Drive Parking Net Income by Evaluating Expenses
Parking expense considerations include evaluating the need for valet versus self-park only operations. Valet services are labor intensive and increasingly costly in today’s labor-constrained market. Technology improvements can be a way of reducing ongoing operating costs with pay-on-foot machines or even gateless app-based technology.
Other market-specific factors impacting the bottom line of hotel parking operations include parking sales tax, if any, in a local market. Urban markets vary from having no parking sales tax to potential taxes at the city, county, and state levels. In addition, the allocation of hotel expenses to parking operations can significantly impact the net income associated with parking. Property taxes, insurance, utilities and other allocations are often out of date and require refinement to optimize parking profitability. Expenses, such as security, cleaning and enhanced lighting, typically improve the perception of a parking facility and can drive long-term parking demands.
In-House vs. Third-Party Operators
Deciding whether to operate parking in-house versus with a third-party operator or parking management company is worth considering in urban parking markets. Third-party operators are often well-connected with other parking demand generators in the area and can tap into their network of parking aggregators to source e-commerce traffic. Third-party operators can also target the surrounding area for parking users who can capitalize on hotel parking spaces during non-peak hotel times.
Since the pandemic, third-party operators are less inclined to enter into long-term lease commitments, preferring management contracts or short-term agreements with less financial risk. Third-party operators can be motivated to perform with incentive-based contracts that offer upside to the operator and enhance the bottom line for parking operations. Operators will typically not assume the risk for property taxes assessed or allocated to the garage.
Own vs. Lease Hotel Parking
Should hotel owners own their parking or simply control it with long-term rights or an access agreement? As alternative investments gain favor in investment portfolios, urban parking is generating increased attention from private and institutional capital as well as infrastructure funds. Urban parking assets can offer investors well-located, covered land plays, attractive yields and the ability to quickly mark prices to market rates in an environment of high inflation.
Parking garages and surface lots supporting hotels are increasingly being bifurcated from the hospitality ownership structure to take advantage of cap rate arbitrage of the parking asset compared to the hotel. Hotel owners don’t necessarily need to own their parking, but at a minimum, they need long-term access or rights to parking. Well-located, urban parking garages with multiple demand generators often trade at aggressive cap rates, particularly in supply-constrained urban markets.
This article was originally published in the June 2023 edition of Lodging and has been shared on HFTP Connect for the benefit of HFTP hotel finance members.
Todd Casper is First Vice President of Parking Investment Sales for CBRE. Robert Mandelbaum is Research Director for CBRE Hotels Research. For guidance on your hotel’s parking operations, Todd can be reached at [email protected]. This article was published in the June 2023 edition of Lodging.
[1] Rooms Revenue per Available Room
Taylor Swift parties, events before Eras Tour in Denver on July 14, 15
Whether or not you’re going to Taylor Swift’s concerts at Empower Field at Mile High next week, you’re in good company.
Fans of the singer-songwriter and her Eras Tour, which plays Denver on Friday, July 14, and Saturday, July 15, scrambled to snag tickets the moment they went on sale earlier this year, ensuring both instant sell-outs and disappointment.
But anyone can attend these parallel yet separate Swift-themed events, in which boutique hotels, promoters, bars and upscale shopping complexes cater to people coming to (and from) the shows in downtown Denver. Getting a piece of that action means meeting fans where they are. Literally.
Here’s a quick roundup of Swift-related events that are open to the public, both free and paid. Watch for The Denver Post’s photo slideshow and review of the tour’s opening night in Denver, to be posted on July 15 on denverpost.com/things-to-do/music, and check out a review and photos of her 2018 Reputation Tour show at Empower Field at bit.ly/44dZdAz.
Taylor Swift silent disco
The McGregor Square complex across from Coors Field in Lower Downtown is diving in early with a silent disco and related events on Saturday, July 8. Each $30 admission includes a silent-disco headset to hear a pair of DJs spinning Swift hits “from every era to dance and sing along to,” as well as beer or seltzer included and access to a friendship bracelet-making station, “the Eras Tour must-have accessory.”
There are, of course, Swift-inspired cocktails such as Champagne Problems and Lavender Haze, and The OG and Rally bars will also be serving Swiftie cocktails. Tickets are $30 per person, or $10 for people who book a room on the same night at the Rally Hotel on-site. eventbrite.com or finallyhotel.com
Early Taylor Swift pre-parties
Other events are popping up a week early to take advantage of the run-up to the show: the Queer Taylor Swift pre-party at Denver’s Goldspot Brewing Company welcomes Gaylors (Swifties who theorize that she’s secretly gay) and everyone else with a costume contest , friendship bracelets and flash tattoos, from 3 to 8 pm on Saturday, July 8. The event is free but donations will be collected to benefit nonprofits Khesed Wellness and The Delores Project. eventbrite.com
On July 13, the night before the first concert, Mile High Spirits is also holding a pre-party featuring “all Taylor Swift, all night long” music ($10; eventbrite.com).
Swifties at the Station
The 1-7 pm celebration on July 14 and 15 at Denver’s Union Station will feature DJ Chris C playing fan-favorite Taylor Swift tunes, a “face rhinestone artist” and a pop-up by LINK x LOU “to help you level up your friendship-bracelet game,” organizers wrote. You can also pose for photos in a booth and enter a Best Dressed raffle for prizes that include a one-night stay at The Crawford with a $100 Denver Union Station gift card.
“Terminal Bar will also be pouring special Taylor Swift cocktails, including the Cruel Summer, a Taylor Spritz, a Blank Space and a Lavender Haze, made with Tito’s Vodka, black tea, lavender, Butterfly Pea Syrup, lemon and soda water,” according to the press release. Anyone who buys food or drink from Terminal Bar on July 15 can also take a free TukTuk ride directly to Empower Field from 3:30 to 7:30 pm Events are free but RSVPs are encouraged via eventbrite.com. More at denverunionstation.com/events/swifties-at-the-station
“You Belong With Me” at Thompson Denver
The year-old Thompson Denver hotel is also going the lux route on July 14 and 15 with its Champagne Problems brunch, featuring specials by the bottle or glass, the Lavender Haze cocktail throughout the hotel, a “special merch stand for the ultimate friendship bracelets and temporary tattoos” (think 13 and 22, organizers said), and a “Cruel Summer” party in Reynard Social with Eras songs by Cyberkid. Note: Overnight hotel rates for these dates start at about $800. hyatt.com/thompson-hotels/denth-thompson-denver
Taylor Swift Glam Makeup Experience
LoDo’s Maven Hotel and Poka Lola Social Club joined forces at The Dairy Block for a Glam Makeup Experience on July 14 and 15, with Denver artist Makeup by Peaches “helping fans to rock Taylor’s signature red lip or add a pop of glitter and color to your already fabulous outfit,” organizers wrote. Timed slots are available 2-6 pm both days for $10 per person. Poka Lola will have the Champagne Problems and Lavender Haze cocktails on both days. Registration is required at eventbrite.com. More at themavenhotel.com
Swift City
This elaborate tailgate party will be set up across from Empower Field along Federal Boulevard from 3 to 6 pm on July 14 with food and drinks, activity booths, DJs, selfie backdrops and more ($25). If you can’t go to the show, they’re also hosting a listening party during it ($25) and a 21-and-up post-concert dance party ($25). The Can’t Stop Won’t Stop bundle includes all of the events ($60). eventbrite.com
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The Power of Allyship: Building Bridges of Support and Inclusion
Pride Month is not just a time for the LGBTQ+ community to celebrate their identities, but also an opportunity for allies to educate themselves and advocate for equality. Allyship is a crucial pillar of support, and it plays a significant role in creating a more inclusive society for all. Let us delve into the importance of allyship, emphasizing the transformative power of education in fostering understanding, empathy, and acceptance.
Expanding Perspectives: The Role of Education
Education is the cornerstone of allyship. By seeking knowledge about the LGBTQ+ community, its history, struggles, and accomplishments, allies can develop a deeper understanding of the challenges faced by individuals with diverse sexual orientations and gender identities. Education serves as a catalyst for breaking down stereotypes, dismantling prejudices, and fostering a culture of acceptance.
Challenging Assumptions and Bias
Allyship involves critically examining our own assumptions and biases. It requires recognizing and challenging the societal norms that perpetuate discrimination and marginalization. Through education, allies can confront their own biases and prejudices, allowing for personal growth and transformation. This self-reflection is essential in creating a more empathetic and inclusive environment.
Creating Safe Spaces for Learning
As allies, we have a responsibility to create safe spaces for learning and dialogue. By fostering an environment where questions can be asked, experiences can be shared, and concerns can be addressed, allies can facilitate meaningful conversations. These spaces allow for the exploration of diverse perspectives, leading to increased understanding and empathy.
Using Privilege to Amplify Voices
Allies have the privilege of being heard and respected in various spheres of influence. This privilege can be utilized to amplify the voices of the LGBTQ+ community. By actively sharing stories, experiences, and achievements, allies can help combat erasure and promote greater visibility. This act of amplification contributes to a more accurate and nuanced understanding of the LGBTQ+ community.
Advocacy for Equality
Education empowers allies to become advocates for equality. Armed with knowledge, allies can challenge discriminatory practices, policies, and beliefs. They can engage in meaningful conversations with others, challenging misconceptions and promoting empathy. Allies can use their voices to advocate for equal rights and protections, both on an individual level and within broader societal structures.
Celebrating Diversity
Allyship involves not only acknowledging and accepting differences but celebrating them as well. Education allows allies to appreciate the diversity within the LGBTQ+ community, recognizing the intersections of race, ethnicity, religion, abilities, and more. By embracing this diversity, allies contribute to the creation of a more vibrant and inclusive society.
Pride Month serves as a reminder of the ongoing struggles and achievements of the LGBTQ+ community. As allies, it is our responsibility to educate ourselves, challenge biases, and actively advocate for equality. Through education, we can foster understanding, empathy and acceptance.
Let us use this Pride Month as an opportunity to reflect, learn, and commit ourselves to becoming better allies. Together, we can create a society where all individuals are valued, respected and celebrated for who they are.
Discounts and deals include free food, drinks and other discounts
With the end of the school year approaching, teachers are being recognized with specials at retailers and restaurants across the US for Teacher Appreciation Week.
Former first lady Eleanor Roosevelt began the effort to create Teacher Appreciation Week and National Teachers Day when she urged Congress in 1953 of the need for a day recognizing teachers, according to School Specialty. National Teacher Day was initially celebrated on March 7, but in 1984 it was moved to May. At that time the National Parent Teacher Association began calling the entire first week of May as Teacher Appreciation Week.
“Teachers play a critical role in driving the success of our children’s education and lives,” The National Parent Teacher Association says. “They are the ones who inspire and guide our kids to become future leaders, innovators and problem solvers.” The organization has ideas on how to thank a teacher on its website.
When is Teacher Appreciation Week?
There’s some disagreement about when Teacher Appreciation Week occurred, with the National Education Association and National Parent Teacher Association observing it May 8-May 12, while some states and school districts started celebrating it this week.
During the actual week of recognition, there’s usually a National Teachers Day, which some celebrate May 2. But the National Day Calendar and Calendarpedia, places the day of observation as May 9, the first Tuesday of the first full week in May.
When can teachers get deals for Teacher Appreciation Week?
Teachers, whenever you want to celebrate, there’s plenty of deals. There’s also deals for National Nurses Week, May 6-12. And don’t forget Cinco de Mayo, which also means plenty of food and drink deals.
Teacher Appreciation Week 2023: 20 of the best gift cards to give teachers
recalls: Family Dollar initiating recall of Advil shipped to certain stores
Mooyah Burgers, Fries & Shakes National Teacher and National Nurses Week deals
Through May 6, teachers and nurses get a free Little Moo shake at Mooyah Burgers with any purchase (show your teacher or nurse ID when ordering).
Office Depot and OfficeMax teacher appreciation deals
Now through July 1, Teachers with a free Office Depot and OfficeMax Rewards membership can get 30% back in bonus rewards on qualifying in-store purchases. Just present the appropriate coupon available online at officedepot.com/rewardsoffers, a valid teacher ID, and your Office Depot OfficeMax Rewards Member number at checkout.
Staples Teacher Appreciation Week deals 2023
Teachers get $30 back in Staples Rewards when they spend $100 or more in stores from May 7 to May 13. Teachers can also get $15 off signs, banners, and posters when they spend $75 or more, and $10 off document printing when spending $40 or more (both deals expire May 27).
Want to help your local school and teachers? Join the Staples Classroom Rewards Program to earn 5% back on in-store purchases to give to a local teacher or school, as well as 5% back in Staples Rewards.
Crocs, Michaels, Xfinity, Sleep Number deals for teachers with SheerID
Third-party verification service SheerID, which collects information that assists in verifying eligibility, has a slew of exclusive teacher deals with partners including ASICs, Crocs, Dockers, LL Bean, Michaels, Peloton, Vineyard Vines and Sleep Number. Find teacher deals at Sheerid.com/shoppers/teacherdeals.
Teacher deals from Samsung, Verizon, DirecTV with ID.me
Another verification service, ID.me, has partnered with brands including Adidas, DirecTV, Hotels.com, Ray-Ban, Samsung, Sam’s Club, Saucony, Under Armor and Verizon Wireless to confirm eligibility for teacher discounts. See the list of businesses at Shop.id.me/teacher.
“The Teachers” book available at a bargain price
You can get the critically acclaimed new book The Teachers: A Year Inside America’s Most Vulnerable, Important Profession, a USA Today “Hottest New Book Release” and New York Times Spring Nonfiction pick, will be available for just $1.99 as an ebook (down from the $15.99 retail price) from May 8 to May 13.
Firehouse Subs’ free sandwich deal for teachers
Firehouse Subs will give teachers nationwide any free medium sub with the purchase of any medium or large sub, chips, and drink, May 8-May 12. Any medium sub is eligible, including the limited-time Smokin’ Triple Stack sub.
McAlister’s Deli
Teachers and nurses can get a free 32-ounce tea through May 10 by showing valid educator or medical ID at participating at McAlister’s Deli locations. No purchase necessary, but limit one per person; not valid on flavored shots or other beverages. Must order in person for dine in and take out orders only.
Perkins Restaurant & Bakery’s Teacher Appreciation Week deal
Perkins Restaurant & Bakery is giving teachers 20% off meals May 8 to May 12 when they present a valid teacher ID and are members of the restaurant’s E-Club rewards program (join prior to May 8; the offer can be used multiple times during the weeks).
Potbelly Sandwich deals for National Teacher Appreciation Week and National Nurses Week
Potbelly will give teachers and nurses a free cookie or regular-sized soft drink when they purchase an entrée May 6 through May 12. Just show your work ID or badge when ordering any entrée (sandwich, salad, soup, or pick your pair; in -shop orders only).
Sonic Teacher Appreciation Week free cheeseburger deal, DonorsChoose donation match
Sonic is giving all those enrolled in its Teachers’ Circle Rewards program a free cheeseburger with any purchase from May 9 to May 16 made online or in the Sonic App. Any teacher, faculty or staff at a K-12 school or degree-granting university can use the app to sign up for Teachers’ Circle and get exclusive rewards; get verified before May 9 for the free cheeseburger deal.
Also on May 9, the Sonic Foundation will match 50% of public donations – up to $1.5 million – to education non-profit group DonorsChoose. (A portion of proceeds for every drink, slush and shake sold goes to the Sonic Foundation, which has donated more than $24 million to funding US classrooms since 2009.)
Those who want to donate can text GIVE to 31869 and receive a direct link to a teacher’s classroom in their local community. Emmy Award-winning actress Sheryl Lee Ralph (Abbott Elementary) is a celebrity spokesperson for the campaign. “Public school teachers have dedicated their lives to inspiring America’s youth, and we must ensure they have all the tools they need as they shape the hearts and minds of our children,” he said in a statement.
McDonald’s teacher appreciation 2022 deals
McDonald’s doesn’t have a national Teacher Appreciation Week deal, but some locations have regional or local deals over the week. Check with your McDonald’s to see if there is a local offer for teachers. And also check the app for other deals including free fries.
Whataburger Teacher Appreciation Week breakfast deal
Educators can get free breakfast entrées from May 8 to May 12. During the week from 5 am to 9 am, teachers get a free breakfast entrée plus a Taquito with cheese, Breakfast on a Bun or Honey Butter Chicken Biscuit. They also get a 25% discount on all items in the Whatastore with the code WHATATEACHER23.
More than 55 teachers who were nominated by their peers and community members, will be awarded a $1,000 grant for their schools, totaling more than $70,000 to support teachers communities within Whataburger’s 14-state footprint.
Buffalo Wild Wings $1 boneless wings deal
Whether you are a teacher or not, any customer who orders a burger at Buffalo Wild Wings can get six boneless wings for just $1 more, through May 30.
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This article originally appeared on USA TODAY: Teacher Appreciation Week 2023: Food deals, discounts for educators
Thank You Booking.com For Showing Us The Future
For the last five years, travel has been all about sustainability, recovery, and – for the last few weeks – generative AI. And while all of these are highly relevant topics, there’s only one thing that ties them together – Diversity, and knowing that each person is different and is looking for unique and personalized experiences that cater to their individual needs and preferences.
This is where, at the recently concluded Click. 2023 event, Booking.com showed us the future of travel and hospitality.
The Changing Traveler and the Future of Travel
The 2023 Travel Predictions by Booking.com showcased at the event highlighting the importance of customization. And here’s how the hoteliers can leverage these trends to stay on top.
1. 55% of travelers are planning to spend their vacations off the grid.
As most travelers are looking for off-grid style vacations to escape reality in 2023, a rise in eco-friendly stays that embrace natural surroundings and sustainability is expected.
For those hotels who have already been investing in sustainability, it is pivotal to make the guests aware of the same. They can do so by indicating the sustainability practices implemented on the extranet, which can then be displayed on their property page on booking.com as part of its Travel Sustainable Programme.
Read Also: How Green is your Hotel? Do Good and Show it to the World – on Google
2. 42% of travelers will focus on mental health and mindfulness.
While highlighting the wellness facilities that the hotel currently offers – such as spas, gyms, etc. – is pivotal to drive growth for businesses, it is also important to partner with local businesses outside that provide additional wellness experiences. These additional experiences can then be offered to the guests.
Hotels can also share information about local groups or attractions that might be relevant to certain niche groups – either pre-trip (window between the booking and the actual trip), or during the stay with the help of guest engagement solutions.
3. 43% of travelers will use virtual reality to find travel inspiration.
Metaverse, and virtual or augmented reality offer people a new way to experience travel. While 43% of global travelers claim that technology will inspire their 2023 travel choices, 60% of travelers still believe that such experiences are unlikely to be replaced by in-person travel any time soon.
Investing in high-quality images and extended reality content such as virtual property tours can make the hotel property stand out, and help potential guests imagine themselves in these properties. Thereby inspiring them to experience the stay in the physical world as well.
4. The future of travel and hospitality lies in the understanding that each person is different.
The bold & impressive stance around DE&I was truly the highlight of the event. At the event, Booking.com showed us that it is this diversity that makes travel so exciting and enriching.
The tagline at the photo – “We filter places, not people.” – encapsulates the idea that diversity, equity, and inclusion are at the core of travel. It is through experiences that we get to know different people and cultures, and it is essential that we provide customized experiences that cater to the needs of different individuals and groups.
Here are four tips for hoteliers who might not be already doing this:
a. Show all your facilities that meet the accessibility requirements
Hoteliers should highlight the accessibility features of their facilities and services, such as wheelchair ramps, bathroom grab bars, and designated parking spaces for those who may have mobility needs. They should also showcase their staff’s training to provide assistance to guests who require support and offer information on nearby accessible attractions and transportation options. This information can be prominently displayed on their website and in promotional materials to ensure that all guests feel welcomed and valued.
b. Make your content more gender-neutral and diverse
It is crucial for hoteliers to create content that is inclusive and welcoming to all guests, regardless of gender identity or expression. They can use gender-neutral language in their descriptions of amenities and services to make sure they don’t alienate guests with different gender identities. Hoteliers should also consider creating separate rooms or spaces for guests who don’t feel comfortable staying in traditional male or female accommodations.
c. Show diversity through images
Hoteliers should showcase diversity in their promotional materials, including images of guests from different backgrounds, ethnicities and cultures. These images can be displayed on their website, social media accounts, and marketing materials to show potential guests that they are welcome and included in the hotel’s community. They can also highlight local cultural events and activities to encourage guests to explore and learn about the diversity of the surrounding area.
d. Share information around local groups or attractions that might be relevant to certain niche groups
For hotels that attract guests from different countries, it is important to provide information in multiple languages. This includes translating their website, brochures, and other marketing materials into the languages that their potential guests speak. Hoteliers should also consider hiring multilingual staff to assist guests who don’t speak the local language. By providing these services, hoteliers can ensure that all guests feel comfortable and included during their stay.
The Click. 2023 event by Booking.com was indeed an incredible experience that showed us the future of travel and hospitality. The onus is upon us to embrace diversity, equity, and inclusion in the travel industry, and deliver the perfect experience for every guest.
About the Author
Mark Haywood
SVP & General Manager – Europe and Africa
RateGain
Spotlighting Past Hall of Fame Inductees
Recognized for being industry pioneers, inductees to the HFTP International Hospitality Technology Hall of Fame are the individuals behind much of the hospitality industry’s technology developments. Since 1989, 51 innovative and influential professionals have been selected to be a part of this venerated group, and this Spring, nominations are once-again being accepted for 2023 nominees. The deadline to apply is April 17, with inductees recognized at the upcoming HITEC Toronto on June 27.
Jeff Edwards, also a 2023 inductee, said, “Being inducted into the Hall of Fame is a true career honor, as it is a recognition by my industry peers. I am pleased to be alongside a group of outstanding professionals, each with their own specialties all culminating in the excellence and progress of the hospitality technology industry.”
Inductees are a true encapsulation of the past, present and future of our industry, having been extensively involved in the role technology plays. Because of this, we asked inductees to discuss their perspective on the industry. We talked about the challenges — old, new and ongoing — what technologies have had an impact and which will continue to bring change to the hospitality industry.
What follows is an insightful conversation with a group of inductees. Participants include: Dave Berkus; Richard Brooks; John Burns; Fraser Hickox; Ted Horner; Jon Inge; Michael Kasavana; Douglas Rice; and Harbans Singh. [Original interview conducted in 2015, edited and shortened for HFTP Connect.]
Notable IT Challenges
There is no question that change is one of the defining features of technology, and as professionals who started in this industry more than four decades ago, many of our participants went from zero to 100 percent integration. In the early days, if you can believe it, one of the largest hurdles to overcome was getting management to visualize the benefits of technology tools.
Brooks says, “Perhaps the greatest consistent challenge I encountered was just the acceptance of technology in our industry. For many years technology was viewed as a ‘necessary evil,’ or a tool that had not reached sufficient functionality and maturity to be a truly competitive asset to hospitality managers.” And because there was not sufficient support for technology, it took some time for technology companies to gain a foothold and stay in business long enough for their products to gain acceptance.
Time and technology did move forward, with technology developments leading to a size reduction of hardware — hello PCs and mobile media — and the improved functionality of systems. The challenge then came in the form of disconnected systems: the POS didn’t match the CRM, etc. Rice explained, “We operate in a world with hundreds or thousands of vendors, most of whom don’t play by common architectural rules that would make it easier for hotels to bind them together in a cohesive way. So there are lots of loose ends that each hotel group (or even individual hotel) needs to try to tie together as best they can, which often isn’t a good or cost effective solution.”
Never-ending Challenges
Today technology is an essential business element and with its ubiquitous qualities, it also brings ongoing challenges. Not surprisingly, high on the list is data security, if the news is any indication. “Security is an obvious one, though not so much that it doesn’t end, as that we didn’t use to worry about it at all. Now we have to, and the problem will continue to get worse every year,” declares Inge.
Then there is the fact that technology development still moves at lightning speed. There continues to be the challenge of keeping up with changes, maintaining functionality with upgrades and convincing executives to continue to make the investments.
“Each seven to 10 years, there is a new generation of technology that challenges suppliers of systems to upgrade or rewrite in orders to remain current and fend off new competitors who are starting with a clean slate and no massive user base to service, a reality that distracts R&D developers of current solutions from concentrating upon only the next generation,” explains Berkus. “Hospitality technology vendors and users must learn to be agile and adapt to change — or suffer a loss of leadership or even relevance. This form of creative destruction has continued to ravage the industry from its technology beginnings and provides openings for new companies with new ideas periodically to shake up this industry.”
Keeping up With Technology Innovation
In a discipline that has been experimental, new and evolving; keeping up-to-date depending on information sharing amongst practitioners.
Horner explains, “The only way to stay current is to attend as many industry events as possible, as face-to-face contact is the best way to liaise with industry colleagues and get the information you want directly. HITEC is the first date in my diary and this year is my 27th in succession.”
He further explained, “Methodology to solve problems only comes with experience and if you have a good global network of contacts this helps as you can reach out to discuss with them what they did to solve a problem. Also, I have found common sense is a great starting point in looking to solve issues and sometimes this is lost in the desire to solve a problem quickly.”
Singh agrees, “In terms of problem solving, the key issue is to identify what the problem is. It seems like a no brainer, but many times the problem is not understood. The key to solving the problem is to look for the right resources, knowing who can help you address the issue; or if not, point you in the right direction.”
Another notable way to build knowledge is to accept the guidance of others. Hickox says, “I am fortunate to have a number of mentors who would freely exchange their thoughts on what was evolving from their labs. With this information I was able to undertake further research and determine how it may be applied within the industry.”
Final Reflections
As participants wrap up the conversation, they have some final thoughts to share:
Kasavana said: “Nothing can impact the way a hospitality business is planned, conducted or managed than a sound technology roadmap.
The industry has a promising future given the progressive evolution of sophisticated property management systems, food service management systems, and guest and non-guest operated interfaces.”
On hospitality professionals, Burns is intrigued by, “The need by hotel management staff for strong leadership, mental agility, despondency and a willingness to repeatedly reinvent their teams and their objectives.”
Read this full interview in the HITEC 2015 Special Report.
Nominate a technology pioneer for the 2023 Hall of Fame by April 17, 2023.
A Guide to Effective Channel Management for Hospitality Businesses
In the modern era of digitalization, managing your online distribution channels is crucial for the triumph of your esteemed hospitality enterprise. A professional channel manager can facilitate you in efficiently allocating your inventory to various online travel agencies, direct booking engines, and metasearch engines, thereby expanding your outreach and maximizing your revenue.
In this comprehensive article, we shall delve into the nuances of a channel manager, how it functions, and how it can be instrumental in unlocking new avenues of revenue for your business.
What is a channel manager?
A channel manager is a software application that allows hotels, vacation rentals, and other accommodation providers to manage their online distribution more efficiently. It enables them to distribute their inventory to various online travel agencies (OTAs), such as Booking.com, Expedia, Airbnb, and others.
The channel manager is a centralized platform connecting multiple OTAs, allowing hoteliers to manage their room availability, rates, and reservations in real-time across all distribution channels from a single dashboard. In addition, it automates inventory updating and rates across multiple channels, reducing the chances of overbooking and manual errors.
Additionally, the channel manager provides the following:
- Detailed reports and analytics.
- Giving property managers insight into their revenue and occupancy rates.
- Enabling them to make informed pricing and distribution decisions.
Using a channel manager allows property managers to save time, reduce costs, and increase their revenue.
What is channel management?
Channel management is managing the distribution channels businesses use to sell their products or services to customers. For example, in the context of hospitality and travel, channel management refers to managing the online distribution channels used by hotels, vacation rentals, and other accommodation providers to sell their rooms and services to travelers.
Effective channel management involves identifying and utilizing the most appropriate online distribution channels, such as online travel agencies (OTAs), direct booking engines, metasearch engines, and other third-party media. It also involves optimizing room inventory and pricing strategies, ensuring availability and rates are updated in real time across all distribution channels to maximize revenue.
Using a channel manager is essential for efficient channel management, as it enables property managers to easily manage their inventory, rates, and reservations across multiple channels from a centralized platform. By managing their online distribution channels effectively, hotels and other accommodation providers can increase their visibility, attract more guests, and maximize their revenue.
How does a channel manager work?
A channel manager connects a property’s inventory management system with multiple online distribution channels, such as online travel agencies (OTAs), direct booking engines, and metasearch engines. The channel manager acts as a bridge between the property’s system and the distribution channels, allowing updates to be automatically and instantly sent and received.
Here’s how it typically works:
- Property managers update their inventory and rates in their property management system (PMS).
- The channel manager picks up the changes and pushes them to all connected distribution channels.
- When a booking is made through one of the channels, the channel manager returns the booking details to the PMS.
- The PMS updates its inventory, reflecting the new bookings across all channels.
- The channel manager sends the booking confirmation to the guest and the channel distribution.
This process ensures that the property’s availability, rates, and inventory are updated in real-time across all connected channels, reducing the risk of overbooking, manual errors, and discrepancies. Additionally, the channel manager provides a centralized dashboard where property managers can manage their online distribution channels, track their reservations, and analyze their performance.
How can a hotel channel manager be used to unlock new revenue daily?
A hotel channel manager can be used to improve your hotel business in several ways:
- Increase your reach: A channel manager allows you to distribute your inventory to multiple online channels, such as OTAs, metasearch engines, and direct booking engines, increasing your visibility and reaching more potential guests.
- Optimize your pricing strategy: By monitoring market demand, competitor rates, and other factors, a channel manager can help you set the right room prices, ensuring that you remain competitive and maximize your revenue.
- Reduce manual errors: A channel manager automates the process of updating your availability and rates across all channels, reducing the risk of manual errors, overbooking, and cancellations.
- Save time and resources: Using a centralized dashboard to manage your inventory and reservations, you can save time and resources that would otherwise be spent manually updating your rates and availability on multiple channels.
- Improve your guest experience: By ensuring that your availability and rates are always up-to-date across all channels, you can provide a seamless booking experience for your guests, improving their satisfaction and loyalty.
- Gain insights and analytics: A channel manager provides detailed reports and analytics on your performance across all channels. This allows you to identify trends, optimize your pricing and distribution strategies, and make data-driven decisions to improve your business.
Overall, a hotel channel manager can help you streamline your online distribution, optimize your pricing, and improve your guest experience, ultimately driving more revenue for your business.
How to use a channel manager effectively?
To use a channel manager effectively, consider the following tips:
- Choose the right channel manager: Look for a channel manager that is compatible with your property management system and the channels you want to connect to. Consider the features, pricing, and customer support offered by different providers.
- Set up your channels correctly: Ensure that your channel manager is set up correctly and all your channels are connected and synchronized. Review your room types, rates, and availability for accuracy.
- Monitor your performance: Keep an eye on your performance across all channels using the reporting and analytics tools provided by your channel manager. Identify trends, gaps, and opportunities for improvement.
- Optimize your pricing strategy: Use your channel manager to monitor your competitors’ rates, market demand, and other factors impacting your pricing. Adjust your rates to remain competitive and maximize your revenue.
- Update your inventory regularly: Keep your inventory up-to-date across all channels by regularly updating your availability, room types, and rates. Ensure that changes are synced automatically across all channels to avoid overbooking.
- Use promotional offers: Use your channel manager to create promotional offers and discounts to attract more guests and increase your revenue. Ensure that your promotions are synchronized across all channels.
- Keep your content fresh: Ensure that your property information, photos and descriptions are up-to-date and attractive to potential guests. Use your channel manager to update your content across all channels.
By following these tips, you can use a channel manager effectively to improve your online distribution, increase your revenue, and provide a seamless booking experience for your guests.
What other systems can you use with a channel manager at your hotel?
There are several other systems that you can use with a channel manager at your hotel to streamline your operations and improve your guest experience, including:
- Property Management System (PMS): A PMS software system helps you manage your reservations, inventory, pricing, and guest data. A channel manager can be integrated with your PMS to automatically update your inventory and rates across all channels, ensuring that your availability is always up-to-date.
- Revenue Management System (RMS): An RMS software system uses data analysis to optimize your pricing and revenue strategy. A channel manager can be integrated with an RMS to provide real-time data on market demand, competitor rates, and other factors impacting your pricing.
- Online Booking Engines: An online booking engine allows guests to book directly on your website. A channel manager can be integrated with your booking engine to ensure that your inventory and rates are always up-to-date, providing a seamless booking experience for your guests.
- Customer Relationship Management (CRM) System: A CRM system helps you manage your guest data and interactions. A channel manager can be integrated with a CRM system to capture guest data from all channels and provide a unified view of your guests.
- Point of Sale (POS) System: A POS system helps you manage your on-site transactions, such as food and beverage sales, spa services, and other activities. A channel manager can be integrated with a POS system to streamline your operations and provide a seamless guest experience.
Integrating these systems with your channel manager can improve operational efficiency, provide a better guest experience, and maximize revenue.
What is the best channel manager for hotels?
There is no one-size-fits-all answer to the question of the best channel manager for hotels, as the best channel manager will depend on your specific needs, budget and requirements. However, here are some factors to consider when choosing a channel manager for your hotel:
- Compatibility: Look for a channel manager that is compatible with your property management system and the channels you want to connect to. Ensure that the provider offers seamless integration and synchronization across all channels.
- Features: Consider the channel manager’s features, such as real-time updates, automatic inventory management, multi-user access, reporting and analytics, and promotional tools. Ensure that the provider offers all the features you need to manage your online distribution effectively.
- Pricing: Look for a channel manager that offers transparent pricing and a pricing model that suits your budget and requirements. Consider whether the provider charges per channel, per room, or based on a percentage of your revenue.
- customer support: Ensure that the channel manager provider offers robust customer support, including phone, email, and chat support, as well as self-help resources and documentation.
- Reputation: Check the reputation of the channel manager provider by reading online reviews, testimonials and case studies. Look for providers who have a proven track record of helping hotels improve their online distribution and revenue.
Conclusion:
A hotel channel manager is essential for property managers who want to optimize their online distribution channels, increase their visibility, and maximize their revenue. By using a channel manager effectively, property managers can improve their pricing strategy, reduce manual errors, save time and resources, and provide a seamless booking experience for their guests. With detailed reports and analytics, property managers can make data-driven decisions and continuously improve their performance across all channels.
Expedia Recognizes RateGain as an Elite Connectivity Partner for 2023
Dallas, 16th March 2023: RateGain Travel Technologies Limited, a global provider of SaaS solutions for travel and hospitality, today announced its Elite Connectivity Partners status with the Expedia Group.
The Expedia Group recognizes and rewards a select few connectivity partners who achieved excellent results on various performance metrics, such as maintaining high-quality connections and helping lodging partners grow their business on the Expedia Group marketplace. This also means that RateGain will work directly with the Expedia Group to help shape their future products and technology solutions.
Comment on the achievements, Chinmai Sharma, President – Americas at RateGain, said, “Our goal is to provide excellent travel experiences to the guests while maximizing revenue opportunities for our lodging partners. We are delighted to receive the topmost connectivity partner status with Expedia; a recognition that shows our passion and commitment to solving the connectivity challenges for the industry.”
Expedia’s Connectivity Partner Program recognizes and rewards top connectivity providers for maintaining high-quality connections and helping lodging partners grow their business on the Expedia Group marketplace. To be eligible for Elite status, Expedia Group connectivity providers are rated on several technical and business criteria. Rate Gain earned the Elite status for its commitment to:
- Improving traveler experiences on Expedia Group websites
- Enabling a wide range of tools and capabilities integrated with the Expedia Group travel platform
- Providing a quality connection with a reliable user experience
- Ensuring a streamlined onboarding experience and high-quality support for properties
- Empowering business growth for our clients on Expedia Group websites
“RateGain has proven itself a top-class hospitality solution for lodging properties by providing them with the best tools and user experiences,” said Chris Hodges, Senior Director of Expedia Group Lodging Connectivity. “We congratulate them on their Elite status and are excited to continue working closely with them to unlock more capabilities so that our mutual hotel and vacation rental partners can focus on what matters most – delivering outstanding experiences to their guests.”
About Expedia Group
Expedia Group, Inc. companies power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success while facilitating memorable experiences for travelers. Our organization is made up of four pillars: Expedia Services, focused on the group’s platform and technical strategy; Expedia Marketplace, centered on product and technology offerings across the organization; Expedia Brands, housing all our consumer brands; and Expedia for Business, consisting of business-to-business solutions and relationships throughout the travel ecosystem. The Expedia Group family of brands includes: Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions , CarRentals.com™, and Expedia Cruises™.
About RateGain
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with 2800+ customers and 700+ partners in 100+ countries helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.
RateGain today is one of the world’s largest processors of electronic transactions, price points, and travel intent data helping revenue management, distribution and marketing teams across hotels, airlines, meta-search companies, package providers, car rentals, travel management companies, cruises and ferries drive better outcomes for their business. Founded in 2004 and headquartered in India, today RateGain works with Top 23 of 30 Hotel Chains, Top 25 of 30 Online Travel Agents, and all the top car rentals including 8 Global Fortune 500 companies in unlocking new revenue every day. For more information, please visit https://www.rategain.com.
Forward-Looking Statements
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential, and target dates for project-related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
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Global Head-Marketing