Hotel Trends. Lodging Conference, 2017

Transcription

1 Hotel Trends Lodging Conference, 2017

2 Contents Measuring hotel brand value Homesharing trends 2

3 Brand Value For Brand Owners Brand Advantage and Brand Margin validate the value a brand delivers among key traveler segments. Competitive comparisons also differentiate one brand s position from others, helping to strengthen the business case for potential partners. For Hotel Owners In a crowded market place, a consistent, benchmarked score gives the hotel owner invaluable business intelligence on the value a brand can bring to a hotel. 3

4 Hundreds of brands are crowding the US hospitality landscape How many of them genuinely add value with consumers willing to pay a premium rate over and above the intrinsic product? Economy Midscale Upscale Luxury Source: STR 2017 Parent brands Individual brands 4

5 Brand Margin premium, across tiers for US guests This is the brand premium on top of the price for an unbranded hotel Luxury $42.87 $ Upscale $22.19 $44.76 Midscale $8.06 $27.26 Economy - $2.75 $ $20 $0 $20 $40 $60 $80 $100 $120 5

6 Brand Margin premium, tiers by recommendation status $110 $ $90 $70 $50 $30 $10 - $10 Luxury $61 Upscale $53 $33 Midscale $37 $14 Economy $20 $3 Detractors Passives Promoters Brand margin: Increase in magnitude between detractor and promoter 6

7 Brand Margin premium, tiers by age cohort $110 $90 $70 $82 $82 100% $50 $30 $10 - $10 $44 $33 $24 $9 $16 $3 Millennials GenX Boomers 76% 68% 29% Brand margin: Percentage of margin retained from Millennials to Boomers 7

8 Economy-Midscale Brand Margin comparisons by age cohort Brand comparison Millennials GenX Boomers $16 $15 $14 90% $9 $9 $8 $8 97% $7 $5 $6 $3 60% 11% $1 Hampton Inn Comfort Suites La Quinta Days Inn Brand margin: Percentage of margin retained from Millennials to Boomers 8

9 Luxury Brand Margin comparisons by age cohort Brand comparison Millennials GenX Boomers $120 $108 $112 $ % $82 $91 $85 $88 $92 $84 $92 $92 $87 104% 95% 95% $65 $80 185% Ritz- Carlton Grand HyaW JW MarrioW InterconZnental Trump 9

10 One step further: Brand Margin and awareness Brand Margin The price premium a brand could command Indexed with the highest brand in a tier at 100, and all others relative to that Brand Reach The extent to which consumers are familiar with the brand Indexed with the most widely-known brand in the market at 100, and all others relative to that Brand Advantage Score 100 is the theoretical maximum Brand Advantage Score

11 Luxury Brand Margin and brand awareness Differentiated brand view Brand Advantage Score The Ritz-Carlton Four Seasons Hyatt Regency JW Marriott Westin Waldorf Astoria Hotels & Resorts Grand Hyatt Trump Hotels W Hotels Sandals InterContinental Park Hyatt Fairmont St Regis Mandarin Oriental Loews Hotels Sofitel Kimpton $ Low Brand Margin Peninsula The Luxury Collection Conrad Millennium Small Luxury Hotels Destination Hotels & Resorts Rosewood Preferred Hotels Autograph Collection Leading Hotels of the World Aman Resorts Andaz Benchmark Resorts & Hotels Raffles Pan Pacific Design Hotels $ Ascend MGallery High For complete list of brands by hotel 4er go to hwp://bdrc- americas.com/products/hotel- guest- survey/brand- advantage- hotels/ 11

12 Homesharing trends

13 The big picture in the US Homestay site usage in past two years When you last booked homestay accommodation, what did you book? % of the market having used homestay sites 30% overall Average number of stays (among those who have used homestay) Total Own country Abroad The entire house % A room in a house % The entire A room in apartment % apartment % All Stays % for business reasons Business Reasons % for leisure reasons Leisure Reasons

14 Homeshare brands awareness & usage US Homeshare Site Awareness & Usage Aware and have used Aware BUT have not used Not aware Airbnb VRBO HomeAway Squarebreak Flipkey Owners Direct Oasis CollecZons onefinestay 24% 51% 25% 0% 20% 40% 60% 80% 100% *(Vacation Rental by Owner)

15 Homeshare awareness compared to hotel brands Awareness 11% 18% 30% 73% 77% 90% 51% 75% Prompted awareness among hotel staying market in the US

16 Airbnb user profile Airbnb users are younger and more frequent travelers 36% Age Cohorts Millennials GenX Boomers Travel behavior 1-5 nights 6-10 nights 11+ nights 35% 24% 15% 19% 16% 7% 16% 23% 10% 13% 21% Business Leisure Business Leisure

17 Motives for booking a homeshare site Leisure travelers Usual service Aer Economy Luxury The comfort of a home LocaZon Costs More living space Use of a kitchen Extended stay To accommodate a family Desire to experience local To accommodate large group 47% 46% 41% 40% 38% 37% 33% 29% 25% 30% 20% 10% 10% 20% 30%

18 Homestay: substitution impact on hotel room nights What would travellers have booked had they not chosen a Homestay site? % of stays Economy chain hotel 11% All stays Millennials GenX Boomers Midscale chain hotel 10% Upscale chain hotel 13% Independent hotel 9% Extended stay or serviced apartment 8% Bed & breakfast 7% Guesthouse 2% Hostel 5% Inn/Restaurant with rooms 5% Private rental or holiday home 7% Staying with family or friends 9% Camping (or similar) 6% Slept in vehicle 1% Travelled further to avoid overnight stay 4% Probably wouldn t have made the trip 3% Chain hotels 35% Independent hotels 9% Other paid-for accommodati on 35% New demand created 22% 32% 34% 47% 6% 12% 3% 39% 31% 34% 22% 23% 16%

19 Homestay: substitution impact on hotel room nights Business stays Leisure stays Economy chain hotel Midscale chain hotel Upscale chain hotel Independent hotel Extended stay or serviced apartment Bed & breakfast Guesthouse Hostel Inn/Restaurant with rooms Private rental or holiday home Staying with family or friends Camping (or similar) Slept in vehicle Travelled further to avoid overnight stay Probably wouldn t have made the trip Chain hotels 36% Independent hotels 10% Other paid-for accommodati on 36% New demand created 12% Chain hotels 30% Independent hotels 11% Other paid-for accommodati on 37% New demand created 23%

20 Contact Matthew Petrie President Liz Healy Director