Black History Month 2022: “What Black History Month Means to Me”
A note from Kenny Imafidon on “What Black History Month Means to Me”
Aug 29, 2024
The overall outlook was cautiously optimistic. RevPAR growth is expected to slow to 2.5% in 2025; Price sensitivity of leisure travelers becoming a growing concern, enough so that several publicly traded hotel brand companies and real estate investment trusts lowered their full-year revenue per available room guidance because they expect less ability to grow rate. There were concerns over average rate growth slowing while travel demand is still high. Despite leisure declines there are positive trends in both group and corporate travel.
Gosia Turner, Director of Revenue Management at The Don Cesar noted the impact of vacation home rentals on the luxury market, specifically per bedroom pricing, she noted the opening of The Evermore in Orlando, a combination of a Conrad Hotel and vacation homes 4-8 bedrooms and apartments 2-4 bedrooms. Another topic that caught her eye was the need for a simplified booking process. How can hotels add Apple Pay and Google Pay as form of payment. Less clicking and typing for an experience like Amazon, Facebook, Instagram. “How fast are you done with shopping vs hotel websites”.
Andrea C. Martin, Director of Revenue Management at Margaritaville Hollywood Beach Resort thought the theme of idea of bifurcation, or how the industry is experimenting parallel trends was impactful. Examples include how Luxury and Upper Scale are growing, while Mid-Scale and Economy are hurting. Group ADR is increasing, and Transient ADR is decreasing. Transient demand is increasing mid-week (Corporate Travel), while Leisure demand is softening.
Victor Martinez, Senior Analyst in Strategic Operations found a theme regarding GDP when talking about the 2.5% RevPAR Growth YOY. With GDP being at an all time high, they mentioned that 2% – 3% could be what we see for the foreseeable future since we are “pushing the envelope”. With expenses rising, the there is a concern with overall profitability.
The entire team was focusing on how marketing has evolved. Generation Z is influencing family vacation plans, specifically using TikTok to plan their travel. It’s a channel where hotels are still being shy, but it has a lot of potential to capture their attention and bring them to the funnel. Email and even US mailer works for older generations, but hotels need to look at SMS and all forms of social media. Technology advances and AI will play a big part in the future of hospitality. While the AI buzzword is everywhere, speakers at a revenue management panel noted that regardless of the hype, it is another tool. Those who embrace new technology will thrive while those who don’t will fall behind.
Experiential travel was another topic that popped up in numerous presentations and conversations. Hoteliers need to understand the impact of unique events like the Soccer World Cup 2026, Taylor Swift concerts and local special events. I was honored to speak on the Independent Mindset panel where we discussed the need for independent hotels to create their own unique identity. That sense of place must pull through the entire guest journey.
At the end of the conference, everyone was excited to take all of the information back to their teams. The data and insights will assist Davidson Hospitality Group to grow revenues and profits for all stakeholders.