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Showing posts from August, 2017

Hotels, OTAs and Airbnb are firing up for a new war

By the time I finished writing the article, " Expedia, Priceline join battle against Airbnb ,"  hotel giants Marriott and Wyndham announced bold  new  strategic moves: Marriott is going to team up with Alibaba  to serve Chinese tourists abroad. The deal will enable Chinese travelers to book a Marriott hotel on Alibaba's travel service platform, Fliggy, and to process payments with Alipay, Alibaba's online payment platform. Wyndham purchased Love Home Swap  for $53 million, a startup that allows people to swap homes. Moreover, Wyndham is going to consolidate its timeshare business and turn its hotel unit  into a new publicly traded company . Hotels, online travel agents (OTAs) and Airbnb are basically competing for the same type of business — accommodations for travelers who are away from home. As the competition heats up, does it mean hotels, OTAs and Airbnb are now at war against one another? Let's check out what they do when facing stiff competition.

Expedia, Priceline join battle against Airbnb

The growth of Airbnb  has made a significant negative impact  on hotel business,  even though the hotel industry has also been enjoying a steady long-time growth since 2009, as measured in almost all performance indicators including occupancy, average daily rate, revenue per available rooms and number of new hotels open for business. For hotels, it is a loss of revenue (or uncaptured income) when a traveler chooses to stay in an Airbnb listing rather than a hotel room.  Hotels have been trying hard  to fight with Airbnb, but it does not seem any of their strategies can actually stop the growth of the room-sharing website. Besides hotels, Airbnb also makes a negative impact on online travel agents (OTAs), such as Expedia and Priceline, especially when Airbnb is aiming  to become a true full-service travel enterprise . Because a large portion of OTAs' revenue comes from the commissions on hotel sales, it is also a loss of revenue for OTAs when a traveler books a room elsewher

Staying Prosperous Year Round (by Victoria Alahuzos)

Many restaurants that are located in tourist and college towns usually shut down during their slow months, but is it possible to run a successful restaurant business year round? Jay Khan and Rob Longstreet, who are both restaurant owners, stated that: Yes, it is achievable to continue the business during the off seasons in the article --- " 11 Ways to Survive the Slow Season " (Barrett, 2017). Khan is the owner of RJ Mexican Cuisine in Dallas, Texas, and Longstreet owns the Craft Public House in Athens, Georgia. Both run successful restaurants year round as each owner follows the 11 simple steps to stay profitable, including: 1. Start planning early 2. Involve your vendors 3. Meet your neighbors 4. Run contests 5. Enlist outside help 6. Test new specials 7. Have a party 8. Hold a pop-up event 9. Spread the word 10. Follow up with previous guests 11. Trim operating costs (Barrett, 2017) These recommendations may appear simple and common sense, but in reality, man

7 technologies that will transform the hospitality industry by 2025

I was in Baltimore last week for the annual  iCHRIE  (International Council on Hotel, Restaurant and Institutional Education) Conference,  where hospitality professors and graduate students got together to showcase their research work and  network with one another .  Additionally, selected executives in major hospitality firms were invited to share their perspectives about the industry and their views on the future trends. For example,  Mike Webster , the senior vice president and general manager at Oracle Retail & Oracle Hospitality, spoke in the opening general session at the conference. He believed that by 2025, the following technologies would make transformational changes to the hospitality industry: 1.  Wearables Smartwatch sales in the global market  hit a record high  in the last quarter of 2016, at 8.2 million for the quarter and 21.1 million for the calendar year. Experts predict wearable tech  will make transformational changes  in the sport and fitness sector. Wi