Alta Thoughts (December 2024)
By Rakesh Patel
I have just navigated the heaving festive airport crowds on arrival at London Heathrow airport. According to many reports, it’s going to be a very merry Christmas in the travel and hospitality business.
Hotel bookings for Xmas are up strongly on last year, with diverse destinations like Germany (+43%) and Indonesia (+26%) leading the way – travellers are not skimping when it comes to events with family and friends
Airlines and airports are bullish too. Americans continue their love for European destinations, with United Airlines reporting a 30% surge in European destinations Xmas bookings versus the 2019 peak. Will Heathrow be able to cope with the volume, given its recent disruptive track record? They are hopeful, and are forecasting a record-breaking December.
Here are a few of our recent thoughts posted on LinkedIn. Always good to hear your feedback and exchange ideas. You can follow us directly on LinkedIn and go to our website.
Exploring the ROI of sustainability
Sustainability in hospitality is a critical topic for our industry. As an investor, sustainability and profitability sit alongside each other. Whether it’s a new build or a retrofit, the ROI case is an important factor and has to make sense.
The good news is that the cost of some initiatives like energy efficiencies and renewable energy systems, are at point where the ROI is attractive. This is further enhanced in countries where governments offer credits, subsidies, grants and financing. Alongside the operational efficiencies garnered, this is also about future-proofing assets.
The biggest challenge is the installed base of hotels, particularly those that are independent, where the owner may not have the vision nor the financing to retrofit for the future. This is where governmental carrot/stick action is imperative.
Will Hotel Direct Bookings Overtake OTAs?
The battle for customer ownership is on, with Skift forecasting that direct bookings could outstrip OTAs as the dominant distribution channel by 2030. There is clearly a drive from hoteliers armed with better digital tools to make this happen. And this is not just big brands winning share with their powerful booking engines.
The independents are getting in on the act too, utilising Google’s organic search, SaaS, social media, alongside the growth of mini-brands.
Expect the direct hotels and OTAs to invest heavily in innovation and new ventures, as each fights to win customer turf.
The soft power of quiet luxury
What is the new black? The definition of luxury travel is evolving.
A whole generation of affluent travellers, who have been fully satiated through years of leisure and business travel, are switching ostentatious luxury brand chasing, for a more understated and meaningful experience.
They are redefining what luxury means and are more willing to seek out unique, independent, local brands, that can deliver something more authentic.
