5 important US hotel and travel trends with the power to shape 2016

2016 Top Trends in US TravelFig Cakar, Managing Director – The Americas, SiteMinder

Fig is a hospitality all-rounder - banquets to restaurant manager, concierge to front desk, international sales manager to director of sales & distribution.

After more than 5 years leading the team as a Regional Director at Agoda in Sydney, Auckland and New York, Fig moved to SiteMinder and now manages North & South American operations from our Dallas office.In his spare time, Fig loves spending time with his kids and family - “just watching them grow”. Like all good Aussies he enjoys surfing, but he’s living the American dream and follows the Dallas Cowboys and has become an avid Tony Romo fan.

Fig CakarManaging Director, The Americas

Key trends for US hotels and travel in 2016Five top US trends: unlimited vacations; the sharing

economy; mobile travellers; online distribution; and US travel patterns

‘The Great Power Shift in Travel’Are you engaging today’s empowered traveller?

How can hoteliers can keep up?Search and research - can you be found?

Own your customers and get results!

What will we cover in today’s webinar?

Key Trends to Plan for in 2016

1. The rise of unlimited, paid vacations for Americans

Americans are notorious for having a limited vacation allowance compared to their European counterparts - with no guaranteed right to time off in the States vs. four or five weeks of annual leave in Europe:

● 40% of Americans are estimated to not use all of their vacation time

● 13% of employees will take no paid vacations at all

● 54% of Americans feel “vacation-deprived”

Source: WTM Global Trends Report in association with Euromonitor

1. The rise of unlimited, paid vacations for Americans

But the tide is changing…

● Netflix, Evernote, and Virgin Group - to name just a few - are leading the charge by offering staff unmonitored and / or unlimited vacations.

● More vacations would be a win-win for the hotel and travel industry and employers, with benefits for both being seen, coupled with an improved work/life balance for employees.

Source: WTM Global Trends Report in association with Euromonitor

2. The rise of all things mobile and small screen

Mobile is playing a bigger role in travel…

● Convenient access to prospective guests that hotels haven’t had before

● Connected guests are sharing more of their trips with family and friends - creating influencers and brand ambassadors for your property

● Mobile bookings for lodging in the US expected to grow to 29% of all 2016 direct bookings

● A mobile website is the most implemented technology among independent lodging providers, according to research from Phocuswright, co-sponsored by SiteMinder.

Source: Advertising Club of New York’s Vertical Series / Phocuswright + SiteMinder

2. The rise of all things mobile and small screen

And it’s all becoming seamless, from pre- to post-stay…

● On-the-go guests expect a comprehensive, seamless booking experience for travel plans

● It takes 80+ days for the average consumer to make just TWO travel decisions - therefore thinking that the last touchpoint is the selling point is outdated. The entire experience is now the selling point.

● Booking opportunities are everywhere. In order to stand out, hoteliers must be relevant and authentic online by creating seamless, mobile experiences for prospective guests - and most importantly, keeping up with the small screen trends.

Source: Advertising Club of New York’s Vertical Series

3. The rise of sharing hotel facilities with Airbnb guests

Hotels are acting like startups by increasingly opening facilities to non-guests and making them available in order to compete with the likes of Airbnb by offering these people something Airbnb can’t always deliver - golf courses, spas, swimming facilities, cocktail bars, fine dining etc.

One great example of this trend is Marriott...

● A place to work, rather than just sleepThe Marriott ‘Workspace on Demand’ program offering short-term working environments that can be booked by the hour or the day. It’s attracting younger people by responding to the shift in the approach to flexible working attitudes - and generates an alternative revenue stream for those hotels challenged by the phenomenal uptake and success of the sharing economy.

4. The rise of more accessible, global travel

Easing political tensions means Americans are on the move

• Americans will be eagerly traveling to destinations that were previously restricted due to international politics.

• Travel to Cuba will double in 2016 as travel restrictions are lifted and educational tourism takes off in this area.

Source: WTM Global Trends Report in association with Euromonitor / Advertising Club of New York’s Vertical Series

4. The rise of more accessible, global travel

Lines between business and leisure to blur - creating “Bleisure Travel”

● The increasing importance of work-life balance is leading business travellers to factor in leisure activities during their travels.

● Hotels should expect to experience a rise in the number of business travellers extending their stays into the weekend - and even bringing the family along.

● They are always connected thanks to WiFi, and they aren’t stuck in a nondescript hotel business center. While on the road, travellers are getting work done in a café, at a restaurant, in a park – anywhere with reliable access.

Source: Advertising Club of New York’s Vertical Series

4. The rise of more accessible, global travel

The top US destinations for 2016 as ranked by travel bloggers are:

Source: http://www.johnnyjet.com/2015/10/travel-trends-for-2016-as-predicted-by-travel-bloggers/

5. The (continued) rise of online room distribution● Online hotel bookings in the US will rise to 44% by 2017, from 42% today.

● Despite efforts by properties to drive business directly, OTAs will continue to grow market share in the short term and represent more than 52% of online gross bookings by 2017.

● Independent lodging operators acknowledge the importance of effective distribution, but lack the ability, systems, budget and time to exploit these opportunities effectively.

Source: Phocuswright + SiteMinder

5. The (continued) rise of online room distribution● Most do not align budgets with stated priorities, creating a vicious downward cycle and resulting

in greater dependence on third parties.

● OTAs dominate online sales of independent lodging properties in the US, controlling over half (52%) of online distribution in 2015, as opposed to 41% through direct online channels.

● Despite OTA volume, nearly three quarters (72%) of independent properties believe their direct website to be their most important distribution channel, and two thirds (67%) expect to increase direct online distribution over the next two years.

Source: Phocuswright + SiteMinder

“There are an estimated 480 online hotel bookings per minute.”American Hotel & Lodging Association, 2015

Online distribution is growing fasterthan the entire travel market.

The Great Power Shift in Travel

Source: UN World Tourism Organization

More people are traveling than ever before

The Balance of Power is shifting

Guests no longer consumetravel advice - they create it

The industry plays a less influential role than it used

to

Consumer decisions used to be driven by high

street travel agent sales staff

Travel has evolved from a seller’s to a

buyer’s market

Businesses have been slow to adapt

to changing consumer habits

Only 1% of vacationers say they DO NOT use the Internet for

holiday planning

Travellers have more information than ever9 in 10 vacationers conducted research

before booking their last trip

Source: “Engaging the empowered holidaymaker”, Deloitte UK

Online travel

agencies

Online review

sites

Meta search

sitesHotel

websitesSocial media

Traditional travel agents

Higher review scores = more guests

Travelers are 3.9 times more likely to choose a hotel with higher review scores when the prices are the same

When hotel prices are increased for hotels with better review scores, travelers are more likely to book the hotel with the higher score even when it costs more

76% of travelers were willing to pay more for a hotel with higher review scores

Positive reviews are everything to the guest

Digital changes traveler decision-making!

Digitally-led travel decisions have

changed the booking journey from a

straight path to a complete cycle.

Consumers are empowered by review

sites – each traveller’s experience feeds into

another traveller’s decision process.

Metrics such as price, star ratings, and consumer review scores are playing an

important role in driving bookings.

The GFC has changed the mindset of the traveller – the

desire to hunt for the best deal has become a habit.

Source: Deloitte UK – Engaging the empowered holidaymaker

How You Can Keep Pace with Trends

Digital distribution is a massive

opportunity…

…but takes a tremendous

amount of work to stay relevant.

All of thisin addition to running a busy hotel!

SiteMinder connects to the world.Your connections to the industry include:

• 250+ regional & international OTAs

• Seamless GDS integration• Key wholesale partner

connections• Critical meta search sites &

engines• Top direct booking engines

All integrated to your existing PMS / CRS / RMS systems.

250+ connections to the world’s top booking channels

120+ integrations with leading PMSs, CRSs and RMSs

Flexible rate management with pooled inventory and self-mapping for full automation and control

The Channel ManagerReal-time online distribution

Direct, commission-free bookings via your website, mobile and social

Internet booking engine fully customized to your brand and website for a seamless booking experience

Multi-language and currency to target global travellers

The Booking ButtonOnline bookings with no commissions

Simple website creation using purpose-built templates optimized for mobile

Effortless website management requiring no technical expertise

Beautiful, SEO-friendly websites for optimal search ranking

CanvasProfitable hotel websites with purpose

This is why SiteMinder now assists over 19,000 hotels to increase their global presence and reach.

160Countries

6Continents

120+PMS / CRS /

RMS Partners

250+DistributionChannels

We let the numbers speak for themselves

Using SiteMinder technology, hotels globally generated 27 million reservations worth $10.8 Billion

over the past year.

250+ connections to the world’s top booking channels

120+ integrations with the world’s leading connectivity partners

Thank You!

If you’d like to learn more about how SiteMinder can help you stay ahead of travel trends visit:

www.siteminder.com