Scandic comments on low occupancy, rent negotiations
In November, Sweden-based Scandic Hotels Group’s average occupancy rate was approximately 20% due to extremely weak demand in all markets. According to the company, recently intensified rent negotiations have thus far led to agreements for rent reductions and offers for rent reductions from landlords totaling approximately 500MSEK (US$59). In November, market RevPAR is estimated to have gone down between 68% and 74% in Nordic countries. Demand has been weak in all markets due to the increased spread of COVID-19, Scandic says, as well as more comprehensive government restrictions. The situation is particularly critical in the capitals where occupancy is less than one-third of what would be considered normal. Scandic expects continued low activity levels in December and the average occupancy rate for the fourth quarter is expected to be about 20% to 25%.
Google launches travel, hotel insights tools
Search engine giant Google launched Travel Insights, a new suite of tools including Hotel Insights, which provides information on hotel booking demand based on Google searches in a hotel’s area, giving small and mid-sized businesses information about where demand for their property might be coming from. Other new features include Destination Insights, which provides year-over-year demand for particular areas, and Travel Analytics Platform, which shows a company’s account performance across Google’s travel search experiences.
Airlines and hospitality: The values of loyalty in crisis
A new article from consulting firm Deloitte, “The values of loyalty in a crisis for the airline and hospitality industries,” emphasizes the need for a shift in focus from “serving” to “adding value” for (potentially) loyal consumers. The article presents three main insights that are very much relevant in Europe:
- Research showed that the top two values of airline and hotel loyal frequent travelers are sharing with others and trying new things. In order to re-engage these travelers in the new normal, the industries should increase their focus on reward and loyalty programs with an emphasis on appealing to these values of sharing (digitally) with others and trying new experiences
- As the industry shifts towards the new normal, there is a new value that is of great importance — the feeling of safety. In line with that, the vast majority of airlines and hotels are focusing on making travelers feel as safe as possible through initiatives such as improving their sanitizing and housekeeping procedures, making it mandatory for employees to wear protective equipment, providing travelers with complimentary cleaning products, screening employee and traveler temperatures, and disclosing travelers and employees that have been tested positive for COVID-19
- As more interactions are moving online, airlines and hotels are expected to be more digitally enabled than ever before, leveraging this digital transformation to surprise and delight their loyal travelers by offering connection points to their friends and family back home. Deloitte is encouraging the industries to find points of differentiation for digital experiences and increasing positive interactions with the brand
IHIF conference moves to September
The International Hospitality Investment Forum (IHIF) will move its annual event from May 2021 to September 2021, providing the industry a longer recovery window from the COVID-19 pandemic. The 23rd edition of IHIF will be moving from May 4-6, 2021 to September, 6-8 2021 at The InterContinental Berlin, Germany. Those currently registered to attend the event will have their passes transferred automatically to the new date.