TECHNOLOGY
Left : Duetto ' s RMS platform . Here : Chris Crowley , chief revenue officer , Duetto .
RATING SUMMER Demand is expected to remain strong in key leisure destinations , like Las Vegas and New York , but demand in secondary cities may start to trail behind , predicted Crowley .
“ Full-service and extended-stay offerings globally will see strong performances ,” he said . Globally , room nights for this year are up 14 % on 2022 , ADR is up 9 % and rooms revenue is up 19 % compared to the same period last year , Duetto data said . For North America , all segments are enjoying a 6 % uptick in room nights this year , a 3 % gain on ADR and an 11 % lift in room revenue for this year compared with 2022 figures .”
Markets that eased restrictions early on in the pandemic , especially those in the Southeast , have been witnessing a decline , said Pivot ’ s Carr , and many travelers , especially affluent ones , are now looking abroad for trips as those markets open further . “ Florida , Georgia , Arizona and other destinations are seeing a decline as many vacationers have already experienced these destinations ,” he said . His colleague at Davidson , Kathy Hood , SVP of revenue management , noted the Caribbean , Mexico and Europe as popular destinations this year . “ This summer we could see some pressure on ADR ; however , if demand remains strong , we can continue to drive ADRs above last year ,” she said .
LOOKING AHEAD With demand remaining strong through the rest of this year , room rates and demand are expected to normalize through the end of the year .
According to Duetto data , Q4 is already looking promising , both for properties in North America and globally .
“ Q4 2023 is currently trending up 6 % on room nights , up 5 % on ADR and up 17 % on room revenue for North American properties compared to the same period last year ,” said Crowley .
Despite resort rates becoming softer than last year , travelers will still be looking for properties that offer full-service amenities and value for money .
“ The third- and fourth-quarter group patterns will be a baseline bellwether . Booking windows will remain short , resulting in continued volatility ,” Hood said . Given the existing financial situations ,
inflation is a key aspect when creating a revenue management strategy . Though the rate of inflation has been falling over the past 10 months since it peaked in 2022 , there is a segment of travelers that remain price sensitive when it comes to booking travel .
“[ It ] means that we will need to take that into account as we continue to set rates for our hotels ,” said Pahlke . “ At least for this summer , we are continuing to see incredibly strong demand across our portfolio .”
Patrick Pahlke , EVP and chief commercial officer , Sage Hospitality Group
92 hotelsmag . com Jul / Aug 2023