MMGY Global COVID-19 Travel Insight Report - April 13th

Based on data from Wave III of our DMO Industry Barometer conducted with the Destinations International Foundation, it appears organizations could be turning from reactive crisis communications to proactive planning for a travel rebound. What will be key in developing road maps to recovery will be a balance between short-term tactics and long-term strategy.

  1. There is plenty of data to suggest that immediate bookings will be driven by more local travel and drive market trips.

  2. However, long-term strategies should not be forgotten - especially for long-haul markets where booking windows have the potential to lengthen based on safety sentiment.

  3. It will be important to sift between short-term trends and macro shifts in consumer behavior that will define the "next normal.

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Travel Agency Flight Centre to Shutter 800 Storefronts as Part of $1.2 Billion Savings Effort

Flight Centre Travel Group plans to close 800 retail stores, among other measures, in a bid to slash costs over the coming months. Some 40 percent of those closures involve agencies based in Australia.

The latest crisis plan follows a staff reduction of 6,000, including redundancies, out of its workforce of 20,000.

Among other measures taken, it has put a hold on all “non-essential capital expenditure”, which it said will lead to monthly operating savings of $40 million per month.

It could sell its Melbourne head office, valued at $37 million.

The group has also frozen sales and marketing activities, with the latter saving it nearly $11 million per month.

All of these operational cutbacks will incur a one-off cost of $127 million.

Liquidity boost

Flight Centre will also lean heavily on its banks, seeking $120 million of new commitments negotiations.

The update to the Australian Securities Exchange also noted that despite the crisis, last month it won new corporate travel accounts with annualized spend of $150 million.

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Avani Hotels and Resorts Announces Key Management Appointments in Asia and the Maldives

Avani Hotels & Resorts is announcing a number of key appointments for its new hotels in Thailand, Indonesia and the Maldives.

Avani Ao Nang Cliff Krabi Resort and Avani+ Koh Lanta Resort, Thailand

In Thailand’s south - Avani Ao Nang Cliff Krabi Resort’s newly renovated 178-keys completed in January 2020 and Avani+ Koh Lanta Krabi Resort which will offer 87-keys and secluded access to the stunning white sand Klong Dao Beach which is scheduled to open by end of 2020 will be managed by Farah C. Jaber as Cluster General Manager.Farah started his career with Minor Hotels in 2013 as an Executive Assistant Manager at Anantara Rasananda Koh Phangan Villas in Thailand.

Avani+ Khao Lak Resort, Thailand

Scheduled to open in late 2020, the brand new Avani+ Khao Lak Resort will offer 328-keys and direct access to the pristine beaches of Khao Lak, just north of Phuket. Stephan Moonen has been appointed as General Manager and Karun Cornell as Director of Sales & Marketing for the property.

Karun also brings more than 10 years’ hospitality experience and is a graduate of Thailand’s Mahidol University International College in Travel and Hospitality Management; upon completion of his study, he started his career with Bandara Hotels & Resorts while undertaking his Master degree prior to joining Fair House Group in Koh Samui as a Group Director of Sales & Marketing.

Avani+ Fares Maldives Resort, The Republic of Maldives

Scheduled to debut in 2021, the 200-key Avani+ Fares Maldives Resort is located in the Maldives’ Baa Atoll which is a UNESCO Biosphere Reserve that is home to unique species of marine, fauna, and flora. Marlon Abeyakoon has been appointed as General Manager for the property.

Avani Seminyak Bali Resort, Indonesia

Scheduled to be rebranded in mid-2020, Avani Seminyak Bali Resort will introduce 21 residence-style accommodations and 16 private pool villas to the popular holiday island with the announcement of I Made Subrata as the new General Manager.

Made began his career in hospitality on his home-island Bali as the pre-opening team of InterContinental in 1993

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Changes in the Housing Market Amidst the COVID-19 Pandemic Are the Result of Forces Much Larger Than Airbnb’s Community of Hosts According to Airbnb

COVID-19 has placed enormous pressure on just about every aspect of the economy. With thousands of planes grounded, scores of restaurants shuttered, and few people seeking overnight accommodations, the travel and tourism industry is at a standstill.

Third-party real estate economists have rebutted these claims, but we have received several questions about this matter, so we wanted to address it directly. 

Our analysis indicates that these claims are inaccurate: 

  • Today, there are more listings on the Airbnb platform than there were a year ago. 

  • In large cities popular with tourists, such as Las Vegas, Montreal, Rome and Paris, the number of active Airbnb listings have increased over the last 30 days. 

  • Among the top-20 U.S. and Canada cities, 80 percent saw a net change of fewer than 200 listings over the last 30 days. 

  • There has not been any meaningful change to Airbnb’s supply in our top-20 U.S. and Canada cities or in our top-10 European cities.

    We are at an unprecedented moment globally. Unemployment and lost income are rising quickly, leading to a decrease in demand for traditional, 12-month home and apartment leases. In recent weeks, web traffic to web portals has dropped as much as 40 percent, meanwhile U.S. searches for “rental” and “lease” are down 42 and 33 percentage points, respectively, in the last month, according to Google Trends.

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How to Get More Bookings With a Full Funnel Marketing Strategy

Whether you’re at a Hotel, Resort, Vacation Rental Management Company or a B&B, getting to full occupancy doesn’t happen overnight. There are thousands of businesses vying for travelers so your business needs to stand out from the rest. With changes to Google, OTA competition, Airbnb, and buyer behavior it can be a challenge to know how to market your property. In today’s travel landscape it’s essential to have a full funnel marketing strategy and be seen from traveler’s first Google search to creating a reservation at your property. This overview of how to get more bookings with a full funnel marketing Strategy will go over:

  • Top of Funnel: Awareness

  • Middle of Funnel: Engagement

  • Bottom of Funnel: Conversion

    Top of Funnel

    Top of funnel marketing involves getting your property found by travelers that are just starting their search. They may be going to Google and searching general keywords such as Wisconsin dells resorts or NY hotels. Others may start their search on an OTA or Metasearch site. These travelers are just starting their search, so how do you stand out from all of the travel businesses and be seen? Here are a few strategies on how to get more bookings by bringing in travelers at the top of the funnel:

    • Travel Blog

    • Paid Search: Top of funnel keywords

    • Marketplace Listings

    Middle of Funnel

    Congratulations! A traveler found your property online. Whether you’re marketing to a traveler who has merely seen your property online or who has booked through you previously they are now in the middle of your marketing funnel. With an average buying cycle of 80 days for travel, it is paramount to stay in front of them. Don’t let them forget about you! Here are some strategies on how to get more bookings by staying in front of travelers for the full buying cycle:

    • Email capture and email marketing

    • Social Media Retargeting Ads

    • Paid Search: Brand Protection

      Bottom of Funnel

      Now the traveler has found you AND is ready to buy! This is where you need to work to close the sale and get them to book direct. If they’re looking at your property on Metasearch you want them to pick your site so they can book direct. Once they’re on your site you want to keep them there to close the sale. Here are some strategies on how to get more bookings and close the sale.

      • Competitive pricing

      • Cart Abandonment

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Recommendations for Hoteliers on Digital Communications and Advertising Updates - By Nick Hopkins

We are immersed in a difficult and unprecedented time in the travel and hospitality industry. However, there are some steps you can take when it comes to your digital marketing to make the most of what you have available. Here are our recommendations:

Adjust your advertising:

  1. Add negative keywords.
    Add “coronavirus” and “COVID-19” related keywords to your negative keywords within the paid search channel to prevent your ads from showing up for related searches.

  2. Highlight key verbiage in ads and social.
    Verbiage like “flexible cancellations” or “daily housekeeping” should be highlighted in your ad copy or social media posts to put customers at ease with completing a booking at your properties. We are working with Google to get a callout extension approved for the meta channel that says “Flexible Cancellations.” If you are a current customer and would like to add this to your meta campaign, please contact your Business Development Manager.

  3. Advertise ancillary.
    Advertise ancillary outlets to the immediate local market in order to try to capture some revenue through these channels even if bookings for the industry are currently down.

  4. Maximize your low funnel channels.
    Do this to capture as many direct bookings as possible. While prospecting is important for the long-term, protecting direct bookings is vital at this time. Your direct bookings are still more cost-effective than an OTA commission.

Communicate with customers:

  1. Email your customers.
    If you haven’t done so already, send an email out to your email distribution list addressing COVID-19 and the steps you’re taking on property to keep your guests and employees safe.

  2. Get more social.
    Communicate to your customers on what is happening on property, future opportunities, thoughts from staff. It’s important to stay connected with your existing customer base.

Take a look at your data:

  1. Ensure you have reporting dashboards.
    You need dashboards that allow you to view daily visitor volumes and what content they are engaged with: conversion rates, booking window, campaign performance, cancellation rates, etc.

  2. Follow your booking window data closely.Leisure travelers are looking out to summer. Data shows an increase in flights purchased more than 90 days in advance so hotel reservations will follow.

What your short- and long-term strategy should look like:

  1. Short-term strategy
    Target drive markets with local packages. Ensure your campaigns are geo-fenced for efficient spend and engagement. It is imperative that all targeting and content are relevant and carefully messaged. Continually….refresh….content on your website and in your ads.

  2. Long-term strategy

    Target advance offers, summer packages or even holiday type specials. After a significant disruption like this, people will be looking for reasons to celebrate throughout the remainder of 2020 after taking a deep breath.

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Home2 Suites by Hilton Clovis Fresno Airport Opens in California

Home2 Suites by Hilton, part of Hilton's All Suites portfolio, opened on March 27th, its newest property, Home2 Suites by Hilton Clovis Fresno Airport. Designed for travelers who want to maintain their normal routine, the hotel features 111 suites and a range of value, tech-focused and eco-conscious amenities. Home2 Suites by Hilton Clovis Fresno is situated conveniently located 90 minutes away from 3 National Parks; Yosemite, Kings Canyon and Sequoia. In the Central Valley, visitors spend $4.5 billion on tourism and hospitality which supports 46,600 jobs generating $258 million in State and local tax revenues in 2018.

“Clovis’ proximity remains a destination to visit for both international and domestic traveler’s and we are excited to bring our modern extended stay accommodations to Clovis,” said Stephanie Rodriguez, General Manager, Home2 Suites by Hilton. “Guests enjoying the area will love our convenient location and customizable suites that fit the needs of every unique traveler.”

Located at 810 Santa Ava Avenue, just 4 miles north of the Fresno Yosemite International Airport, Home2 Suites by Hilton Clovis Fresno Airport offers guests convenient access to California State University, Lamonica Stadium and variety of eateries and wineries.

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Sabre Honored with Multiple Interactive Media Awards Recognizing Best-in-class Website Design for Hotels

Sabre Corporation , a leading software and technology company that powers the global travel industry, is thrilled to announce that it was awarded multiple HSMAI (Hospitality Sales & Marketing Association International) Adrian Awards for its SynXis Digital Experience Web Design solutions.

Winning entries included work for The Farmhouse Ojai’s website (gold), the Meritage Collection’s website redesign (gold) and the Setai Hotels’ website redesign (bronze).

Sabre is honored to be recognized by the HSMAI for delivering innovative web solutions that can improve user experiences, increase conversions and drive direct bookings for hoteliers across the globe,” said Justin Ricketts, iInterim President, Sabre Hospitality Solutions.

Selected out of more than 1,100 entries submitted this year, Sabre’s work was judged to have exemplified outstanding advertising, digital marketing, public relations, and integrated marketing in hospitality.

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MGM Resorts International Announces Appointment Of Bill Hornbuckle As Acting Chief Executive Officer

MGM Resorts International has announced that Chief Operating Officer and President Bill Hornbuckle, has been named acting Chief Executive Officer (CEO) and President, replacing outgoing Chairman and CEO Jim Murren.

Replacing Murren as the Chair of the Board of Directors will be Paul Salem, who currently is a member of the MGM Resorts Board of Directors and Chair of the real estate committee of MGM Resorts, which is in the process of executing the asset light strategy.

"The nation is facing an unprecedented crisis, causing the travel and hospitality industry to grind to a near halt. It is clear that once the threat to the public health has subsided and we are ready to reopen our resorts and casinos, it will take an incredible effort to ramp back up," said Paul Salem, Chairman of the MGM Resorts Board of Directors. "We believe continued steady, skilled leadership is needed in this time of great upheaval and uncertainty. Bill is one of the most experienced operators in the business and we have confidence in his ability to bring this company back online. Jim Murren is an outstanding leader who transformed MGM Resorts during his 22 years. Since Jim announced his stepping down from MGM Resorts, we felt that now more than ever, continuity of leadership was of vital importance."

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COVID-19: Hospitality Industry Seeks PM's Help

The Federation of Associations in Indian Tourism and Hospitality (FAITH), the nodal agency and policy federation of all the national associations representing the tourism, travel and hospitality industry has written to Prime Minister Narendra Modi stating the tourism industry is in dire straits because of the COVID-19 pandemic

With declining revenues almost all tourism businesses are running out of working capital

In the letter, FAITH has requested for a complete GST tax holiday for the tourism, travel and hospitality industry for twelve months.

"With almost nil revenues there is hardly going to be any GST collection,"

FAITH said as a result of this pandemic, the Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment. "It is believed that around 70% out of a total estimated workforce of 5.5 crore (direct and indirect) could get unemployed (3.8 crore).This effect of job losses and layoffs has already begun throughout the country," the letter stated.
The federation has also requested for a twelve months' moratorium on EMIs of principle and interest payments on loans and working capital from financial institutions besides a doubling of working capital limits on interest free and collateral free terms."This will prevent all our tourism businesses from going bankrupt,"

FAITH has also sought a support fund for 12 months on the lines of MNREGA to support basic salaries with direct transfers to affected tourism employees.

Setting up of a national tourism task force under PM's leadership to fast track all tourism investment proposals and to withhold the tax collected at source (TCS) on travel provision proposed in Finance Bill 2020 which is to be introduced from April 1.FAITH believes TCS on travel will displace business from India to overseas markets

A deferment of twelve months for all statutory dues

Release of SEIS and EPCG schemes on an urgent basis based on last year's submissions of foreign exchange earnings of companies at an enhanced rate of 10%, GST refunds on MICE cancelled events, a six to nine months' moratorium on all working capital principle, interest payments on loans and overdrafts bringing in liquidity

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Two new appointments at Palladium Hotel Group

Gabriel Rodriguez takes on the position of Director of Sales in Canada and Hugh Goodwin is appointed Director of Sales - Strategic Accounts for the Spanish hotel chain.

In his new position, Gabriel Rodriguez will strengthen the group's relations with Canadian travel agencies. He is a sales and marketing professional with more than nineteen years of experience in the travel industry, particularly in North American markets

Hugh Goodwin will be responsible for relationships and overall account management for strategic clients. He is also an established professional in the travel, airline and hospitality industries.

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Raffles Udaipur to open by the end of 2020

Hannaford , Vice president, Commercial, Accor India and south Asia .He said, “For Accor India, we have two hotels in pipeline in 2020. In March, we launch the Grand Mercure Bengaluru at Gopalan Mall. In the last quarter, we will be launching the much-awaited Raffles Udaipur towards the end of the year.”

Other properties coming up in the next two-three years include Raffles Jaipur, Fairmont Mumbai Sahar, Novotel Mumbai International Airport, Novotel New Delhi City Centre, Novotel Bengaluru City Centre, Ibis Bengaluru Hebbal, Ibis Mumbai LBS Road, Ibis Mumbai CST Road and Ibis Styles Goa Vagator.

When asked to comment on India as a top source market for Accor, He said, “India is considered one of the most important markets and this is the reason we are introducing our iconic brand, Raffles here; and continue to launch multiple hotels every year.

“Indian guests spend on hospitality experiences and this is evident at the global level as well. In terms of hospitality, India is a sleeping giant and has a great potential to become one of the best countries for the travel and tourism sector.”

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Meet on tourism, hospitality management at GITAM

On March 27 and 28, GITAM Hyderabad Business School is organizing a two-day international conference on ‘Tourism, Travel and Hospitality Management’ in association with Telangana State Tourism Development Corporation (TSTDC).

Anand Bethapudi said the two-day events will have specific objectives like:

  • Providing an interdisciplinary forum on tourism and hospitality designing,

  • Sustainability of destinations for practitioners and academicians;

  • Fostering dialogue among various stakeholders;

  • Proposing multidisciplinary strategies for economic, socio-political, cultural and institutional changes;

  • Allowing stakeholders to share their experiences and research outcomes;

  • Discussing the complexities encountered in promoting tourism and development destinations; and

  • Converging local-global partners for future research collaborations.

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