Hilton Archives - The Travel Vertical

Roundup: Experts Say Summer Travel Demand is Going to Be ‘Gangbusters’

May 10, 2022 by Laurie Jo Miller Farr Leave a Comment

Following last week’s earnings calls, what Marriott and Hilton are saying, plus reports on airline throughout from TSA, road trips from Arrivalist, recovery insights from U.S. Travel Association via Tourism Economics, and American traveler sentiment—including concerns about the pandemic, gas prices, and inflation—from Destination Analysts.

“We think the summer is going to be gangbusters for travel demand,” said Marriott CEO Tony Capuano in a CNBC interview. “We see extraordinarily strong leisure demand…but I think what gives us continued optimism is the recovery we’re seeing in the other two segments, in groups certainly but also in business transient.”

“We think this summer is going to be—after setting records in our business for travel demand and revenue last summer—we think this summer is going to be another sort of all-time record,” Hilton Worldwide CFO Kevin Jacobs said last week. Business travel will fully recover “by the end of the year,” he added in an interview with Yahoo Finance.

Have you seen the TSA throughput numbers? (Not to mention airfares!) In both March and April, the Transportation Security Administration screened an average of more than two million travelers at U.S. airport security checkpoints every day. These figures are only slightly below 2019.

But there are issues. Airline Weekly reports, “The recovery was looking good until a laundry list of non-pandemic issues got in the way. With results in from almost every major U.S. airline, the outlook is both bright and dim: Profits are set to return at most in the second quarter and continue through the rest of the year, but operations will be hamstrung by everything from staffing to rocket launches at Cape Canaveral. And the staffing concerns are not just with pilots. They range from crew training backlogs to competition for entry-level employees, and even air traffic controllers.”

Over Easter, U.S. travelers hit the road in numbers not seen in four years, according to Arrivalist. Last week, they reported good news, “U.S. overnight road trips jumped up 13.7% from the same week in 2019, good enough to push overnight trending up 6.7% from the 2019 and up 11% from this time last year.”

About six in 10 Americans are planning at least one summer trip. Despite higher gas prices, of those planning vacations, 35% expect to travel more this summer than last, according to the monthly Travel Recovery Insights Dashboard from U.S. Travel Association. However, nearly two-thirds of American travelers (63%) say rising gas prices will impact their decision to travel in the next six months. Data from 20+ partners is compiled by Tourism Economics.

What do American travelers think about inflation, gas prices, COVID, and going back to the office? Here’s a comprehensive update for May 2022 from Destination Analysts.

The Impact of Inflation, Gas Prices & Other Economic Factors on Travel

Many Americans seem to feel economic headwinds are inevitable. Right now, 59.0% of American travelers believe it is likely an economic recession will begin in the U.S. this year. Just 27.8% believe inflation will weaken this year and just 24.2% believe the U.S. will experience strong economic growth.
Inflation in consumer prices has led 23.2% of American travelers to cancel an upcoming trip, while 38.3% of American travelers agree that high prices have kept them from traveling in the past month.
If gasoline prices don’t come down, 58.0% of American travelers predict they will be taking fewer road trips this Spring and Summer, and 60.4% predict they will be staying closer to home on their road trips.
Fewer American travelers are now saying that luxury travel experiences are important to their leisure trips (35.6% down from 40.0% last month). While the average reported leisure travel budget for the next 12 months is at $3,857, this is still down from February, when it was at $4,283.
Americans feeling that the present is a good time to spend on travel is at 31.8%, a 10-point decline since the start of the year.
Nevertheless, Americans are still prioritizing their leisure travel. Nearly 90% have trips planned—3.0 on average. And despite the economic concerns, 60.6% continue to say their leisure travel is a high priority in their budget for the next 3 months. Americans recorded another record level of excitement about their leisure travel, as well. Over 80% did some trip dreaming and planning just in the last week alone.
While down slightly from the start of the year, many Americans also continue to feel optimistic about their financial future. 42.4% believe they will be better off financially next year compared to now.

Expectations for the Pandemic

More than half of American travelers—and over 60% of those Millennial or Gen Z age—feel largely that there is normalcy, a 20+ point climb from the start of the year.
Now only one-third of American travelers feel COVID will have a meaningful impact on their travel experiences, and fewer than one-in-five recent travelers felt pandemic anxiety on their last trip.
Interestingly, after more than two years of COVID-19, American travelers do reveal a wariness about the pandemic’s future. Over 45% of American travelers feel it’s likely that a dangerous new variant of COVID-19 will emerge in the U.S. in the remainder of this year. In addition, those that feel the pandemic situation will get worse in the next month has more than doubled over the last several weeks—to 21.5% from 8.7%. However, this wariness has not currently impacted their excitement for travel nor their confidence in their ability to travel safely.

The State of Business Travel

Nearly two-thirds of of American travelers feel it’s likely companies will require more employees to return to the office in the remainder of the year. However, only 36.5% of American travelers expect that business travel will return to pre-pandemic levels in 2022, as 64.7% believe that virtual meetings will continue to replace many in-person meetings.
Business travelers are certainly on the road, though. Over half of business travelers will take a business trip in the next 3 months—1.3 of these trips on average.

Huh, Hilton? AstroCartoGraphy = The Zodiac Knows

January 11, 2022 by Laurie Jo Miller Farr Leave a Comment

Does anyone find this travel campaign premise kinda goofy? Or is it good fodder for “steal this idea”?

On Jan. 3, 2022, Hilton issued what appears to be a completely serious press release based on the idea that “your next getaway is written in the stars…Each of the 12 zodiac signs belongs to one of four elements — Air, Fire, Water, and Earth — and they can tell you a lot about your vacation personality.”

“To learn more about where to travel based on the four elements of the zodiac, we chatted with Maya White, an astrologer who is also certified in AstroCartoGraphy and astrological mapping. AstroCartoGraphy is a branch of astrology that shows people where they should live and travel to, based on the planets’ positioning when they were born. So, if you’re trying to decide between a relaxing beach week, big city excursion or rejuvenating nature trip, let White and your zodiac sign guide you to the ultimate getaway.”

Umm, OK.

This from a leading global hospitality company with a history spanning more than a century and a portfolio of 18 world-class brands comprising more than 6,700 properties and more than 1 million rooms, in 122 countries and territories.

And, no kidding, Marriott Bonvoy Traveler has gone with the same concept — see this article, “Tap Your Inner Astrologer: Where to Travel Next Based on Your Zodiac Sign.”

Elvis Tribute Artist and a Hot Dog King Cheer On International Tourism and Experts Chime In, Too

November 9, 2021 by Laurie Jo Miller Farr Leave a Comment

America Is Open for Business

It’s been 602 days. Who’s counting? Everybody.

In Las Vegas, Elvis tribute artist Travis Allen is back on the job. Bliss Wedding Chapel already has new bookings from 23 couples traveling from France, Germany, Brazil and the U.K. Two weeks ago, owner Brandon Reed says there were zero weddings on the books.

In New York City in front of the Metropolitan Museum of Art on Fifth Avenue, Don Rossi’s street cart is open for business. Before the pandemic, he sold up to 500 hot dogs per day, which fell as low as 10 hot dogs during the height of the pandemic. The self-proclaimed Hot Dog King welcomes back the international visitors that he calls his “lifeblood.” (Source: USA Today)

Fully vaccinated international visitors from 33 countries are required to show official proof and a recent negative viral test. The airlines are responsible for verification.

The top-booked destinations for overseas travelers in November are New York, Miami, Orlando, Los Angeles and San Francisco, in that order, per Travelport data, with Brits emerging as the “most eager to get back to U.S. cities.”

It’s a welcome sign of recovery for the U.S. travel industry, which has seen flight bookings to and within the country rise to 70% of pre-pandemic levels, Bloomberg reports.

Excitement for Nov. 8 has been building overseas, with airlines reporting sold-out flights on Monday.

In London, the moment saw rivalry put aside as two flights from Heathrow simultaneously took off from parallel runways at 8:30 a.m. British Airways and Virgin Atlantic A350s orchestrated a first-ever double historic departure for JFK International Airport.

Just in time for the holidays. Congestion is expected as the U.S. opens back up. “It’s going to be a bit sloppy first,” Delta Air Lines CEO Ed Bastian said. “There will be lines, unfortunately.”

Increased wait time is also expected at border crossings. Closer to home, Mexican and Canadian visitors will be able to drive to the U.S. for non-essential purposes for the first time in 20 months, and some cars were lining up at the northern border over the weekend.

Visit Rochester‘s Rachel Laber Pulvino spoke on-air with Global News Toronto about “Bordering On,” a new campaign targeted at Canadians from New York State’s third-largest city, just 90 minutes’ drive from Canada and three hours from Toronto.

In Minnesota, Gov. Walz proclaimed Nov. 8, 2021 as “Canadian Travelers Day.” To mark the re-opening of international land borders to vaccinated travelers, a press conference highlighted the importance of Canada to Minnesota’s economy, along with travel marketing efforts to welcome back the state’s neighbors to the north.

Good news came from the busy San Ysidro Port of Entry. The San Diego Union-Tribune reported, “Border reopens smoothly to cheers, hugs and tearful reunions.” Before the reopening, “On Sunday night, hundreds of cars formed lines stretching back miles into Tijuana waiting for the clock to strike midnight, as tourists planned to cross into San Diego during the first hour of eased restrictions. Many said they used that strategy to try to avoid the peak rush-hour traffic later Monday morning.” However, “the milestone moment came with shorter lines and less traffic than anticipated, leaving international land travelers pleasantly surprised.

Latest Recovery News From Industry Movers & Shakers

Tripadvisor: CEO Steve Kaufer will leave his position in 2022, it was announced this week. “Steve Kaufer had a good run,” writes Executive Editor Dennis Schaal at Skift, “transforming a company with a small office over a pizza shop in Massachusetts 20 years ago into a global, household name brand. The issue for Tripadvisor isn’t who will replace Kaufer, but what innovations will it take to revive the company.”

YouGov: A new survey reveals that about one in five global consumers believes that celebrity and influencer endorsements are effective in travel advertising (18%). In a list of 11 retail categories asked about in 17 global markets, travel came in sixth. Indians and Chinese are among those most impressed; Brits, French, Italians, Swedes and Americans among those least. Download the report here.

Hopper: Since the re-opening of U.S. borders was announced in late September, travel app Hopper has seen international flight searches to the U.S. spike 338% for trips after 8 November.

ADARA: Thanksgiving Travel Trends Report: The upcoming holiday is demonstrating the best performance yet. Hotel bookings are within 6% of 2019’s level. Trip length patterns are reverting to norm while some traveler segments are splurging like never before.

Download the US Hotel Bookings Report to find out key traveler trends for the upcoming holiday season based on data from Aug. 15 to Oct. 7 comparing the booking and searching pace to the same period in both 2020 and 2021.

STR and Tourism Economics upgraded the hotel industry forecast for 2022 during this week’s NYU International Hospitality Industry Investment Conference. The experts are now forecasting U.S. hotel demand to reach “near full recovery” in 2022. Previously, they had forecast that demand would not fully recover until 2023.

Marriott International: The world’s largest hotel company reported improvement in the third quarter, as did CEOs from other large hotel chains. Group room revenues for the quarter were down 46% versus the same period in 2019. That’s a significant improvement over the second quarter 2021, which saw a decline of 76% versus the same period in 2019. Average daily rates for groups are up.

Hyatt: The company’s largest corporate accounts have grown by 50% since June and cancellations caused by delta variant in late summer leveled off and decreased in October.

Hilton: Leisure travel remained strong and business travel continued to pick up during the third quarter. Hilton experienced significant improvement in its results as compared to the same periods in 2020, due to an upward trend in travel and tourism. Certain hotels suspended operations at various times throughout 2020, but the majority of those hotels have reopened.

Airbnb: Following a busy summer, Airbnb’s revenue for the period ending Sept. 30 beat forecasts at $2.2 billion, up 67% from the same period in 2020 and surpassing 2019 third quarter revenue by 36%.

CEO Brian Chesky commented during the earnings call that, “Something bigger than a travel rebound is happening. The world is undergoing a revolution of how we live and work. For the first time ever, people can travel any time, anywhere, for any length, and live on Airbnb. This trend towards more flexibility will only accelerate.”

Pointing to work policies at some of the world’s largest companies such as PricewaterhouseCoopers, Procter & Gamble, and Amazon, Chesky said remote flexibility policies are evidence that this trend is here to stay.

On the international travel front, Airbnb has seen U.S. searches increase by 50% and bookings by foreign guests go up 44%. The most popular destinations are Los Angeles, Miami, New York, Orlando, and the South Florida Atlantic Coast for guests primarily traveling from London, Paris, Santiago, Toronto, and Vancouver.

AHLA: Considering the high price of gas, there’s a damper on road trips for Thanksgiving, according to a new national survey conducted by Morning Consult for the American Hotel & Lodging Association.

Expedia Group Media Solutions: The Q3 Travel Recovery Trend Report indicates that the industry is maintaining its momentum, search volumes are holding steady, and search windows are shortening. Holiday bookings are up by double digits and business travel is on the rise.

On a regional level, New York City leads the list for top 10 destinations by bookings from both global and North American-based markets. Starred cities indicate those new to the list this quarter.

Business travel demand in Q3 was up more than 40% quarter-over-quarter and up more than 110% compared to Q3 2020. Chicago and New York were among the top four booked destinations for business travelers globally .

Download the full report.

‘Let’s Meet There’ — Crucial Business Travel Must Get a Boost

June 22, 2021 by Laurie Jo Miller Farr Leave a Comment

In-person meetings, conferences, and conventions are critical to business travel recovery, which will not come until at least 2024 unless we take action to boost the segment’s pace.

Just 35% of U.S. businesses are engaging in any business-related travel, says Tourism Economics in a new report released last week. Lingering Covid-19 restrictions and a patchwork approach to reopening will prevent the crucial business travel segment from recovering until at least 2024, while leisure travel recovers to 99% of pre-pandemic levels in 2022.

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Spending on travel for large, in-person professional meetings and events (PMEs) declined by 76% last year—a $97 billion loss in spending. With vaccinations and infection rates in the U.S. trending favorably, restrictions lowered, and traveler confidence rebounding, domestic leisure travel is projected to reach 99% of its pre-pandemic peak in 2022 and to grow steadily thereafter.

But in the absence of clear and consistent guidance from federal health authorities on PMEs, business-related travel is not expected to recover its pre-pandemic volume for an additional two years. A staggering 65% of all U.S. jobs lost in 2020 were supported by travel, and they cannot fully recover without a swift return of all segments of travel, particularly in-person PMEs, according to the analysis. Read more here.

Hilton President & CEO Chris Nassetta said that while 2019 business travel levels are not expected for three years, it is possible to accelerate that. He said surveys show that 85% believe in-person meetings are “irreplaceable” and can safely happen.

Tourism Economics President Adam Sacks said those states that have opened early have “jumped out in front” in recovery. He said cities that have suffered the most during the pandemic are those that rely heavily on business travel and meetings. Sacks also noted a correlation between higher levels of education and getting vaccinated, noting on average higher levels of education among business travelers, thus more likely to be vaccinated. (Source: Travel Pulse)

U.S. Travel Association President & CEO Roger Dow presented “Let’s Meet There,” an industry-wide effort to restore professional meetings and events to try to boost the pace of business travel recovery. It was introduced during MPI’s World Education Congress held earlier this month in Las Vegas. Messaging leads with data, said Dow, indicating there’s a white paper to download put together by the Ohio State University School of Nursing looking at the safe staging of structured, well-organized events.

The U.S. hotel industry recorded its highest monthly performance levels since before the beginning of the pandemic. In May 2021, occupancy was 59.3%. Average daily rate (ADR) was $117.69. Revenue per available room (RevPAR) was $69.81. Each of the three key performance metrics were the highest for any month since February 2020. (Source: Hospitality Net)

Follow the Money: 9 Clues That Boost Recovery Hopes for 2021

January 12, 2021 by Laurie Jo Miller Farr Leave a Comment

Have you $potted $ome more $trong $igns of travel recovery? $hare the word.

Marriott International‘s luxury lifestyle brand Edition is plotting major global expansion in 2021, unveiling plans to open seven new hotels, including a 172-room property in Tampa.

In another development regarding the brand’s shuttered Times Square Edition hotel in New York, CFO Leeny Oberg said that “lenders have stepped in” and it could reopen.

Meantime, Sonesta International has turned into one of the largest U.S. hotel companies overnight with a global portfolio of 1,200 properties.

2. Twenty-plus giant cruise ships are set to launch this year and major cruise lines are planning restarts in 2021. A pre-pandemic 2020 had been intended to set records for ship deliveries and while many were completed and a few were delivered, they have yet to carry any passengers. Each one of the biggest of these floating cities with a capacity of 6,000+ passengers, is constructed at a cost well over $1 billion.

Celebrity Apex
Virgin Voyages’ Scarlet Lady and Valiant Lady
Lindblad Expeditions’ National Geographic Endurance and Resolution
Princess Cruises’ Enchanted Princess
Silversea Cruises ships, Silver Moon, Silver Origin and Silver Dawn
Regent Seven Seas’ Splendor
Holland America’s Rotterdam
Carnival Cruise Line’s largest ship ever, Mardi Gras
Viking Ocean Cruises’ Viking Venus
Royal Caribbean International’s Odyssey of the Seas
Ritz-Carlton’s first ship, the Evrima
Crystal Cruises’ Crystal Endeavor
Quark Expeditions’ Ultramarine
Ponant’s Le Commandant Charcot
Atlas Ocean Cruises’ World Navigator
Swan Hellenic’s Minerva
Costa Cruises’ Firenze

3. Is Las Vegas a harbinger of good fortune? The $4.3 billion, 3,500-room Resorts World is on pace to open this summer, giving a boost to the long-stagnant north Strip area. At Wynn Las Vegas, $14 million has been unvested in an upgrade of “Lake of Dream,” the exclusive-to-guests, popular hi-tech / futuristic theatrical experience that opened in 2005. The MSG Sphere at the Venetian is a distinctive music and entertainment dome by Madison Square Garden Entertainment Corp. due to open in 2023. At 366 feet high, more than twice Spaceship Earth at Epcot, it will seat 17,500.

4. There’s nothing like that new plane smell. JetBlue Airways’ first Airbus A220-300 out of a fleet order of 70, arrives at JFK International on New Year’s Eve following manufacture at Maas Aviation in Mobile, Alabama. With its low costs and small capacity, the aircraft is being touted as highly suitable for pandemic times. CFO Steve Priest said another seven A220s will arrive this year — one more than previously planned — and eight in 2022. Gradually replacing a fleet of 100-seat Embraer 190s by 2025, the A220 with 30 additional seats has 30% lower direct operating costs per seat and is projected to have 40% lower maintenance costs per seat. Delta is also flying the aircraft and startup Breeze will be next.

5. M&A: $100 million dollars in cash says it’s not as odd as it may seem for a pandemic hookup between a travel magazine and a timeshare company. Wyndham Destinations is buying Meredith Corp.’s 50-year-old title, “Travel + Leisure.” The new company will change its name to Travel + Leisure Co. and Meredith will continue to operate the media side of the business under a 30-year licensing agreement.

6. The Legoland Florida Resort has filed preliminary plans with the city of Winter Haven for an expansion of the 145-acre theme park. Travel Weekly reports that documents submitted include a demolition plan that outlines converting 4.5 acres of parking to another use.

7. On Feb. 11, JetBlue will launch its first of four new routes out of Miami, where Southwest debuted in late 2020. Southwest is also rolling out service at Chicago O’Hare in February and expanding into Bush International Airport in Houston in April. Allegiant announced a major service expansion of 21 routes in three new cities: Jackson Hole, Key West, and Portland, Oregon.

8. Hilton EventReady Hybrid Solutions is a new suite of offerings in properties around the world to address the anticipated pent-up demand for meetings and conferences. Event planners are directed to Hilton’s hybrid-ready hotels that provide them with dedicated planning resources. Presentation Stages are a clean and safe pre-built location to produce, record and/or broadcast a high-quality online event far exceeding production values available from the typical home or office. The Hilton properties equipped with event technology will accommodate 2-6 onsite presenters and up to 50 in-person attendees. Presentation Stages are currently at Conrad Fort Lauderdale Beach, Hilton Atlanta, Hilton Anatole, Hilton Denver, The Beverly Hilton with more coming to Cleveland, Minneapolis, New York, Wash., D.C.

9. Travel startup funding: Hipcamp, a startup that pairs people who wish to pitch their tents with landowners who want to accommodate them, has finalized a $57 million Series C funding round. Hipcamp’ investors are betting that demand for quality outdoor experiences exceeds supply, giving the company a valuation north of $300 million. Drone Interactive, which builds drones for amusement parks, has raised a seed funding round of $1.2 million from Incit’Financement and angel investors.