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5 Tips for Hotels to Capitalize on Increasing Spikes in Travel Demand

by
Hotel Tech Report
5 days ago

The travel industry rebound is well underway but the recovery remains uneven and demand trends are rapidly evolving.  The guest acquisition strategies that succeeded prior to the pandemic are less likely to succeed in the new normal. In a recent global study conducted by Revinate, 68% of travelers said they would feel more comfortable returning to a hotel they’ve stayed at before. Many of the highest value guests in the world have already stayed at your hotel.  These repeat guests are cheaper to bring back to your property and tend to spend more than new visitors.  Revinate’s study also found that repeat guests spend 67% more during their stay than new guests. This attractive pool of potential customers is sitting in your guest database and we’ll walk through how to attract them. In this article, we’ll share five tips to help you capture your guests’ attention (and travel dollars).  We’ll cover how to ensure your past guests book with you and not another previously visited destination.  We’ll provide guidance on how to incentivize profitable direct bookings and maximize the revenue opportunity with every sale.   Use Segmentation to Attract High-Value Guests As lockdown restrictions begin to ease, hotels need to segment their guest database to identify high probability bookers based on local market conditions.  For example, where international travel restrictions remain in place - hotels need to focus on domestic and drive markets using personalized messaging and offers targeted to guest segments like families to sell more rooms. Creating smaller, focused segments and targeting with personalized and specific action-oriented messages yields materially higher returns. Revinate’s global survey found that segments of 10,000 contacts or less tend to generate 2x revenue compared to larger segments.  Small hyper-targeted segment campaigns are also much more cost-effective because they tend to result in lower unsubscribe rates.  Every contact in your database has the potential to yield revenue in the future, so unsubscribes present a very real hidden cost that many hotel marketers wrongfully overlook.  Additionally, every campaign takes time to create and execute so when those campaigns aren’t yielding results there is a significant opportunity cost.   Leverage Revenue Upsell Opportunities Post-Booking Another effective, revenue-generating marketing strategy is to offer upsells to guests who have already booked at your property but haven’t yet arrived.  Bringing back old guests is far cheaper than finding new ones, but upselling existing guests can yield even more profitable outcomes. According to the Revinate survey, the most popular upsells last year included pre-purchased food and beverages, early and late check-in and late check-out, and room upgrades. Additionally, hotels that have sophisticated segmentation strategies can get extremely creative with campaigns.  If your hotel is popular among families, you could promote a “movie night in” package to the portion of your database who have previously stayed with their kids. Similarly, if your hotel is cozy and romantic, you might want to offer a “date night” package that includes a bottle of champagne or a takeout dinner for two from your restaurant.  When formulating an upsell strategy you’ll want to create segmentation rules so that the right offers go to the right guests.   Communicate Health Measures in Booking and Pre-Arrival Campaigns It’s no secret that health and safety are top of mind for travelers in the rebound.  In fact, Revinate’s survey shows that safety, cleanliness, and pandemic risk-mitigating measures are top priorities for travelers - even topping price and location as decision-making factors for the first time ever.  Hotels looking to minimize cancellations are wise to create pre-arrival “clean theater” campaigns educating guests about health measures taken on property and in destination to boost confidence leading up to every trip.  Running campaigns that communicate health measures that your property has taken can also influence guests to book with your hotel in the first place.  During times of uncertainty, clear and transparent communication is the key to instilling confidence and driving bookings.   Avoid Generic One-Time Promotions It’s tempting to blast your database with generic offers to save time but these campaigns create database fatigue which results in poor campaign engagement and email unsubscribes. The best hotel marketers share relevant, timely, and personalized offers to targeted segments of their databases.  While it takes a bit more thought and planning to set up these campaigns, behavior-based automation with tools like Revinate means that you can “set it and forget it” for the most part. Automated campaigns can be triggered in real-time by actions that your guests take, they provide high lifetime value and generate strong engagement. Automated campaigns such as pre-arrivals, on-property welcome letters, win-back offers, and birthday promotions receive, on average, 270% higher open rates than unsegmented offers. This translates to more direct bookings, loyal guests, and upsell opportunities.   Grow and Maintain a Healthy Database While marketing creativity is vital, growing and maintaining a healthy guest database is the foundation of a profitable long-term guest acquisition strategy. Database health can be measured via growth rates, unsubscribe rates, and campaign engagement. Implement a data collection process when guests check in. This way you can gather accurate contact details from guests whose information may have been masked through OTA bookings. With this information, hoteliers can build strong relationships with guests through personalized communication, from pre-arrival to post-stay. Time and effort invested into expanding your hotel’s database pay off with extremely high returns on investment.  As the industry rebounds, focus on growing and maintaining your base of loyal, repeat guests. Create processes to collect, clean, maintain, and action on guest data - finding the right Hotel CRM is key. The good news is that many of these vital processes can be automated via technology partners like Revinate.   This content was created collaboratively by Revinate and Hotel Tech Report.

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How Are Hoteliers Adapting to Welcome Travelers Back in 2021?

by
Hotel Tech Report
4 days ago

We certainly don’t need to tell you that the COVID-19 pandemic has shaken up the travel industry. But despite all the pandemic’s negative effects, this unusual year has inspired many hoteliers to take the leap into new technology that will enhance guest stays in 2021 and beyond. According to recent studies conducted by Amadeus, people are eager to travel again, with 75% of survey respondents stating they would travel within just three months of loosened restrictions. Although many of those travelers might feel nostalgic about the world “before,” the data shows that travelers expect technology to help reduce physical touchpoints, encourage social distancing, and more. In fact, 84% of respondents said hotel technology would actually make them feel more confident that they can stay safe and healthy on the road. In this article, we’ll explain five key areas where hoteliers can strategically implement technology to give guests a warm welcome to the “new normal.” By the end of this article, you’ll have a solid understanding of guest expectations and exciting innovations in the travel and tech space.   Staff Collaboration Tools Help Improve Team Efficiency at Lower Staffing Levels With 87% of travelers feeling skeptical that their peers are following health and safety guidelines, impeccable housekeeping and maintenance service is more important than ever. If guests think their fellow travelers didn’t wash their hands before pushing elevator buttons or opening doors, then your employees need to go above and beyond to keep your property clean. You’ll want to do whatever you can to avoid housekeeping mishaps that could break guest trust, and a key element of success is staying organized and avoiding lapses in communication between staff. Staff collaboration tools make teamwork a breeze - even with teams that work on different schedules or in different locations. Software like Amadeus HotSOS gives hotel managers and employees the power to log maintenance issues, centralize housekeeping requests, record guest preferences, and more. The app integrates seamlessly with Amadeus’ own PMS as well as 100+ other systems, so your tech stack can work harmoniously.  “We use Amadeus HotSoS for logging guests’ needs as well as general area maintenance, such as lighting fireplaces, old light bulbs, clogged sinks, broken tiles, missing paint. To be able to log and communicate with housekeeping, engineering and bell in this manner is excellent,” a Resort Activities Manager in Rancho Palos Verdes told Hotel Tech Report. Collaboration tools like HotSOS not only reduce communication lags and potential friction between departments, but they can enhance the guest experience by helping staff provide faster and more accurate service. In a post-COVID world, it’s even more crucial that guest expectations are met (if not exceeded) and that hoteliers can reduce costs wherever possible.   Use Customer Messaging to Communicate Compliance and Safety Local health restrictions are changing frequently, and today’s traveler needs to stay in the know - and they need to receive information from a trusted source, like from their hotel. Hoteliers are implementing customer messaging tools like Amadeus GMS to communicate rapidly changing regulations and standards with guests. Whether you need to alert guests about a new travel restriction or share the good news about reopening the spa, guest management technology can help you spread the word. 42% of respondents even say that technology that provides on-trip updates to local guidelines and outbreaks would make them more confident about traveling. If you’re considering adding a GMS to your hotel’s tech stack, you have no shortage of choices. Through customer messaging platforms, you can communicate with guests via their preferred method. Some guests prefer email, while others prefer text messages. Some platforms, like Zingle (which integrates directly into HotSoS, even support WhatsApp and Facebook Messenger). Plus, you can set up automated messages that will free up your employees’ time while increasing guest engagement.   Ditch Guest Room Phones for Smart Assistants Hotel guest room phones have been slowly dying out for years and the advent of smart assistants like Google Echo and Amazon Alexa accelerated their decline. Why? According to the Amadeus research, 61% of travelers would like to use voice assistant technology if present in their rooms. Hotels and larger groups like Viceroy are welcoming guests back to hotels by eliminating in-room phones and allowing them to order via the same technologies they’re using at home like mobile apps and smart speakers. Smart assistants powered by software like Volara are preprogrammed to control every facet of the in-room guest experience going far beyond the capabilities of in-room phones without adding significant cost. Volara’s voice technology integrates seamlessly into Amadeus HotSOS to fulfill service requests.   “The reality is anything you can do to limit direct contact with other people and even our own surroundings is part of widespread change in personal behaviors. Guests no longer want to have to touch the remote control or use the guest room telephone to make service requests. If a guest has forgotten toiletries or needs to report maintenance issues for instance, or even play music, watch shows, set alarms, or request more towels, they will want to do so in a contactless manner.  Having the ability to simply ask an in-room voice assistant to help fulfill special requests and preferences will be an opportunity to increase guest Loyalty,” says Volara CEO Dave Berger in an interview on the Amadeus blog.   Eliminating Lobby Crowds with Contactless Check-In Like with contactless ordering, offering a contactless way for guests to check in to your hotel is the welcoming touch that every traveler wants these days. Amadeus’ research shows that 62% of travelers would prefer to handle check-in and check-out via an app, so hoteliers that don’t yet have a technology solution for contactless check-in are making it a priority to implement one. Both guests and employees enjoy peace of mind when they don’t need to exchange physical credit cards, IDs, registration cards, and pens. “There are a number of ways the PMS can become a key component of the new guest experience. First, advanced two-way integrations with other supporting systems (CRS for instance) will allow for synchronized data across platforms to capture and make data actionable data coming from new apps. Second, many PMS systems provide simple and robust integrations with hundreds of third-party systems to make the implementation of new mobile services and tools simple and painless. Finally, some PMS systems offer open APIs, which make it possible to integrate with custom internal apps. This allows hotels and hotel chains to innovate at their own pace, and be more agile,” says Patrick van der Wardt, Head of Sales Specialists International, SO, S&C, PMS at Amadeus. Besides just providing a solution for check-in without physical contact, contactless check-in software can personalize the guest experience further by offering upgrades and add-ons that can lead to incremental revenue. -- As we’ve learned throughout the pandemic, guest preferences and expectations are changing rapidly. COVID-19 ushered a new wave of contactless technologies and efficiency driving software into the hotel industry. As we prepare for a travel rebound, hoteliers are still in a prime position to optimize their tech stacks to ensure they are able to capture and maximize on new business opportunities. Every facet of the guest experience is being reimagined with the creative use of technology from booking to check out. Let market data like this Amadeus research and the needs of your own guests guide your technology decisions and set your hotel up for success in 2021.   This content was created collaboratively by Amadeus and Hotel Tech Report.  

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Hotel Apps Aren’t Just for Going ‘Contactless’: Why Hotels Need Apps Even After Covid-19

by
Stefano Mocella
2 weeks ago

‘Contactless’ has been one of the biggest buzzwords of the past year, not just in the hotel industry, but in worldwide commerce.  The pandemic forced businesses everywhere to adapt to safer measures and to make an effort to reduce points of contact. Some parts of the world are easing into normalcy, which is obviously welcome news for hoteliers worldwide who are eager to welcome back guests. However, instead of returning to the old normal, how about creating a normal that makes the guest experience better than ever? A recent study by Taxi2Airport revealed some interesting numbers.  58% of travelers would be willing to pay more for paperless check-in.  47% would pay more for access to a 24/7 digital concierge.  58% would rather book a hotel restaurant reservation on their mobile device, rather than in-person.   More profitable stay with every guest Studies have also shown that guests are more likely to upgrade in-room amenities throughout their stay if they have the option to do so with their phones.  With this knowledge in mind that guests in fact would be willing to pay for these digitalized options, hotels can find clever ways to monetize their app. Even if hotels choose to offer their app for free, there are still ways in which this will ultimately lead to a more profitable stay with each guest. It could be as simple as offering 10% off a meal at your on-site restaurant when downloading the app. Once guests have the app and have the ability to: check out your hotel’s services, view upgrade options, or order room service online, you’ll have a guest who’s far more engaged and more likely to be fully satisfied with their stay.    Eliminate the biggest pain point for guests The biggest priority for any hotelier is to ensure their guests enjoy their stay and receive the best possible service from staff. However, it’s difficult to get staff on hand 24/7 to respond to all guest inquiries.  And that is the biggest source of frustration for guests. Two-thirds of guests’ biggest complaints stem from staff either being unpleasant to deal with (38%), or there were delays in service (31%). Obviously, technology can’t fix rude staff, only training can do that. However, delays can in fact be dealt with, using the right hotel software.   It’s not just about contactless, it’s about convenience  It remains to be seen how much contact guests will want with staff in post-pandemic life. However, one thing that’s certain is that hotel apps are convenient for guests. Apps can offer keyless entry (so guests don’t have to worry about carrying/losing a key), check-in and out at flexible times, get in-room service quicker, and much more. Giving guests the power at their fingertips will also give your hotel a better chance to upsell throughout the guest’s stay, as they’ll always be connected with your app.   Having your own branded hotel app is something not only your guests will love but will make your staff more efficient and ultimately, boost your bottom line.  

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Using Contactless Channels To Enter a New Era of Running a Hotel

by
Sandra Holland
3 weeks ago

Since the advent of the pandemic, and well before it, contactless channels have garnered tremendous attention as a safe, efficient and effective way for hotels to communicate with their guests. In fact, today around 70% of hotels are already planning to adopt contactless technology for check-in, food ordering, concierge services and more. With its immense potential for the future of hotel operations and its rapid growth in guest preference, it’s no wonder why hoteliers are fast to adopt it. In this article, we’re exploring contactless communication and how it has become a necessary consideration when entering a new era of hospitality.   The State of Hotel Communication Today Over the past 10 years, how hotels interact with their guests has changed greatly. The rise of COVID-19 not only pivoted many communication strategies, but accelerated the pace in which we adopt new digital forms of contact such as apps, social media platforms, and more. As a matter of fact, in a recent survey, consumers highlighted the desire for contactless payments (35%), digital room keys (26%) and digital messaging services (20%) as the top three changes that would make them feel more comfortable staying in a hotel. With the demand for new efficient communication channels progressing, the need for hoteliers to invest and evolve their digital programs becomes critical.   Contactless Channels on The Rise  Within hospitality, apps are undoubtedly one of the most influential contactless channels to adopt. In a Hotel Management 2020 report, 62 percent of respondents said they would prefer to use contactless check in (and out) through a hotel app. In addition 80 percent of respondents said they would download a hotel app that would allow them to check in, check out and get all information about the hotel. With an app, consumers can easily navigate the hotel experience (without face to face contact), whether it be by communicating directly with a staff member or mobile ordering something on-demand. Social media channels also hold a promising role in communication. According to “Statista, in the second quarter of 2018 the total number of social media users was 3.297 billion people worldwide, which corresponds to a penetration rate of 43% in a total market of 4.087 billion internet users.” Social channels have tremendous reach and cater to a wide variety of individuals. Using these channels, you can personalize the experience by getting a glimpse of guest social profiles, leverage automation features and send feedback surveys to better understand your guests. What’s more, social media isn’t segmented by geography, so hotels with greater international guests can utilize these channels to engage worldwide. Lastly, email and SMS will continue to rise in adoption. As two traditional channels that are already leveraged by a wide array of hotels for booking confirmations, itineraries, and post-stay follow ups it’s important to leverage both of these channels, in conjunction with more engaging channels, when communicating with guests.   How Contactless Can Benefit Your Hotel Streamline booking and ordering.  For hotels, contactless channels not only enhance the guest experience but also streamline hotel operations. According to Travel & Tourism Analyst, Ralph Hollister, it’s reported “in 2021, hotels will increase their adoption of technology that will reduce the number of touchpoints. Abilities such as online check-ins and check-outs, mobile keys and room settings controlled by Internet of Things (IoT) technology will become much more commonplace.” In this, administrative tasks such as booking and ordering will become much more streamlined. As an example, if a hotel has an app, dine-in ordering can be done through on-demand navigation. Customers can simply browse the dinner menu, click on their desired order and pay all from their personal device. From an operation standpoint, the whole process is automated, the order goes directly to the kitchen and management has direct access to the data from guest orders. Greater Customer Retention.  As proven through the aforementioned statistics, contactless communication is a growing guest preference that can make or break the experience. By adopting contactless communication, you show your guests that you listen to their opinions and implement their preferences - which can come with a number of benefits. Aside from staying safe, by adopting guest desires, you increase the likelihood of greater satisfaction, improve upsell, encourage greater conversation, and of course, improve retention rates. What’s more, adapting to common preferences ensures you meet new customer demands as well. Insight for improved experiences. Using contactless channels, hotels can obtain insight that can’t be captured with face to face conversations. This can help tailor individual discussions, but also the experience as a whole. By referring back to conversations with guests, you can obtain insights such as: preferred communication channels, trending topics of conversation, busiest times of day, top performing employees, average response time, best performing touchpoints and so on. By utilizing this insight you can adjust experiences in real-time and allocate time and resources to specific areas of your business to ensure a satisfied stay.   Technology Paving the Way  It goes without saying that utilizing contactless channels within your hotel has tremendous benefits for both your guests and your hotel operations. However, managing these channels and gathering data in an effective and efficient manner can be complex, especially without the right technology. For many, utilizing a channel management system, or an automated experience platform can be the turning point for a successful contactless communication strategy. In fact, according to International Hospitality Review’s latest research, “a touchless, adaptable and customizable automation platform featuring all front-office operations and answering particular business requirements could be a solution that the industry needs post-Covid-19.” Having the right technology in place can be a game changer for hotels, whether for managing communication or gathering data. That said, regardless if an added technology is in the cards for your hotel, contactless communication should be a strong consideration. Adding convenience for customers and relieving employees of added work, it’s a massive tool and for entering a new era as a hotelier.   

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18 Must-Have Features of a Hotel Management System

by
Hotel Tech Report
1 month ago

Choosing a hotel management software system is like buying a car: it’s easy to feel overwhelmed by the plethora of options, and it can be difficult to find trusted advice about the PMS features you need most. “There’s often a misconception in business software that one size fits all. Every hotel has very specific needs based on property size, chain scale, geography, and dozens of other variables. On top of that, every owner or manager has their own preferences in terms of design, usability, and support.  It is absolutely critical to narrow down the problem you’re trying to solve to engage with PMS vendors, and ensure you aren’t being sold on things that your property doesn’t need” says Amelia Gain, CEO of popular Hotel PMS company Preno. Hotel industry veterans often use the analogy of a duck on a lake to describe hotel operations.  Above the surface, the duck appears calm and collected, but under the surface its legs are kicking furiously. Guests are often stressed with their own travel plans, or are trying to escape stress altogether during their holiday, so it is critical for staff to appear calm and relaxed regardless of the hustle and bustle. Technology is one of the key tools that hoteliers leverage to make operations appear effortless to guests, and hotel management software is the single most important system in the entire hotel. Whether you work at an independent bed and breakfast or a global hotel chain, your hotel management system is the nucleus of your property. Nearly every member of a hotel team must access the PMS to perform daily tasks. Guest service staff need to prioritize hotel rooms that must be cleaned for early VIP arrivals. Sales & event management professionals need to block off rooms for groups. Hotel managers need to access the system for data and operating insights. Hotel management system vendor selection is one of the most important and difficult decisions a hotel operator will ever make. By the end of this article, you’ll know exactly what to look for so that you can make informed technology decisions for your property.   The Most Essential Hotel Management Software Functionalities Let’s start with the basics. These features are true must-haves for any modern hotelier who wants to use technology to improve the guest experience, make back office operations more efficient, and build lasting relationships with guests. Intuitive & easy-to-use interface: A user-friendly interface is the most important factor when choosing mission-critical software for a hotel. If your hotel software is complex and confusing, more mistakes will be made, costing you more money. Common tasks should not take lots of time and steps, as this slows down your team and limits your ability to grow quickly – hence the need for a powerful hotel management software system. Mobile & tablet optimised: When your manager, housekeeping team, and other staff members need to check details on a booking quickly they shouldn’t have to rush back to the office. Any system you use must not only be accessible by, but also optimized for use on mobile phones and tablets. Better yet, your owner should be able to check performance while on holiday. Clear visibility of the grid: Adding special events that are happening in the region, highlighting returning guests, and identifying guests who are yet to pay their bill are all features your grid should enable by default. Your grid should allow you to quickly & easily see key information about your guests. Guest profiles: Are you working on building guest loyalty? Guest profiles store your guests’ contact information, stay history, and even preferences, so that you can deliver a more personalized experience during their next stay. Better yet, a guest profile with stored CC’s of your guest will make it even easier for returning guests.  Email automation: You can communicate with guests and reduce manual work for your staff by deploying personalised, customised, and automated emails. Using your own templates, automated email functionality allows you to build a communication journey from the initial booking to targeted offers for repeat guests. Housekeeping management: Your PMS should allow your housekeeping team to mark rooms as clean, dirty, or out of order. Having this information in one central place gives the front desk visibility of room statuses, so that they can accommodate early check-in’s and room moves without needing to radio the housekeeping supervisor.     Reservation management: Perhaps the absolute most essential PMS feature is reservations management and front office features. By housing all of your reservations digitally, hoteliers can make a paper reservation book a thing of the past. Within reservations management, you should be able to set rates, control availability, offer promotions, and visualize reservations on a calendar. Room management: The room management module of a PMS is like your virtual front desk. This functionality lets front desk agents check guests in and out, and cancel or extend reservations with just a few simple clicks. Group bookings/reservations: If your hotel plans on hosting any type of event or group of guests, then group reservations functionality is crucial. Group reservation features include allowing guests to book reservations within the room block, exporting a room list, and configuring billing settings so that you can bill one account for multiple rooms. Invoicing: When most guests check out, they want a copy of their bill, so, your PMS should be able to easily export guests’ folios that contain all charges from their stay. Similarly, you’ll want solid, straightforward financial reporting that helps you reconcile revenue and expenses from room revenue, outlets, vendors, and more. Payment processing: Gone are the days when guests paid with cash or cheque, so you’ll want a PMS with a payment processor integration that allows you to effortlessly charge guests’ credit cards and have secure access to major payment gateways. Business intelligence & reporting: How do you know if your hotel is doing well if you can’t measure your performance? A PMS with robust reporting features will give you insight into your revenue, ADR, RevPAR, and a slew of other metrics so that you can find opportunities for growth – and track your progress toward your goals. Rate management: Do you want to offer a non-refundable rate or value-added packages? If so, you’ll want rate management functionality that allows for multiple, customizable rate plans.     User logs & permissions: With so much turnover in the hotel industry, it is important to keep front-line staff accountable with detailed user logs to have an automated record in case of any mistakes, as well as to ensure proper training and issue resolution. Additionally, we are living in a world where consumers demand heightened security, so it is critical that staff are only able to access the parts of the hotel management system required to complete their core tasks without unnecessarily accessing sensitive information like credit card data.   Key Software Integrations to Supercharge Your Hotel Property Management System A PMS is an important software partner in its own right, but running a hotel is very complex, which usually means that more feature functionality will be needed than a PMS can provide.  For that reason, some of the most important PMS features are actually software integrations with other key systems to unlock more value and performance through real-time data sharing and triggers. Let’s explore some of the most critical PMS add-ons. Accounting software: Accounting is an ever-changing, complicated industry, and you don’t want to be stuck with software that is out of date when rules change. As such, you should look for software that has robust and complete integrations to the world leaders of accounting software like Xero. This will empower you to streamline your invoicing, reconciliation, commission payment, and billing processes and automate repetitive tasks to help your finance department run more smoothly. “Whether you’re tracking agency commissions or configuring payment policies for groups – it is vital for hotels of all sizes to have a seamless integration between their property management system (PMS) and hotel accounting software. Why? It saves countless hours of tedious administration via automation,” says Preno’s CEO, Amelia Gain. Point-of-sale system integration: If your hotel has a restaurant, bar, spa, or other outlets, then an integrated POS can do wonders for your operations. When your POS can talk to your PMS, guests can seamlessly charge purchases to their room, and you can keep a record of guest purchasing activity to analyze trends and personalize future loyalty offers. Channel manager: Do you work with third-party channels like Booking.com and Expedia? If so, you’ll need a channel manager to push your rates and availability to these platforms, and more. In return, it will send reservations back to your PMS to capture more hotel bookings. A channel manager can also prevent overbookings by syncing with your PMS since it will know when to turn off distribution as a certain room type gets sold out. Channel manager software solutions are also important for hotels to optimize the allocation of rooms across channels and to ensure maximum profitability.   Booking engine: Allow guests to book directly with you, with no expensive commissions. An online booking engine, which publishes your rates and availability to your website, collects the necessary information from guests, and creates reservations in your PMS. Looking for more advice and information on hotel management systems? Download Hotel Tech Report’s 2021 Hotel Management Software Buyer's Guide to inform your vendor search.   This content was created collaboratively by Preno and Hotel Tech Report.

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The Ultimate Guide to Hotel Stocks in 2021

by
Hotel Tech Report
1 month ago

The tourism industry is slowly coming off its worst year in history. Last year saw the lowest occupancies in the history of the industry.  Business travel was completely shuttered, and leisure struggled in most markets as planes were grounded.  Often in the darkest of hours, the best stocks and investing opportunities present themselves. Now, travel outlooks remain cautious but optimistic. Hotels are reopening and accepting bookings and the share prices of publicly traded hotel stocks as well as hotel REITS, or Real Estate Investment Trusts, are shifting back to post-Pandemic levels. The uptick in these share prices is inline with Wall Street’s overall performance lately. With the vaccine rollout combined with Congress’ $1.9 trillion fiscal stimulus package have boosted investors’ confidence. They were also encouraged by the Labor Department’s jobs report for February showing that employers added hundreds of thousands more jobs than expected. In turn, the S&P 500 and the Dow Jones Industrial Average both showed gains, an indicator that the market could be headed towards an upswing.  So whether you’re new to investing or already have experience in other investment sectors, now is the time to consider putting your money in the hotel sector. It’s an opportunity to put the adage “buy low, sell high” to the test. Once travel and tourism return to pre-pandemic levels, so will these stock prices. If you follow the traders on Reddit’s Wall Street Bets (WSB), you’ll know that the “tendies” or financial gain on the stock market, are lower when you buy stocks at their peak. Like this group of non-traditional Reddit investors and cryptocurrency speculators, accessing the metrics on hotel stocks should also reflect the new normal that we’re living in. Gauging a stock’s one-year, three-year or five-year performance today won’t present an accurate picture of its future potential as the drastic dip that all stocks experience in 2020 will dramatically skew that outlook.   Hotel Chain & Casino Stocks There are also a variety of hotel investments to consider, which translates to a number of diverse money-making opportunities. There are, of course, the major hotel brands like Marriott International Inc. and Hilton Worldwide Holdings Inc. as well as casino resorts like Wynn Resorts Limited and Caesars Entertainment, with which you’re probably already familiar. These are C-corporations that are primarily built on the business of hotel management, marketing and branding and often, franchise licensing. They pay corporate taxes on dividends. This popular mid- to large-cap stocks are popular investments because their brand names are well established globally and investors have likely stayed in the hotels. That first-hand experience of the products also tends to result in positive sentiment among investors, which helps to keep stock prices at reasonable levels and make them relatively safe bets. Prior to the pandemic, the most noticeable trend happening among these hotel companies was the introduction of new brands. The intent behind this move was to create more opportunities to expand franchise and management contracts in markets that were already saturated by other brands under the companies’ umbrella. However, the pandemic has stalled this growth strategy. Similarly, pipeline development also slowed and in some instances reversed course as hotel owners and investors pulled back once the pandemic hit and existing hotels began closing. Consequently, stock prices may remain somewhat stagnant until expansion plans are underway again.   Marriott International Inc. is arguably one of the most popular, if not the most well known, of hotel stocks. Based in Bethesda, Maryland, the company has a portfolio of more than 7,600 properties under 30 brands in 133 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts globally. The stock trades as MAR on NASDAQ. In 2020, Marriott International generated over $10.5 billion in revenue and saw annual EPS decline to $0.31 from $1.16 in the 2019 fiscal year (FY). From 2009 to 2019, Marriott stock has returned 10% higher compared to NASDAQ composite and 44% higher compared to Dow Jones Large Cap. According to CNN Business, 18 analysts offering 12-month price forecasts for Marriott International Inc. have a median target of 135.00 with a high estimate of 175.00 and a low estimate of 119.00.  Hilton Worldwide Holdings Inc., (NYSE: HLT) operates and franchises 6,400 hotel properties under 18 brands in 119 countries in addition to licensing vacation ownership resorts. The company’s revenue for 2020 total $4.31 billion and annual EPS dropped from $3.04 in FY 2019 to $-2.56 for FY 2020. During the decade between 2009 and 2019, Hilton’s stock returned 126% higher compared to NYSE composite. As per CNN Business, the consensus among 18 analysts for 12-month price forecasts is a median target of 123.50, a high estimate of 140.00 and a low estimate of 100. Hyatt Hotels Corp. (NYSE: H) Headquartered in Chicago, Hyatt’s has 20 brands under its corporate umbrella and more than 975 hotels, all inclusive resorts and wellness resorts throughout 69 countries across six continents. 2020 revenue for the company was in excess of $2 billion although annual EPS for 2020 was -$6.93, which was a significant from 2019 annual EPS of $7.21. Between 2009 and 2019, the stock returned 28% higher than the NYSE composite. Fifteen analysts offering CNN Business a 12-month price forecasts for Hyatt Hotels Corp have a median target of 72.00, with a high estimate of 95.00 and a low estimate of 55.00. The median estimate represents a -14.11% decrease from the last price of 83.83. Accor SA (OTC Pink: ACCYY) This Paris-based company trades on the Euronext Paris exchange. However, U.S. investors can purchase shares through the Pink Open Market. The company’s product offering is comprised of 5,000 hotels and residences across 110 countries worldwide. Revenue for the full year 2020 €1.6 billion when annual EPS was -€8.69. Annual EPS for 2021 is estimated to be -€1.09. In the 10 years spanning 2009 to 2019, Accor returned 52% lower than the Euronext 100 composite. As reported by CNN Business, the 12-month price forecasts of 18 analysts for Accor SA has a median target of 8.38, a high estimate of 10.97 and a low estimate of 4.68.  Intercontinental Hotels & Resorts (NYSE: IHG) With $992 million in 2020 revenue, this hotel company has nearly 6,000 hotels throughout the America, Europe, the Middle East, and Australasia and China. More than 880,000 rooms are currently open and another 272,000 rooms are now in the pipeline. 2020 EPS for the stock declined 168.31% from 2019. However, IHG has returned 120% higher compared to NYSE composite in the decade between 2009 and 2019. The 12-month price forecasts of 20 analysts include a median target of 63.29, with a high estimate of 78.23 and a low estimate of 50.07. Choice Hotels International (NYSE: CHH) has more than 7,100 hotels or nearly 6,000 rooms, in over 40 countries and territories. Lodging options range from full-service and limited service hotels in the upscale, midscale, extended stay and economy segments. 2020 revenue was more than $774 million and 2020 adjusted diluted EPS was $2.22, a decrease of 49% over the prior full year period.  The stock also returned 168% higher than the NYSE composite over the 10 years from 2009 to 2019. The 10 analysts offering a 12-month price forecasts for Choice Hotels International Inc have a median target of 105.50, with a high estimate of 122.00 and a low estimate of 90.00. Wynn Resorts Limited (NASDAQ: WYNN) owns and operates Wynn Las Vegas, Encore Boston Harbor, Wynn Macau and Wynn Palace, Cotai. For the year ended December 31, 2020, operating revenues were $2.10 billion and annual EPS was $-19.37, a 1784.35% decline from 2019. In the 10-year period between 2009 and 2019, Wynn Resorts Limited (WYNN) has returned 75 percent lower compared to the NASDAQ composite. The aggregate 12-month price forecasts for Wynn Resorts Ltd have a median target of 120.00, with a high estimate of 157.00 and a low estimate of 99.00. MGM Resorts International (NYSE: MGM) is a global entertainment company with a portfolio of 29 hotel and destination gaming offerings that include casinos, meeting and conference facilities, live entertainment experiences and restaurant, nightlife and retail products. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. In 2020, net revenues were $2.2 billion for the company’s Las Vegas Strip resorts and $2 billion for its regional operations. MGM China had net revenues of $657 billion in 2020.  Adjusted EPS was a loss per share of $3.94 in 2020, compared to Adjusted EPS of $0.77 in 2019. MGM Resorts International (MGM) returned 115% higher over the 10 years from 2009 to 2019 in comparison to the NYSE composite for the same period. Fourteen analysts offering 12-month price forecasts for MGM Resorts International have a median target of 37.75, with a high estimate of 50.00 and a low estimate of 28.00.  Caesars Entertainment, Inc. (NASDAQ: CZR) is one of the largest gaming-entertainment companies in the U.S. and one of the world's most diversified gaming-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's®, Horseshoe® and Eldorado® brand names. Caesars generated approximately 3.47 billion U.S. dollars in revenue in 2020, when annual EPS was -$13.50 compared to annual EPS of $1.03 in 2019. The stock returned 59 percent higher than the NASDAQ composite in the 10 years over 2009 to 2019. The 12 analysts offering 12-month price forecasts for Caesars Entertainment Inc have a median target of 97.50, with a high estimate of 115.00 and a low estimate of 90.00.  Las Vegas Sands (NYSE: LVS) is a developer and operator of meetings, incentives, convention and exhibition or MICE-based integrated resorts, including Marina Bay Sands in Singapore and through majority ownership in Sands China Ltd., Sands developed the largest portfolio of properties on the Cotai Strip in Macao, including The Venetian Macao, The Plaza, Four Seasons Hotel Macao, The Londoner Macao, The Parisian Macao and Sands Macao.  The company recently entered into definitive agreements to sell its Las Vegas real estate and operations, including The Venetian Resort Las Vegas and the Sands Expo and Convention Center for an aggregate purchase price of approximately $6.25 billion. Casino and entertainment resort company Las Vegas Sands generated approximately 3.61 billion U.S. dollars in revenue in 2020. However, EPS for the 12-months ending Dec. 31, 2019 was -$2.21, a year-over-year decline of 163.14%. But from 2009 to 2019, the stock returned 62% higher than the NYSE composite and 14 analysts collectively a 12-month price forecast with a median target of 67.50, a high estimate of 84.00 and a low estimate of 50.00.   Real Estate Investment Trusts (REITs) REITs are another investment option. Unlike hotel companies, hotel REITs –and all REITs for that matter— own, operate or finance real estate with the objective of generating income. Similarly to mutual funds, REITs combine the capital from multiple investors who earn dividends and avoid the risk associated with buying, managing and directly financing real estate assets on their own. These are good bets for investors who want a stable income stream.  However, REITs aren’t known for their capital appreciation, which is why they tend to show noticeably lower returns against index composites. For example, over the decade from 2009 to 2019, Apple Hospitality REIT Inc. returned 68% lower compared to the NYSE composite and during that same time period, Host Hotels & Resorts returned 40% lower than the NYSE composite index. Broadly speaking, a REIT’s 52-week high and low are more illustrative of the moderate risk they represent to investors.  You should keep in mind that the Pandemic has led to a trend where hotel assets are either being sold off to then be repurposed into other asset classes such as multifamily housing and senior living facilities or hotel owners and investors are themselves repurposing their hotel properties into other asset classes. REIT investors should be aware of this as the trend has the potential to change and even diminish the portfolios of hotel REITs. Like hotel stocks, there are a good number of hotel REITs to invest in, but these tend to be investor favorites because of their longevity and portfolios of reputable brands.  Apple Hospitality REIT, Inc. (NYSE: APLE) owns 233 hotels with more tan 29,800 rooms located in 88 markets throughout 25 U.S. states. The portfolio has a concentration of marquee names including Marriott-, Hilton- and Hyatt-branded hotels. Annual revenue for 2020 was $602 million and the median yearly earnings for 2021 are approximated at $0.54. In the 52 weeks ending on March 19, 2021, the highest price reached by the stock was 15.89. The lowest price was 5.36.A panel of eight analysts offered a collective price forecast with a median target of 17.00, a high estimate of 19.00 and a low estimate of 15.00.  Hersha Hospitality Trust (NYSE: HT) owns and operates 37 hotels totaling 5,845 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The company’s revenue for the full year 2020 total $529.96 million while 2020 EPS was -$0.46. In the 52 weeks ending March 19, 2021, the stock price peaked at 12.9 and saw a low of 2.41087.  The nine analysts offering 12-month price forecasts for Hersha Hospitality Trust have a median target of 10.00, with a high estimate of 21.00 and a low estimate of 8.00.  Host Hotels & Resorts (NASDAQ: HST) is the largest lodging REIT and renowned for its concentration of luxury and upper-upscale hotels with a focus on brands such as Marriot, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Swissôtel, ibis and Novotel. The company owns 76 properties in the U.S. and five internationally, totally 46,800 rooms. Host additionally holds non-controlling interests in six domestic and one international joint venture. The company did $65 million in revenue for the full year 2020 when annual EPS total  -$1.04. The stock price hit a high of 18.42 during the 52 weeks ending on March 19, 2021 and fell to a low of 9.06. Eighteen analysts estimated a median target of 17.00 in a 12-month price forecast, with a high estimate of 21.00 and a low of 13.00.  Park Hotels & Resorts (NYSE: PK) is the second largest publicly traded lodging REIT with a portfolio of 60 premium-branded hotels and resorts that comprise more than 33,000 rooms in city center and resort locations. The company reported $852 million in 2020 revenue and annual EPS for 2020 was $0.94. In the 52 weeks ending on March 19, 2021, the highest price reached by Park Hotels & Resorts Inc stock was 24.6. The lowest price was 6.04. The 14 analysts offering 12-month price forecasts for Park Hotels & Resorts Inc have a median target of 22.50, with a high estimate of 28.00 and a low estimate of 15.00.  RLJ Lodging Trust (NYSE: RLJ) has a portfolio of 1010 premium-branded, focused service and compact full service hotels in 23 states and Washington D.C. along with an ownership interest in one unconsolidated hotel. This REITs hotels are consolidated in urban areas and other densely populated markets where the barriers to entry are significant, but RLJ’s investment strategy of focusing on hotels with limited food service offerings, limited meeting space and consequently fewer employees, represents greater potential on returns.   Index Funds & ETFs Index funds and ETFs or Exchange Traded Funds are good bets for investors who want to put money into hotel stocks and hotel REITs while minimizing their risk. The benefit to index funds is that they are passively managed because they only track stock indexes. So the fees and expenses incurred by investors are lower. However, the hotel industry is extremely sensitive to changes in the economy. So gains and losses made on these investments will be a function of the greater business climate.  Keep in mind that not all stock indexes are index funds. The Baird/STR Hotel Index is widely regarded by hotel investors as an accurate barometer of the hotel industry’s financial performance. However, this index is not actively managed, nor does it allow direct investment. The Baird/STR Hotel Stock Index and sub-indices are cobranded and were created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices comprise 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. ETFs are also considered low-cost investments. They can also have the added benefit of being more diverse investments since they can also include exposure to other real estate investments beyond the hotel industry. So they may not be as sensitive to shifting economies. Additionally, ETFs can include or comprise an entire portfolio of REITs, which on their own are not considered “qualified dividends” as per the IRS.  In other words, earnings on REITS are taxed at a higher rate. Despite the fact that REITs qualify for the Tax Cuts and Jobs Act’s 20% pass-through deduction, they are still taxed at a higher rate than qualified dividends. ETF dividends can be taxed at the qualified rate provided the investor holds them for at least 60 days from the date of issue. Yet, there are ETF dividends that are not taxed at the qualified rate. So investors may want to confirm the tax rate before going in.  Also, keep in mind that the data by which you’re going to assess an ETF as an investment vehicle will differ from that used to assess any given hotel stock. These are not individual companies with annual revenues. Rather, an ETF is an investment vehicle comprising a portfolio of multiple companies and the portfolios are rebalanced, usually once a quarter. In turn, net assets change regularly. The revenue or other metrics for any single company within that portfolio is not an accurate representation of the ETFs’ performance as a whole.  In the meantime, here are a few ETFs worth considering: Nuveen Short-Term REIT ETF (BATS: NURE) This fund provides exposure to U.S. real estate investment trusts (REITs) with short-term lease agreements which may exhibit less price sensitivity to interest rate changes than REITs with longer-term lease agreements. The Fund seeks to track the investment results, before fees and expenses, of the Dow Jones U.S. Select Short-Term REIT Index, which is composed of U.S. exchange-traded equity REITs that concentrate their holdings in apartment buildings, hotels, self-storage facilities and manufactured home properties, which typically have shorter lease terms than REITs that invest in other sectors. The ETF was formed in December 2016; performance data for the last five years is not yet available. The fund has $26.02 million in net assets and the year-to-date daily total return was 12.11%. Its one-year monthly total return was 8.47% and its three-year monthly total return was 9.97%. The 52-week high was 31.22 and the low was 19.28. Wall Street analysts give this fund an N/A rating according to Marketbeat.com  Invesco S&P 500 Equal Weight Real Estate ETF (NYSE Arca: EWRE) The Invesco S&P 500® Equal Weight Real Estate ETF (Fund) is based on the S&P 500® Equal Weight Real Estate Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index equally weights stocks in the real estate sector of the S&P 500® Index. The Fund and the Index are rebalanced quarterly. The fund has net assets of $22.66 million. The year-to-date daily total return was 12.11%. Its one-year monthly total return was 11.52% and its three-year monthly total return was 11.33% and the five-year monthly total return was 9.01%. The 52-week high was 33.50 and the low was 21.60. Zacks gives this fund an ETF Rank of “Sell” at the time of this writing.  ETFMG Travel Tech ETF (NYSE Arca: AWAY) The ETFMG Travel Tech ETF is a portfolio of companies that are a subset of the global travel and tourism industry. These companies are engaged in the “Travel Technology Business” by providing technology via the Internet and internet-connected devices to facilitate travel bookings and reservations, ride sharing and hailing, travel price comparison, and travel advice. AWAY is an exchange traded fund (ETF) that seeks investment results that correspond generally to the price and yield, before fund fees and expenses, of the Prime Travel Technology Index. The fund has net assets of $261.77 million.  The year-to-date daily total return was 20.07%. Its one-year monthly total return was 116.96%. No additional performance data is available as the ETF was launched in February 2020. The 52-week high was 34.54 and the low was 13.58. Based on WalletInvestor.com forecasts, a long-term increase is expected. The "AWAY" fund price prognosis for 2026-03-25 is 148.980 USD. With a five-year investment, the revenue is expected to be around +369.23%. Your current $100 investment may be up to $469.23 in 2026.   Hospitality and Travel Tech Stocks The travel industry is expected to benefit from pent-up demand. Despite this, many investors have exited their positions in asset-heavy stocks like hotels, airlines and cruise lines. But asset-light travel tech stock may appeal to investors who still want to cash in on an upcoming booking spree since these companies all play some role in the booking funnel.  Travel tech companies also have irons in just about every fire in the travel industry, from hotels and cruise lines to tour operators, airlines and restaurants. So they help investors spread their risk through diversified business interests within the travel and tourism sector.  But investors should also be cautioned that Wall Street is bearish on tech stocks right now. According to a survey from Bank of America, fund managers cut their tech weighting to the lowest overweight position since January 2009.  For investors who aren’t faint of heart, here are some stocks in the travel tech space that are worth considering right now:   Tech Plays: OTAs   Expedia (NASDAQ: EXPE) Expedia Group leverages platform and technology capabilities across an extensive portfolio of businesses and brands to orchestrate the movement of people and the delivery of travel experiences on both a local and global basis. 2020 annual revenue was $5.2 billion was 2020 annual EPS was -$19.00. Expedia Group Inc. returned 26% higher compared to the NASDAQ composite in the decade between 2009 and 2019. Twenty-seven analysts offering 12-month price forecasts for Expedia Group Inc. have a median target of 165.00, with a high estimate of 211.00 and a low estimate of 120.00.  Booking.com (NASDAQ: BKNG) Booking Holdings (BKNG) is a provider of online travel and related services, available to customers and partners in over 220 countries and territories through six primary consumer-facing brands - Booking.com, priceline, agoda.com, Rentalcars.com, KAYAK and OpenTable. The company’s annual revenue for 2020 was $6.79 billion while annual EPS for 2020 was $1.44. In the 10-year period from 2009 to 2019, Booking Holdings Inc. returned 13% higher compared to the NASDAQ composite. Twenty-five analysts offered a 12-month forecast that included a median target of 2,550.00, a high estimate of 3,000.00 and a low estimate of 1,890.00 Airbnb (NASDAQ: ABNB) Since its inception in 2007, Airbnb has grown to four million hosts who have welcomed over 800 million guests in almost every country worldwide. Annual revenue was $3.4 billion for 2020 when annual EPS was N/A. Airbnb shares began trading in December 2020. Therefore, no historical data is available. A 12-month price forecast from 26 analysts included a media target of 180.00, a high stimate of 240.00 and a low estimate of 130.00.  Trip.com (NASDAQ: TCOM) Trip.com Group Limited is a travel service provider consisting of Trip.com, Ctrip, Skyscanner, and Qunar. Across its platforms, Trip.com Group enables local partners and travelers around the world to make informed and cost-effective bookings for travel products and services, through aggregation of comprehensive travel-related information and resources, and an advanced transaction platform consisting of mobile apps, Internet websites, and 24/7 customer service centers. The company report annual revenue of $2.8 billion for 2020 although annual EPS was N/A for 2020. Tripcom Group Limited returned 51 percent lower than the NASDAQ composite for the 10-year period between 2009 and 2019. In a 12-month price forecast provided by 34 analysts, a media target was set at 44.54, with a high estimate at 51.32 and a low approximated at 37.43.  Google (Alphabet Inc.) (NASDAQ: GOOG) Alphabet became the parent holding company of Google in October 2015. The company’s suite of products, through its subsidiaries, includes web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products. The Internet’s annual revenue for 2020 came in at $180 billion. Annual EPS for 2020 was $58.61. However, Alphabet Inc. returned six percent lower than the NASDAQ composite for the 10 years from 2009 to 2019. Forty analysts offered a 12-month price forecast where the median target was 2,400.00 and the high estimate was 3,000.00. The forecast’s low estimate was 1,477.00   Tech Plays: Metasearch   Tripadvisor (NASDAQ: TRIP) Travelers across the globe use the Tripadvisor site and app to browse more than 860 million reviews and opinions of 8.7 million accommodations, restaurants, experiences, airlines and cruises. Travelers turn to Tripadvisor to compare low prices on hotels, flights and cruises, book tours and attractions, as well as to make restaurant reservations. Tripadvisor is available in 49 markets and 28 languages. The subsidiaries and affiliates of Tripadvisor, Inc. (NASDAQ:TRIP) own and operate a portfolio of websites and businesses, including many travel media brands: In 2020, the U.S.-based online travel company generated revenues of approximately $604 million and annual 2020 EPS was -$2.14. In the decade between 2009 and 2019, TripAdvisor returned 48% lower than the NASDAQ composite. According to a 12-month price forecast from 18 analysts, the median target is 38.50 and the high estimate is 62.00 while the low estimate is 20.00.   Trivago (NASDAQ: TRVG) Trivago is a global hotel and accommodation search platform used by travelers to search for and compare different types of accommodations, such as hotels, vacation rentals and apartments, while enabling advertisers to grow their businesses by providing them with access to a broad audience of travelers via its websites and apps. As of December 31, 2020, Trivago offered access to more than 5.0 million hotels and other types of accommodation in over 190 countries, including over 3.8 million units of alternative accommodation, such as vacation rentals and apartments.  The search platform can be accessed globally via 54 localized websites and apps available in 32 languages. Trivago’s annual revenue for 2020 was $284 million. However, 2020 EPS was -$0.8170. Trivago returned 156% lower from 2009 to 2019 compared to the NASDAQ composite. A price forecast offered by nine analyst for 12-months offered a median target of 2.67, a high estimate of 3.56 and a low of 1.27.    Tech Plays: Software & GDS Companies   Oracle (NYSE: ORCL) The Oracle Cloud offers a complete suite of integrated applications for Sales, Service, Marketing, Human Resources, Finance, Supply Chain and Manufacturing, plus Highly- Automated and Secure Generation 2 Infrastructure featuring the Oracle Autonomous Database. Total revenue for 2020 was $39.1 billion and annual EPS was $3.08. Oracle Corporation (ORCL) has returned 58 percent higher compared to NYSE composite in the ten years from 2009 and 2019. Twenty-one analysts offering 12-month price forecasts for Oracle Corp have a median target of 73.00, with a high estimate of 93.00 and a low estimate of 57.00.  Amadeus (OTC: AMADY) Amadeus IT Holding S.A. is a Spain-based IT provider for the global travel and tourism industry. The company builds solutions for airlines and airports, hotels and railways, search engines, travel agencies, tour operators and other travel businesses through its global distribution system (GDS) and IT business. Amadeus provides search, pricing, booking, ticketing and other processing services in real-time to travel providers and travel agencies through its Amadeus CRS distribution business area. It also offers computer software that automates processes such as reservations, inventory management software and departure control systems. It services customers including airlines, hotels, tour operators, insurers, car rental and railway companies, ferry and cruise lines, travel agencies and individual travellers directly.  The company’s annual 2020 revenue were €2 billion and annual EPS was -$1.40. According to SeekingAlpha.com, “In the last decade Amadeus IT managed to grow its cash from operations every single year. The OCF-ratios on both a revenue and an equity level are exceptional. All the while management spends cash to grow the business via M&A and purchases of intangibles, but is also growing dividends each year for the shareholders. And as can be seen on both the balance sheets and cash flow statements, the company is managing its debt levels in a very prudent way. If there are no good businesses to buy, debt is retired.” SeekingAlpha also points out that the risk associated with investing in Amadeus is that most of its revenue is related to air travel.  In the 15 years or so prior to 2020, the growth has been robust, but Coronavirus has clearly changed that and the short- and median-term future of global air travel remain to be seen. Twenty-one analysts offering 12-month price forecasts for Amadeus IT Group SA have a median target of 66.76, with a high estimate of 88.06 and a low estimate of 49.16. Sabre Corporation (NASDAQ: SABR) Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management.  Sabre also operates a leading global travel marketplace, which processes more than $120 billion of global travel spend annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. In 2020, the corporation generated $1.33 billion in annual revenue and had an annual EPS of -$4.42. Sabre Corporation (SABR) has returned 98% lower compared to NASDAQ composite. Four analysts offered 12-month price forecasts with a median target of 16.00, a high estimate of 18.00 and a low estimate of 13.00.   Did we miss any great hotel stocks? Let us know via live chat!    

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The Future of Hotel Apps: Why Mobile Payments Are Essential

by
Dan Lacey
1 month ago

When you look at the future of hospitality tech, it’s very clear that everything revolves around one thing: mobile. Everyone’s on their phone all the time, and that’s not changing anytime soon. Over the last year, features like mobile check-in and mobile key have become more important to hotel apps than anyone could have imagined, both in the context of the pandemic world and the future that lies beyond it. Yet as important as that tech is, there’s another hotel app feature that may eventually become even more important. Contactless payments.    In April 2020, Mastercard released a stunning study based on online interviews of over 17,000 global consumers. They found over 88% of consumers had adopted some form of contactless payment technology—and 74% planned to continue using it post-pandemic. At the same time, mobile purchases went up in nearly every sector, and made up 73% of all e-commerce sales last year. And it’s not just the pandemic. People have also never been more worried about fraud and information security, and mobile payments are simply safer to use than cash or credit cards.    All of this to say...mobile purchases and contactless payments are already a force to be reckoned with and will only gain more traction as time goes on. They represent a new way of life that’s impacting every industry. So, what does that mean for hoteliers? If you’re not prepared to process mobile purchases and contactless payments, you’re missing out on huge revenue potential—something most properties and brands simply can’t afford to do in this rebuilding phase.    That being said, hotels are in a uniquely strong position to embrace mobile payment technology. First, other industries like restaurants and retail have already mastered mobile payments and offer a roadmap to success that hoteliers can follow. But most importantly, all mobile payments and orders should also be processed through the systems you already know and trust—meaning you shouldn’t need to retrain staff or reconcile financials from multiple systems.    That’s because what hoteliers need to harness the revenue-generating potential of mobile isn’t really a new payment technology. Sure, you may eventually want a few new credit card terminals, but for now, guest technology can do the heavy lifting. Guests are asking for a way to check-in and out, order food, and make purchases during their stay from their phone—and on that front, it’s an app provider’s responsibility to work with a property’s PMS and POS vendors to ensure they can facilitate mobile payments, not yours.    What hoteliers need to know about mobile payments can be boiled down to this: they will become one of the single most important mobile app features—if not the most important—within the next few years. And they should add convenience for tech-savvy guests and extra revenue for your property, not more complexity for you. If a vendor tries to tell you differently, that’s a red flag.  

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Here's Why You Need a Guest-Centric Cloud Hotel PMS

by
Hotel Tech Report
1 month ago

It’s no secret that exciting things are happening in the world of hotel technology, but how do you know when it’s time to upgrade the tech at your hotel? The hospitality market is continually changing. As your guests’ preferences shift and software becomes more sophisticated, you may reach a point where your hotel’s tech stack can no longer facilitate the level of service you expect for your guests. To anticipate these changes, it’s crucial that you invest in a Property Management System (PMS) that can naturally scale with your business, and seamlessly integrate with new technologies. Most importantly, your PMS should be intuitive and efficient enough to allow your staff to focus their energy where it belongs 一 delighting your guests. In this article, we’ll explore the benefits that a mobile and guest-centric PMS can bring to your hotel, like allowing your staff to manage your hotel from anywhere in the world, or giving your guests the option of a completely contactless check-in, directly from their mobile device. We’ll also highlight the key elements of a guest-centric system and show how they apply to some real-world case studies.   The Hallmark Features of a Guest-Centric Cloud PMS A guest-centric cloud property management system should embody four key goals: ease of operations, ease of access, ease of scale and connectivity, and ease of profit. In short, your PMS should be unburdened 一 it should empower your staff to deliver your ideal guest experience, not hinder them.  StayNTouch CRO, Michael Heflin suggests two great examples of a guest-centric PMS in action, “A luxury hotel can choose to greet their guests with a glass of champagne in the lobby while the staff member checks them in on a tablet or they can offer self check in at a kiosk station that’s tucked away, allowing the guest to be socially distanced.”  In addition to streamlining operations, a modern, cloud-based PMS can easily be accessed from anywhere on property...or the planet. Staff members can manage their hotel from any device that has an internet connection, including tablets or smartphones. Guests can also manage their reservations or check-in from their mobile devices 一 even before setting foot in the lobby. A guest-centric PMS doesn’t just provide benefits within your hotel’s walls; it can facilitate connections between your hotel and a whole world of software integrations. From distribution channels like Expedia, Booking.com, and the GDS to payment processors, keyless locks, or reputation management systems, a flexible cloud PMS certainly isn’t just a tool to house reservations 一 it’s the glue that holds all other tools together. “We also make it easier to profit with targeted and automated mobile upsells and features like hourly rates/day use, which make it easier to expand revenue segmentation by utilizing rooms for workspace, private dining, day spas, or any experience a hotelier can imagine. A guest-centric cloud PMS fully unburdens staff, and enables them to deliver the optimal guest experience each and every time so that hoteliers can deliver on whatever guest experience they design,” says StayNTouch’s Heflin. But the benefits of a guest-centric PMS aren’t limited to operations; it can also unlock increased profitability. Such a system can expand revenue streams to include day-use rooms, for example, giving hoteliers new options for private dining, spa services, and meeting or workspaces.   How to Know if Your PMS Isn’t “Guest-Centric?” Traditional property management systems are designed to be purely transactional, often charging additional fees for upgrades or add-ons. While this strategy makes short-term sense for the PMS company, it does so at their clients’ expense, by forcing them to pay more for a platform that is less flexible, difficult to use, and difficult to scale. In short, these systems aren’t designed to empower hoteliers. Michael Heflin offers practical advice for rooting out antiquated systems, “You can see a similar approach in the design of many legacy systems. Running off of a desktop terminal,  they often feature a user interface which is clunky and outdated. This distracts hoteliers from their guests in two ways: First, because the UI makes it difficult to complete even simple administrative tasks, the staff member must spend more time buried in their screen to serve their guests. Second, running a PMS on a desktop on a stationary front desk prevents hoteliers from moving around and serving the guests where they are. In this sense, legacy PMS systems are literally distracting the hotelier when they try to engage with their guests, while placing physical barriers between the guest and hotel staff.” Legacy systems are clunky and slow. They distract your staff with outdated interfaces that complicate even simple tasks, so they spend more time buried in their screens and less time actually interacting with their guests. In addition, a legacy PMS running on a desktop computer literally erects a physical barrier between staff and guests. When a hotelier is confined to a centralized front desk, they can’t meet their guests where they are, but instead force guests to wait in line to have their requests handled. A mobile, guest-centric PMS, on the other hand, frees staff members to provide excellent service anywhere on property. And because the system features a colorful, intuitive user-interface, as well as advanced automation, it requires less time and attention to complete tasks.   Identifying a Guest-Centric PMS in a Sales Pitch Many PMS platforms claim to be “best-of-breed,” but they might not be truly guest-centric. To determine whether a PMS offers the functionality you need, you’ll want to verify four points during the buying process:  First, if the PMS advertises itself as “cloud-based,” but isn’t native cloud, then that means it’s just being lifted from its on-premise environment and migrated to the cloud. That isn’t true cloud 一 and the software will suffer in terms of performance and reliability. If it takes over 2 minutes for a staff member to complete a check-in, then the product isn’t intuitive and isn’t designed to enable a seamless check-in.  If you are not able to give your guests the option of a contactless check-in, or a chance to personalize their stay through their smartphone, or give your staff the flexibility to move beyond the front desk to service your guests, then it’s not a guest-centric PMS.  Finally, if the PMS can’t seamlessly connect to all of your core systems and allow you to build nuanced and dynamic guest profiles, then your system is neither connected, nor is it guest-centric. Your PMS isn’t just “another app” 一 It’s the heart of your hotel’s technological ecosystem, and your decision has critical implications for your guests, employees, and profitability. A great PMS is like the mission control for your hotel’s operations and the core of your on-site technology, and it should put the power in your hands to deliver your version of the ideal guest experience.   The Future of Property Management Systems The post-pandemic hospitality market will be marked with both challenge and opportunity. In the next five years, we can expect vast changes in the hospitality market. Mr. Heflin elaborates: “In the next five years, we can expect hoteliers to fundamentally reimagine what it means to be a hotel, and capitalize on emerging markets such as co-working and extended stay. Also, offering guests self-service options will be a necessity rather than a nice to have or a trend for the moment.” In order to capitalize on these trends, however, you need a PMS with the flexibility to leverage the latest technology. StayNTouch makes it easy to scale and connect with third-party solutions with open-APIs, seamless integrations, and regular free system upgrades. As your hotel evolves, your PMS should be able to evolve with you and allow you to deliver the type of service the modern guest wants.    Exciting PMS Features to Look for Property management systems have so many features, but what less-common functionality should you look for to add value to your property? Hourly rates: Hourly/Day Use functionality lets hotels leverage entirely new market segments and reimagine the relationship with their guests. Although originally developed for airport hotels serving travelers experiencing extended layovers, the possibilities of hourly bookings are endless: For example it can also be used to monetize co-working programs for teleworkers, to make day spa reservations, or it can repurpose rooms to create an exclusive, socially-distanced dining experience.  Contactless check-in: Across the board, traveler preferences have shifted toward contactless services over the last year. Ideally, guests should be able to check in to their room from their smartphone or a self-service kiosk, then further customize their stay through upgrades, amenity or restaurant reservations, or monetized early check-in or late check-out. Simplified webhooks: Webhooks are enhancements to an open-API architecture that lets them find the exact piece of data they need, in near real-time. To use the old analogy: While a traditional API would spend time combing through a haystack, a webhook would be the thread leading directly to the needle. This allows for highly nuanced and personalized integrations in close to real-time, without burdening the system’s processing ability.   Hospitality Brands that Maximize their Use of Software The “ideal guest experience” is different at every hotel, since each property is unique. That’s why it’s important to have a PMS that allows you to shape the guest experience to meet your goals. Let’s take a look at three hotels who used StayNTouch’ PMS functionality to create unique experiences:  The TWA Hotel, located at JFK Airport, serves many travelers who book hourly-rate rooms during layovers or delays. Using their PMS’s hourly-rate functionality, the TWA Hotel can manage rates, operations, and reporting at the hourly level. This level of customization lets guests pay for only the hours they need; therefore, the hotel can maximize its inventory.  Mint House at 70 Pine focuses on remote professionals working in New York City’s Financial District. Through their PMS, the property can sell rooms at an hourly rate, which is an attractive offer for individuals who need a place to work for a few hours or virtual businesses who need meeting space for events. With its green, open-layout design, ZoKu Amsterdam offers both extended stay options and spaces for socializing and coworking. Zoku created a welcoming and efficient check-in process that includes both mobile check-in and self-service kiosk options, so guests can customize their arrival experience.   What to Expect When Switching to a Guest-Centric PMS Switching to an entirely new system can be daunting, and you want to make sure the risk is worth the reward. A guest-centric cloud PMS can have a significant impact on your property - in many positive ways. For example, you’ll notice faster adoption of the system by your staff. It is user-friendly and intuitive, so it takes less time to learn how to use it. A smooth check-in experience can also shave time off the check-in process and increase adoption of self check-in options, whether on a smartphone or a kiosk. A guest-centric PMS should also reduce costs; a modern system shouldn’t charge extra fees for integrations, server maintenance, or updates. And another notable change should be a boost to your ROI; through automated upgrade or amenity offers, you can realize incremental revenue with little additional spend. But above all, you can expect your new, guest-centric PMS to eliminate any distractions or roadblocks to excellent service: “Technology should be there to enable and amplify the experience a hotelier envisions and should always keep the guest at the focus of that experience,” Mr. Heflin explains. When you consider your next technology partner, keep in mind Mr. Heflin’s point that, “personalized service will be more important than ever, and that makes platforms that empower personalized service that are much more critical to long term success.” Ultimately, great technology, and specifically a great PMS, should facilitate exceptional service and empower hoteliers to deliver on their promise of an exceptional guest journey.   This content was created collaboratively by StayNTouch and Hotel Tech Report.

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Netflix Casting, Digital Games, and the Future of Digital Entertainment in the Hotel Room

by
Gregor Herz
1 month ago

Keeping guests entertained has always been part of a hotel’s requirements—especially at resort and leisure hotels. Evening entertainment, free cable TV, and on-site activities such as table tennis or pool were all classic hotel entertainment options, but what will the 21st century bring for hotel entertainment? Outside the world of hotels, digital entertainment has grown to become the largest media industry in the world. The video game market is valued at a staggering $65 billion in the US this year alone, and Netflix earned a whopping $25 billion in revenue in 2020, and 2021 looks set to be another bumper year. But, with such drastic changes happening outside of the hotel room, it’s about time more efforts were made to bring entertainment like Netflix casting, digital games, and other forms of modern digital media to the hotel room. In this article, we’ll highlight just how hoteliers can utilize modern digital media channels to improve the stay for hotel guests and bring the hotel experience in line with the modern world.   Bringing Hotel Rooms into the 21st Century As things currently stand, hotel rooms usually have a TV with access to cable or satellite TV subscriptions, but beyond this, there’s usually very little in hotel rooms to keep hotel guests entertained while they’re there. Now, you may be asking, “why would a guest stay in a hotel just to spend their time in the room? Surely they’ll spend most of their time outdoors?”. This is a valid argument, but what if the weather is bad for their entire stay? What if they have young children who need to be constantly kept entertained? Or what if the idea of chilling out in a hotel room, catching up on their favorite Netflix shows, and ordering room service, is what appeals to them the most? By assuming that there’s a low demand from guests to have access to modern digital media in the hotel room, hoteliers are unwittingly losing out on the potential to drive revenue from in-house outlets. If hoteliers keep guests engaged and content in their hotel room, they’re more likely to stay on-site, and maybe order room service or decide to eat in the hotel restaurant. This is a massive financial incentive for hoteliers to improve the level of digital entertainment in hotel rooms.   Casting Netflix and Other Platforms Straight to the Hotel TV  With account-based streaming now being the preferred way for many people to consume their favorite shows, it opens up a new array of possibilities for hoteliers. Casting—when a user streams content from their personal device to another device like a TV—is a hugely popular form of watching shows on platforms such as Netflix, Amazon Prime, Hulu, and Disney+. However, due to security concerns over the possibility of guests’ account details being stolen, many hotels don’t offer this cutting-edge technology. For hoteliers that really want to offer their guests a seamless experience, where they can continue watching Tiger King or The Queens Gambit in their hotel room from where they left off at home, there are some solutions out there. SuitePad’s SuiteCast solution, for example, gets around the security issue by automatically logging out and deleting any user details data between guest stays, effectively overcoming one of the biggest blockers for this kind of technology. By enabling guests to take their home streaming experience into the hotel room, hoteliers will demonstrate that they understand what guests really want—more control over their hotel stay experience. If guests want to spend their time adventuring outdoors, that’s fine, but equally, if guests want to stay in their room, binge-watching The House Wives of Beverly Hills and ordering room service, there should be nothing stopping them!   Digital Gaming in the Hotel Room Of course, watching TV isn’t the only pastime people enjoy—gaming is now one of the biggest multimedia activities in the world. Yet, this is another feature that many hotel rooms lack. Access to high-speed internet and the development of state-of-the-art gaming systems means people can now fight dragons, play football, or race cars with their friends in a virtual world. So why haven’t hotels adapted to add gaming to the hotel room experience? One answer could be down to logistics. Many hotels lack the WiFi infrastructure necessary to enable high-speed gaming in all rooms. With the development of high-speed internet and 5G moving at an incredible rate, it won’t be long before this barrier is overcome, but for the time being, this is a realistic barrier for hoteliers. Another answer is that hoteliers currently have no way of ensuring that guest’s details are kept private. Much like using a Netflix of Amazon Prime account, gamers store sensitive data on online profiles that allows them to play from wherever they are. The problem for hotels is that there are currently no solutions that allow guests to log into their Playstation, Xbox, or Steam account with the knowledge that they will be securely logged out. As gaming becomes equally as big as watching TV in the modern world, hotel tech companies will need to think of ways to bring high-quality gaming into the hotel room in a secure and convenient way. This is one area that we expect will develop in the next five years or so.  However, not all guests crave fast graphics and online gaming. Many guest room solutions actually enable guests to play simple games in the hotel room—and they are very popular. The popularity of these simple yet addictive games just goes to show that there is a demand for gaming in the hotel room. Data from SuitePad, which provides games on their guest room tablets, shows that many people still enjoy playing games as a pastime. The most popular game played on SuitePad devices in 2020 was Memory, which clocked up over 100,000 sessions among hotel guests using SuitePad devices. In second and third places came Sudoku and Chess which both clocked in at just over 76,000 sessions. Considering this was a year when fewer people were staying in hotels, these numbers suggest that there is a demand for more interactive entertainment options for guests in the hotel room. It also shows that despite being offered more modern games such as Angry Birds, many guests still prefer the timeless classics.   Providing Convenience by Giving Guests More Control There are things hoteliers can do right now to make the in-room entertainment experience more convenient for guests. For example, centralizing some of the hotel room’s features is a good example. Many people actually now use their smartphones to control their TV, and it won’t be long before many TV companies phase TV controls out altogether—they’re just another unnecessary piece of equipment cluttering people’s homes. Using smart devices to control TVs also enables a much greater depth of control. For example, you can search for programs using filters such as genre and language, and you can have an overview of the TV schedule on your smart device screen rather than needing to flick through channels to find something to watch. These solutions are already available for hotels. SuitePad TV Control is one example, but this feature is also popular across many in-room tech providers. For hotels that want to quickly improve the in-room entertainment experience that guests have at their hotel, this is a great quick win that can be implemented at short notice and for a nominal fee.   Breaking into the Digital Hotel Room Market Although there are many options out there for hoteliers, it’s important that they still offer some of the original in-room entertainment options that guests have come to expect. Right now, not everyone has a Netflix subscription, so hotels should still offer cable TV options. However, as more and more services continue to be offered on digital platforms, cable TV, and other legacy entertainment options will become obsolete. In this sense, investing in digital entertainment options for your hotel should be done sooner rather than later, as your competitors will soon be making these investments, and you don’t want to be left behind at a time when the industry is going through such profound change. If you’re an enthusiastic and innovative hotelier, you’ll need to start assessing your future hotel room entertainment options now. No doubt offering innovative entertainment ideas will drive business, but whether you are a hotel chain or an independent hotel, creating these high standards will make you and your brand an industry leader. If you’re serious about offering better hotel room entertainment, now is the time to strike, because this space is soon to be one of the hottest areas in modern hotel technology.  

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5 Ways for Hotels to Optimize Revenue and Speed Up Recovery

by
Wanny
1 month ago

2021 is a year of hope: hope for the return to normal, hope for the ability to travel again, and hope for hard-hit industries to fully recover. The hotel industry has struggled a great deal because of the pandemic, but this year, it looks forward to recovery. To effectively make the most of this year, hotels will need to find ways to optimize their revenue. Here are some strategies hotels can use to do so.   1. Web chat Everyone in the hotel industry knows that direct bookings allow hotels to keep more of their profits. In order to drive more direct bookings, hotels can open up a live channel of communication on their websites. Live chat can allow browsing prospective guests to easily get all the information they need in a timely manner, and it exposes them to your hotel’s excellent customer service before they even make a booking. With over 90% of consumers being satisfied after talking to businesses over live chat, web chat can open up many opportunities for direct bookings.   2. Upsell early check-in, late check-out, and room upgrades. No matter what type of hotel you manage, there is always an opportunity for upselling early check-ins, late check-outs, and room upgrades. Hotels can use messaging to stay in communication with guests and easily let them know about these offers.  If guests seem to be arriving early or if they need more time on their way out, hotels can offer early check-in or late check-out via text message, and guests can pay a small fee to have a more comfortable experience that best fits their schedules. Guests may not immediately think of these offers when they’re stressed over checking out on time, so it’s important to remind people of them. Also, hotels have many possibilities when it comes to room upgrades. Whether that be changing the assigned room itself to have a nicer view or including extra amenities like a more luxurious toiletries package, hotels can offer up these upgrades to guests. This allows a more personalized experience while simultaneously optimizing revenue.   3. Upsell hotel-specific amenities via scheduled messaging Of course, every hotel has its own special amenities, facilities, and/or activities that can be used to upsell guests. Does your hotel have a spa? Do you have a partnership with nearby golf courses? Is there live music at the restaurant? Let guests know about everything that’s going on at your hotel. Sending every guest a text message can take a lot of time, and when your staff is busy with ensuring everything is running smoothly at the property, it can be hard to remember to take the time to send those text messages. To save that time, hotels can set up scheduled messages that automatically send out to every guest on property, so you can remind everyone about that happy hour special right before it begins.   4. Use digital booklets In an age where everything is digital, hotels can showcase their best offerings through digital means as well. With digital booklets, hotels can display important notices such as social distancing guidelines, include YouTube videos such as instructions on how to start the shower, and feature amenities in a visually appealing way. There’s no need to print marketing brochures for every room when you can simply direct every guest to a comprehensive one-pager online. Digital booklets can allow guests to easily access all the information they need to know about the hotel while simultaneously encouraging them to try all that the hotel has to offer. Direct guests to make spa reservations, or include your hotel restaurant menu on the booklet to allow guests to make food orders straight from their phones. When everything is just a few clicks away, hotels can effectively drive additional revenue.    5. Invite past guests back It’s five times more cost-efficient to nurture an existing customer than it is to attract a new one. That’s why it’s important to build strong relationships with guests. Loyal guests already know that they will enjoy their time at your hotel, so you don’t need to spend extra time convincing them of that. All you need to do is to continue providing excellent and personalized experiences, so they want to keep coming back for more. To truly build stronger relationships with past guests, try personalized remarketing campaigns that target past guests based on interests and behaviors. Invite guests back for special offers that cater to them personally, and they’ll be more likely to come back. And when sent through text-message, marketing campaign messages will be much more likely to be engaged with, since 95% of SMS marketing messages get opened.   In Conclusion With the pandemic gradually getting under control, it’s very likely that hotels will see more eager travelers later in the year. As the hotel industry reaches that point, it can strategically optimize revenue and speed up recovery.