A recent study by PFK Hospitality Research has shown that a decrease in Airline Capacity will have a negative effect on Hotel Bookings in the United States.

“Many industry participants have been speculating about the spillover effect a deteriorating airline industry will have on hotels,” said Mark Woodworth, president of PKF Hospitality Research. “Our research measured the historical relationship between these two components of the travel industry. This allowed us to project just how much business hotels stand to lose given the cutbacks in capacity announced by the major airlines.”

Woodworth later concluded that if the cutbacks are as severe as predicted, a possible $4.3 billion industry loss, hotels may have to make drastic cutbacks on staff and other areas.

Read the entire report here.

Research firm Aberdeen Group, sponsored by Mindshare Technologies, titled “Customer Feedback Management”investigates how leading companies use customer feedback to improve services and customer retention.

A few of the significant findings developed from the research include:

• Best-in-Class companies are more than 8 times more likely than Laggards to increase customer satisfaction.
• Best-in-Class companies are more than 26 times more likely than Laggards to increase customer retention.
• Best-in-Class companies are nearly 3 times as likely as Laggards tocommunicate with customers how their complaints and suggestions have been or will be acted upon.

Hotelbook.com, a site that specializes in independent and boutique hotels, has launched a new microsite for the New York City Region.

The site was designed to help increase the bookings in New York City for independent hoteliers whilst providing useful and original information to help visitors make their choice for accomodation.

It is this resourceful and useful part of the new site that should be most valuable to visitors. Advanced searches let users filter their searches to be near certain attractions and landmarks, locations or hotel star ratings, as well as being able to see what other people have said and are saying about any particular hotel.

Visit the New Site or Read the Press Release.

Cheapflights.com, the site that has helped travelers book flights and hotels for several years, has opened a new travel discussion forum on its site where no topic is off the table, be it good, bad or ugly.

“Citizen journalism is growing in popularity and people are now listening to what their peers have to say more than ever,” said Carl Schwartz, chief travel officer for Cheapflights.com. “It was important for us to create a forum on Cheapflights.com for our 3.5 million monthly visitors to share travel thoughts and ideas, as well as sound off on their travel horror stories so fellow cheap travel fans can avoid the same fate. And while they’re on the boards, if they learn about a new cheap flight deal to take advantage of that’s even better.”

The forum should bring some strong traffic to Cheapflights.com. Now users can congregate, ask questions, get questions answered, as well as having the keyword rich and relevant topics be search engine darlings.

It’s a wonder that no other major travel sites have made such a launch until now.

Read the press release.

Buyers outnumber sellers by almost 7:1 throughout Asia Pacific, and the Hotel real estate in Australia has begun claiming major international investors’ attention.

“While trouble in the global debt markets is expected to result in a lull in Australian hotel transaction activity in 2008, behind the scenes investor demand is building,” said Mr David Gibson, CEO Asia Pacific, Jones Lang LaSalle Hotels.

Sales of Holiday Inn Townsville and the Hotel Lindrum, as well as the Harbour Rocks Hotel have taken place in the previous months, coinciding with the release of the report of building investor interest.

“Hotels are being sold under competitive bidding processes where strong levels of interest are being received from offshore and domestic investors, as well as boutique property funds,” said Mr Craig Collins, Managing Director - Investment Sales, Jones Lang LaSalle Hotels.  He added, “In another vote of confidence for the sector, and despite the current credit crisis, recent hotel transactions support the survey results where initial yields range from 7.5% to 8.0%.”

While interest has declined on the short term as a result of recent economic woes world wide, the medium and long term view of the markets is promising, with many transactions and major growth forecasted in the months and years to come.

Read the full article.

A segment of the hotel industry recognized for its plain, dim lighting and affordable nature will receive a breath of fresh air from Starwood Hotels.

It’s new brand, aloft hotels, will target this segment but in a very different way: by focusing on the trend-savvy and self-sufficient travelers of today that seek the stylish surroundings of upper brands but at a more agreeable price.

“Today’s savvy, design-conscious consumers understand that great style can be both accessible and affordable,” said Brian McGuinness, Global Brand Leader for aloft hotels.  “Generation X and Y travelers who grew up with MTV, iPods and IKEA expect great design wherever they go, whether it’s Rogers, Arkansas or Rancho Cucamonga, California.”

The hotel will feature interesting and open spaces that encourage their use, as well as high-tech enabled guestrooms, loft-styled open spaces with high ceilings and over-sized windows and industrial design points for a crisp, contemporary feel.

Read more about this exciting brand launch here.

Even with the decrease in demand, Australian Hospitality companies enjoyed growth and continued momentum.

Revenue per Available Room, the industry benchmark for performance, showed an increase as room rates went up to counter the lack of demand.

“Whilst the rate of growth has slowed from last year, the results are an encouraging sign that Australia’s major markets are more resilient than widely thought,” said Mr Troy Craig, Executive Vice President, Jones Lang LaSalle Hotels.  He added, “Queensland’s leisure markets were particularly hard hit by a very wet summer period which drove visitors to alternate domestic and international destinations.”

The growth was enjoyed across the entire Australian continent.

Read more »

Amy Bradley-Hole sounded off on her frustration with Hotel Advertising at MSNBC, and laid out several points that prove she’s right.

Hotels are feverishly upgrading these days, trying to offer faster Internet service, or better beds, or all non-smoking properties. But while they’re trying to make their properties more modern and appealing for today’s travelers, they seem to have forgotten to upgrade their ad campaigns.

-MSNBC

Ms Bradley-Hole goes on to make several big points:

1. Rates are the most important factor, and with the internet guests can compare quickly and easily. No marketing mumbo jumbo is likely to get someone to shell out more than they want.
2. Business make contracts, meaning they business travelers usually have little say in where they stay. TV Commercials do little to change this crucial source of steady income.
3. Consumers aren’t stupid. They know that they won’t be eating a gourmet breakfast, but a cold muffin and some cereal. They also know that “sullen teenagers do not morph into human beings upon check in.”
4. Generic crap. All Hotel commercials show the same thing — big comfy beds, bonding families, hard working professionals at a desk — Bradley-Hole says, who cares?

Monitors and reports to-date show that the Dominican Republic’s hospitality industry is well positioned to weather the US Economic storm.

“The Dominican Republic’s high number of European-based travellers makes the country more resistant to economic changes than other Caribbean destinations which are more dependent on U.S. demand. This in turn has helped spur resort developments,” said Fernando Garcia-Chacon, senior vice president for Jones Lang LaSalle Hotels.

Dominican Republic resorts are popular for their beautiful beaches, hospitable population, low labor and construction costs.

 ”Punta Cana is now shedding its all-inclusive label and is attracting investment in 4- and 5-star properties under brands such as Ritz-Carlton, Westin, and Fairmont,” said Garcia-Chacon.  “Additionally, Cap Cana, located adjacent to Punta Cana, features a major in-progress upscale hotel and residential development.  This development offers multiple golf courses, one of the Caribbean’s largest marinas, as well as retail and other services required by a resort of this magnitude.”

Read more here.

The leading super-budget hotel operator in the UK, easyHotel, has announced another major deal between themselves and the Eclipse Hotel Group to develop 10 new easyHotels across the country.

With the finalization of the deal, easyHotel looks set to reach their growth plans of adding 200 Hotels under the franchise’s belt in 10 years.

Lawrence Alexander, CEO of easyHotel says, “Eclipse is delighted with the initial performance of easyHotel Luton and the signing of this development deal with them, demonstrates the belief and commitment they have in the easyHotel business model. Signing with easyHotel provides investors with the opportunity to leverage a hugely powerful brand as well as benefiting from a concept that delivers higher than average room densities, low build costs and greater operating margins.”

In the pinched world economy budget and super-budget hotels have seen a rise in popularity and growth.

Read more here.