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💶 No more rate parity in the EU—what it means for your hotel’s pricing strategy

Week of November 20, 2024

It’s Wednesday, November 20. This is Hotel Tech Insider, HotelTechReport’s weekly newsletter and window into the future of hotels and the tech that powers them.

Coming Up. The European Union's ban on OTA rate parity clauses reshapes hotel pricing strategies, Marriott's significant layoffs amid AI advancements prompt industry-wide workforce evaluations, and Accor's study reveals that in-person meetings can boost revenue by 36%, emphasizing the enduring value of face-to-face interactions.

Insider Highlights

  • Some think Marriott’s mass layoff may be AI related

  • New Accor study shows face-to-face meetings 3x more productive than virtual

  • Starbucks’ crash sheds light on key hospitality lessons

  • Expedia brings generative AI and flexible search to its app

  • Ennismore launches a subscription model that is “anti-loyalty”

  • 🔦 Yotel's COO on tech-forward, low-touch hospitality

+ Much more!

🤑 How to Delight Guests & Grow Revenue

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👎 Missed guest inquiries and delayed responses due to disjointed systems

👎 Frustrated staff overwhelmed by managing multiple communication tools

👎 Lost revenue from lack of personalized guest interactions

With Bookboost’s Omnichannel Guest Messaging, you can streamline your communication, deliver tailored responses instantly, and create memorable guest experiences. From pre-arrival to post-departure, Bookboost helps you drive loyalty and maximize revenue effortlessly.

3 TOP NEWS STORIES

 1. EU Officially Bans the OTA Rate Parity Clause

The European Commission has confirmed that Booking.com must meet all obligations under the Digital Markets Act (DMA). This legislation targets "gatekeepers," mandating changes that promote fairness and competition in the digital marketplace.

🎯 Why it matters: The DMA could reduce Booking.com's influence over pricing, rankings, and data control, offering hotels greater flexibility in how they market their properties by no longer mandating rate parity. For hoteliers, this is an opportunity to reevaluate distribution strategies and renegotiate terms that could improve profit margins and guest satisfaction.

🔑 Key takeaway: Hotels may soon face a more level playing field as Booking.com adjusts its practices. Hotel marketers and revenue managers should proactively plan to leverage these changes by optimizing direct booking strategies. Read More →

2. Competition & AI Cause Marriott Mass Layoffs

As a fast follow to Marriott’s recent cost-cutting news, the company announced mass layoffs as a result of missing its Q3 earnings expectations. Some experts say the Company is re-evaluating what it’s workforce should look like in the age of AI.

🎯 Why it matters: Marriott’s restructuring signals a need to reevaluate operational models to stay competitive amid changing market conditions, technology and increased competition. This serves as a reminder for hoteliers to assess workforce strategies and we’ll likely see more chains follow suit.

🔑 Key takeaway: As chains like Marriott slim out their corporate workforce and independents get better at technology, we may be entering a world where the value of big chains is getting eroded away and it may just be easier and more profitable to go independent. Read More →

3. In-Person Meetings Found to Boost Revenue by 36%

A new study by Accor shows the enduring importance of in-person meetings in fostering trust, collaboration, and innovation — and can boost revenue by 36%. Despite the rise of virtual alternatives, business leaders say 1 face-to-face interaction is as effective as 3 virtual meetings.

🎯 Why it matters: As demand for corporate and group travel rebounds, hotels have a unique opportunity to position themselves as essential venues for meaningful in-person connections. Hoteliers should continue investing in meeting spaces, tech enhancements, and personalized services to attract these pieces of business.

🔑 Key takeaway: Creating a differentiated meeting experience can drive higher revenue in a competitive market. Focus on creating adaptable, tech-enabled spaces that cater to the evolving needs of corporate clients. Read More →

AROUND THE HOTEL INDUSTRY

Things Worth Checking Out

📊 Analysts Predict Airbnb's Revenue Growth May Slow to 6%-8% Next Year

🧮 Hyatt's Data Team Overcomes Legacy Challenges Through Snowflake Integration

☕️ Learn from Starbucks’ mistakes: When upgrading tech, don’t forget about hospitality and what keeps guests coming back.

🎟 Lifestyle brand Ennismore ditches loyalty to pilot a new subscription model

🗺 New research from Marriott shows 42% of EMEA travelers will travel more in 2025

🤝 Wyndham provides access to $100 million in for black and women hoteliers.

Langham launches smart biometric alarm clock for guests

📱 Expedia enhances its app with AI-generated review summaries, flexible date search, and personalized next-best recommendations.

🍴 Restaurant tech market heats up as innovations in AI, automation, and delivery gain interest from investors

HOTELIER SPOTLIGHT
🎙 Yotel COO on Embracing Change and Technology

In this episode, Sven Goosen, Chief Operating Officer of Yotel, reveals the transformative power of tech in enhancing guest experiences and operational efficiency.

Key Points:

  • Learn about the importance of a holistic tech stack and the role of customer interaction platforms like Zendesk in improving communication and satisfaction levels.

  • Understand the balance between automation and personalized service, and how Yotel is leveraging AI to enhance guest interactions while maintaining a human touch.

  • Regular tech stack reviews ensure alignment with business needs. Yotel's approach involves cross-departmental collaboration for continuous innovation.

The Bottom Line: With the right tech stack, it’s possible to deliver personal hospitality and great guests experiences while driving efficiency.

👉🏼 Check out the interview on Apple Podcasts or Spotify

Thanks for reading! If you have any questions you can contact [email protected]

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