Europe Weekend Review: Accor Expands Into U.S. + Booking Lukewarm on TV Ads

The Travel Industry's Daily Agenda-Setting Newsletter

June 30, 2018 View in browser

Editor's Note AccorHotels is almost certainly the most aggressive dealmaker in the travel industry at the moment. As Skift's Hospitality Editor Deanna Ting notes in a recent article, the company "has bought or invested in nearly 20 businesses, ranging from restaurant reservations platforms and concierge services to luxury hotel brands." This number inevitably will need revising upward. Just this week, Accor announced a deal for a 50 percent stake in lifestyle hotel and restaurant company, SBE Entertainment Group, the owner of Morgans Hotel Group. The man at Accor behind this deal and others, Chief Development Officer Guarav Bhushan, says it's all about the numbers and that each one has to be "financially accretive to our shareholders." It's a bold strategy and one no-other big hospitality company is copying. In five years' time, will we be marveling at Accor's audacity or wondering just what the hell it was thinking? — Patrick Whyte, Europe Editor New Skift Research: The State of the Hotel Tech Stack 2018 It's high time hoteliers should update their technology roadmap to focus on the customer journey at every possible touchpoint. Outdated, decades-old systems just aren't going to cut it when it comes to the ultimate goal: delighting guests. Learn More Top Stories AccorHotels Is Buying Half of SBE Entertainment Group for $319 Million This AccorHotels investment in SBE aligns with its strategy for growth in North America as it adds more properties in key cities such as New York, Los Angeles, Las Vegas, and Miami. It does, though, contradict, in some respects, the chain's push to go asset-light. Booking CMO Says Brand Marketing Has Limits TV ads can be the hippest type of marketing. But the personal brand of Booking.com's chief marketing officer Pepijn Rijvers is tied up in a data-first approach that instead emphasizes paid ads in search engines. TourRadar Receives $50 Million for Multi-Day Tour Sales: Travel Startup Funding This Week TourRadar stands apart from other online sellers of activities with its rare, leading focus on multiday tours. Meanwhile, Triptease, the hotel direct booking specialist, and Chowbotics, a maker of food service robots, also announced funding. Ryanair's Chief Marketing Officer on the Power of Selling Direct Ryanair hasn't had the best year. Its reputation took a hit recently when it was forced to cancel thousands of flights because of pilot scheduling issues. But the customers have come back. Why? Cheap fares. It's the secret sauce. Travel Industry Feeling Spry as More of the World Goes Gray Instead of doing nothing when they retire, older people increasingly want to travel more. This is good news for the travel industry but it needs to work out better ways to target the baby boomer generation. GetYourGuide Is Playing the Long Game With Activity Booking The vast majority of tours and activities are still being booked offline the old-fashioned way, so theoretically, the digital players can each have their piece of the pie. Hotelbeds Executive Chairman on Fallout From the Online Booking Battleground Do hotels really need to be flagged under a big brand if online travel agencies are most effective at selling rooms? Hotelbeds' Joan Vila thinks hotel chains may be forced to wind down some brands that aren't succeeding in the marketplace. London Uses Mobile Gaming App to Help Tackle Overtourism Many travelers are glued to their phones, so why not put them to even greater use? That's what London tourism officials are hoping to do but whether this will actually help disperse tourism throughout the city rather than generate revenue for already crowded attractions remains to be seen. Melia Hotels COO on Turning Crisis Into Opportunity Spanish hotelier Melia Hotels is determined to show the world that it offers more than just sun-and-sand resorts. Rest of the World Priority Pass Shifts to Restaurants and Airport Suites as Demographics Change A curious number of airport restaurants have started partnering with Priority Pass in the last two years. More options are a good thing. Hotel Credit Card Wars Heat Up as Hyatt Relaunches Its Chase Card Hyatt's new World of Hyatt credit card launched Thursday does a better job of targeting younger and thriftier travelers. Big spenders, on the other hand, may be unhappy with some of the new perks. What the Growth of Solo Travel Means for Luxury With older people much more confident about travel than they were a couple of decades ago, it's perhaps understandable that they are happier to travel on their own. What Booking Sites Get for Every Marketing Dollar Spent: Skift Research Does the Math Online travel agencies remain essential to the travel industry as consolidators of, and clearinghouses for, advertising dollars throughout the space. We do not see OTAs being removed from this position easily, but growing challenges have hurt ad efficiency. OTAs must remain nimble to keep pace. Interview: Oracle Hospitality's New Boss Looks to the Cloud for Growth Oracle Hospitality is the market leader in selling hotel tech software. But the company has made some missteps. It is adjusting course, and two weeks ago it appointed a new top boss, Greg Webb. The industry will watch his moves closely. 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