lodging conference, 2017 · millennials# genx boomers 8 brand comparison 90% 97% 60% 11%...
TRANSCRIPT
Hotel Trends Lodging Conference, 2017
Contents
• Measuring hotel brand value
• Homesharing trends
2
Brand Value
3
For Brand Owners Brand Advantage and Brand Margin® validate the value a brand delivers among key traveler segments. Competitive comparisons also differentiate one brand’s position from others, helping to strengthen the business case for potential partners.
For Hotel Owners In a crowded market place, a consistent, benchmarked score gives the hotel owner invaluable business intelligence on the value a brand can bring to a hotel.
32
48
Economy
4
How many of them genuinely add value with consumers willing to pay a premium rate over and above the intrinsic product?
42
76
Midscale
60
106
Upscale
29 40
Luxury
Hundreds of brands are crowding the US hospitality landscape
Parent brands Individual brands Source: STR 2017
Brand Margin ® premium, across tiers for US guests
5
This is the brand premium on top of the price for an unbranded hotel
-‐$20 $0 $20 $40 $60 $80 $100 $120
Economy
Midscale
Upscale
Luxury
$14.73 -‐$2.75
$8.06 $27.26
$22.19 $44.76
$42.87 $112.88
Source: BDRC Hotel Guest Survey
$3
$20 $14
$37 $33
$61 $53
$110
-‐$10
$10
$30
$50
$70
$90
$110
Detractors Passives Promoters
6
Brand Margin ® premium, tiers by recommendation status
Luxury
Upscale
Midscale
Economy
2.1
1.8
2.7
7.5
Brand margin: Increase in magnitude between detractor and promoter Source: BDRC Hotel Guest Survey
7
Brand Margin ® premium, tiers by age cohort
$9 $3
$24 $16
$44 $33
$82 $82
-‐$10
$10
$30
$50
$70
$90
$110
Millennials GenX Boomers
100%
76%
68%
29%
Brand margin: Percentage of margin retained from Millennials to Boomers Source: BDRC Hotel Guest Survey
Economy-Midscale Brand Margin ® comparisons by age cohort
$16
$9 $8 $6
$15
$9 $7
$3
$14
$8
$5
$1
Hampton Inn Comfort Suites La Quinta Days Inn
Millennials GenX Boomers
8
Brand comparison
90%
97%
60% 11%
Brand margin: Percentage of margin retained from Millennials to Boomers Source: BDRC Hotel Guest Survey
9
Luxury Brand Margin ® comparisons by age cohort Brand comparison
$108
$82 $88 $92 $112
$91 $92 $92
$115
$85 $84 $87
Ritz-‐Carlton Grand HyaW JW MarrioW InterconZnental
Millennials GenX Boomers
$65 $80
$120
Trump
185% 106%
104% 95% 95%
Source: BDRC Hotel Guest Survey
Brand Margin®
Brand Reach
Brand Advantage
Score The price premium
a brand could command
The extent to which consumers are familiar with
the brand
One step further: Brand Margin® and awareness
Indexed with the highest brand in a tier at 100, and all others relative to that
Indexed with the most widely-known brand in the market at 100, and
all others relative to that
100 is the theoretical maximum
‘Brand Advantage
Score’
1.4 1.8 1.8 1.8 2.5 2.7 2.9 3.0 3.3 3.5 3.5 3.7 4.1 4.5 5.1 6.0 6.2 6.2
MGallery Ascend
Design Hotels Pan Pacific
Raffles Benchmark Resorts & Hotels
Andaz Aman Resorts
Leading Hotels of the World Autograph Collection
Preferred Hotels Rosewood
Destination Hotels & Resorts Small Luxury Hotels
Millennium Conrad
The Luxury Collection Peninsula
Low High
$112.38 $42.87
Brand Margin
Brand Advantage Score
11
6.4 7.9
10.4 11.1 11.9
15.9 17.2 17.2 17.4
20.3 24.2
28.1 28.2 28.4
34.7 35.4 36.0
45.1
Kimpton Sofitel
Loews Hotels Mandarin Oriental
St Regis Fairmont
Park Hyatt InterContinental
Sandals W Hotels
Trump Hotels Grand Hyatt
Waldorf Astoria Hotels & Resorts Westin
JW Marriott Hyatt Regency Four Seasons
The Ritz-Carlton
Luxury Brand Margin ® and brand awareness Differentiated brand view
hWp://bdrc-‐americas.com/products/hotel-‐guest-‐survey/brand-‐advantage-‐hotels/ For complete list of brands by hotel 4er go to…
Homesharing trends
Total
Homestay site usage in past two years
% of the market having used homestay sites
Average number of stays (among those who have used homestay)
30% 5.8 3.9 1.9 overall
19% 2.7 1.8 0.9 for business reasons
28% 3.1 2.1 1.0 for leisure reasons
The big picture in the US When you last booked homestay accommodation,
what did you book?
The entire house %
A room in a house %
The entire apartment %
A room in apartment %
All Stays 792 28 20 28 24
Business Reasons 564 30 20 28 22
Leisure Reasons 525 26 20 29 25
Own country Abroad
Source: BDRC Hotel Guest Survey
0% 20% 40% 60% 80% 100%
onefinestay Oasis CollecZons Owners Direct
Flipkey Squarebreak HomeAway
VRBO Airbnb
US Homeshare Site Awareness & Usage
Aware and have used Aware BUT have not used Not aware
*(Vacation Rental by Owner) Source: BDRC Hotel Guest Survey
24% 51% 25%
Homeshare brands awareness & usage
Homeshare awareness compared to hotel brands
Prompted awareness among hotel staying market in the US
Awareness
90%
77%
73%
75%
51%
30% 18% 11%
Source: BDRC Hotel Guest Survey
Airbnb user profile
36%
19% 24%
16% 15%
7%
Business Leisure
Age Cohorts
Millennials GenX Boomers
16% 10%
23%
13%
35%
21%
Business Leisure
Travel behavior
1-‐5 nights 6-‐10 nights 11+ nights
Source: BDRC Hotel Guest Survey
Airbnb users are younger and more frequent travelers
Motives for booking a homeshare site
25% 29% 33% 37% 38% 40% 41% 46% 47%
To accommodate large group
Desire to experience local
To accommodate a family
Extended stay
Use of a kitchen
More living space
Costs
LocaZon
The comfort of a home
Leisure travelers
30% 20% 10% 10% 20% 30%
Usual service Aer Economy Luxury
Source: BDRC Hotel Guest Survey
All stays
% of stays
Economy chain hotel 11%
Midscale chain hotel 10%
Upscale chain hotel 13%
Independent hotel 9%
Extended stay or serviced apartment 8%
Bed & breakfast 7%
Guesthouse 2%
Hostel 5%
Inn/Restaurant with rooms 5%
Private rental or holiday home 7%
Staying with family or friends 9%
Camping (or similar) 6%
Slept in vehicle 1%
Travelled further to avoid overnight stay 4%
Probably wouldn’t have made the trip 3%
New demand created
22%
Other paid-for accommodati
on 35%
Independent hotels
9%
Chain hotels 35%
Homestay: substitution impact on hotel room nights What would travellers have booked had they not chosen a Homestay site?
Millennials GenX Boomers
32% 34% 47%
6% 12% 3%
39% 31% 34%
22% 23% 16%
Source: BDRC Hotel Guest Survey
Business stays Leisure stays
Economy chain hotel
Midscale chain hotel
Upscale chain hotel
Independent hotel
Extended stay or serviced apartment
Bed & breakfast
Guesthouse
Hostel
Inn/Restaurant with rooms
Private rental or holiday home
Staying with family or friends
Camping (or similar)
Slept in vehicle
Travelled further to avoid overnight stay
Probably wouldn’t have made the trip
New demand created
12%
Other paid-for accommodati
on 36%
Independent hotels 10%
Chain hotels 36%
New demand created
23%
Other paid-for accommodati
on 37%
Independent hotels 11%
Chain hotels 30%
Homestay: substitution impact on hotel room nights
Source: BDRC Hotel Guest Survey
Contact
20
Matthew Petrie President
Liz Healy Director
[email protected] 202-841-5855
[email protected] 202-550-0051