5 things to know: 6 September 2016
 
5 things to know: 6 September 2016
06 SEPTEMBER 2016 9:20 AM

From the desks of the Hotel News Now editorial staff:

  • Hotel industry hit again by data breaches
  • Expedia and Marriott partner on vacation packages
  • Using submarket RevPAR as a cycle indicator
  • Chinese tourism fuels APAC growth
  • UK business travelers like the sharing economy

Hotel industry hit again by data breaches: Officials with Noble House Hotels & Resorts announced payment systems at 11 of the company’s hotels, resorts and restaurants were possibly infected by malware, according to a news release issued by the company.

The breach was first discovered when Noble House officials were contacted by the Secret Service about possible malware at the Ocean Key Resort & Spa, and further investigation revealed that a variety of properties could have been infected between 25 April and 5 August. This is the second data breach to hit Noble House properties in less than a year.

In addition to the Noble House breach, officials with the Hutton Hotel in Nashville are warning that their systems could have been compromised between September 2012 and June 2016. Credit card information for “tens of thousands” of guests might have been left vulnerable at that property.

For more information on hotel data breaches, visit Hotel News Now’s recent special report on the topic.

Expedia and Marriott partner on vacation packages: In a move the online travel agency describes as an attempt to “move beyond (being) a distribution channel,” Expedia has announced it has partnered with Marriott International to use the OTA’s booking engine for Marriott’s Vacations by Marriott platform, according to a news release.

Company officials said Marriott vacation packages will leverage “Expedia’s flights (and) hotels dynamic packaging technology” allowing the hotel company to “attract an incremental customer—one that books longer stays with twice the booking window and half the cancellation rate of standalone hotel bookings.”

Expedia officials said they’re looking to “provide other strategic initiatives and offerings to its hotel partners to drive incremental customers and revenue” and compared the Marriott deal to a recent agreement with Red Lion Hotels Corporation to offer loyalty discounts and direct bookings through the company’s various sites.

Using submarket RevPAR as a cycle indicator: There are 638 U.S. submarkets, according to Hotel News Now’s parent company STR, and depending on their revenue-per-available-room performance, it might help us get a better read on when the current cycle might turn, writes Stephen Hennis, STR’s VP of consulting and analytics.

In the follow-up to his earlier breakdown of market performance, Hennis writes that the RevPAR “tipping point” toward a downturn at the submarket level is a bit higher than at the major market level (29.3%).

“In the prior downturns, it wasn’t until 35.3% of all submarkets (225 tracts) experienced declines that an economic slowdown was certain,” Hennis writes.

Chinese tourism fuels APAC growth: CBRE Research’s latest “Hotel Megatrends” report examines the recent boom in Asia/Pacific tourism, which has been fueled by a growing middle class and household incomes. Chinese tourists have been particularly important for the growth of the hotel industry in the region, according to a news release.

In 2015, Chinese outbound tourists grew 10% year over year to 128 million, and spending grew 26% to $292 billion. The country is expected to continue to grow through 2020, with 134 million intraregional trips expected for that year.

UK business travelers like the sharing economy: The recent GBTA Global Business Traveler Sentiment Index shows U.K. business travelers are increasingly comfortable with sharing-economy platforms like ride-sharing and home-sharing services, and 51% of travel policies now allow at least ride sharing, according to a news release.

Conversely, only 28% of company’s travel policies allow for use of home-sharing platforms—like that offered through Airbnb and Homeaway—while 9% of those surveyed believe they will likely increase their use of those services in the near future.

As many would guess, there’s a generational divide in comfort level with home-sharing platforms, as 22% of millennials said they will take advantage of the services, compared to only 1% of business travelers over 55 years old.


Compiled by Sean McCracken.

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