As consumers strive to maintain healthier lifestyles while on the road, hotels are expanding their fitness programs and dining options to accommodate guests’ needs. According to a study by the American Hotel & Lodging Association, the number of hotels with fitness facilities jumped from 63 percent in 2004 to 84 percent in 2014. Boutiques and big brands alike are moving beyond basement gyms and basic spa menus to more sophisticated wellness programs that offer anything from rooftop yoga classes to in-room exercise equipment, AP reports. Read more here.
As Airbnb’s presence grows in key U.S. markets, so too does its impact on the hotel industry. According to analysis from CBRE Hotels, travelers spent $2.4 billion on Airbnb lodging in the United States from October 2014 to September 2015. More than 55 percent of that $2.4 billion was captured in five U.S. cities: New York, Los Angeles, San Francisco, Miami, and Boston. Possible implications for the hotel industry could include a decrease in average daily rate growth and a slow down in new hotel construction. To help hoteliers measure potential risk in their market, CBRE has developed an Airbnb Competition Index. To read more, click here.
With the World Health Organization (WHO) declaring that the Zika virus requires an urgent, united response, international travel insurance sales are soaring, says Reuters. Many vacationers are rerouting or cancelling trips to Latin America to avoid the rapidly spreading virus, which WHO is placing in the same category of concern as Ebola, reports the BBC. The rise in insurance sales provides insight into how travel is being impacted by the virus, although hotel chains and airlines have not yet been able to determine how it has or will affect bookings in the coming months. The infection, which can particularly affect pregnant women and cause birth defects, has raised concerns for the Rio Olympics this summer, but has not yet delayed plans. The Zika virus is not expected to have a widespread impact on the continental United States. To read more, click here.
The American Society of Travel Agents (ASTA) has formed a committee that will focus on issues related to hotel distribution. Made of 10 travel agency and industry representatives, the committee will meet regularly to share knowledge and keep abreast of lodging industry issues to best position ASTA’s response to events in the hotel space. The committee has already identified a number of issues they wish to address, including new distribution channels like apps and mobile technology, and book-direct marketing campaigns. To read more about this new committee, click here.
According to PwC U.S., Super Bowl 50 is projected to produce more than $220 million in direct spending for the San Francisco Bay Area on hospitality and tourism activities. PwC’s estimation is based on a proprietary analysis that focuses on exclusive characteristics of the 50th year’s events, such as the participating teams, attributes of the Bay Area, national economic conditions, and scheduled corporate activities. Read more here.
As primary market yields head toward historic lows, JLL expects investors to zero in on secondary markets to create more opportunities for profit growth and valuation increase. Additionally, JLL predicts more consolidation among operators and real-estate owners, as well as cross-border interest trends to take priority in 2016. To learn more, click here.