Lodging Conference, 2017 · Millennials# GenX Boomers 8 Brand comparison 90% 97% 60% 11%...

Hotel Trends Lodging Conference, 2017

Contents

•  Measuring hotel brand value

•  Homesharing trends

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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


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


$65 $80

$120

Trump

185% 106%

104% 95% 95%


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


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%


Airbnb user profile

36%

19% 24%

16% 15%

7%

Business Leisure

Age Cohorts


16% 10%

23%

13%

35%

21%

Business Leisure

Travel behavior

1-‐5 nights 6-‐10 nights 11+ nights


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


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?


32% 34% 47%

6% 12% 3%

39% 31% 34%

22% 23% 16%


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%


on 36%

Independent hotels 10%

Chain hotels 36%

New demand created

23%


on 37%

Independent hotels 11%

Chain hotels 30%

Homestay: substitution impact on hotel room nights


Contact

20

Matthew Petrie President

Liz Healy Director

[email protected] 202-841-5855

[email protected] 202-550-0051

Lodging Conference, 2017 · Millennials# GenX Boomers 8 Brand comparison 90% 97% 60% 11%...

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