US airlines bullish: Major U.S. airline companies said their current quarter is likely to surpass pre-COVID levels although their capacity is below that of 2019. American Airlines Group, United Airlines and Alaska Air Group anticipated to be profitable in the quarter through June. Citing “historic” high bookings, last week Delta Air Lines forecast a return to quarterly profit. The recovery in demand coupled with the bullish outlook is mostly driven by leisure travelers, with easing of travel restrictions and office reopening also helping to drive demand. American Airlines said revenue from government and corporate travel from 2019 levels was up 27 percentage points in the quarter through March from the last quarter. United Airlines anticipated a 25% rise in its trans-Atlantic traffic this summer as parts of Asia showed signs of recovery. The rise in demand has also been helping the airlines deal with the surge in fuel costs, which have doubled in the last year.
Pebblebrook buys in Naples, Florida: Pebblebrook Hotel Trust has acquired the 119-room Inn on Fifth in Naples, Florida, from local entrepreneur Phil McCabe for US$156 million. It will retain Noble House Hotels & Resorts to manage the property in Historic Downtown Naples and become part of Curator Hotel & Resort Collection. Pebblebrook is evaluating operating and physical enhancements for additional upside and increased cash flow, including developing the 0.6-acre parcel adjacent to the hotel that is part of the acquisition. Preliminary March 2022 top-line results indicate dramatic growth with room revenues and total revenues beating March 2021 by over 40%, with a March 2022 average daily rate of over US$1,000. Pebblebrook intends to fund the acquisition with approximately US$78 million of cash and by issuing the seller approximately US$77.6 million of perpetual preferred operating partnership units (3.104 million units at US$25 per unit) with an annual distribution rate of 6% and approximately US$0.4 million of common units.
Accor, Mantis’ eco-tourism initiative: In honor of Earth Day, Accor and Mantis have launched a campaign to encourage members of ALL (Accor Live Limitless) to convert their reward points into a donation to support Community Conservation Fund Africa (CCFA) and projects that help preserve Africa’s wildlife through sustainable community development initiatives. At least 2,000 points, equivalent to €40 (US$43.43), for the donations, are entitled to a tax deduction.
Global sustainability initiative: Radisson Hotel Group, along with major hotel brands and associations, has launched the Hotel Sustainability Basics, an inclusive and common definition of sustainability to boost responsible travel, which includes 12 actions essential to hotel sustainability. The World Travel & Tourism Council unveiled its Hotel Sustainability Basics at the Global Summit in Manila, the Philippines, which is a globally recognized set of minimum indicators that will help hotels improve and address their environment impact and drive responsible tourism. The Hotel Sustainability Basics have been developed in collaboration with the Sustainable Hospitality Alliance industry, academics and technical experts and has already gained support from major hotel associations and groups representing more than 50,000 hotels.
Trivago fined for misleading advertisement: An Australian federal court fined travel booking platform Trivago A$44.7 million (US$33.13 million) for misleading customers about hotel rates in its advertisements saying it would find the cheapest price for hotel rooms. A federal court found Trivago guilty in 2020 for violating the Australian Consumer Law. Instead of finding the cheapest rates, the company ranked hotels on the basis of which advertisers paid the highest per-click fee. The judgment stated that the advertisements cost consumers A$30 million (US$22.23 million) as they were misled into picking expensive hotels over the cheaper ones.
India occupancy, ADR surpass 2019 levels: In an indication of continuing recovery since the Omicron wave, the hotel industry in India surpassed its pre-pandemic levels in occupancy and ADR for three consecutive days in the second week of April, according to preliminary data from STR. April 16-18 were the first instances this year where both occupancy and ADR were above the 2019 levels in India. On a running seven-day average, ADR and occupancy have been more than 90% of pre-COVID levels since late-March. On April 18, India recorded its highest ADR index of the year at 106% of the 2019 figure. Occupancy surpassed the pre-pandemic levels earlier in the year, reaching 109% of the corresponding 2019 level on March 25. Although demand for business travel has remained subdued after the Delta wave, it improved significantly after the Omicron wave with the momentum continuing in April. Select leisure markets have seen considerable occupancy levels throughout the year and mostly exceeding pre-COVID levels.
Accor launches hybrid meetings concept: Accor has launched ALL CONNECT — a hybrid meetings concept supported by technology partners like Microsoft Teams, Events Air, Encore and AV Dynamics — at several of Accor’s properties across Australia, New Zealand and Fiji. Accor said it will ensure seamless hybrid meetings at its properties by enabling companies and event organizers to combine physical in-hotel meetings with virtual interactions in multiple locations simultaneously. The meetings will take place on several platforms where attendees can connect virtually. The hybrid meeting concept is integrated with Accor’s ALL-Accor Live Limitless Meeting Planner loyalty program, allowing members to earn reward points for each meeting booked.
Olivier Hospitality acquires in Oxford: Olivier Hospitality, Nashville, Tennessee, has acquired The Chancellor’s House Hotel in Oxford, Mississippi. The 38-key luxury boutique hotel features suites with private terrace access, a lobby restaurant and bar and more than 2,800 square feet of event space. Olivier plans to start renovating the property later this year with new branding, improved room product and reimagined food and beverage spaces, including a new rooftop bar, speakeasy and restaurant concept. Olivier has reopened the hotel’s main restaurant, Chancellor’s Bar & Grill, located on the lobby.
Hotels.com unveils new ad campaign: Hotels.com has launched its new creative platform in a series of 30-second advertisements that redefines the travel company as a “hotel matchmaker” instead of a directory. The campaign, “Find Your Perfect Somewhere,” is Hotels.com’s first collaboration with its new creative agency partner, Wieden+Kennedy Portland. The campaign will premier in U.S. television channels on Saturday during the NBA Playoffs on TNT as part of Hotels.com’s official travel sponsorship with the league. The campaign will also be featured in OOH, digital audio and video, connected TV, programmatic and paid social