covid-19 virus hospitality impact: trends and recovery -19... · • product management • digital...

COVID-19 Virus Hospitality Impact:

Trends and RecoveryWednesday, 15 April 2020

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European Hubs | UK and Spain

• 20 employees

• Sales & Marketing

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ASIA PACIFIC AND AFRICAEUROPEAMERICAS

A Global Business with Access to all Growing and Established Travel Markets

NAVIGATING THE UNCHARTED WATER OF COVID-19

Philippe GarnierVP - Third Party Distribution

IHG

Noreen HenryChief Revenue Officer

Sojern

Chinmai SharmaPresident – Americas

RateGain

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The Current ScenarioMARKET INSIGHTS FROM DIFFERENT GEOS

Insights on Bookings and Cancellations across US, Europe and China

Intra US trends

Signs of recovery

Booking Trends: Global

Confidential & ProprietaryRateGain Research Labs

Early recovery signs visible due to flattening of bookings and cancellations – led by some international markets

RateGain Overall Bookings

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Booking Trends: USA (About 4-5 Weeks into COVID 19 Crisis)


USA’s Booking Volume

Regular Days

During COVID 19

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European region have shown a similar pattern as that of the global one.

Gradual decrease in Jan and Feb and then a steep decline in March.

Booking Trends: Europe


Europe: Region Wise Net Bookings

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Booking Trends: China (Recovery Signs Post 10-11 Weeks)


China’s Booking VolumeRegular Days

During COVID 19

Recovery Phase

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Reservation Volume: Top Cities


Shift from key leisure and business cities to smaller cities and state capitals (lower volume) – FEMA, Pharma/Medical, Opaque

Jan'2020 Apr'2020 (MTD)1 Orlando 1 Houston2 Houston 2 Austin3 New York 3 Atlanta4 Atlanta 4 Memphis5 Austin 5 Columbia6 San Diego 6 Durham7 Miami 7 Jacksonville8 San Antonio 8 Charlotte9 Dallas 9 Raleigh

10 Los Angeles 10 Tampa11 Jacksonville 11 St. Louis12 Phoenix 12 Phoenix13 Charlotte 13 Aurora14 Memphis 14 Columbus15 Tampa 15 Duluth

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COVID-19 New Cases by Country

Confidential & Proprietary

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Global Commercial Flight Activity – Flightradar 24 Data

Confidential & ProprietaryFlightradar 24 data

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Learning from the Flights Curve: China vs. USA

Confidential & ProprietaryFlightradar 24 data

COVID-19 Virus

Hospitality Impact:

Trends and Recovery

Noreen Henry

CRO, SojernApril 15, 2020

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Empowering travel marketers through data.

Built on a decade of expertise analyzing the complete traveler path to purchase,

Sojern drives travelers from dream to destination.

$13BBookings

10,000+Global Customers

350MIn-Market Travelers

Sojern works across airline, hotel, cruise, transportation,

tourism, and more.

We work with 90+ Travel Data Partners and see 6.2 Billion Partner Searches Across 238

Countries and Territories


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What’s Happened in the Past?


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What’s Happening Now?Year over year change in global flight search, vary by region

Flight searches to China dropped starting January with slight rebound in early Marwhen Chinese residents returned home.

Flight searches to APAC region followed with a steady decline in late January.

EMEA experienced a steep decline starting in mid-February when COVID cases increased.

US/Canada & LATAM experienced small surge in early Mar followed by a dramatic drop off with shelter-at-home restrictions.

Source: Sojern Flight (Airline/OTA/Meta) Data, Flight searches Jan 5 to April 5, 2020 vs Jan 6 to April 5, 2019 Confidential & Proprietary

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Hotel Booking Trends Similar FlightsYear over year decline in hotel bookings per region

Hotel bookings into China dropped starting in January and did not have a corresponding bump in March with flights.

Hotel bookings in APAC and EMEA follow similar pattern as flights with EMEA dropping later but more dramatically.

Again US/Canada and LATAM had a small increase the end of Feb/early March but dropped off suddenly to coincide with air and shelter in home

measure.

Source: Sojern Hotel Data, Hotel searches Jan 5 to April 5, 2020 vs Jan 6 to April 5, 2019 Confidential & Proprietary

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Early Signs of Life? Domestic China bookings however are on the rebound

Marriott Q1 Results Reports:

→ China occupancy rose 20% in the first week of April with

leisure and regional transient.

→ Qingming holiday weekend (April 4-5) more than 20 hotels in

leisure markets had 60%+ occupancy with 8 hotels sold out.

STR Research:

→ Mainland China occupancy hit 32% on March 28th, up from

7% in early February.

→ ~90% of hotels in mainland China have reopened.


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Travelers Increase Searches to Drive Markets

Shopping for destinations that are within drive market increased 12% YoY in March

Source: Sojern searches March 2020 vs March 2019 Confidential & Proprietary

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Future Searches Increase in the Second Half of 2020

There are still travelers who are in-market now looking travel.

This data features US destinations but in general we are

seeing this across the board -- a gradual increase in travel

intent with a focus on the second half of the year.

Many are taking advantage of travel discounts / flexible

cancellation policies.

We are seeing this especially with millennials.

Source: Sojern searches March 2020 Confidential & Proprietary

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Brands have Adjusted their Marketing Message

Tourism messaging - features dreaming and inspiration

Hotel messaging - features promotional rates, flexible terms, worry-free booking.

Source: Creative Ads currently running thru Sojern Confidential & Proprietary

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The Way AheadHOW TO NAVIGATE THE UNCHARTED WATERS OF COVID-19?

Recovery expectation for the travel and hospitality ecosystem

Current behavior and expectations from different market segments

Focus on direct booking vs. third party distribution post crisis

Crisis communication and role of Digital Marketing and Social Media

The next big trend in Travel happening in the next 6-12 months

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Social Media?

Have a plan – Articulate team roles and responsibilities along with an internal and external

communication plan

People turn to Social Media to avoid isolation - Social media brings people closer together.

People are eager to “escape” - they want to dream about what they plan to do once travel

returns.

Build now, win business later - how companies behave now, won’t be forgotten later (think

cancellation policies, loyalty points, CRM)

Travel industry cannot simply abandon marketing - 80% of travelers will turn to social and

digital media when planning

Your competition is silent - the first reaction that many businesses have is to go dark, which

gives you the opportunity to stand out

Save money - fewer running campaigns while more audience, equals lower CPCs, making

paid media cheaper than ever!

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Question & AnswersPOST YOUR QUESTIONS IN THE CHAT BOX.

Our Speakers Would Be Happy To

Answer Your Questions

https://bettertomorrow.rategain.com/

https://rategain.com/consulting-for-a-bettertomorrow/

https://www.sojern.com/blog/category/covid-19-travel-industry

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Useful LinksRESOURCES AND PUBLICATIONS


https://rategain.com/consulting-for-a-bettertomorrow/


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FOR ATTENDING THE WEBINAR

Thank You

covid-19 virus hospitality impact: trends and recovery -19... · • product management • digital...

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