The number of properties selling additional bookable services (i.e. those that have more than a single space type) is rocketing. A quarter of hotels in the UK now diversify their revenue in this way, a 66% increase on 2022.
NEW YORK, NY – Mews, industry-leading hospitality cloud, released the Mews Data Dive, a real-time measure of hospitality’s performance in 2023.
Based on data from more than 4,000 Mews partners in 85 countries, the Mews Data Dive unpacks hospitality’s performance across 12 key areas – including occupancy, domestic travel, online check-in and upsells, direct bookings, booking lead times, rate types, ADR and RevPAR, and additional bookable services – to pinpoint how the hospitality sector is changing.
“With rising inflation across the world, it’s not surprising that the average daily rate has risen, but it didn’t deter reservations in 2023. The data is another proof point that occupancy levels have more than stabilized, making for a meaningful rise in RevPAR for our customers,” said Matt Welle, Mews CEO.
He added, “Hoteliers are becoming more creative with the amenities and spaces they offer their guests and in the last year alone, we’ve seen a significant increase in properties selling additional bookable services. While parking spots and meeting rooms have played a huge role in this, 2024 will be the year that more hoteliers revolutionize revenue management. We are beginning to see more hotels capitalizing on all available assets and offering additional spaces, from co-working desks to karaoke booths, providing remarkable guest experiences across the board.”
For the U.S. market in particular, key findings include:
- Travel has recovered and tops pre-pandemic levels. Despite the backdrop of global unrest, frequent flight disruptions, and inflation, consumers didn’t pump the brakes on travel, which will likely remain a priority throughout 2024. Average occupancy in 2023 was 49.1%, a 3% increase YOY and 19% higher than 2019 levels.
- Summer travel reigned supreme, and geographic trends normalized with international markets reopening for travelers from the United States. Overall demand remained healthy into peak summer travel season: August was the best-performing month, while July saw the highest percentage of rooms occupied. While international travel continued to grow, domestic travel held strong with an almost 50:50 split.
- Increased rates didn’t deter consumers from traveling: Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) saw clear, positive movement. ADR rose 6% YOY to an average of $250, and RevPAR saw an increase of 9% YOY to $126. This modest growth underscores the ongoing resilience of the travel industry as business returned to its normal state pre-pandemic.
- Traveler confidence continued to grow, as non-refundable reservations and booking lead times increased. 33% of all bookings were made at least 30 days in advance, a 6% increase YOY. While men were 60% more likely to make a same-day reservation, women were more inclined to map out travel ahead of time.
- Online check-ins and upgrades continue to increase. A quarter of guests continue to check-in online, and 2.2% of guests added an upgrade to their reservation while checking in, with an average upsell value of $48. Top upgrades included early check-in, parking, late check-out and pet fees. Expect more hotels to encourage online check-in and offer more features and personalized experiences to meet this increasing demand.
- More hotels are accommodating the evolving needs of remote workers and bleisure travelers. One in five hotels in North America are diversifying their revenue by monetizing additional spaces (such as meeting spaces, day use rooms, hotel desks, parking), almost a 50% increase compared to 2022. The most-used additional bookable spaces were parking spots and meeting rooms, with each parking space earning an average of $4,448 in extra revenue per year.
Hotels embrace ancillary revenue in 2023 in the UK
Revenue per available guest increased by almost 10% in the UK, according to the Mews data dive for 2023. The company reported that growing pressure on hotels had encouraged more flexible thinking in terms of revenue generation.
RevPag reached £199, with spaces such as parking being used to create much-needed additional revenue and help to offset ongoing cost increases and move properties towards profit.
Mews reported that operations with parking made £2,102 more in 2023 than in the previous year, up from £10,304, an increase of over 20%. The growth illustrated the benefit of assessing the whole of a hotel when generating revenue, not just bedrooms.
The group also highlighted the value of online check-in, with 23% of guests checking in online in 2023 and 3% of those guests upgrading during the process, with an average upsell value of £21. Top upsells were; breakfast, towel, late check-out, early check-in and parking. The proportion of guests upgrading their reservation during online check-in almost doubled year-on-year.
ADR was £177, up 13% on the year, with revpar of £95, growth of 10%. Occupancy was 62%, down 2.3% from 2022.
International travel has also stabilised, with an almost 50:50 split between domestic and international travel.
“With rising inflation across the world, it’s not surprising that the average daily rate has risen, but it didn’t deter reservations in 2023. The data is another proof point that occupancy levels have more than stabilized, making for a meaningful rise in RevPAR for our customers,” said Matt Welle.
He added, “Hoteliers are becoming more creative with the amenities and spaces they offer their guests and in the last year alone, we’ve seen a significant increase in properties selling additional bookable services. While parking spots and meeting rooms have played a huge role in this, 2024 will be the year that more hoteliers revolutionize revenue management. We are beginning to see more hotels capitalizing on all available assets and offering additional spaces, from co-working desks to karaoke booths, providing remarkable guest experiences across the board.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
