The Hotel and Travel Week

Profits of the InterContinental Group surged in 1st quarter
This week, IHG reported a surge in 1st-quarter 2012 profits which is based on strong growth in the United States and China. Net profit more than doubled to US$154 million, from US$69 million a year earlier, though this was boosted by an exceptional tax credit. Revenue rose by 3.3% to US$409 million. Operating profit, a key measurement, rose by 5.3% to US$118 million, while RevPAR increased by 7% (7.7% in the Americas and 12% in China). Despite ongoing challenges in Europe, IHG added a total of 9,300 rooms to their pipeline with China representing 30% of this.


Starwood will move HQ to Dubai for a month
Starwood Hotels & Resorts Worldwide announced plans to temporarily move the company’s headquarters for a month to Dubai in 2013. Last year, the group had relocated their headquarters for one month to Shanghai. During next year’s relocation to Dubai, Starwood’s team will focus on their extensive operations throughout the Middle East (50 hotels in 11 countries and 30 in the pipeline) and meet with regional customers, partners, developers and owners, while also touring new properties in the region. “Dubai is emblematic of how globalization is creating new travel patterns and travel hubs, and serves as a crossroad between the emerging and developed worlds,” said Frits van Paasschen, Starwood president and CEO.


Flash Sales Companies among Top 1% of U.S. Travel Retailers
Daily deals sellers are relatively new to travel distribution, but flash sales have captured industry attention. According to a PhoCusWright Publication, the 2 leading brands – Groupon Getaways and LivingSocial Escapes – would rank among the top 1% of travel retailers in the U.S. if their 4Q11 gross billings were representative of an entire year. The publication addresses the following questions: Should suppliers participate in daily deals? Can these outlets be effective at moving distressed inventory? Do these deals really attract new customers and lead to repeat business? How can they avoid cannibalizing their existing customers and more profitable points of sale? What makes deals successful, and how can travel suppliers turn a profit on such steep discounts?
What is your experience with Flash Sales? We would love to hear from you!

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