Week #3 News Article Summaries
Article 1:
Title of article: Pyramid-Hamilton merger enables European expansion
Source of article: http://www.hotelnewsnow.com/Articles/300209/Pyramid-Hamilton-mergerenables-European-expansion
Published Date: 07 February2020
Boston’s Pyramid Hotel Group are in constant search for a business partner to expand and share
best practices with. Boston’s looking for a European partner since setting up their European HQ
in 2017. After careful analysis and detailed market research Boston group decided to merge with
Hamilton Hotel Partners and now have a hotel count of 141 assets with more than 32,000 rooms.
Both companies’ combined have acquired 1.5 B Euros in value towards acquisitions over the last
three years. Both teams are excited to work together as they are able to see the great progress and
growth with each other’s assets. After the opening of Pyramid Hotel’s European HQ, it instituted
“132-key Temple Bar Hotel, Dublin; 117-key Pendulum Hotel & Manchester Conference
Centre; and 378-room DoubleTree by Hilton Hotel London Docklands Riverside.” Looking at
the business now, only Dublin Hotel remain. According to the article, Croston, Co-founder of
Hamilton said the deal is constructed to help Pyramid to be known as they are in USA. This
merger is a big win for both companies as it helps them get a broader market capital and
recognition. Such instances are not new for Hamilton as their growth in Belgium via acquisition
nine hotels across several brands.
Article 2:
Title of article: Hilton’s Silcock on the value of data-driven decisions
Source of article: http://www.hotelnewsnow.com/Articles/300207/Hiltons-Silcock-on-thevalue-of-data-driven-decisions
Published Date: 07 February 2020
Improving guest experience is a topic that all hotels focus on to stay efficient with the market
competition. Chris Silcock the CCO of Hilton, explains how companies filter and incorporate
nearly 1 billion data points that it collects every day to improve customer and owner value on
day to day basis. In Hilton’s vision, keeping up with the advancements and trends of the world
now. These advancements will covertly help customer experience while providing the hotels
with tools to be customer centric. The biggest topic talked about in the interview was
personalization. Mr. Silcock believes using data to personalize the customer’s patterns and
lifestyle will make a big difference in customer loyalty. The same way amazon is able to suggest
a new product based on your past search history, hotels will be doing the same but with room
and staying preferences. The level of detail Mr. Silcock described for the initiative was described
by giving an example of the front to end customer experience. Mr. Silcock explained, “We’re
trying to get to a stage where if you arrive and … we should know that you’ve had a delayed
flight or some trouble on your trip, we can understand that.” With this Hilton is able to
empathize and provide you more meaningful service in the moment. All this tie into customer
loyalty and their inclination to instinctively prefer the right service they received.
Article 3:
Title of article: Driftwood to chase more deals through new platform
Source of article: http://www.hotelnewsnow.com/Articles/300188/Driftwood-to-chase-moredeals-through-new-platform
Published Date: 06 February 2020
Driftwood Capital is planning on spending $3 Billion in the next five years to incrementally
grow their business. Their ultimate goal is to pocket key investors and acquire more deals in
hotel space. The company is directing towards acquisition deals worth $30 million to $150
million. Another strategy they are using is by issuing loans ranging from $3 million to $50
million simultaneously. Making the decision to scale up can be really beneficial as the overall
growth of the hotel industry has settled at a plateau. So, when a recession hits by any chance,
Driftwood will have a modified power to buy and renovate hotels at good prices. Rebranding the
company now positively shifts attention to acquisition opportunities outside of hotels.
Broadening their investment horizons gives room to more growth possibilities. Driftwood
currently owns 4508 rooms, 19 hotels, and more hotels in development. Through strategic hires
and careful financing strategy Driftwood is ready to grow and expand in their market for the
upcoming years.
Article 4:
Title of article: Tracking the impact of coronavirus on travel, hotels
Source of article: http://www.hotelnewsnow.com/Articles/300219/Tracking-the-impact-ofcoronavirus-on-travel-hotels
Published Date: 07 February 2020
The Corona virus which originated in Wuhan, China has now been identified with comparisons
to the SARS virus of 2008. As news is developing, Hotel News Now will be covering the story
and providing constant updates. One of the links attached to this story stated how expensive this
virus is to the US travel industry. Report suggests that the virus will cost US around $10 billion
as flights are going to be cancelled and tourism will be impacted as well. Statistics show that
there has already been a 25% drop is Chinese visitors meaning loss of 4 million hotel bookings
and around $5.8 billion in visitor spending. The forecast before the virus was in favor of the
industry as a 1.7% growth was estimated. Now the situation has changed, and the companies
have to find different ways to compensate for their losses. The SARS virus impacted US from
loss of 400 to 600 basis points in just 4 months. Corona virus is on track to significantly cross
that statistic. Overall, US needs to be very alert and patient with China while raising awareness
to find a suitable cure for this epidemic.
Article 5:
Title of article: How major operators are coping with tight jobs market
Source of article: http://www.hotelnewsnow.com/Articles/300212/How-major-operators-arecoping-with-tight-jobs-market
Published Date: 07 February 2020
At the 2020 America’s Lodging Investment Summit, companies such as Aimbridge Hospitality
and Pyramid Hotel Group help put in perspective many stirring questions within the industry.
What both companies mostly covered were how to sustain business through high costs and
maintaining productivity. Few hotel owners believe that the industry is facing one of the most
difficult labor environments in modern history. Keeping that in mind, top executives are using
creative methods to address the issues head on. Warren Fields, CEO of Pyramid Hotel expresses
that outsourcing companies are having difficulties finding employees, resulting in higher costs.
Other ideas for solution in these tough times came from the concept of leveraging technology.
Many executives are using chatbots and AI to compensate for the employee shortage. So,
combining technology with hotel efficiency and payroll productivity then you’re more than
likely to succeed. Another big idea presented at the summit insisted to “invest in more in-state
resources in the more complicated areas and territories.” Overall, it does look like the market is
getting tighter in the hotel industry but with proper guidance and strategic economical models,
there’s a high chance a hotel can profit in these times.
Article 6:
Title of article: Royal Caribbean Anthem of the Seas Cleared for Next Sailing
Source of article: https://www.travelmarketreport.com/articles/Royal-Caribbean-Anthem-ofthe-Seas-Cleared-for-Next-Sailing
Published Date: 07 February2020
There were many concerns about the coronavirus during cruise routes knowing the outbreak, this
put many cruise lines on hold. It’s good news for Royal Caribbean Anthem of seas as they are
cleared from the CDC to continue its journey. According to New Jersey governor Phil Murphy,
Chinese nationals on board were screened for the virus after one reported symptoms of fever.
Out of the people screened, one was showing symptoms of influenza and no signs of Corona
Virus. According to Governor Murphy there are no cases of the virus in New Jersey and the
likelihood of it spreading there is very low. After further clearance, the ship is good to sail once
again. The requirements of entry have become tighter as passengers who are arriving from or
visited China or Hong Kong in the last 15 days will not be able board the ship. Also, people who
have passports from the prior countries won’t be easily cleared for this cruise. Taking these
percussions in mind, the Anthem is ready to sail once again. Any further occurrences are assured
to be low from now.
Article 7:
Title of article: Apple Leisure Group Announces Leadership Changes
Source of article: https://www.travelmarketreport.com/articles/Apple-Leisure-GroupAnnounces-Leadership-Changes
Published Date: 07 February 2020
Apple Leisure group just announced that they will be going through some leadership changes
despite the impressive start to 2020. Leisure group believes this change will help grow their
travel agency brands. Few key changes that occur were personnel changes. Scott Wiseman who
served as the president of travel impressions will now serve as the GM of Brand Management.
John Tarkowski the longtime Apple Vacations Executive will now take upon the role as the SVP
of Brand Strategy. Ron Jacobs president of Blue-Sky Tours has been assigned as the CFO of
Apple Leisure Group. Wendy Hoekwater the SVP of marketing is instructed to focus more on
the agency marketing to provide growth in that sector. According to the article, Apple wrote in
its letter “While these changes should not impact your daily interactions with ALG and the ALG
Vacations brands, you should notice faster decision making and improved programs.” Overall
these changes have become a big factor of growth and long-term success. This will give new
light and vision to the plans of Apple Leisure Group while still having good feasibility within the
industry.
Article 8:
Title of article: David Neeleman Christens Newest Airline Start-Up, Breeze Airways
Source of article: https://www.travelmarketreport.com/articles/David-Neeleman-ChristensNewest-Airline-Start-Up-Breeze-Airways
Published Date: 07 February 2020
The entrepreneur known for Morris Air, West Jet, Azul and Jet Blue, David Neeleman, has now
introduced another line airline. This airline startup is called Breeze Airways. One of the biggest
things the airlines is focusing on is nonstop flights. According to the article, “Neeleman’s
newest airline endeavor promises to provide low fares and connections to U.S. city pairs
that currently have no nonstop service.” Being a great difference maker in cities where
there is lack of meaningful and affordable services is what will build customer loyalty.
Neeleman has always worked towards affordable flights as seen with JetBlue and his other
companies. His work from the last 20 years has focus solely on bringing back humanity in
airlines industry. On track towards its launch, Breeze has ordered sixty brand-new 220-300
aircrafts coming in April 2021. They have also leased 195 aircrafts from Azul to be
delivered in May 2020. Overall having nonstop flights in such areas can really impact the
cities and provide service for a long time. Breeze expects to be flying by the end of 2020.
Article 9:
Title of article: Virgin Voyages Introduces Smart Wearable Technology Made from Ocean
Plastic
Source of article: https://www.travelmarketreport.com/articles/Virgin-Voyages-IntroducesSmart-Wearable-Technology-Made-from-Ocean-Plastic
Published Date: 07 February 2020
In comparisons to other ships, Virgin Voyages is transforming its wearable devices completely.
The cruise line has teamed up with Bionic Yarn, to create a smart and sustainable watch created
by recycled ocean plastic. The band is programmed to be a room key, electronic payment
method, and even pass to the continuous on-board entertainment. Each band will be created with
six grams of marine and coastal plastic. This creation is equivalent to one half of a plastic water
bottle. Normally when people see these devices, they think of environmentally dangerous
silicone and plastic, which is not the case with this band. Assured by the Voyage, the band is
constructed to feel like a non-technology piece which is very light weight and discrete. Before
the passengers arrive, they will receive this device via mail so they can bring it on their date.
Another feature will be the location service which can provide champagne service at any
location. This can also give VIP sailors access rooftop easy gaming casino. Having this process
will not only provide convenient service for passengers but also will play a large role in cleaning
up the ocean. Launch date for the band is April 1, 2020.
Article 10:
Title of article: Hurtigruten Announces $100 Incentive to Travel Agents
Source of article: https://www.travelmarketreport.com/articles/Hurtigruten-Announces-100Incentive-to-Travel-Agents
Published Date: 05 February 2020
On Wednesday as a special offer Hurtigruten gave $100 incentive to their travel agents. If any
clients are booked on this cruise along the route to Norway between Feb 1-29 then the incentive
will come into play. Booking on the new Hurtigruten online portal will increase their product
awareness and benefit the agents. Three brand new exclusive cruises were launched by
Hurtigruten at the coast of Norway. All three cruises departure throughout every season. Each
line includes nine exclusive ports. These ports differ based on the season. The first cruise
departures during January 2021. Not only the exclusive cruises but the classic ones will also
count towards incentive. This decision will be very beneficial to get more customers on the
overall cruise introduction.