This week’s Update includes two stories detailed Booking Holdings’ recent earnings release and a surprise story regarding Google’s hotel booking platform. Enjoy.
Google Shutters Book on Google
(“Book on Google for hotels to shut after low take-up,” February 25, 2022 via Phocus Wire)
Citing low usage by both suppliers and users, last week, Google announced that it was shutting down its “Book on Google” feature on May 25. The facilitated meta search platform (my phrase) allowed users to begin the booking process on Google (reservations and payment details) and then complete the booking on the supplier’s (hotelier or OTA) website. The announced changes should have no effect on Google’s hotel search products, including the free booking links implemented last year.
This week’s Update leads with an important Data Privacy Update from Eva Novick, the newest member of our firm’s privacy and data security team. If you currently operate a loyalty program (or plan to introduce one soon), I encourage you to read her important update. Enjoy.
The Travel Industry’s Push on Climate May Have Legs
(“Hotelbeds lays out eco and social initiatives, joins Amazon Climate Pledge,” February 11, 2022 via Phocus Wire)
For some time now, we’ve all seen the many surveys of would be travelers (particularly, younger travelers) detailing the importance of the environment and climate change in today’s travel decisions. Our weekly Update has recently featured a number of stories about this trend, including the recent launch of online platforms offering travelers carbon neutral travel. Last week, Spain-based bedbank, Hotelbeds, released its annual Environmental, Social and Government Report in which Hotelbeds claims it has again (for the fourth year running) attained carbon neutral status through a combination of carbon reductions and offsets. At the same time, Hotelbeds also announced that it has joined Amazon’s Climate Pledge, which features companies committed to eliminating their carbon emissions to zero by 2040. So what does this really mean? Will efforts like these mean enough to travelers to actually drive bookings or market share? With Hotelbeds feeling the heat from increased competition in its wholesale space (think Expedia EPS and soon, Priceline’s equivalent offering), Hotelbeds is “banking” on it.
Julie Eisenhauer is a guest author and a CPA at Clark Nuber PS.
Revenue is an important indicator of a hotel property’s financial health. It is used to analyze and interpret financial results using key industry operating metrics ( i.e., average daily rate [ADR] and revenue per available room [RevPAR]).
Revenue may also drive the calculation of certain costs, such as management fees, franchise fees, capital improvement reserves, marketing fees and business taxes, as these are often calculated based on a percentage of revenue. As a result, owners and operators need to be aware of changes coming in financial reporting standards related to revenue recognition effective January 1, 2018 (public companies) and January 1, 2019 (private companies).
I’m pleased to introduce guest author Sam Engel, from BrandVerity. BrandVerity provides services that detect online brand and trademark abuse for a variety of industries including hospitality. Sam spoke recently to members of our Hospitality, Travel and Tourism team at our monthly meeting. We’re grateful that Sam has offered to now share his experience and knowledge with our readers. Welcome, Sam, and thank you for today’s post. – Greg
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About the Editor
Greg Duff founded and chairs Foster Garvey’s national Hospitality, Travel & Tourism group. His practice largely focuses on operations-oriented matters faced by hospitality industry members, including sales and marketing, distribution and e-commerce, procurement and technology. Greg also serves as counsel and legal advisor to many of the hospitality industry’s associations and trade groups, including AH&LA, HFTP and HSMAI.
