Skift Take
When hotel executives have talked about their companies' performance this earnings season, they indirectly spotlighted a few trends affecting much more than just their sector. As Skift has long said, "Travel is a global crucible for everything."
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.
Hotel earnings season so far has made me reflect on a manifesto that Skift founder and CEO Rafat Ali wrote several years ago: "Travel is a global crucible for everything. It is where the largest consumer and tech trends first meet and are quickly tested. Everything converges in travel."
When hotel executives have talked about their companies' performance in the past couple of weeks, they have indirectly spotlighted bigger-picture trends.
Here's a snapshot of a few:
1. Changes in consumer income patterns are boosting a popularity for "premium economy" offerings, which in industry jargon translates into "mid-market" hotels.
The spread of disposable income in many countries is changing. Wealthy households are getting richer: Spending by households in the top 1% of incomes broadly outpaces spending by the top 10% of incomes. If you're skilled at serving the highest-end traveler, you can print money thanks to demand exceeding supply. If you can capture budget travelers, you also win for the same reason. Yet there's an under-appreciated segment of in-between income segments that can be profitably catered to. These include the growing band of travelers who buy "premium economy" seats on airlines and "mid-scale" or "mid-market" hotel rooms. In the confusing (but logical) world of STR classes,