Visa policies, the Olympics and recent acquisitions: An update from the Accommodation Panel

The WYSE Travel Confederation Accommodation Panel gets together every few weeks to catch up on what’s going on in the accommodation sector; the latest trends, what’s shaking up the industry, and the hurdles that need to be overcome.

Below is a look at some of the recent topics that have arisen from the recent Accommodation Sector Panel meeting.

If you would like to contribute to any of these topics, our Membership team would be delighted to hear from you.

The impact of pricing and visa policies

Etienne Matichard, Director of Sales and Distribution at JO&JOE spoke about the 2024 Olympics in Paris and how it showed again the importance of learning from past mistakes. Just like London in 2012, sky-high hotel prices turned people away and led to a decline in attendance for the event.

Additionally, he observed a current shift in travel trends towards Asia, driven by factors such as lower costs and simplified visa requirements. He also mentioned the impact of Brexit on British travel to Europe making it complex for UK travellers to travel.

Despite these challenges, there is optimism about the future of European travel. He pointed to positive signs such as the increasing number of travellers returning to Europe since November. Furthermore, the simplification of visa processes for certain regions could make it easier for travellers to choose European destinations.

Recent acquisitions and operational changes

Tom Cooney, CEO of Tourism Adventure Group, highlighted an update on the recent acquisition by Collective Hospitality, a prominent player in the accommodation sector. In recent days, they have acquired a significant portion of Selina’s properties, primarily concentrated in Southeast Asia. This acquisition involved taking over management contracts rather than outright property ownership.

Read about Collective Hospitality’s acquisition of most of Selina’s business assets here.

Tourism Adventure Group have recently opened a new property in Thailand and acquired the four Selina properties in Australia, which has been keeping their team busy. The transition has involved a substantial effort to transfer Selina’s systems and improve operational efficiency.

Even though the winter season in Australia and New Zealand has seen a slowdown in business for southern areas and Southeast Asia, Tom mentioned that Tourism Adventure Group has remained active.

Also mentioned Leisure Accommodation Collection has successfully opened a new hybrid hostel hotel in Christchurch, New Zealand, and has had great feedback. Their opening is seen as positive, as it contributes to the ongoing recovery of the New Zealand hostel market from the impacts of COVID-19.

See news of this hostel opening here.

Navigating the challenges and opportunities in the industry

Diogo Vaz Ferreira, Head of Commercial at Clink Hostels, offered valuable insights into the current state of the accommodation industry. He emphasised the cyclical nature of demand, with peak periods driven by events like the Olympics or music concerts. However, maintaining high occupancy rates during off-peak seasons remains a significant challenge.

He reflected on what Etienne mentioned about the Olympics in that high accommodation prices, particularly during major events, can deter travellers and lead to a decline in demand, and suggests that cities should collaborate with hospitality providers to effectively manage accommodation during such events, ensuring availability for visitors.

Furthermore, he emphasised the changing travel preferences of travellers, with a growing trend towards destinations offering lower costs and easier visa processes.

The importance of activities in hostels

Tom Cooney emphasised the significance of including activities at hostel properties, as highlighted at the APAC Hostel World Conference in Chiang Mai. Data from Hostelworld showed that guests who participate in activities are far more likely to leave positive reviews. Specifically, 75% of guests who engage in activities leave reviews, compared to 25% who do not, and positive review rates are 80% for those who participate in activities versus 60% for those who do not. This underscores the impact of activities on guest satisfaction and social cohesion.

Conclusion

The panel agrees that by getting a grip on these trends and challenges, those in the hospitality business can stay ahead of the curve and navigate the changing world of travel.