Are there special events happening in the marketplace? Over time, we’ll put more and more third party data into that so it gets smarter and smarter and helps our hotels price more effectively. It’s leveraging technology and data and analytics, as we were talking about back in the green room.īarr: We just did a new demand forecasting model, which leverages next generation AI, and it’s looking at the historical performance of the hotel in the market, what we’re seeing from demand, but it’s also pulling in third party data now, so what’s actually happening out with your competitors in terms of pricing. O’Neill: There has been a structural shift, so compared with five years ago, IHG is much better at pricing discipline and extracting optimal rate from the market, and that is a long term tailwind. Now, the caveat here clearly is if there’s a big, deep global recession, which no one knows that could impact things, but assuming that the economy is generally healthy, we think that rates will be maintained. The industry is very, very disciplined in saying, we have a level of demand, we’re still seeing sequential recovery, and we think that those rates are going to be maintained. Our corporate rates are up about 6 percent as well too, and so those are going to be sustainable. Our leisure rates in the Americas are up 16 percent, year over year versus 2019. If you remember, during the beginning of the pandemic, everyone was saying that average rates are going to fall materially, and it’s going to take five years to claw those rates back. I think this industry has gotten very, very smart about pricing. What is your view? Well, that’s seasonally adjusted, of course.īarr: Yeah, Barry is a really smart guy, but I think I’m probably going to disagree with Barry. Barry Diller was speaking with us earlier today, and he thought that the average daily rates that hotels enjoyed in the second quarter aren’t long term sustainable. Clearly, strongest in the Americas, great into Europe, and again, recovering the rest of the world, but a really strong first half. Middle East has been reasonably consistent, and Asia is beginning to open up, so Thailand is lifting restrictions, Japan is looking at opening up to more travelers, Australian, New Zealand too. It was amazing to see that over in Paris and London. Europe’s had a fantastic summer, lots of Americans in Europe, given where the pound and the euro has been. The America’s, incredibly strong, business demand, leisure demand, groups, meetings, events, keeps getting better. Again, it varies around the world, clearly. No, we had a great first half, and we saw a sequential improvement, month by month, as it went on. I have to remind everyone that the stock market isn’t necessarily the economy.
Are you seeing any pullback in demand for the rest of the year?īarr: The answer is no.
#Dont sleep on barry o update#
O’Neill: I thought we’d start this conversation with an operational update first, and then move on to the strategic journey that you’ve been on since 2017, since you’ve been CEO, and then move to one or two big picture questions, and some audience questions, if people in the audience put their questions in the app. Sean O’Neill: Thanks for joining us, Keith.īarr: Thanks for being here, and I will hope that Tony agrees with everything I say.
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