The Modern Hotelier #154: Status of RevPAR, Canadians Avoiding US Travel, Sports Tourism & More | Hospitality Hot Topics
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Steve Carran: Welcome to another episode of Hospitality Hot Topics by The Modern Hotelier. Today we are joined by Gabriel Perez from Indigo Road to talk about what happened in April in hospitality. Thanks for joining us, Gabriel. How you doing today?
Gabriel Perez: I'm doing great. Thank you.
Steve Carran: You bet. You bet. We're happy to have you. So the first topic we're gonna kick off with is, about boutique hotels. what we saw last year with Boutique Hotels is they led RevPAR in 2024, but there's a little bit more uncertainty this year. And by boutique hotels we're talking about lifestyle properties, soft brand collections, and indie boutiques.
One thing we saw was occupancy for these boutique hotels. Range from 57 to 71% in 2024 compared to 66 to 69%, in into comparable hotels. we found that about 80% of travelers are willing to pay more for these wellbeing experiences and unique access to these boutique hotels. Gabriel, what are you seeing?
in the boutique world, kind of last year compared to this year? It seems this year there's a little bit more concern and people holding onto their, their dollars a little bit more tightly.
Gabriel Perez: there, there is some concern. My opinion is that it is still too early to tell, there's still a good chunk of a year that that needs to materialize. but to the point of, of what the talk is last month regarding Red Bar and, and the Space Boutique Hotels and Lifestyle Occupy, I would have to say that that's where.
The traveler is navigating to, that's where the appetite is. people want to have those genuine experiences that are somehow detached from the traditional branded travel that, you know, so people enjoy at certain times, but never match that uniqueness of, of the boutique, uh, hotel. So it's not surprising to me that RevPAR is Hager.
as a segment. the easy part is that, boutique hotels are traditionally smaller, so that that helps a lot too. But the essence is that, the traveler wants to enjoy those experiences. They wanna make it memorable. I would like to say that when my wife and I and my family we travel to for leisure most of the times, and also in business, but leisure.
When we do hotels, we try to stay in those boutique hotels because it is easier to, for us to create those memories. When I say
Steve Carran: For sure.
Gabriel Perez: to remember when we were at, instead of to remember that branded hotel, and then you would think about a couple of other things without going to that specific point. So it's about memories, it's about experiences, the opportunity as operators that we are allowed to.
Enhance those touch points more than in a branded, restricted or limited place, uh, is what makes it a special. So I'm certainly not surprised that a DR are trending higher, and that will continue in my opinion.
Steve Carran: That's great. David, what do you think?
David Millili: Yeah, I agree with you. I think people are looking for the experience more than anything else, and I think that you know, what you want, especially as you travel, is you want something that's gonna be somewhat or a little bit unique to where you're going versus being the same exact. Branded property, whether you're in New York or Boston or London.
So I agree with you. I think that's, you summed it up perfectly and I think along those lines, everybody now is, we've got this kind of great outdoor revival where people are traveling, there's clamping, there's people who are camping. So I don't camp, but Steve does. So Steve, what do you think about people getting outdoors and, and really, you know.
Taking a different approach to kind of like how they spend their vacation time.
Steve Carran: Man, I miss the days where I could like book a Memorial Day camping trip a couple weeks out and still be able to find a campground in Colorado. Now I have to book at least six months out to get that Memorial Day weekend spot. So, it is, I. Alive. It is, it is. Uh, people wanna get outside and, um, I, I happen to listen to, somebody from KOA speak at the Digital Transformation and Hospitality Summit in Orlando that I was at, and they're talking about how their business is just booming.
they have 11 million more households that have embraced camping compared to 2019. 44% of those. Campers are tent campers. And, uh, my generation, the millennials we're, we're leading the way on this. But people wanna get outdoors. They also wanna be travel more cost effectively. camping, you know, you're not going out to eat as much.
You're going to the grocery store, bringing things to cook over the fire. And one thing as well, when I go camping, everybody brings their animals. So it's not like having to find the difficulty to find a dog friendly or pet friendly hotel. I bring my dog and cat camping and, you know, it's a, it's a lot easier, less hassle.
and, uh, a lot of folks are doing a lot more weekend trips, so kind of more last minute trips and also just kind of that flexibility where they can find a campground to go to the week of and then. Go camping on the weekend. what are you seeing Gabriel?
Gabriel Perez: I am intrigued. I'm very intrigued by this because it is certainly something that is couples oriented. Family oriented. And, uh, it brings us back to tradition, outdoor nature, all the things that grant us as humans and that connect us. So I'm wondering how. We operators, we Hotelier, uh, brands, hospitality companies, management companies are, how are we gonna embrace this?
Because it's not a matter of accepting it or not, it's evolving. It's here to stay and it's gonna grow. It's how we find that needs to not only, um. Make it financially sound, but ensure that it's there to stay. That is a, a product of great hospitality. So I'm, I'm intrigued. Uh, I would like to, to get more into that and naturally we have a few properties in the mountains and it's a natural gravitation to, to that, uh, with the space that we feature and all the enhancements.
But as a whole, as an industry, I'm very intrigued as to how are we gonna word that out long term.
Steve Carran: Do you think we're gonna see kind of more hotels that incorporate campsites that are kind of in these nature areas where we offer, you know, you can stay in the traditional hotel. L, but also if you wanna park your RV or set up your tent in nature, kind of not in the backyard per se, but do you think we're gonna see more hotels kind of doing a shift like that?
Gabriel Perez: I think is inevitable. I think that if you have a space, you have your concept completely laid out and working in good conditions, it is an additional. An additional inevitable way of hosting guests, of creating experiences. I think that it's all based on what your concept is, what your level of offerings are, and the space naturally needs to be safe.
It needs to be realistic. Anding, it cannot be the back lot where your garbage disposal is. It has to be more than that. but yeah, I think that if you have those elements. Natural progression will be expanding that that is simply growing. and no nowhere sight to stop.
Steve Carran: I agree. I agree. I think you kinda need that privacy, especially if you're doing like tank camping with trees around you. You definitely don't wanna, you know, be next to the highway in your tent, behind the hotel. Right. So I, I totally agree with you. So this, this next topic, I'm really. Interested to, to discuss.
it's about how the US and Canada's relationships are affecting tourism. this stat blew my mind. Canada and Canada's tourism in, every month from now, from April till September is down more than 70% for travel. February alone. That cost. For the travel industry in the United States, $2.1 billion.
Gabriel gonna hand it off to you. What are you seeing here? And, uh, what, how do
Gabriel Perez: I have a few thoughts.
Steve Carran: for, for the rest of the year?
Gabriel Perez: Well, I have a few thoughts on this. First, my main thought is that this is unnecessary. I also think that the relationship of both nations are stronger than both nations leadership. I think that, uh, is just a hiccup. In, in, in time. I hardly believe that this is gonna be a long-term thing.
I'm very hopeful that by the end of summer fall, things will go to a more normal pace, uh, and a, a, a more traditional trend simply because, you know, it is a shock. F to all of us travelers, operators, wholesalers, airlines, anybody involved in this industry is pretty shocked with what is taking place, which, again, I will have to reiterate in my opinion, is absolutely unnecessary.
but I believe that we as, nations and as tourists from all nations are gonna continue our relationship. I don't think long term we're gonna stop going to Canada or Canadians are gonna stop going to Florida or else I think it's just gonna have a little bump on the road. That's my hope.
And I, think firmly that we as, as as citizens, as tourists, we are more resilient than the trends of the politics of each of our nations.
Steve Carran: I love your optimism. David, what do you think?
David Millili: You said it great. I mean, I think that anytime politics get in the way of tourism is not a good thing. and I am very hopeful like you. we will, it's kind of like when a storm comes through, you've gotta get through the storm and then the sun comes out and everything's okay. And I think we're in a storm right now, and I, I'm, I'm very hopeful like you, that we just kind of, it's passing through and we kind of get over it and we're all back to where we should be.
which, you know, our neighbors to the north are, are allies and friends, and they should be coming to the US and enjoying our, our country. along those lines, last night was the NFL draft in Green Bay, and it looked like it was, uh, some sort of rock concert. It was crazy. I was watching it on tv. So sports tourism, and I'm, I don't wanna say guilty of it, but you know, last year I'm an Eagles fan.
I went to LA. I went to Dallas. So Steve, how do you think kind of just sports tourism as a whole is just kind of evolving?
Steve Carran: I mean. Green Bay was crazy last night, uh, being from Wisconsin, my brother was at the draft. Bunch of friends were there posting pictures, and it looked, it looked like an awesome hospitality experience to be honest with you. like other drafts you've seen issues happen and things like that, but I think people now, you know, we're to, we talk about experiential travel.
So much on this podcast. And that's one thing people are traveling more for. They're traveling for sports. They want to see their favorite teams play in the playoffs or experience a draft. We have a lot of sporting events in the US coming up. We have the, the draft, like you said was last night, and today going on too.
We have the World Cup. In the US coming up in 2026, and then we have the Olympics in 2028. So I think we're gonna see more and more sports tourism. David, we've already talked about, you know, music tourism and how Taylor Swift has influenced the economy. I think we're gonna see even more and more of this and, you know.
Staying with the NFL, they're playing more international games. Green Bay might be playing in Ireland this year. They play in London, they play in Mexico City. So people are gonna be traveling around to see their favorite teams. and one of the stats that I saw was pretty interesting is a study revealed that sports tourism, represents 10% of the global tourism spending, and by 2032, it's projected to reach 1.3.
Trillion dollars. So, uh, I think we're just gonna getting started with this and we're gonna see a lot more. Gabriel, what do you think?
Gabriel Perez: I think, um, again, you have the NFL. Is a game where you have two weeks prior that game where events are happening in those cities and that leaves occupancy. Revenue, parental revenue, restaurants, it creates a vibe in the city where, uh, and I'm telling you this because I worked in South Florida for so many years, that, you know, we are a Super Bowl host city very often, and you can tell conversations happening at city level, city commissioners, city hall, state government, a year and a half before.
Game takes place not only to work on infrastructure, on activities, on programming. You, you have movements all throughout. Not only hospitality, but brokerage firms. It, it's, it's citywide. So I think that. This is, like I said earlier, only a trend that will continue because it creates those things that are more like Roman circles.
Like people want to be there and if they want to be there, they have to have lunching, they have to have great meals, and that all is part of set experience. I'm very confident with, uh. What workup will bring, I hope the political, temperature is lower and everybody's having a great time by then, but I think that that's gonna be an event that will, again, bring Canada, Mexico, and the US together to host such a magnificent, such a magnificent, unique event where the world literally has the eyes on us.
Steve Carran: Yep. And even like F1, how pop, how that's grown in popularity. We saw it in Vegas, we're seeing it in Florida, and they have to build racetracks to bring the people there. I mean, just, there's so many sports happening like that are happening in the US lately that. I, I can't see this train going away anytime soon.
So kind of with those, those events, how are we booking those trips and that travel? an article just came out that mobile booking, booking it through a mobile device has become the dominant tool for most types of travel, especially local transportation, which I feel like is pretty obvious with Uber, Lyft, nobody's calling taxis anymore.
They're booking, they're on their phone. But, baby boomers and Gen Z, they still prefer to book through the computer. Um, but we're seeing a lot more people booking, booking through their phones. Gabriel, what do we think about this trend? Are we eventually just gonna be booking everything through our phone, or what do you think?
Gabriel Perez: I don't think so. I think that the phone will take a great percentage of the booking pattern, but I'm speaking for myself. in my generation. I'm very happy booking. A hotel on my phone as long as I know the area or the hotel. I'm very comfortable booking my car rental. I'm very comfortable booking my airplane ticket on my mobile phone.
Now, when it comes to leisure, experiential travel, I. Let's say boutique hotels or destination travel. I can look at it on my phone, but I would certainly go to my laptop. I would certainly make comparisons, open a second screen, try to figure it out in a more comfortable setting than standing up with my head down, looking at that simple device.
I think that, that is in my case. Mostly because it's usually a place that you are yet to be or only heard of, and there are many good options and you want to be able to compare in a more comfortable and meticulous manner how to make your decision. so I think I. The phone for me might take second place when it comes to that experiential leisure travel.
If it is city downtown, I need to be in a place tonight and I know that I'm landing at 10 30. Why not any kind of advice? Uh, will do.
David Millili: years ago, I took a picture of my family when I was going back east to visit them. My brother was there with his kids and everybody was on their phone. I think what's very, very interesting, you know, being an old guy, is that when cell phones first came out, the whole purpose or drive was to make them smaller because there was no screen.
It was like, how small can you get it? Now the, the, it's going the other way where the screens are getting bigger and look, you go to an airport, you stand up and you look around. When you're in a plane, everybody's on their phone, so. I get it. I agree with you, Gabriel, that I think a lot of people are, are using it more as a research tool and sometimes looking at things.
but again, sometimes, you know, even with airlines, they spend more time, I think, effort on perfecting their mobile app or things of that nature. 'cause I know sometimes it's better for me if I'm flying American, being based in Phoenix, it's much easier for me to like book through the app. Than actually going onto the website.
So you're right. I think we're gonna see, we're gonna see that people are, are still gonna go back to your point, especially when it's more of an experienced trip and a, a bigger trip. You know, doing maybe a little bit of research on their phone and going back. But I think for the stuff that you just know, you're going to New York, it's the same hotel you always stay at, or you're booking a, an airline, you're just gonna book it on your phone.
So 
Steve Carran: Not to interrupt, but I think those points, like if you're booking through the airline points or your credit card has hotel points, that's when you're really gonna use your phone a lot for the booking. I know I just did that. I booked a hotel and I used my phone 'cause I went through my credit card because I get more, more points through through that.
So I, I think that's kind of an interesting thing as well, if you are using loyalty points, the phone, like you said, those apps are just, they're easier.
David Millili: Yep.
Gabriel Perez: And also you are having a lot of companies, and I'm talking about the big OTAs and some. Even preferential discount for mobile bookings, so that entices a traveler to, to make such choice.
Steve Carran: Yep, absolutely.
David Millili: So Gabriel, tell us what are the latest things that are happening at Indigo Road?
Gabriel Perez: Well growth. but it's very, it's very, um, thought of it's, it's, it's a grow that is not for the sake of it. We're not running after the next shining object. we're partnering with people who we like and projects are meaningful. Florida is. a big topic of growth. Right now we're opening quite a few restaurants within the next few months of different concepts in different areas.
We were just engaged to open a historic hotel, that is being refurbished, or it's gonna be refurbished in the next couple of years in downtown Jacksonville as part of a big revitalization project for the entire downtown area. So, growth is the path. I.
Wisely. We don't wanna grow as a tumor. We wanna make the right choices with the right partners. it's very exciting. It's very exciting because on the space that we navigate being a hospitality company that is, uh, food and various driven, the part of creating experiences. The boutique part, the part of creating those memorable moments is it comes second nature to us as we, are always looking for those opportunities.
And, and the partners see it, the market sees it, the industry sees it. Um, we're very privileged to be where we are today.
David Millili: That does it for another episode of The Modern Hotelier Hospitality's Most Engaged podcast. This has been Hospitality Hot Topics. Gabriel, can you please let people know how they can get in touch with you? Learn more about Indigo Road. I.
Gabriel Perez: Well, um, they can certainly go to our website, the Indigo Road. Group com, they can reach me directly, ates@theindigoroad.com. we're here to serve you and to leave hospitality better than what we founded.
David Millili: So those of you who are listening or watching, we appreciate you and we will see you soon.