Oracle Hospitality Hotel Merchandising Solution to be Offered to Choice Hotels International's Portfolio of Upscale Hotels

Rhea-AI Summary

Oracle Hospitality has signed an agreement with Choice Hotels International to offer its AI-powered Oracle Nor1 merchandising solution to Choice's portfolio of upscale hotels. This tool aims to increase revenue through targeted upselling, enhancing guest experiences via their mobile app and digital marketing channels. Properties using Nor1 eStandby Upgrade have seen a 17% increase in upsell revenue per transaction over booked rates. The solution will be available across Choice's upscale hotels, including Radisson Blu and Cambria, regardless of the existing property management system. This partnership aims to provide personalized guest experiences, leading to increased satisfaction and loyalty.

Positive

• Oracle Hospitality has partnered with Choice Hotels International, expanding its market reach.
• Nor1 eStandby Upgrade tool offers a proven 17% increase in upsell revenue per transaction.
• AI-powered solution can provide tailored guest experiences, potentially enhancing customer satisfaction and loyalty.
• The solution is integrated with digital marketing channels, allowing for automated and personalized offers.
• The tool will be available across multiple upscale hotel brands under Choice Hotels, enhancing its scalability.
• Oracle's extensive experience in hospitality technology solutions strengthens the credibility of this partnership.

Negative

• Individual franchisee results may vary, indicating potential inconsistency in revenue growth.
• Dependence on AI and digital channels may require significant technology investments from hotels.
• No specific financial terms or immediate revenue impact from the partnership are disclosed, making it hard to gauge short-term benefits for Oracle.

Insights

Financial Analyst

The integration of Oracle's Nor1 AI-powered upselling tool into Choice Hotels' upscale portfolio highlights a strategic effort to enhance revenue streams and guest satisfaction. The reported 17% uptick in upsell revenue per transaction is significant, indicating a strong potential for increased profitability across the brand. This move aligns with the ongoing trend of leveraging artificial intelligence in the hospitality industry to drive personalized guest experiences and operational efficiency.

From a financial perspective, this collaboration could lead to higher average daily rates (ADR) and revenue per available room (RevPAR) for Choice Hotels. This is important for retail investors, as such improvements typically translate to better financial performance and potentially higher share prices. However, the actual impact might vary depending on the adoption rate by individual franchisees and the overall effectiveness of the AI tool in diverse market conditions.

For Oracle, expanding the footprint of Nor1 reinforces its position in the hospitality technology sector and could drive additional revenue streams through increased licensing and service fees. It also showcases Oracle's capability to integrate with various property management systems, broadening its market reach.

Market Research Analyst

The decision by Choice Hotels to extend the Nor1 solution across its upscale properties speaks volumes about the evolving landscape of guest personalization in the hospitality industry. The ability to offer tailored upselling options throughout the guest journey is becoming a key differentiator. For retail investors, this underscores a growing market trend where technology-driven solutions are paramount for staying competitive.

By integrating AI to enhance upselling techniques, Choice Hotels is likely to see improved customer satisfaction and loyalty rates. Happy guests who feel catered to are more likely to return, leading to increased long-term revenue. This could also result in positive brand perception and higher market share within the upscale hotel segment.

It's worth noting that while the reported 17% revenue increase is promising, individual results may vary and the full impact will depend on how effectively each property implements and promotes these upselling opportunities. Additionally, competitive responses in the market could influence the overall success of this integration.

With the Oracle Nor 1 AI-powered upselling tool, properties can help increase revenue while providing tailored experiences to guests

Properties using Nor1 eStandby Upgrade averaged a 17% uptick in upsell revenue per transaction over booked rates

AUSTIN, Texas, May 14, 2024 /PRNewswire/ -- Oracle Hospitality today announced that it has signed an agreement with Choice Hotels International, one of the largest lodging franchisors in the world, to extend its AI-powered merchandising solution Oracle Nor1, to its portfolio of upscale hotels to help them capitalize on incremental revenue opportunities. With applied AI built into to the system, each hotel can present targeted offers via its mobile app or digital marketing channels with relevant and targeted options to have the highest probability of conversion. This includes offers at every stage of the guest's journey, from initiating a room upgrade at the time of booking to upselling daily breakfast during their stay, to offering late check-out.

"Our mission to deliver the intelligent, intuitive technologies that customers need to operate and build lasting loyalty aligns with the commitment Choice Hotels has made to its franchisees and owners," said Alex Alt, executive vice president and general manager of Oracle Hospitality and Retail. "With the AI-driven insights in Nor1, their hotels can give guests the power to customize the stay they want, while helping each property increase incremental revenue and profitability."

Choice Hotel's Radisson Americas brands have long used Nor1 eStandby Upgrade to provide additional pre-arrival upsell opportunities based on attributes such as room views and floor level, food and beverage preferences, parking, and a myriad of other products and services a guest values. With upwards of 100 properties utilizing Nor1 eStandby Upgrade in 2023, properties averaged 17% in incremental upsell revenue over booked rates per transaction. Individual franchisee results may vary.

"At Choice Hotels, we have a commitment to the success of owners and operators in our system, ensuring that each has the resources and support needed to help position them for future success," said Indy Adenaw, SVP & GM, Upscale at Choice Hotels. "Nor1 fits perfectly into this strategy by providing each hotel the ability to help increase their revenue opportunities, while providing guests with a personalized experience that can lead to increased satisfaction and loyalty."

Due the success of the upselling and merchandising solution, Nor1 eStandby will now be available across Choice's upscale hotels including Radisson Blu, Radisson, Cambria, the Ascend Collection and others, regardless of the franchisee or owner's existing property management system. Integrated with digital marketing channels, fully automated offers can be presented across the entire pre-arrival phase of the guest journey.

Oracle Hospitality
Oracle Hospitality brings more than 45 years of experience in providing technology solutions to independent hoteliers, global and regional chains, gaming, and cruise lines. Our hardware, software, and services enable customers to act on rich data insights that deliver personalized guest experiences, maximize profitability, and encourage loyalty. Cloud-based, mobile-enabled, with open APIs, Oracle's OPERA Cloud property management and distribution, Simphony point-of-sale, reporting and analytics, and Nor1 upsell solutions accelerate innovation, increase revenue, lower IT cost, and maximize operating efficiency. To learn more, please visit www.oracle.com/Hospitality.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

About Choice Hotels
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice has over 7,500 hotels, representing more than 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com. 

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company--ushering in the new era of cloud computing.

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SOURCE Oracle

FAQ

What is Oracle Nor1?

Oracle Nor1 is an AI-powered merchandising solution designed to help hotels increase revenue through targeted upselling and personalized guest experiences.

What is the impact of Nor1 on upsell revenue?

Properties using Nor1 eStandby Upgrade have averaged a 17% increase in upsell revenue per transaction over booked rates.

Which hotel brands will implement Oracle Nor1?

Nor1 will be implemented across Choice Hotels' upscale brands, including Radisson Blu, Radisson, Cambria, and the Ascend Collection.

How does Oracle Nor1 enhance guest experiences?

Oracle Nor1 provides tailored, AI-driven offers throughout the guest's journey, from booking upgrades to dining options, enhancing personalized experiences.

What are the benefits of Oracle's partnership with Choice Hotels?

The partnership aims to increase incremental revenue opportunities and enhance guest satisfaction and loyalty through personalized upselling.