When we take trips as a family, my husband and I routinely sit in first class or premium economy while my kids sit in coach. This doesn't make me an irresponsible parent, and it isn't as terrible as it sounds.
25.08.2023 - 14:01 / skift.com / Sean Oneill / Soho House
Membership Collective Group is best known for its Soho House upscale member’s clubs and hotels and for being unprofitable for decades. The London-based company wants to change both of those things, it said during a Wednesday earnings call.
In a few weeks, it will change its name to Soho House & Co., and its executives said they have a path to profitability.
On Wednesday, Membership Collective Group reported that it had narrowed its losses in the fourth quarter, year-over-year. It had a loss of $13 million on revenue of $270 million.
“We’ve raised prices by a double-digit percentage this year,” Carnie said on Wednesday. “Since we’ve increased our new member pricing, we continue to see super high applications, which shows the strength of our business.”
Total members grew to 226,830, up 7 percent on the previous quarter.
The company forecasts that its 2023 revenue will come in between $1.1 billion and $1.2 billion. That partly reflects a moderation in the pace of its network expansion. The company is returning to a 5 to 7 openings a year pace — which is a pace that’s easier to streamline and keep profitable.
The company’s streamlining push has a few key areas, including analyzing data to find operational efficiencies.
Data analysis has, for instance, shown that its members are using their facilities just as much post-pandemic as before Covid, but they’re doing so at different times. So the company has adjusted how it schedules its staffing to reduce its in-house operating expenses.
“Wages as a percentage of revenues dropped approximately 1,000 basis points in December versus August last year,” Carnie said of this initiative’s impact.
The company has been trimming the production of content, digital, and other corporate expenses. In one example, it will cut its “editorial content” expenditure by about 40 percent “going forward.”
In recent months, the company said it has found “sizable opportunities” to be more cost-efficient in how it procures supplies for its food-and-beverage offerings.
“The changes we’ve made in our F&B program continue to drive growth margin expansion with like-for-like F&B margins 230 basis points above the final quarter of 2019,” Carnie said.
“It’s still early days in terms of driving the benefits of these profit initiatives, and we have much more to go,” Carnie said. “But we’re on track, and we feel confident that this will help us generate stronger, more [consistent] earnings going forward.”
When we take trips as a family, my husband and I routinely sit in first class or premium economy while my kids sit in coach. This doesn't make me an irresponsible parent, and it isn't as terrible as it sounds.
The way passengers earn status for Delta Air Lines is about to change.
Come January 1, 2024, it’s going to get a lot harder to obtain Delta elite status and access the airline’s proprietary Sky Club lounges. In a major overhaul to its SkyMiles program, Delta will be moving to a single metric, Medallion Qualification Dollars (MQDs), as the basis for earning status. (Spoiler: major spending will be the sole method for achieving elite status.) Around the same time, the airline will begin to limit entry to Sky Club lounges, turning away Delta SkyMiles Platinum cardholders as well as those flying on Basic Economy fares; later, new restrictions will take effect for AmEx Platinum and Delta SkyMiles Reserve cardholders. Here’s all you need to know about the upcoming changes as Delta doomsday approaches.
If you're looking to earn status with Delta, listen up: There are big changes coming to the SkyMiles program — and they're not necessarily pretty.
Expedia Group has completed another round of layoffs. Tript Singh Lamba, a senior vice president of the travel booking giant, sent an internal message about the layoffs last Thursday, which was obtained by GeekWire.
Soho House is a brand with bona fide British celebrity and royal bragging rights: Prince Harry and Meghan Markle had their first date at one in London. Soho Farmhouse, the brand's countryside inn a two-hour drive outside London, has hosted everyone from former U.K. Prime Minister David Cameron to Princess Eugenie and (my personal favorite) top-selling U.K. band Girls Aloud.
The Federal Aviation Administration (FAA) for the United States named its acting head of aviation safety, David Boulter, as the permanent head of aviation safety as the administration puts more focus on investigating the recent near-misses and other safety concerns the industry has seen.
Southwest Airlines recently made changes to its pre-flight boarding policies by limiting the options for passengers to purchase a better spot in line for an extra fee.
Project MidX Studios, the lower midscale, extended stay property, is officially called StudioRes. Marriott describes it as a new-build, midscale extended stay development platform for owners and franchisees in the U.S. and Canada. The world’s largest hotelier said 1,800 target markets have already been identified.
Accor, the Paris-based hotel giant, said on Tuesday that Omer Acar will head its brands Raffles & Orient Express as of March 1. Acar will join Accor’s other brand CEOs in its luxury and lifestyle group (Fairmont, Sofitel & MGallery, and Ennismore) — all of whom report directly to group CEO Sébastian Bazin.
Nick Jones said on Wednesday that he would step down from being CEO of Membership Collective Group nearly three decades since he founded the original Soho House that eventually led to the creation of the public company and owner of the Soho House chain.
Malaysia’s Capital A will not be merging its airlines, but will instead move all the carriers under one existing structure, similar to how British Airways, Iberia Airline, and Aer Lingus operate under the International Airlines Group umbrella, said CEO Tony Fernandes on Monday.