Wednesday, September 21, 2011

September 21, 2011, HSMAI-South Florida Meeting Recap

“Table of Eight” – Our occasional column with comments about Chapter events.
(By HSMAInsider, Julie Wernick, jwfranklin1@gmail.com)

What a nice turn out (over 70 people attended) for the Chapter’s luncheon meeting at the Sheraton Fort Lauderdale Airport & Cruiseport Hotel in Dania Beach. Mr. Jean Elie, Senior Cruise Services Manager for Port Everglades, discussed the status of the Port and its cruise growth plans as well as its relationship with the hospitality industry.

Don’t you love meeting new people and learning about them and their companies?
I try to sit with a different group each month. How nice it was to meet Jared and his colleague from Luckey’s Management Group. We should be hearing soon from Luckey’s about some new hotel developments. Jared handles e-commerce for the company. Also at my table was Cindy Chifari with Worth International who told me about Worth’s current publications. In the “small world” department, I learned that she used to work with Cheryl Ricossa (now with Expedia), who I first met many years ago during my Grand Bahama Vacations/Princess Communications tenure, when she was with Hotel Travel Index. Seated next to Cindy were Matt Cooper and Liane Lowy from the New York Times Media group. Also got to meet and chat with Tom Mulroy, GM, of our host hotel and say hello, again, to Gerry McFarland, Director of Sales & Marketing (we worked together when I was at the Chamber and he was with the Renaissance SE 17th Street).

As always, there will be different things that people may remember from a presentation that may apply to their specific hotel/company. But here are a few key points from my notes:

Mr. Elie stated that, overall, 16 million passengers will take a cruise in 2011. This represents a 6.6% increase compared to 2010. Since 1980, there has been an average annual growth rate of passengers of approximately 7.4%.The average length of a cruise is nearly 7 days. Most cruise passengers have an average age of 50+ and more than $40,000 HHI. Cruisers are frequent vacationers and see cruising as part of the travel mix as well as for “special” trips.

Port Everglades is expecting to realize 3.9 million passengers for 2011 with 17 cruise vessels operating from the Port. The Greater Fort Lauderdale area is quite attractive for cruise passengers especially for pre-cruise packages. The Port serves as the number one entrée to the Bahamas and the Caribbean. To attract additional passengers, the Port has expanded their facilities to handle more and larger cruise liners. One result of the larger ships (like the Allure and the Oasis) has been to attract additional international tourists to our area. Some 5000 foreign visitors came, predominantly Brazilians, since the introduction of these new, larger ships. The Port will be continuing to do additional terminal renovations next year. There is more work to be done on post-cruise hotel packages, as well as area tours. (Note: The CVB is working on some new developments in this area to be unveiled at their October 13th meeting.)

Look for the PowerPoint slide presentation from today’s luncheon meeting to be posted on the chapter’s website: hsmaisouthflorida.org in the near future.
Thank you again, Jean for your informative presentation.

P.S. Just a reminder to send in your industry news/updates for the “Around Town” column for the HSMAI-South Florida chapter’s blog, “Scoop”, to jwfranklin1@gmail.com.

Monday, September 19, 2011

“Hospitality Marketing Medley” – September 2011

(Editor’s Note:
Here are some recent trends and hospitality marketing hints collected from various websites, releases, etc.
Best, Julie Wernick, HSMAInsider.)

Expect to see more chic, 100-room or less, boutique hotels over the next few years. Today they represent about 3 percent of all U.S. Hotels. It is estimated that this could grow to about 6 % of all U.S. hotels, (maybe even 10% in large urban markets), in 10 to 15 years. Why? To provide for those travelers looking for the different/offbeat who are reacting against “cookie cutter” sameness in large chains.

Corporate buyers are having a more challenging time this year getting high-end and luxury hotels to waive fees and surcharges. With pricing power returning to hotels, as business travel has increased, there is an expected record amount of revenue for fees/surcharges predicted for this year – most likely to exceed the $1.75 billion that hotels made in 2008.

In addition, with hotel occupancies up, business travelers are having more challenging times v.v. availability at their hotels of choice. Business travelers will need to be booking earlier to secure space at desired rates.

Some times simple is better. Don’t overlook the use of a hotel newsletter or blog to keep your property regularly visible to your customers/prospects. The more you communicate, the more you establish loyalty and an emotional bond. As soon as guests have booked, send them a thank you note with additional information. This could include local events, upgrade opportunities, or services you can provide for them (tours, dinner reservations, etc.). A simple thank you note after they have stayed with you allows you, again, to build rapport as well as allow for feedback.

For many years, it looked as though travel agents were going to be just a memory. But now, travel agents have rebounded. Customers who are confused and frustrated by new airline fees or overwhelmed by social media are seeking help/direction. Some don’t have the time to spend hours on research comparing flights, hotel packages, etc., so they are turning to professionals. An ASTA survey showed that 44 percent of agents said they had more clients in 2010 than in 2009 with the strongest rebound in rail and hotel reservations. Are you including travel agents in your sales plan?

Wednesday, September 7, 2011

“Hospitality Marketing Medley” – August/September 2011

(Editor’s Note: Here are some recent trends and hospitality marketing hints collected from various websites, releases, etc. Best, Julie Wernick, HSMAInsider.)

Several of the top hotel operators – brand like Marriott, Hilton, and Starwood Hotels are incrementally upping average daily rates. Rooms in the top 25 lodging markets were still under what they were in peak 2007. There is motivation to raise rates as leisure and business travelers have returned and there is a relatively fixed supply of hotel rooms. This may change as new construction ramps up again.

TripAdvisor surveyed more than 1,000 U.S. accommodation owners who revealed their plans to attract travelers and increase repeat customers. According to the 2011 survey, most hoteliers were planning renovations to the interior of their properties (61%), with exterior renovations planned by 42%. To attract guests, most hotels will offer discounts on rooms (61%), or special amenities, followed by reward points, deals on nearby attractions, or a free night’s stay with booking. Almost all (94%) have no plans to charge visitors any additional fees for amenities. In-room internet access, which is a key consumer demand, will be offered as a free amenity by 91% of those surveyed.

There is a debate in the market place over the value of “hip” hotel design. Consumers are, in some cases, negatively reacting to cutting-edge features like party lounge lobbies, extra-low slung seating, complicated control panels, and dim lighting. Travelers initially intrigued by the unique and cutting edge, can be turned off when reality shows them that their hotel choice may be too hip for their comfort.

Most properties have some sort of loyalty program or reward system in place to acknowledge frequent guests/users. Many brands offer a points-based loyalty system. Some companies want to offer more unique rewards to members of their programs. Interestingly enough, some of the luxury properties are offering items that are standard to the economy brands already: complimentary breakfast and comp internet access. In addition to the ability to earn free nights, early check in or late check out and room upgrades, some brands are trying to be more creative with their welcome gifts, special rates, concierge service, and by adding-in off property opportunities.

There’s a “battle” going on among hotels to outdo their competition; however, as soon as one hotel brand introduces something “new”, another one does something similar and the uniqueness is lost. Hotel guests like brand-name amenities. Some of the better hotels are now offering spa lines, without their own logos/imprints. Research shows that people have more trust in a product that they may be somewhat familiar with and that they regard them as having higher “status” or value.

Although not a current big producer for Florida, more properties are looking to tap into the burgeoning Asian market, especially the Chinese travelers. According to Carlson, there were around a half million visits to the United States (compared to their 3 million to Europe). Some estimates indicated that outbound Chinese traveler numbers could reach more than 100 million a year in the next decade. Starwood has launched a booking engine in Chinese and added marketing materials in Chinese and English. Other properties are adding Chinese menus and signage.

A Travelzoo survey found that 64% of people said hotel prices are more important than the destination when choosing holidays. The survey, which examined consumer behavior, found that most holiday planning was based on price and user reviews.

With the increased emphasis on online marketing, social media, mobile marketing, et al, it behooves hoteliers to not overlook the basics of voice selling. A recent article pointed out how many consumers research a property online, and then call the front desk with one specific question that they had trouble with or can’t find the answer to in their online viewing. Many front desk or customer service people didn’t know how to handle these calls; nor did they take the opportunity to convert the calls into bookings. Bottom line: Don’t overlook proper basic training and staff education. You might be losing easy sales.