“Hospitality Marketing Medley” – October/November 2011

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

Many hotel brands are redefining and redesigning their conference and/or lobby areas to meet the needs and expectations of a new breed of traveler looking for social spaces that serve multiple purposes, particularly networking and impromptu meetings. The Hotels are trying to modernize their public spaces to be extremely flexible, to encourage meeting and mingling.

Hotel companies are racing to create a better room key. The big selling point of the new keys is that they let travelers skip the front desk and go straight to their rooms. Some chains are adopting permanent keys that repeat guests can carry in their wallets and use for multiple trips at a variety of properties. Other establishments are doing away with physical keys altogether; instead, guests can open their room doors by holding their cell phone next to the lock. Hotels don't see much cost savings from the changes but expect the moves will help them stand out in customer service. So far, tests of new types of keys have been limited and it is unclear how widespread the new technologies will become.

Running on radio frequency identification technology, Smart Check-In caters to a new generation of guests on the go who are more interested in high-tech than high-touch service. This works on radio frequency id technology. Starwood Preferred Guests can use this in certain properties. On their check in day, they receive a text message to their mobile device with their room number. This allows them to skip the check-in lines and go straight to their room. Aloft Hotels, part of Starwood Hotels, was the first tech-savvy hotel group in the industry to try an automatic-check in program. They had such great success that they have expanded this service to others in their program.

Travelers are turning to personal devices instead of forking over fees for hotel-based services. Phone calls, movies, Internet access - hotels are learning that guests want to do anything but pay when it comes to in-room add-ons. The number of people bypassing hotel-based Wi-Fi has been tough to quantify. Even as more hotels offer complimentary Wi-Fi — it's more prevalent at lower-cost hotels than high-priced ones — the proliferation of Web-enabled devices is a trend to watch.

High-end hoteliers' investments are shifting away from fancy freebies like lotion and soap and toward expert service that reflects a real understanding of the guest's preferences. The recession caused luxury hotels to look at what it offered in each room and decide what current items guests would not miss.

Hotels have used scent, art and food to set themselves apart. New on the horizon: To use indie musicians as a way to define itself. The musicians can be found on playlists created by hotel groups (like Morgans or W Hotels). The playlists are meant to match emerging independent bands with each of its hotels. On the playlist for the Delano in Miami, for example, they aimed for “sexy and sophisticated” music.

Online hotel guest experience surveys have been growing in popularity recently across the industry. It is sent to guests after they have stayed at a hotel, making it very easy for them to give their feedback direct to the hotelier. If there is something they would like to say, they are able to do so when it is convenient to them and after they have completed the hotel experience. This type of survey helps hotels evolve and anticipate changing guest needs.

Travelers rated hotels nearly 3% higher than last year in the American Customer Satisfaction Index, which measures travelers' satisfaction with products and services during the first quarter of each year. Low rates and more perks such as free Wi-Fi and upgraded exercise facilities have increased satisfaction. But the rates and perks haven't made guests more loyal as more people still shop around for the best deal rather than staying loyal to one brand.

Stayed at a rundown Holiday Inn, a lackluster Sheraton, or a '70s-era Hilton? The owners of several chains are revamping their classic properties to appeal to a new crop of business travelers—and hopefully ward off brand extinction. Surveys reveal that business travelers like hotels (and pretty much despise airlines). Their decisions usually come down to one word: choice. Airlines don't give you any, but hotel chains are all about choice. But all that "segmentation” has come at a high cost. The middle ground of the hotel business has turned murky. Some big hotel chains are struggling to redefine their once-iconic full-service lodging brands.

Banish any preconceived notions you may have about retired senior citizens as merely bargain hunters, says a new Amadeus analysis of the travel market. In 2011 and in the future, this burgeoning demographic will be a driving factor in the luxury tourism industry. Amadeus also identifies senior citizens as an “important source of future income” for travel agents including the lucrative luxury travel segments. Here are some other insights into this market segment: Today’s seniors—ranging from age 50 to 90-plus—are physically fitter, healthier, have more disposable income, and are increasingly interested in experience- and destination-based journeys; Agents should cultivate face-to-face business with retired seniors by becoming “lifestyle managers” who provide high-margin, tailored services. Agents who focus on “superior” customer service and listening to what their customers have to say are likely to be the ones who prosper in the future.

There had been a dramatic increase in women business travelers and addressing the needs of this market segment has become increasingly critical for hotel companies. According to a new Cornell study, Managers should focus on how combinations of services, amenities, and facilities contribute to the desired affective responses sought by the growing women business travelers segment. Women are developing a clear and consistent message about the need to feel safe, comfortable, empowered, and pampered.

One of the easiest ways that every small business can compete with their competition is by reaching out to and soliciting business from current and past customers. In most cases, a repeat business strategy can be implemented by the company directly without the need for outside consulting. It can be as simple as calling or emailing a past-customer. This method is also very inexpensive with very little overhead. It also allows you to directly engage a large group of extremely targeted buyers who have previously purchased your services.

According to data from PKF Hospitality Research demand for U.S. hotel rooms in 2011 will increase a solid 4.9 percent, while the average daily room rate (ADR) paid by guests will rise a modest 2.4 percent.