(Editor's Note: Here are some recent trends, stats, and hospitality marketing "hints" collected from various websites, press releases, etc. Best, HSMAInsider, Julie Wernick)
Finding the perfect rate to achieve larger revenue gains is an hotelier’s biggest challenge. The key is to have a flexible strategy and use accurate forecasts, consider market prices, and know which consumers are in your market. Hotels can no longer set just one rate and that’s it. Factors change – sometimes even daily!
The price elasticity of hotel rooms is generally high. So if you set a rate slightly lower than your “comp set”, you may achieve a significantly higher occupancy that other hotels in that “set”. This is a way that hotels, especially luxury ones, can reach a different segment of customers who are increasingly looking for “value” and/or are taking advantage of upscale bargains.
This summer, rates were almost what it was last summer and with a few more restrictions. Hotel seemed to be offering low rates as opposed to deals.
In June, a USAToday/Gallup Poll noted that 27% of Americans said they will travel less this year (compared to last year); 18% said they’ll travel more.
And a US Travel Association survey said more consumers are ready to take a break from home (this summer) – with 2.3% more vacation travel expected. Even though travel will not reach levels of 2006 or 2007, it will still improve.
A survey by Smith Travel Research projected overall occupancy this year to increase 3.6% (to 56.7%); ADR to end the year flat; and Revenue per daily room to rise 3% in the US (to $55.13). The luxury chains will be the best performers of the chains for REVPAR growth according to their survey results.
Lodging forecasts by Pricewaterhouse suggested moderate “recovery of demand” and the ability to increase room rates returning in 2011.
According to Travel Market Report, it is an unspoken fact that travel agents favor hotels where they know the GM or the Sales Manager. They feel this ensures that their clients will be treated well. The importance of maintaining a personal relationship with retail travel agents will be reciprocated 4 or 5 times over. This can be done via individual emails, responding to special requests, meeting the agents, etc. It was noted that happy repeat customers usually spend more money on their second trip to your property.
A recent study by SRI International showed that more than 80% of consumers are at least “very interested” in improving their personal wellness. The $2 trillion global market for spa travel and “well being” is only expected to get larger.What is a consumer most likely to do? Exercise, eat better, and visit a spa. Astute hoteliers can take advantage of these trends.
An Amadeus report noted that the relationship between guests and hotels is becoming more complex as guest knowledge and expectations increase.
Not sure if these trends translate “across the pond”, but a recent survey of business travelers in England showed that 86% of them would prefer to spend a night in a hotel rather than stay at home before an early meeting. They saw hotels as a place to get work done with minimal distractions, and to relax away from office distractions. Hotels can capitalize on these trends by giving business travelers the right location with the latest technology and the right environment to both relax and work.
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