“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.

“Hospitality Marketing Medley” – December 2010

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

--According to a recent study, 25% of all Americans who travel (within the US and overseas) do so alone. The travel industry has been slow in recognizing this fact and has continued to base most rates on double occupancy. Some forward thinking companies are now changing to a flat rate (e.g., the hotel room rate is the same for a single or double).

--Most hoteliers understand that loyal guests are important because it costs three to five times as much to attract new guests than to retain existing ones, and because previous guests strongly influence others by “word of mouth”. Companies that have more satisfied guests experience higher guest loyalty, and companies with higher guest loyalty, perform better financially.

--A recent study by Cornell University showed that there are four key performance indicators that particularly affected guests’ evaluations: reservation was accurate, check-in was completed within five minutes, no problems were experienced during the stay, and no billing errors occurred. Guests who experienced all four of these performance indicators were most likely to grant the hotel a top satisfaction rating.

--Another survey stated that the most important amenity for hotel guests today is wireless internet access. (Note: there’s even been a growing backlash against paying for guest-room Wi-Fi at upscale hotels. A number of full-service hotels are starting to offer their VIP guests free WI-Fi or their regular guests a menu of rates for their daily internet access - accessing your email at one price point, and letting you do things like watch movies at another cost.)

-- Hoteliers have lost revenue in recent years from in-room telephone charges and in-room movies. A Chicago Tribune article talked about ways that local hoteliers are trying to substitute for these previous revenue sources. They mentioned spa services, live music venues, adding Sunday brunches, etc. What creative ways have South Florida hoteliers used to supplement income? Are you up selling guests to higher priced options?

--There’s so much info out there about social media, that I don’t usually include anything in these summaries. One item caught my eye -- Hotels that have Facebook pages and Twitter accounts need to publicize this fact within the hotel. Have signs at the check-in desk. Put the symbols on every printed collateral piece in-house (and on marketing materials too; Don’t think I have to say: put the links on your website, but you never know.)

----A new trend in lodging is the small, specialized and unique “boutique” lodging concept. Now, even the big hotel companies are jumping on the band wagon to have a boutique brand concept as part of their property mix. And we’ll be seeing more of this in the future as more chains want to compete.