US hotel industry performance has not yet shown signs of recovery. Declines in all key industry metrics – occupancy percentage, average daily rate (ADR) and revenue per available room (RevPAR) continue to decline in 2009 when compared to comparable periods in 2008. Smith Travel Research (STR), PriceWaterhouseCoopers(PWC) and PKF International (PKF) all forecast that ADR and RevPAR will continue to decline in 2010. Reviewing peak period weekly performance statistics, it appears that the US hotel industry needs to prepare for “A New Normal” with lower corporate and group business and value oriented leisure travelers when supply and demand reach equilibrium.
How Google Can Help Simplify Online Travel Planning
November 5, 2009 By 1 Comment
The planning phase of the seven-step travel process is a hot area for travel startups that are developing innovative solutions to address a complex problem. Google, with 70+% share of US search traffic and many existing travel planning tools is perfectly positioned to improve and simplify the travel planning process. In the future, end-to-end planning of complex travel arrangements will result from enhanced profiles supporting trip-centric traveler personas and geo-aware itinerary sequencing tools. The introduction of hard and soft filtering will provide support for emerging Web 3.0 technologies capable of providing more relevant travel product recommendations.
A New “Location, Location, Location” for the Hotel Industry
October 27, 2009 By 8 Comments
The modern hotel industry, revolutionized by E. M. Statler, was founded on the concept of location, location, location serving as the basis of fame and differentiation. In the future, “location, location, location” will again be the hallmark of the industry leader – this time, with three new types of virtual locations. Search Engine ranking, Social Media reputation and Location Based Promotion effectiveness will dictate who are the respective winners and losers in the arena of hospitality marketing.
Multiple Persona, Trip-centric Travel Has a Name – EveryYou
October 21, 2009 By 4 Comments
Travel is a complex process that differs significantly from other online purchases. Traveler destination, hotel, airline and travel itinerary selection decisions are not only highly personal in nature, but also may be based on very different criteria depending on the nature of the trip being planned. By applying multiple persona marketing concepts against specific trip-centric attributes provides a multi-dimensional traveler profile that is far superior to conventional frequent traveler information maintained by online travel sites, hotels, airlines and car rental companies. EveryYou is the term given to the concept by blogger Tim Hughes in a presentation prepared for the Web In Travel Conference at ITB Asia in Singapore.
Freedom of Choice in Expedia Contract Negotiations?
October 19, 2009 By 5 Comments
Contract negotiations between Choice Hotels International and Expedia have broken down, resulting in Choice brands being removed from Expedia’s websites. As negotiating power now favors Online Travel Agencies, hotel brands must maintain discipline to retain mutually beneficial terms. Seeing continued declines in both occupancy percentage and average rate, hotel owners may be willing to exchange future margins for immediate business volume. Hotel brands are challenged to maintain chain-wide pricing integrity and competitive positioning the economy improves. Hotel brands able to maintain strategic alignment with its hotel portfolio will have the best prospect to emerge stronger when the industry recovers.
Erin Andrews Peephole Video Demands a Proactive Hotel Industry Response
October 8, 2009 By 11 Comments
Erin Andrews victimization by a stallker who modified a peephole and filmed a video using a cell phone camera has been well documented. What has not been publicized is that unmodified hotel peepholes do not put a guest’s personal privacy at risk. Hotel management is able to take three basic measures that can help to eliminate the risk of future peephole related security issues. One distressing recommendation that has arisen as a result of the publicity is the recommendation for women traveling alone to block the hotel room peephole. Instead, women should always use the peephole before opening a hotel room door to avoid the risk of entry by unwanted visitors.
New FTC Rule Helps Improve Social Media & Travel Reviews
October 5, 2009 By Leave a Comment
The United States Federal Trade Commission (FTC) took a much needed positive step forward by introducing guidelines designed to differentiate between legitimate personal opinions and sponsored commercial endorsements made through social media. Individuals blogging or posting product reviews are now required, under threat of fines up to $11,000 per post, to disclose any material connections between themselves and the companies selling the products they are reviewing. This will improve the accuracy and reliability of hotel reviews and help eliminate unethical practices designed to artificially improve travel industry product rankings.
Change Your Thinking about Social Media
September 30, 2009 By 3 Comments
A parable of two men sharing a hospital room provides a foundation for considering the true spirit of hospitality and how the sharing of experiences through effective communication can create inspiration. For hotels, resorts, attractions, destinations and other travel suppliers, it is extremely important to provide a quality experience that meets or exceeds the customer’s expectations. With the growth of social networks, effective communication that is authentic and personal has the ability to inspire travel. To succeed, travel companies need to focus more on the “social” and less on the “media.” As opposed to communicating with customers solely to attain short-term sales, the goal should be to improve travel experiences and enrich the lives of their customers to establish true engagement. This approach helps grow a community that can inspire others to travel and enhance the cycle.
Marketing Your Hotel or Resort in a Web 2.0 World – Presentation at HFTP Annual Convention
September 28, 2009 By 3 Comments
Presented at the Hospitality Financial and Technology Professionals 2009 Annual Convention in Las Vegas, Marketing your Hotel or Resort in a Web 2.0 World covers the importance of ensuring property product and service delivery is functioning properly and the alignment of traditional marketing with online and social media efforts. Most importantly, marketing strategy must drive technology and channel decisions – ensuring tactics support marketing strategies and business objectives. The presentation includes hospitality industry examples applying rich content, reputation management, search engine optimization, and social media in both small and large properties.
Wynn Resorts Becoming “More Chinese” With Hong Kong IPO
September 24, 2009 By 1 Comment
Wynn Resorts is selling 25% of its Wynn Macau property for an estimated $1.5 Billion through an IPO next month. The Financial Times is reporting that this is the first time an American company has issued shares on the Hong Kong Stock Exchange. Steve Wynn, the man responsible for redefining the Las Vegas strip 20 years ago, is quoted as saying he would like Wynn resorts to become “more of a Chinese company.” There is good reason for this strategy – Macau is already the world’s largest gaming market, with gambling proceeds doubling those of Las Vegas. By successfully integrating Chinese perspective and sensibilities into the product, marketing, operational and now financial aspects of his casinos, Wynn Resorts’ chairman is positioning the company to benefit from a growing market of Chinese players over the next 20 years.
