Sales & Marketing USA & Canada Opinion Articles - Hospitality Net

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Opinion Article

January 6, 2010

Price Impact on Guest Satisfaction

Research within the hospitality industry suggests that price plays a significant role in the perception guests have towards the value and quality of the hospitality product they are buying (Mattila et al., 2003, p. 329). Guests simply expect to receive a higher level of service when they pay more for the service (Matzler et al., 2006, p. 181). Within the hotel and cruise industry, this in essence means that higher performing yields result in higher guest expectations. Assuming that the product delivery and service quality is static regardless of price fluctuations, higher expectations also often consequentially result in lower guest satisfaction. This article will explain the impact price has on guest’s price perception, and it will also explain how guest’s value perception, loyalty and expectations are related to the price they pay.

Opinion Article

January 5, 2010

Hotelier’s 2010 Top Ten Internet Marketing Resolutions

Looking back, HeBS believes that 2009 was a year not only of challenges, but also successes for the industry. While no hotelier is sad to see the end of 2009, HeBS believes that every hotelier has learned extremely important and insightful lessons that have benefitted their Internet marketing and distribution efforts. Undoubtedly the most important and relevant initiatives in 2009 included holding every spent dollar fully accountable with analytics, not experimenting with unproven advertising formats, enhancing and optimizing the hotel website, and very carefully targeting the right customer segments. These tactics were integral parts of HeBS article “Getting Back to the Basics: The Hotelier’s Action Plan for a Difficult Economy” and hoteliers who made these recommendations priorities in 2009 were the winners in this economic downturn.

By Max Starkov, Hospitality & travel technologist and digital strategist, Hospitality Net

Opinion Article

January 5, 2010

A hotel prepares for the Winter Olympics

After a sleepy year, the hotel industry in Vancouver and Whistler is about to get a blaring wakeup call. From February 12 to 28, the 2010 Winter Olympics are expected to draw 250,000 spectators, plus top athletes, foreign dignitaries and international media. Hotels in Vancouver are now sold-out for sixteen consecutive nights in a month they’re usually screaming for business.

By Daniel Craig, Founder & Chief Strategist, Reknown, Reknown Marketing

Opinion Article

January 4, 2010

Compete For Customers, Not Against Them

Have you ever sensed an adversarial, “us vs. them” mentality from employees of service organizations? Perhaps you were on the receiving end of what you would describe as rude or abusive behavior? Or perhaps it was more subtle—like dismissive body language or an exasperated sigh? Maybe it did not even involve you and was just something you overheard or observed?

Steve Curtin, LLC

Opinion Article

January 4, 2010

The Way Forward After A Tumultuous Decade

Our Retail world was pretty well whacked in the last two years, and 2010 will be a year of rebuilding our Brands with a new Value Proposition. The most serious question we all must ask is what does our Customer want? We have learned that Greed is not good, resources are limited and the consumer is resilient yet wary. Definitely, it will not be business as usual.

By John Hendrie, Customer Experience Facilitator, Hospitality Performance, Inc.

Opinion Article

December 22, 2009

Recession Lessons: What Will Drive Hotel Sales & Revenue Management in 2010

Did you catch the revised forecast from PKF? PKF-HR is now forecasting lodging demand to post a quarterly year-over-year increase during the first quarter of 2010, thus ending eight consecutive quarters of declines. On an annual basis, PKF-HR is now forecasting lodging demand to rise 1.9 percent in 2010, up from the 1.6 percent increase forecast back in September. (HotelNewsNow, 12/14/09)

Opinion Article

December 17, 2009

THE FED RATE | Government Travelers Welcome In 2009

For hotels in the upper-tier chain scale categories, government travelers have historically been viewed as “guests of last resort.” While government business is abundant, the per diem room rates set by federal, state, and local agencies are generally viewed as low. In addition, ancillary expenditures for food, beverage, retail, and recreation are restricted by government limits that are typically less than the average business traveler’s budget.

By Robert Mandelbaum, Director of Research Information Services, CBRE Hotels

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Why Hospitality Net Leads B2B in Hospitality

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Hospitality Net

The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

Opinion Article

December 14, 2009

Putting Hospitality back into Hospitality

I recently shared the stage in Las Vegas at the annual Hotel Electronic Distribution Association Conference (HEDNA), with four travel industry marketing and distribution experts as a moderator for a Panel with the topic, "Economy in Transition" and what that means to the hospitality industry. " As we bring 2009 to a close, thankful to have survived one of the toughest economic downturns, we examined the lessons learned and top takeaways as the industry moves forward in 2010.

A Couple of Chicks

Toronto, Canada

Opinion Article

December 10, 2009

Reading between the lines at the PhoCusWright Travel Technology Conference

An impressive array of industry leaders gathered at the annual PhoCusWright Travel Technology Conference in Orlando, Florida, from 16-19 November for a show literally like no other. With several hundred thousand dollars of audio visual overload, I found myself feeling more like a reality TV star than an attendee at a typical conference. Among the throngs of market analysts, pundits, tech suppliers and potential clients, one longtime guest observed, “At this show, if it’s worth doing, it’s worth overdoing.”

Opinion Article

December 8, 2009

Guest satisfaction soars as hotels cut back

The guest experience isn’t what it used to be at the Wyndham Austin Garden Hotel in Austin, Texas. Individual copies of USA Today are no longer delivered to each door, high-end water bottles have been replaced by less expensive brands from Sam’s Club, and complimentary bathrobes no longer hang in every guestroom closest. Such cutbacks to once-standard amenities abound at the property, underlining perhaps the biggest change of all: improved guest satisfaction. Call it doing more with less. Amid a historic industry downturn that has cut revenues to the bone, hotels are trimming operating expenses to follow suit, refocusing on those parts of a hotel stay that matter most to guests.

Opinion Article

December 8, 2009

Meeting Planners Struggle to Control Costs

Meeting planners are faced with the same economic challenges confronting hotels today - - booking “effective” events at the least possible costs - - and as a result are “flexing” their negotiating leverage and aggressively seeking room rate concessions, according to a recent meeting planner survey conducted by PKF Hospitality Research and Conventions South Magazine.

By David Brudney, ISHC, David Brudney & Associates

Opinion Article

December 1, 2009

In tough times, maintain or bolster your sales staff

When managing a hotel in a down economy, you can only make so many cuts to your operating expenses. And while most line items are fair game, there’s one area in particular that stands as an exception: sales and marketing. Maintaining a strong sales front is more important than ever before—a necessity whether hanging on to your existing customer base or attempting to gain market share, according to panelists earlier this month at Perkins Coie’s Navigating Troubled Times in the Hotel Industry conference at the Fairmont Chicago.

Opinion Article

December 1, 2009

Don’t do these 5 things during the downturn

During this industry downturn, we all know that we have to contain costs and drive efficiency at the property level. Experienced operators have learned from previous slumps that avoiding certain temptations will help your performance versus your competitive set now and help set you up for success when the economy improves. While these may seem like basic measures, too many operators forget these five simple things that you should not do.

Opinion Article

December 1, 2009

5 Simple Ways To Improve Hotel Sales In A Lousy Economy

First, it's an old story, but stop thinking that lowering your rates will sell more rooms and increase room revenue. It may sell a few more rooms, but it rarely sells enough rooms to offset revenue lost due to lowered rates. It’s simple economics; lower rates have not ever, nor, will ever, create room demand. Travelers do not buy rate; they buy value. Don't reduce rates, add value.

Hotel Marketing Coach

Opinion Article

November 25, 2009

What if You Reduced Your Hotel Room Rates and Nobody Noticed?

It’s no secret that the hospitality industry has faced unprecedented challenges in recent months. A just-released year-to-year comparative report by Smith Travel Research (STR) cited the following statistics: Hotel occupancy was down six percent to end the week at 52.6 percent. Average daily rate (ADR) dropped 9.9 percent to finish the week at $95.86. Revenue per available room (RevPAR) decreased 15.7 percent to finish at $50.47. Furthermore, a recent Maritz telephone survey of 1,000 Americans indicated holiday travel is projected to experience its first significant decline in a decade, accounting for a reduction of $4.05 billion of travel revenue. The decline was attributed to a combination of financial concerns and fears surrounding the H1N1 virus.

By Rick Garlick, CHR

The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

Opinion Article

November 11, 2009

‘The single most significant crisis' of 2010

Like a gladiator returning from combat, the U.S. hotel industry has come face-to-face with a number of considerable challenges this year: dismal demand, plunging rates and lack of financing to name a few. Yet while murmurs of recovery have begun to echo from the masses, the fight is far from over. Jim Abrahamson, president of the Americas for InterContinental Hotels Group, made this clear when discussing debt, which he called the “single most significant crisis that’s going to face us this year” during a panel at the AH&LA’s Hospitality Leadership Forum this week in New York.

Opinion Article

November 10, 2009

Carlson, IHG and Wyndham leaders sound off on recovery plans

After any natural disaster, it’s important to check in with affected parties to survey the damage. The same is true for an industry battered under a deluge of economic recession. During the Hospitality Leadership Forum held Saturday at New York’s Javits Center, moderator John Russell of NYLO Hotels asked for status reports from leaders of three major hotel companies during a CEO leadership panel. Their answers were heavy on challenges, but showed a resiliency and optimism that reflect the green shoots that have begun to sprout up throughout the industry

Opinion Article

November 10, 2009

Packing the PR Punch | The Power of Public Relations Is Now vs Later

Over the past 18 months, one of the many casualties of cost cutting, downsizing, and elimination in the hotel industry, has been the commitment to comprehensive, strategic, creative, and proactive public relations communication. Much of the public relations activity in recent months has been reactive or related to dealing with the many perils and fallout of a struggling industry. Reduced travel, spiraling rates, image adjustments tied to consumer perception anxiety, crisis management with defaults, receivership, and trying to stay one step ahead of the next wave of bad news.

Carol A. Baetzel , CBPR

Opinion Article

November 6, 2009

How OTAs boost bookings on your own Web site

The Choice Hotels-Expedia brouhaha of recent weeks has shined a scorching spotlight on the fickle relationship between hotel companies and online travel agencies. Call it the industry’s version of a celebrity breakup scandal. But while the focus of debate has centered on last-room availability and other contractual terms surrounding room bookings, there’s a fundamental component of this precarious affiliation that’s gone largely ignored: visibility.

Opinion Article

November 5, 2009

Price discovery (aka value) must emerge before recovery can begin

Establishing the value of a hotel in today’s economy is a little like playing darts blindfolded at the local pub—you know the general direction to throw but no one is certain exactly where the dart will stick. Speakers at last week’s ninth annual Fishing for Solutions: Servicing Hotel Loans conference in suburban Dallas reached a general consensus that it’s good to be skeptical if anyone tries to put an absolute value on a hotel. The hip term is “price discovery”—but speakers agreed no matter what it’s called, it must be determined before a significant recovery can occur.