Is Your Pub, Inn or Guesthouse Energy Efficient?

ABOVE: This cartoon from xkcd.com completely captures the tech support I received from a well-known computer company today.. This webcomic made me chuckle!

Impacting Future Profit

Every hotel, motel, guesthouse, or inn owner I speak to expresses a desire to help the environment and become more eco-friendly. In some cases, this desire stretches to a willingness to invest heavily in the quest. This article, Blue Sky Thinking, by Daniel Pearce in The Publican is a great example of the extent some publicans are willing to go to in order to make an impact on both the environment and their future profit.

The article begins by stating, “Rising energy costs… You should have already taken steps to tackle them…through ensuring you are on the best energy tariff for you, by taking all the simple energy-saving measures across your business, and by ensuring that your staff are following them too.”

Taking Steps?

However, many of the publicans I talk to during meetings and on social networking sites just aren’t taking steps to cut costs and increase efficiency.

What steps has your company taken to reduce the need for paperwork and filing?

One of the simplest and most cost-effective methods of reducing paperwork is to invest in a booking system to:

Create new bookings
View and edit existing bookings
Records customer details
Manage room bookings and venue bookings
Control payment details

Plus, using a booking system makes it simpler to produce reports including, customer loyalty reports, customer payment reports, guest arrival reports, hotel accounting reports, room financial reports

So, remember… You don’t need to go to the extent of the pub owner in The Publican article I mentioned above. Simple steps can make a huge difference to your establishment and the environment.

Thanks for reading,

Emma

Please contact me on eharradine@hotmail.co.uk for more information or to comment. I'll get back to you as a matter of priority. Thanks!

To Tweet, Blog, or LinkIn... That is the Question!

As a hotel, motel, or guest house owner, it’s becoming more and more difficult to know where to advertise, which social and business networks to join, which message systems to use, which social bookmarking sites to take advantage of, which blogs to follow and which blog platforms to post from.

Business Social Networks

LinkedIn is obviously the number one business social network, but what other business social networking sites should you be using? Facebook and Xing both have a huge number of professionals and industry experts at your fingertips, but how do you turn these numbers into tangible business contacts? Plus, developing leads and creating business opportunities is time consuming on both of these sites.

Twitter on the other hand creates a lot of high quality conversation, produces leads, and encourages information exchange without being time consuming. How long does it take to answer the question “what are you doing?” twice per day, thus informing potential guests of your news, unique selling points, and current promotions?

... And Advertising?

And where should hoteliers advertise nowadays and which online booking websites are the most popular with prospective guests? The choices are growing out of control!

Today, I was reading the 2009 National Travel Monitor by Ypartnership and Yankelovich.

In their report they state that “sixty-six percent of leisure travelers now use the Internet to plan some aspect of their travel (versus 35 percent in 2000), while 56 percent now report making reservations online… Travelers visit search engines such as Google, Yahoo or MSN first when considering vacation destination alternatives. The websites of specific countries or destination boards are visited next, followed by online travel agencies such as Expedia and Travelocity.”

The most popular websites for travel planning (according to the 2009 National Travel Monitor) are as follows:

Visit first when selecting a destination:
Search engine (Google, Yahoo, MSN) 34 percent
Website of national tourist office/CVB 23 percent
Online travel agency like Expedia, Travelocity 22 percent
Website of hotel chain 8 percent
Web site of individual hotel or resort 7 percent
Blog 1 percent

However, search patterns for selecting accommodation are understandably different. Consumers first visit the websites of online travel agencies; brand-specific sites are not the most popular when selecting lodging. Meta search engines that compare room rates are visited first by just over 1-out-of-20 travelers when selecting accommodation:

Visit first when selecting hotel/resort:
Website of online travel agency
(Expedia, Travelocity) 31 percent
Search engine (Google, Yahoo, MSN) 26 percent
Website of specific hotel chain 21 percent
Website of individual hotel/resort 10 percent
Meta search engine that compares rates 5 percent

So, what do I advise my clients?

I recommend that they adopt a selection of the aforementioned networking, advertising, and booking tools in order to optimize their visibility to consumers.

There is no need to waste valuable hours posting from every blog platform, networking in every available social networking site and updating your activities in each and every message system… Your message will get lost and you’ll stop to take a breath and wonder where your life has gone; it’s just too time consuming. So, stick to the tools and the methods that produce proven results:

1) Twitter twice daily to inform your prospective guests of news, great reviews, current promotions, and things that YOU find interesting.

2) Join relevant groups on LinkedIn to ask advice from industry experts.

3) Ensure that your hotel, motel, or guest house website is optimized to guarantee that you are listed within the top three results for your key words on search engines such as Google.

4) Connect with your local tourist information and the national tourist office to make certain that your hotel information is listed on all related websites and in all associated publications. Offer promotions, gifts, and prizes for tourists directed by these sources.

5) Keep your website up-to-date and conduct regular market research to discover what guests think and feel about your accommodation based upon what they see and read.

And finally...

Never underestimate the power of a strong and wide-spread network. Whether the network is physical or purely an online presence, it is and will continue to be invaluable for research, advertising, and producing precious leads.

For further information on the National Travel Monitor, please visit the publications section of YPartnership

Thanks for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk

How Do You Build Trust?

How do you convince prospective guests that you are a trustworthy hotelier and that they can believe what they read about your hotel and service? How do you know that you can trust your suppliers? How do you know that you can trust the hotel booking system provider that you’ve found on the website?

No doubt your customers look at dozens of hotels before they choose yours and you search tens, if not hundreds, of suppliers before you choose your booking system or cutlery supplier.

But why do your guests choose you, and why do you choose your suppliers?

It all comes down to trust.

When I originally researched booking software companies I was bombarded with thousands of badly designed websites, plastered with Google advertising, offering ridiculously low prices, ‘the best’ software available, and free twenty four-hour technical support. Naturally, these elements did little to entice me, in fact, quite the opposite; they sent me running to the hills.

So, what was I looking for?

When I stumbled upon Hotel Booking Systems I was pleasantly surprised by the fresh, clean, and simple website that was easy to navigate; a great start. Refreshingly, the website contained no Google ads and no ‘50% off if you buy today’ incentives; the prices quoted were the actual prices. Instantly, the company earned my trust.

As it turns out, I picked the right hotel systems company; both professional and reliable.

You make the same decisions

As a hotelier, you are faced with the same decisions, and without even knowing, you are making assumptions based upon very similar criteria. I can’t imagine anyone wanting to buy a hotel system from a software developer unable to create a simple and functional website.
These companies don’t appear to be trustworthy, and from experience I can tell you that appearances are not deceptive in this industry; they are not trustworthy companies and they are not run by trustworthy individuals.

... So do your guests!

You need to learn from the lessons you are taught when searching for suppliers because your guests’ minds work in an identical manner. Does your hotel or guesthouse portray your establishment as a trustworthy one and, in turn, are you perceived to be a trustworthy individual.

You don’t tolerate suppliers who ‘lie a little bit’ or ‘or try too hard, so neither will your prospective guests.

Many thanks for reading

Emma

What Does Your Company Logo Say?

I am going to go off on a complete tangent today, purely because I’ve had a day of interesting debates about marketing with business and hospitality peers.

To give you some background…

I am currently developing my own training and marketing focused company here in China. The market research is complete, the business plan is written, and now the brand, logo, and website are being debated and designed. I spent last week talking to a designer who asked lots of questions about the company values and culture. And, it seems that he really listened to the answers, because he presented me with a logo which I believe is all-encompassing and totally captures the image I want for the company.

Guinea Pigs

So, the next step was to find some guinea pigs to gauge their reactions to the logo. I explained the company objectives and services to them, and tried to provide them with some insight into the values we hold. I then showed them the logo and on every occasion was asked, “Should I find some meaning in there?” “Am I missing something?” and “It doesn't conjure any understanding of what your company is about.”

Their reaction has led me to ask myself how much of a story a logo should tell about the products and services of the company it represents.

A Logo Should Embody the Culture

In my opinion, a logo should embody the culture of a company, not the product or service. The first logo that comes to mind is Apple. Apple sells music players, laptops, and mobile phones but is represented by an apple with a bite taken out. The logo is very fresh and clean, which is an honest representation of the company and its culture, but in no way represents actual Apple products and services. The same is true of Coca Cola, McDonalds, BP, and Nike, to name but a few. Nike doesn’t use the image of a trainer and McDonalds doesn’t have a burger in the logo!

The argument offered by my guinea pigs in return has been, “but how will your prospective customers know what you do?”

I had trouble answering this at first, but have come to the conclusion that I don’t need people to know what the company does from the logo alone. How often will they see the logo on its own? The logo will be on business cards, on the website, on posters and flyers, all alongside a greater marketing message displaying the services the company offers.

Represents Values

Take for example the Sheraton logo; a golden S inside a laurel wreath. The Sheraton doesn’t need the logo to show a hotel in order for its guests to know that it is a hotel chain; they need the logo to represent their values. A laurel wreath is known to represent victory, nature, and the continuation of life from year to year.

Despite many debates and opposing opinions, I am still of the firm belief that a great logo portrays aspirational ideas, rather than literal ones!

What Do You Think?

I would be interested to hear which direction you went in for the logo of your hotel or hotel booking system . Does your logo actually show a hotel? Or have you opted for a logo which portrays your company’s visions? If you have any views or comments please email me on eharradine@hotmail.co.uk or leave your comments below.

Many thanks for reading,

Emma

Hotel Management Resources

Firstly, please accept my apologies for the lack of posts of late; I have had some serious issues accessing Blogspot. However, after uninstalling and reinstalling programs, changing my antivirus software and firewalls, and playing with my internet options, I finally discovered that the reason is completely unrelated to me or my laptop… It’s China! China has decided to block access to Blogger and to Blogspot at great inconvenience to the blogging community. I have, however, found my way around this block and hope that business can now go back to normal.

However, I don't apear to be able to add images or links with ease, so please bear with me until I find a way around this too. I'll add these as soon as possible.

The extra free time I’ve had has been great for research purposes and for gaining greater insight into groups and resources aimed at hoteliers and the hospitality industry.

Insightful LinkedIn Group

The first interesting resource I’d like to focus on is a LinkedIn group called the Hotel Online Distribution & Hotel Revenue Management Professionals Group.

I found this group to be particularly insightful due to the high level of usage and content turnaround. For example:

The discussions are always both current and perceptive; the discussions highlighted at this moment include forecasting issues and Egencia by Expedia. There have been 18 new discussions in the last 7 days.

The news is always highly relevant to the industry (How to use the downturn to your advantage. Twitter ROI.) and there have been 42 news articles in the last 7 days.

The number of well-targeted group members is high and growing fast; 53 members in the last 7 days and 2,533 in total.

I cannot recommend this LinkedIn group enough for those interested in booking systems, channel management, online distribution, and general hotel management issues.

Useful Hospitality Website

The second useful resource was introduced to me by the company’s CEO, Errol Lawrence, via the LinkedIn group I mentioned above.

It’s Hospitality is a free networking, marketing, job and search site for the hospitality industry which offers a newsfeed and electronic catalogue to help promote people, products, and services.

It’s the aim of It’s Hospitality to create one single community for all participants in the hospitality industry including hotels, travel, restaurant conventions, and supporting industries and suppliers. And, with more than 2,600 members from over 25 different countries it is definitely well on its way to achieving this goal.

Summary

So, if you are a small to medium sized hotel, motel, or guest house, or a provider of hotel booking systems, then these are two resources that you should become familiar with now. Both websites are provide you with invaluable information, news, and networking opportunities that I wish I had discovered sooner.

Many thanks for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk

Who Are You Marketing To?

Above: Are you marketing to Generation Y?

Who Are You Marketing To?

Market analysis during an economic crisis provides an astonishing opportunity to observe changes in consumer behaviors and attitudes.

A well-respected travel industry research authority projects that the total U.S. travel market will decline 11% in 2009, returning the industry to pre-2006 levels. This decline reflects a dramatic shift in consumer demand levels and provides valuable insight into the changing behavior of the modern traveler.

Whether you’re the owner of a small to medium sized hotel, motel, or guesthouse, or whether you’re the GM of a luxury establishment within a multi-national hotel chain, you would be wise to observe these changes and customize your product and marketing to target this emerging market.

Generation Y

Twenty-five to thirty-four year olds are spending the most per household on travel and tourism. Plus, eighteen to thirty-four year olds are considerably more likely than older age groups to indicate that they plan to travel more this year. The forty-five to sixty-five age group is spending the least per household on travel and is also the most likely to reduce travel spend this year.

Online Travel Agencies

Due to an ever-growing and increasingly loyal customer base, online travel agencies (OTAs) like Expedia and Orbitz will outperform other channels in year over year despite their recent bout of fee cuts and revenue-eroding promotions.

Online Travel is Not Yet Saturated

Consumers that spend the most on travel still use a mix of online and offline methods, therefore, there is still an opportunity to grow your customer base using your own online methods.

Travel Search Engines

Over a quarter (28%) of travelers now use travel search engines, such as TripAdvisor, when shopping for travel destinations and places to stay. This concept is not new; however, it looks as though websites such as Kayak have become mainstream elements in the travel planning process and are here to stay.

In order to increase customer base, hotels must focus on impressing current guests and encouraging them to write about their stay on travel search engines.

The information and statistic for this article were taken from PhoCusWright's Consumer Travel Report. This highly-informative report uncovers the detailed behaviors and attitudes of the U.S. traveler and helps companies understand how consumers are adjusting travel behaviors and reacting to market trends. The report is available for purchase at www.phocuswright.com.

Many thanks for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk

Hotel & Travel Innovations

Above: My personal favourite innovation within the hotel industry. W Hotels have introduced the Whatever/Whenever service to their already extensive list of luxury services.

Hotel & Travel Innovations

Today I have been looking back over the last three years, and reading travel articles I’d written for both business and pleasure; I cannot believe how much the travel industry has changed. Obviously, dramatic changes occurred after the events of September 11th; however, it’s changes unrelated to this event that have made the biggest impact. Technological changes have made the most noticeable difference; the web; hotel booking systems, and low cost operators have rendered the travel agent virtually obsolete.

Hotel booking systems have changed dramatically. Many of the small to medium-sized hotels I originally consulted for were using nothing more than a pen and note paper to record bookings; many didn’t see the necessity for a computerized system. And even then, the systems that were available didn’t even have graphical booking calendars let alone the ability to create reports. Now, systems include financial reports, maintenance schedules, and invoice options.

Booking Systems

And what does the future hold? Booking systems aimed purely at small to medium-sized hotels, motels, guest houses, and inns are evolving into web based booking systems to allow potential customers to enquire on room availability.

And within other areas of the hotel and travel industry:

Despite the struggling economy, airlines appear to be looking to the future; upgrading business class to the point that it looks like a luxury hotel and airport lounges so that they resemble fine dining restaurants. So what’s next? Will we have private bath and shower areas and individual lockable rooms in first class? Economy class changes will be interesting to monitor as well; self check-in seems to finally have caught on and pay TV appears to be growing in popularity. How about more comfortable seating and the ability to get from your window seat to the aisle without disturbing fellow passengers?

Shanghai and London have led the way in terms of innovative airport transportation. The Maglev (a magnetically levitated train) is a definite ‘must-do’ when in Shanghai and the Heathrow Express (the most expensive train journey in the world per mile) is a definite ‘don’t-do’ when in London. But of course, companies selling over priced on-airport parking shudder at the though of inexpensive and innovative airport transportation, so I wonder where their futures lie? Is there room for innovation within airport parking? I hope so!

What about hotel innovations? The concept of budget hotels has extended the term ‘budget’ to include new ‘miniature hotels’. Miniature hotels take the idea of ‘no frills’ and run with it; no frills means no TV, no windows (unless you’re either lucky or willing to pay extra) no phone (excellent, no calls from prostitutes at three in the morning!) and no toiletries, but of course, they’re extremely cheap; catering to guesst who couldn’t normally afford the luxury of travel.

At the other end of the scale, high-end hotels have added new luxuries to their already extensive list; bath butlers, personal butlers, elevator wi-fi, to name but a few. My personal favourite luxury innovation is Whatever/Whenever by Starwood’s W Hotels. Their advertising reads:

“Birthday Party at 35,000 feet? Wedding Dress Pickup by Helicopter? Bath of Hot Chocolate? At W Hotels, your wish truly is our command with our Whatever/Whenever service. We’ll make your special moment magical, and transform your dreams into reality. Whatever you want. Whenever you want it (as long as it’s legal!)”

At this precise moment, I’m trying desperately to think of the most original and difficult to achieve Whatever/Whenever possible. Any ideas?

If you have an idea for a crazy Whatever/Whenever or have heard of a crazy hotel/travel related innovation, I’d love to hear from you. What’s your favourite travel innovation from the last three years?

Thanks for reading,

Emma

Please leave your comments here or email me on eharradine@hotmail.co.uk

24 Hour Customer Support

Above: The testimonials offered by Hotel Booking Systems are a good example of positive ‘customer support’ feedback.

Customer support: number three on the list

“Customer support – 24 hours” came third on the list of requirements when sixty small-to-medium sized hotel, motel, and guest house owners and GMs were questioned about their hotel booking system requirements. However, when asked about their reasons for swapping their booking software supplier, “Lack of continuing support” was number one on the list. This did not come as a surprise to me.

An effective hotel system must be usable in any country, with any currency, and any tax system. It is for this reason that free fields are required (as opposed to drop downs) and programs must be fully customisable. Most (but certainly not all) companies have realised this and therefore offer full customisation; however, with complicated systems and full customisation, there needs to be an option for twenty-four hour support; something that, yet again, most companies (seem) to realise.

However, I have come to question the support offered by these hotel booking system providers. I have lost count of the number of unanswered calls, week long waits for email replies, and voice mail messages I have left… All to no avail. And once I receive such terrible support once, I no longer have faith in the supplier and no longer recommend their product to my clients. It’s as simple as that! If a customer is promised support as part of their software package, then that promise needs to be fulfilled.

Respondents agree

It seems that my questionnaire respondents agree:

“I have come to trust software providers that request additional payment for support. Any company that has told me they can answer my emails or calls 24 hours for free has let me down one hundred per cent of the time.” – Simon, Hope Hotel, USA

“I’m getting too old to understand the ins and outs of a complicated booking system. I want to be told how to use it and get on with using it from day one. Once something goes wrong, it’s not like I can figure it out for myself; I need help. And if there is no one to help me for over a week, what am I supposed to do meanwhile?” – Anon, UK

“I’d like to send some of these people on a customer support course to teach them how to deal with real people. I sometime wonder whether they know their own software because they certainly don’t know how to explain it to me. I need quick, supportive, answers to my questions.” – Anon, UK

“I don’t mind waiting two days for a reply as long as I know it’s going to be two days! Don’t promise me the earth and give me a ping pong ball, I’ve learnt enough in this industry and won’t be taken for a mug anymore!” – Peter, Swan Inn, Yorkshire, UK

Testimonials

As a consultant within the industry, I have found testimonials mentioning excellent customer service and support are of utmost importance when promoting your software. I expect to see two or three testimonials from establishments of a similar size to the hotel, motel, guest house, or inn, I am consulting for. Excellent testimonials (that can be checked) can make or break my decision to use a system provider and I am sure that this is true of establishments searching for their own booking software.

I wish to also convey the importance of this to the hoteliers reading my blog: ALWAYS ask for testimonials and ALWAYS ask whether you can check their validity. If a supplier cannot provide positive feedback from previous clients and/or seems reluctant for you to contact the person, DO NOT trust the supplier. I learnt my lesson the hard way, there is no reason for you to do the same.

I hope that hoteliers and hotel booking software suppliers have found this, and previous, posts useful. If so, please add your comments to support my ideas, completely disagree with my thoughts, to advertise your own hotel/software, or to ask any questions you have.

Thanks for reading,

Emma

Please contact me on eharradine@hotmail.co.uk for further information or advice.

Off Peak Discounts

Offering an ‘off-season’ discount is a concept that I’m sure you, as a hotel owner or GM, are all too familiar with. In fact, as you’re clawing your way out of a difficult off-season right now, I’m sure you’re keen never to return to such depths. You know your product is first class and your service top rate, so why should you have to lure guests with huge discounts and extra perks?

Well, I believe that off-seasons are a thing of the past. Off-seasons are the times when prospective customers least like to travel and therefore are much less likely to stay in your hotel, motel, or guest house. To entice these customers, hoteliers have turned to internet booking agents to offer unbeatable discounts as a last-ditch attempt to improve occupancy levels, but this has done little good for RevPAR.

So, what if you use your marketing skills to ensure that potential guests want to travel and yearn for a stay in your hotel. Sounds difficult? It doesn’t have to be…

It’s all about targeting; targeting exactly what within your hotel or surrounding area will attract your prospective guests; and targeting the correct words to use on your website and advertising to optimize your visibility within search engines.

Let’s start with the former marketing skill: targeting what amenities you can take advantage of in order to attract guests…

I’m searching on the internet for a guest house during the summer; a beautiful little cottage appears. I look at the amenities and discover that it is close to the beach, has a swimming pool, and is within easy walking distance of the local town, which has outside terraces and beachside bars. Perfect!

I’m searching on the internet for a guest house later that year. It’s snowing outside. I discover the same little guest house and check out the amenities. I’m told once again that there’s a beach, a pool, and outside catering. No thank you very much! It’s far too cold; I’d rather stay at home.

Actually, the guesthouse was close to a mountain with great winter sports and hiking available. There are lodges nearby with spas, which serve good hearty winter roasts, and the guesthouse has a great indoor sauna area… But I wasn’t told any of this. The guesthouse owners have marketed themselves as a great summer getaway and in the process have marketed themselves an off-season.

Your marketing must be constantly evolving in order to attract guests through each ‘high-season’ available to you. This might mean finding seasonal activities for every season and highlighting the benefits of avoiding the crowds, but no matter how you do it, you’ve got to give them a reason to want to travel off-peak.

Next, we’ll tackle the second marketing skill: optimizing your visibility in search engines to attract the right guests for the right seasons; another ever-evolving task.

Search Engine Optimization (SEO) and Pay-Per-Click Ads (PPC) are vital tools if you’re going to attract guests all year round. And, there is no excuse for hit and miss website marketing anymore. With analysis tools, such as Google Analytics, it is easy to see which key words generate the most traffic to your site and pinpoint consumer trends during certain times of the year.

Once you have analyzed the data and know what consumers are looking for, it becomes easier for you to emphasize your unique selling points (USP) during each season and give your guests exactly what they want, not just what you think they want.

To summarize, it is possible to manipulate seasonality in order to gain conversions, and if you use your website marketing strategically, you can make the concept of an ‘off-season’ completely obsolete. Just don’t expect to build a website and be able to leave it untouched for a year… As the market evolves, you need to as well.

Thanks again for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk

A New Dawn?

I’d like to start by acknowledging the increasing stream of emails I have received over the past two months requesting advice on ‘what clients want’ from their hotel booking systems. Thank you very much for your thoughts and comments; your emails have not gone unnoticed! As I type, a further wash of emails are flooding my inbox; emails from the exact clients you have spoken of; hotel, motel, and guest house owners.

I have contacted fifty previous customers, friends, peers, and acquaintances to gather the exact information software developers are looking for, and 75% have been returned already; within three days… I’m both amazed and grateful.

I am filled with a sense of optimism at the thought that system developers actually want to know what their buyers want and need. I have seen too many badly developed systems over the last three years and although I have seen a steady improvement (not usually from the industry leaders) I am ecstatic that this might be about to change.

If you are a hotel, motel, or guest house owner and would like to participate in this survey, please contact me on eharradine@hotmail.co.uk for further information. Thank you.

In my opinion, the option of customizing the system and upgrading regularly is of optimum importance. I’ll be interested to see whether the information I collect from these surveys will correlate with my beliefs.

I would also like to acknowledge the other end of the spectrum. A steady backlog of emails from hotel and motel owners / managers is building up. Emails requesting further information about what they should be looking for and where to find the best systems on the market. If I am yet to reply, please accept my apologies; I will be replying to everyone this week and plan to offer the same advice within this blog at a later date.

Thanks again for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk

How to Succeed in a Difficult Economy

Hotel occupancy is suffering...

In my last entry, I discussed the current trends in RevPAR and HPI. Occupancy is suffering, and this deterioration looks determined to continue for some time. In fact, I read on Travel Daily News last month that,

“PricewaterhouseCoopers estimates 2009 average U.S. hotel occupancy will fall to 56.5% - a decline of 5.2% from 2008 and the lowest in more than 20 years. More importantly PwC projects RevPAR to decline 11.2% this year. It is hard to imagine any hotel getting through this year unscathed.”

Therefore, now is the time to ensure that your hotel stays one step ahead of the competition. The economic situation will hurt your competitors as well, and they may not ever see the light at the end of the tunnel. You need to guarantee that you do; but how will you accomplish this?

It’s all to do with your internal and external marketing…

Many hotels have begun to slash room rates in an attempt to fill rooms. However, you must remember that this tactic can be easily copied by the competition. If you and your five competing hotels all slash prices, or even offer additional nights for free, the impact on RevPAR will be significant. Plus, once you have dropped your room rates, it will be difficult to restore them once the economy improves.

So, don’t slash your prices for dramatic effect; increase price flexibility and be prepared to add value to your guest’s stay. Consider working with outside businesses, such as car rental or day trip companies, to create packages that will ‘wow’ your guests.

In the same way that many companies have cut training, a large number of hotels are now slashing advertising. Ensure that you have a large online presence by improving your hotel’s website and conducting search engine optimization; you need to be listed on the first page for any keyword searches related to your hotel and your area.

Make sure that every page of your website and every word of your hotel blog communicates value. Your prospective guests need to know that they are getting maximum value from every pound they spend. Remember that comfortable surroundings during difficult times make your hotel worth every penny your guests spend.

Customer Relationship Management...

Managing your relationship with your customers is extremely important right now; you need to establish loyalty. Hotels with the most loyal customers are also the most profitable.

Your competitors will most likely focus on attracting new customers. You need to have a more balanced approach toward customer acquisition and retention and actively manage your customer relationships to build loyalty.

However, managing customer relationships has become sophisticated and requires a remarkable amount of coordination. It is all about the movement of prospective guests through the customer lifecycle from awareness to loyalty. This can start with your hotel website, blog, and any other form of advertising you use, all the way through to the up-selling used by employees and the hotel booking system that you use to store guest information.

Remember that loyalty comes as a result of:

1) Using advanced CRM and Hotel Booking Software which has become extremely affordable, even if you are running a small hotel, motel, or guest house.

2) Ensuring your advertising and added value are highly personalized and individually targeted. Remember that your message must be relevant to your stressed and financially-burdened guests.

3) Creating a strong emotional bond with your guests. There may be years between visits but loyal guests do return and give you referrals. Everything from the first view of your website, through the moment they make a booking, to the moment they check out must feel personal. Guests want to feel wanted.

If you take this advice on board, you stand a greater chance of staying ahead of your competitor. Now is the time to implement the new CRM and booking system that you’ve been considering. If you properly implement these systems you will significantly enhance your chance of success during difficult times.

Don’t forget that loyalty is the key to success!

Good luck to you all,

Emma