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

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

London Hotel Prices Fall

It has been interesting to monitor Hotel Price Indexes (HPI) over the last few months. Having spoken to a number of GM’s worldwide; during this economic downturn they have been reluctant to lower prices and have instead added value to their stay packages in order to keep their RevPAR high and limit the panic caused to hotel owners, lending institutions, and management companies.

In fact, it was only two months a go that I gave three cheers to the hotel industry for seeing the bigger picture and continuing training throughout this recession. It seemed that hotel GMs had donned their armor plating, had their heads down, and were prepared to battle on into the unknown.

I’m currently based in China, and the financial crisis is yet to hit in such a dramatic way as in the east. Hotel occupancy within 5* hotels based in manufacturing and engineering cities has dropped due to redundancies in the west and the removal of foreign experts on international assignment; however there is no immediate need for pessimism.

Yet, I was not surprised to read on Travel Daily News International that hoteliers across the UK - and especially in London - are continuing to drop hotel room rates. Hotel.com’s HPI shows that London hotel prices were down by 12% to £111 per room on average in the last three months of last year.

The article by Theodore Koumelis continued to say that “Hotels.com saw a 49% increase in the number of searches by Eurozone travellers for London hotels in December 2008 compared to a year earlier, as travellers sought to take advantage of the struggling pound.”

A quick search of hospitality related websites, and the travel section of British newspapers, reveals that the British press has at last turned PRO-BRITAIN in terms of it being a holiday destination. For years it has been difficult to find any positive press, yet now every British city is the new ‘Place to Be Seen This Summer’. But is this tactic working? Web searches from abroad have increased because of the weakness of the pound, but that isn’t going to aid the Brits themselves in any way.

Travel Daily News International says, “UK hotel prices were down by an average of 12% at the end of 2008, with hotels in the north-west seeing some of the biggest price drops. Prices in Blackpool fell by 22% to an average of £79 per room per night, and in Manchester by 19% to £73.”

So you tell me, is the title of Theodore Koumelis’s article, “Boost for Tourism as London Hotel Prices Fall”, an accurate one? Will the UK HPI continue to fall during this economic turmoil, or will the price increase indeed be a boost for tourism?

Click here to read the full article.

Bye for now

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 www.hotelsystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk