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

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

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

Hotel Industry Insolvencies

I’d like to start on a personal note by highlighting the very sad death, last week, of one of my heroes; John Martyn, the British singer, song writer, music legend, and guitarist extraordinaire. His jazz, folk, funk, and blues fusion was always original and utterly captivating. He’ll be sadly missed by his many devoted fans, and certainly by me. Rest In Peace, John, Rest In Peace.

And to continue the depressing tone of today’s blog, I feel the need to talk about recent insolvencies within the hotel industry. As the ‘credit crunch’, ‘economic tsunami’, ‘global recession’, or whatever you choose to call it, has over taken our personal lives, businesses, conversations, nightmares, television screens and newspapers, I have been reluctant to add to the ever-increasing depression surrounding our lives.

The number of small-to-medium sized hotels, motels, and guesthouses to go bankrupt in the UK over the last ten years has been reasonably high in comparison to other industries and businesses. However, large hotels and hotel chains have always remained stable with insolvencies peaking at forty-four in 2007. Whilst travel agent insolvencies had risen by 95% over two years in 2007, the percentage of bankruptcies within hotel chains had risen just a few percent per year until 2007.

However, I was not surprised to read in The Times Online today that Insolvencies in the hotel sector doubled over the winter and that “36 hotel businesses failed in the final three months of 2008, the highest quarterly figure since the early 1990s”. The Times revealed that, “the increase took the total number of insolvencies over 2008 to 87, almost double the total of a year earlier”.

For more information on the facts and figures please visit the Times Online article by Dominic Walsh at:
http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article5634691.ece

At this early stage it is impossible to foresee how long this downturn will last and how large an effect it will have on the hospitality industry, but judging by the delayed effect the crisis has had on the hotel industry, I wonder whether the effects will be seen long after the economy improves.

We just have to hope that the hotels with service and a product to be proud of come out the other end fighting fit and with fewer competitors; hopefully those hotels that should never have been in the industry in the first place.

Goodbye 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