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.

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