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Tough markets lead to innovation - it's a hard time for hotels but their customers will gain long term, now is the time to really innovate with service and do everything to win customer loyalty.
As far as travel plans go, at least in Europe many businesses have been moving down to low cost airlines and cheaper hotels for years, my own business travel question is: Is this REALLY essential, and if it is what is the lowest cost way to go - I'd rather save my money for the family holiday.
So my first suggestion would be to build your email list, and if you already have one, use it!
One other thing that I noticed is that for example flights are getting cheaper and cheaper. Four months ago I flew from Europe to South Africa for Euro 900, right now I can take the same flight for Euro 499 (incl all taxes etc). A lot of the airlines are stunting with their prices to just get people on board. Hotels could advertise this much more (to their email list) but also in general adverts. Perhaps it is even possible to put an affiliate link to airlines with offers. But the MAIN reason for doing so is to help the visitor, as I have found that most of them do not know that flying to South Africa can be so cheap. South Africa has always been quite expensive to fly to. And I am 100% sure that this 40% rate cut can be found in a lot of other countries as well
Hope this helps
Richard
If hotels bid on customers in an open bidding process, it would be best for the customer.
I've been following your blog rss for a few weeks now - consistently good topics that challenge how we should all think about running our businesses and this one is another cracking example that most if not all could be applied to any business.
I'm fond of saying "outside the box' - annoying for some i know but it really is the innovative "what could I be doing?" mentality that is going to win through in the end.
We're going to be experimenting with cross-product promotion in the coming weeks - if a customer bough this or looked at this, then here's another gift idea on that theme etc. Hardly cutting edge or new thinking i know but with the realisation from our page stats that many visitors are landing on product specific pages rather than arriving at the main shop gift page, this makes good sense as we expand our personalised gift portfolio.
Service is still the important element - if people feel they got good service rather than just deserved it, they'll come back for more.
Thanks - Jonathan.
This is a great post! I agree on all accounts. I tried to get AA Batteries when I came in to Austin yesterday and the gift shop was out. No one could seem to tell me where to go. Weird??? I wasn't asking for anything exotic. Still looking for those batteries :)
@keithburtis
I said yes, she then said, "well then, welcome back".
In other words people are being prepared to work in the hotel sector that are inadequately taught so how can the average hotel harness the power of the internet.
Hmmmm ...maybe there is a biz opportunity here - to educate hotels in the the use of Facebook, Twitter etc. Anyone want to JV on this ?!!!!
More opinions on this at http://www.tourneycentral.com/fitting-together....
@gerardmclean @dogwalkblog
I love the point about business travel. Business travel represents the one area of travel that will not take a huge hit during a recession. And, in addition, business travelers are likely to spend more money no matter where they go. Nice post.
http://twitter.com/franswaa
Run properly a hotel hums along with a 70% profit margin, which offsets the much smaller percentages on the Food and Beverage side of the equation.
The biggest problem within the hospitality industry is the core inventory of
their business is truly their staff, underpaid, under recognized, and under trained.
The industry as a whole is very top down, moguls and magnets and titans at the helm and peons running the show. That is not intended to be politically incorrect.
The WORK that is done by the "crew members" is important, just not recognized as such. There is a goldmine of information about how to improve the business resting in the working hands of the working staff, but the old world Baron Von H approach to the business undermines what could change the model.
As someone who owns a small hotel in the Caribbean where travel is said to be off somewhere between 50 to 70% I can speak with some credit to courting niche markets.
We do not see too many business travelers here on Culebra, but we have been successful at targeting our property to people who are looking for an easy escape from the U.S., no large chain hotels, and amazing beaches.
However, this is not the key.
In my opinion, the real strategy is to first define your goals. You can't go after a niche if you don't really know who you are (as a property) or where you hope to go in the future.
Once your goals are defined then the real work begins, your niche MUST be able to find you! It’s where we have had some success and it’s also the place in which social media is at its very best.
I think the large chain hotels (the ones courting business travelers) would like to attract various niches, but if they are not willing to lay the all important groundwork to gain trust in the various forums, blogs, etc....then they are setting themselves up to fail. However, if they actively participated in social media conversations around the various platforms of whatever niche they are hoping to attract and helped people then I think they could increase their business exponentially.
As always, kind regards,
Mark H.
@mark_hayward
Most companies don't want to spend the $$ developing/teaching and using their databases. Their front desk staffs turn over like a restless sleeper and there is often a lack of training. I believe Zappos get it right when they say they will only hire those passionate about something in life because passionate people translate caring into action. There are plenty of people out there who'd like jobs and I believe would embrace the model you've outlined. Maureen is right as is Gillian. Gillian, I'll JV with you on this because customer service is something I'm passionate about.
And Gee, I'm with you, water and WiFi should be free.
Keith, what a great post to respond to someone's needs. Now that's one to one.
It's not so much the cost of the wifi that irritates me - it's not knowing what it will be or how it will work. Most hotels are really bad at providing this information on their sites (it's rare you'll be able to see how much it costs or if it's wired vs wireless, etc). Further, if you are going to charge for wifi, charge it to my room.. don't make me pull out yet another credit card :)
Jonathan.
The simple act of posting up reviews and customer testimonials can go a long way towards gaining new consideration.
Great conversation!
-Christopher
There could be thousands of possible requests for specific information, which obviously would take up a lot of man hours to gather and then offer.
So does the hotel just offer this service to the regular customers (or companies) and make it almost a VIP service? Or does it go the whole hog and try meet everyone's requests?
There could be thousands of possible requests for specific information, which obviously would take up a lot of man hours to gather and then offer.
So does the hotel just offer this service to the regular customers (or companies) and make it almost a VIP service? Or does it go the whole hog and try meet everyone's requests?
Oops, should have said good post! Waiting on your next post!
It seems like a no-brainer, doesn't it? Can anyone tell me why hotels weren't already doing some of these things that Chris proposes? By the way, Chris, the tourism industry NEEDS you! We should talk sometime about getting you as a speaker at some statewide tourism conferences in Texas.
One big thing that ALL lodgings should offer is comped wifi. It seems the more expensive the hotel, the more they charge you for the extras. Value is key.
A huge problem I had with some hotels while donig a lot of traveling was the lack of clear indication of "this is where your internet access is coming from." Tell me immediately and clearly if it is wireless or if I have to plug in, and PLEASE don't hide the cable in the closet somewhere - because that is just ridiculous.
Most hotels are Web 0.1 and for all of the low cost sometimes free solutions out there the return on investment would be very attractive.
Business hotels generally concentrate their sales energy on their volume customers, who in the past were professional travel buyers who were skilled in squeezing both savings and value out of their hotels. Individual travelers like you benefit because of the demands of the high-volume buyers - HP, Boeing, MS, JP Morgan etc who individually purchase hundreds of millions of dollars in travel services each year. These buyers are cutting way back. Way, way back. So are the smaller accounts. And they are staying at Holiday Inss now, instead of Sheratons. And they are laying off the employees who used to travel. And they are cancelling meetings. You may need a conference room, but most companies are deciding right now that they can do without the offsites and the added expense. They're going to webex and freeconference.com, anything to reduce cost. So the hotel is stuck with a lot of expensive square footage that isn't making them any money.
More and more, travel management is now dumped into procurement departments, where it is sourced like rubber bands or cell phones, by people who can negotiate on price up to a point, but don't necessarily know how to get the perks and amenities - things like free wifi that the hotels don't want to give away anyway. I know a lot of travel managers who've been laid off, and if you're a travel supplier, you have to wonder what these companies are thinking - while welcoming the opportunity to increase prices every way you can.
Service is great, and I'm all in favor of profiling guests and anticipating needs, but until a Boeing or MS buyer says 'my travelers always need to know where the nearest drugstore is,' that is probably something you're just going to have to ask the front desk for.
i agree with burkot ! one have to be aggressive but i am little confused about this business because my point of view is that their is not much risk in this hotel business ....
A few months ago I wrote the blog post "7 steps to better hostels" and I think that many of these steps could be considered by most hotels as well.
P.S. - Sorry, forgot to tell you great post!
What Chris is recommending requires each hotel to operate like they are their own cafe shaped business and rely less on the mothership. Tough times require creativity. I like the idea of improving listening skills and creating new opportunities using social media.
Till now, most hotels are relying very heavily on solutions like Trip Advisors, Expedia, etc. There is critical mass in these channels that can't be ignored.
After 9/11 hotels had a terrible problem with rate integrity. You could get a rate for one price on hotels.com and potentially a different price at their own brand.com They have invested significantly into the incredible number of distribution channels to ensure that you can get the best rate on their brand.com site.
Many hotels are definitely hurting with the cut backs in leisure and business travel. They are in a business that is highly driven by the supply and demand. They need to institute a variable pricing each and every night to maximize revenue. Generally speaking, we should see hotels offering the greatest flexibility in pricing for weekend stays. Additionally, most revenue management experts recommend not overly discounting rate, but increasing value. Good news is that we should start seeing more hotels throw in WiFi, parking and breakfast.
I've been a reader for a couple months. Great stuff!
Here's a suggestion for a spin-off story: How Airlines Can Win More Business Travel.
Have airlines not noticed people fly with notebooks (even when we're traveling for personal reasons)? Do they not know that we need electricity?
Just do this: give me an electrical outlet next to my seat at the gate area, so I don't have to sit on the floor next to the only available outlet. And provide electrical jacks on board. A few airlines are starting to offer power on board, although in some cases only for the expensive seats up front or only in certain rows, and you need to call ticketing to find out which. Not even the flight attendants know.
Also hotels need to think regional for the next 6 months. If gas prices stay under $2.50 for the summer, you bet shorter (300-500 mile) vacations will be up. We are working right now with the top golf course in Minnesota to drive early bookings from a 4 state area.
Now the interesting part of your post is the longer tail. While the actions you recommend today may not be enough to fight corporate nickel and dime watchers, as the purse strings let up, travelers will reward their sacrifices today with "I deserve it" accommodations later.
Speaking of hotels, I have to book my room for San Fran's InBound Marketing Summit see you there.
Too many operators fail to service the customer, watch their rates and find and meet the needs of their own unique niche. We offer one-price-pays-all, express check-in and express check out. No guessing what all those charges are when you check-out. Also, it speeds up the process and the guest is in and out of their room with limited time spent. The time the do have we use to inject information, suggests and ideas for eating and activities in the area. Get to know them and see if we can assist in their stay.
As for WiFi, the economy chains got this a long time ago. They don't charge for it. Mostly those hotels that think they'll go under if they give needed amenities at no cost. Most economy properties (branded,) have introduced standards that make the systems work. It seems the larger hotels and resorts use it as a revenue income instead of a value added amenity.
TripAdvisor, Facebook, Twitter and the host of other resources are there, it's just that too many are content to complain that business is bad and they continue to the things they have always done and they wonder why they are not being successful. I daily use a gorilla marketing approach to my market. Even reading the post and... I said and the replies! Nuggets are found in hidden places. Rare one is just found in your pocket, search for them!
When it is all said and done, the properties that work the business, keep their eyes open and take the time to maybe even "sleep" in their own rooms and see what they're guests are experiencing - they will grow regardless of business. As for us, Business is Good !
Yours in Service,
Stephen Jones
540 North Market Street
Redding, California 96003
1-800-243-1106
http://www.reddingtravelodge.com
"Redding's Best Kept Lodging Secret"
KS
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