HOTEL BUSINESS REVIEW

June FOCUS: Sales & Marketing

 
June, 2017

Sales & Marketing: Who Owns the Guest?

Hotels and OTAs are, by necessity, joined at the hip and locked in a symbiotic relationship that is uneasy at best. Hotels require the marketing presence that OTAs offer and of course, OTAs need hotel product to offer their online customers. But recently, several OTAs have decided to no longer share a guest's email when it sends guest information to a hotel, effectively allowing OTAs to maintain "ownership" of the guest. Without ready access to guest data, hotels are severely constrained from marketing directly to a guest which allows them to capture repeat business - the lowest cost and highest value travelers. Hotels also require this data to effectively market to previous guests, so ownership of this data will be a significant factor as hotels and OTAs move forward. Another issue is the increasing shift to mobile travel bookings. Mobile will account for more than half of all online travel bookings next year, and 78.6% of them will use their smartphone to make those reservations. As a result, hotels must have a robust mobile marketing plan in place, which means responsive design, one-click booking, and location technology. Another important mobile marketing element is a "Click-to-Call" feature. According to a recent Google survey, 68% of hotel guests report that it is extremely/very important to be able to call a hotel during the purchase phase, and 58% are very likely to call a hotel if the capability is available in a smartphone search. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.

This month's feature articles...

Scott Weiler

A guest of a hotel or chain books with an OTA. The OTA is grateful for the transaction, and hopes to get a nice share of that customer's travel bookings for years to come. The hotel is happy to get a (let's say) first time guest. Sure, they paid a commission for that booking, but the GM and their team is ready to do their stuff. Which is to say - deliver a great stay experience. Now what? The OTA that was used for the booking has the guest's information and sometimes they'll share that with the hotel, but not always. Now it's a battle of the marketers! READ MORE

Mustafa Menekse

Though it seems that online travel agencies have been a part of the hotel booking landscape for eons, the reality is that just 25 years ago, brick and mortar travel agencies were the norm. Travelers would visit an agency for trip planning advice, printed brochures, and to speak with actual travel agents to assist in booking airfare, hotel accommodations and rental cars. Travel agencies had the knowledge and information about the destination and, of course, the tools and connections to book hotels and flights to begin with. The support these agencies provided put traveler's minds at ease, especially for international trips. This was the foundation of why OTAs are in existence. READ MORE

Wendy Blaney

In a world where almost everything is done digitally, it is important to remember how impactful a two-way conversation can be for consumers interested in booking travel. There is no denying that it has become easier and easier to plan trips online, and purchase products almost instantly - yet there are still many customers who want the personal touch and assurance that they truly understand what it is that they are buying. They want someone to provide direction, answer questions, and give them “insider” information. This is especially true for a dynamic destination like Atlantis where there are an abundance of options. Our guests aren't just interested in a resort, they are seeking a coveted, catered experience. READ MORE

Emanuel Baudart

A guest's social media is an opportunity for hotels to work better and more efficiently to target and enhance the guest experience. Coupling the data that guests give through social media with the data we have from years of growing AccorHotels, we are focusing on using the right tools to best access the guest. At AccorHotels, we are moving away from the transactional model of hospitality and focusing on building relationships through social engagement and bolstering the benefits of our loyalty program. In order to do both, we've invested in building better tools for our hotels to succeed on the promise of hospitality - great service, attention and comfort. READ MORE

Tara K. Gorman

When guests checks into a hotel, there are plenty to mechanisms to protect their physical “stuff”, but how can they be sure that their personal information is protected? This is the question hotel owners and operators are keenly focused on in the aftermath of cybersecurity breaches in the hospitality industry. Guest Data - an Asset or a Liability in the Age of Cybersecurity? will explore whether guest data is an asset or a liability by exploring the rules and regulations that govern privacy and security, steps that hotel operations can take to ensure that they are in compliance with privacy and security requirements for guest data, and privacy considerations. READ MORE

Bill Linehan

Channel management is a practice that allows hotel companies to cast a wider net to capture more market share. How you manage various marketplaces defines your customer acquisition strategy. RLH Corporation recognizes cost of distribution differences between direct and third-party channels, and we always promote direct bookings. However, an important component of increasing direct channel traffic and conversion is to leverage OTA site traffic to promote brand awareness. RLH Corporation takes a contrarian approach to OTAs - a customer acquisition strategy where we fish where the fish are to capture, convert and retain ongoing relationships with consumers. READ MORE

Joe Currie

Being a business traveler is not about choosing between Tahiti and Maui for a dream vacation; it is about the luck of dodging an air delay and narrowly catching a few winks of sleep at a hotel before a morning meeting with a client. Business travelers do not have the luxury of choosing time or location, but they do have a choice when it comes to their hotel booking, and the entity that has the most influence over that choice in accommodation ultimately becomes the owner of it. Ownership over the hotel booking experience for the business travel remains in flux, and the traveler makes the final choice. READ MORE

Wendy Stevens

From digital room keys to wireless internet, the hospitality industry continues to embrace new tools and technologies that promise to enrich the guest experience. Advances in technology also open up possibilities behind the scenes for hospitality sales and marketing professionals-online booking services, social media channels, and hotel review sites are reshaping the sales and marketing landscape in important ways. But are all of those changes necessarily a good thing? Are there limitations to the power of technology, and inherent trade-offs and compromises that need to be taken into account? READ MORE

Donna Brokowski

The relationship between business travel buyers (the customer), the travel management company (TMC), and hotels has evolved since the beginning of travel management into one of interdependency. The hotelier must understand the TMC/customer relationship in order for hotels to work more effectively with TMCs to establish, build, and maintain their relationships with the customer. READ MORE

Amber Fox

Not too long ago, I was researching for a presentation that I needed to deliver during an annual conference for a major hotel brand. The topic was networking and this brand had seen a drop in personal interactive skills of staff at all levels. People in all roles - front desk, sales, even managers and owners - were losing their ability to connect with others due to their reliance on electronic tools. Being in the world of hospitality, where a premium should be placed on service and relationships, this void was seen as critical. READ MORE

Allyson Fredeen

Upon graduating from Colorado State University's department of Design & Merchandising in 2004, I had no idea that my undergrad learnings would come into play during my hospitality career, over a decade later. Nor did I realize I would depart from the fashion/retail industry for the hotel business. I will always remember one of my professor's lectures on what merchandising really is: having the right product, at the right time, in the right place. It sounds quite simple, but putting this philosophy into action is more complex. READ MORE

Toni Portmann

In the ongoing power struggle between hotels and online travel agencies, one question that often emerges is, “Who owns the guest?” It's a question that will likely be debated for years, and grow even more complicated as new players continue to enter the online travel arena. The answer, DHISCO CEO Toni Portmann, argues, is “no one and everyone.” And rather than argue over who should have access to customer email and other information, she says, they should look to new technology for managing rates and inventory and sharing richer content as the bridge to more amicable relationships. READ MORE

H. Stuart Foster

Like never before, marketers are competing for attention. Snapchat Spectacles, Instagram Stories, 360-degree videos and Facebook Live are all helping fill consumers' free time. So, as marketers, how do we use all the data now available to figure out how to get the right stories out on social media, smartphones, tablets and other channels? And how do we make our content interesting enough to compete with the fad du jour occupying people's minds? I challenge myself and my team to think about three key means to earn attention in today's marketplace. READ MORE

Sapna Mehta Mangal

The 21st century discerning digital native traveler can be clearly characterized as hyper connected, better informed, and technology savvy. In this “Age of I” hotel brands need to gain a competitive edge by taking heed of these guests and making them feel interconnected. The next frontier is undoubtedly clear and real. This write up will focus on three marketing trends that need attention and if executed can be of grave value to any hotel businesses' marketing efforts. Mobile marketing platforms, predictive analytics strategies and contextual marketing tactics are new hotel marketing frontiers. Hoteliers cannot lose sight of these in the next decade. READ MORE

Henry  Woodman

The booking shift to mobile in the travel industry raises questions on how marketers can adjust their strategies to reach a mobile audience. This in conjunction with quickly evolving virtual reality technology opens doors for travel marketers to make an impact and get ahead of their competition. Using VR to enhance mobile websites, apps and advertising can increase mobile bookings and raise brand awareness and credibility. READ MORE

Heather Stone

Understanding and addressing the reasons behind, and risks associated with payments processing is a critical issue in the hospitality industry. This introduction to payments fraud provides critical knowledge for anyone dealing with accounting, payments, or vendor relationships. In this article we will explore how this new evolution of technology, which automates the entire procure-to-pay workflow process, dramatically reduces the risk of fraud. For hotel executives this payments-related fraud is especially troubling with security breaches at global hotel chains making headlines in recent years. Whether the fraudulent activity happens as an insider threat or through the use of a hotel room, it is happening on a daily basis. READ MORE

Megan Schuyler

By nature of the hotel industry, it can be challenging to find and keep talent. There are many overnight and hourly positions to fill, both year-round and during peak travel season. However, when considering the high rate of turnover and the high cost of that turnover, it is apparent that hotels should, not only develop a solid pipeline of candidates, but fill that pipeline with the potential employees who fit into the organization. As the war for talent continues, hotels and other business must get more creative in their recruiting and retention efforts. READ MORE

Ken Hutcheson

Now that summer is here, it might be time to enhance the appearance of your hotel's grounds. If you think that trimming, edging, and mowing every other week will be enough, think again. Your landscape deserves the best in full-service grounds care carried out by trained experts with an eye for keeping your landscape healthy. Commercial grounds care is very different than residential landscaping, so even if your hotel has the best looking landscaping in the area, there are still circumstances you'll need to consider in order to keep your grounds safe, healthy, and looking great. As a hotelier, ask yourself these five questions to help decide if it's time to upgrade your landscape. READ MORE

David Lund

When heads of state come to visit your hotel they usually make a bit of a show. The Russians are no exception, they even bring their own warship, the KGB and a wad of cash! I had the pleasure of witnessing the Russian President Dmitriy Medvedev arrival in San Francisco in June of 2010. He flew in the presidential plane, meanwhile his missile cruiser Varyag sailed into San Francisco Bay to accompany his visit. Heads of state often have a ship accompany them on their state visits. READ MORE

Teri Howe

An incredible meal will be forgotten if there are mistakes or delays during service. The most beautiful property will be forgotten if busy staff are ‘missing in action' and inadvertently test guests' patience too far.One need not remind hotel executives of the criticality of continually evaluating our vision - and execution - of guest service. This is part in the DNA of industry leaders. A less common trait of this same group is an appetite for exploring technologies that might accelerate or enhance the ability to deliver a quality, personal, exceptional guest experience. Hospitality traditionally trails other industries in adoption of - and the creativity around - new technologies. READ MORE

David Ashen

There was a time in America, before the proliferation of national chains, when every town had an independent, family-run hotel. With the rise of soft-branded properties and increasing demand for guest stays in properties reflective of local culture, David Ashen, partner and founder of interior design and brand consulting firm dash design, takes a look at the rising popularity of independently, locally branded properties and their how they—and the hospitality industry—are meeting the desire for venues with local color. READ MORE

Bonnie Knutson

This article is not call for vegetarianism although there is a lot that can be said for eating more fruits, vegetables, and grains. This article is certainly not an environmentalist decree either, although a lot can be said about saving our planet's natural resources. Nor is it another call for recycling, low energy light bulbs, and conserving water, although those are likewise noble goals. What it is, however, is a piece of the puzzle that can explain the consumers' changing eating behaviors. And it presents both challenges and opportunities for every food operation from the Golden Arches to a luxury hotel. Yours included. You might think of it as feeding the future. READ MORE

Mark Heymann

While the workplace continues its rapid move towards a "gig economy," recent National Labor Relations Board rulings have made it tougher for employers to classify workers as independent contractors vs. employees. That could change, however, under the new administration, which has signaled it could scale back federal protections of workers in favor of more employer-friendly policies. Add to that the uncertain future of healthcare requirements and the big questions are: Will independent contractors find a steady place in the hospitality industry? And what will be the advantages and disadvantages of working as a contractor versus a full-time employee? READ MORE

Larry  Gillanders

There are approximately 6.5 million lead service pipes still in use in the United States. However, it's lead leaching does not only occur solely as a result of lead pipes - often lead contributors are present, which may go unnoticed, although they can release dangerously high levels of lead. Learn more about lead contributors and critical steps you need to take to ensure your hotel isn't liable for harmful lead leaching. READ MORE

Allison Ferguson

As a frequent business traveler, I get clear value from my hotel loyalty program membership. My room is ready, I have check in and out flexibility, and usually free breakfast and wifi. I get points on the room spend (paid by someone else) that allows me to accumulate points for free nights, which I usually use for leisure. When traveling for a family vacation, however, the impact of my membership is less tangible. When I travel for business, the hotel loyalty program captures my interactions well and rewards me for my loyalty. When I travel for leisure, however, the program often does a poor job of capturing my total spend and delivering a differentiated experience. That's because hotel loyalty programs are designed to build relationships with road warriors rather than vacationers. READ MORE

David Lund

In your hotel, you either share the financials with you leaders, the department managers or you don't. If you already share the financial statements, you know the power it unleashes with your team and the result it helps to create. If you don't share you're wondering what the management team will think about the money and how much goes to you and the owner. You naively think no one needs to know about the finances in your hotel. You think it's none of their business. You're also pretty sure the team will judge you and your results. READ MORE

David Greenwell

The hospitality industry continues to flourish and in addition to contributing billions to Britain's GDP, it provides jobs for a huge amount of workers across the UK. To put that into perspective, in 2014, it was estimated that hospitality was responsible for a massive contribution of around £143 billion - this is 10% of the UK's entire GDP. And as for employment, figures suggest that the industry is directly employing 4.7 million workers and indirectly employing 775,000 people. If the industry continues to grow, it's expected that as will the GDP contributions and of course, more jobs and opportunities will be available to workers. READ MORE

John Welty

The opportunity to drive their dream car is on the bucket list of many. That goal can be checked off fairly easily these days as luxury car driver experiences are available through a variety of venues, including hotels and resorts. Dreamers no longer have to shell out hundreds of thousands to drive a Lamborghini; they can reserve a luxury suite at certain high-end hotels and enjoy the privilege of driving one for a few hours. Of course, for hotels and resorts offering this luxury service, new risks come with the experiences. In this article, we discuss what hotel and resort owners participating in these luxury driver experiences can do to make sure they have taken the proper steps to protect their guests, employees and their bottom lines. READ MORE

Leora Halpern Lanz

Internships, work experiences, field experiences...the semantics may vary, but the gist is the same, and their importance is only increasing in today's undergraduate experience. Students, schools, and industry professionals are recognizing the significance of internships for developing a resume, an experienced, well-rounded candidate, and a student that has made connections in the industry prior to graduation. READ MORE

Coming up in March 1970...