Mr. Grossman

Social Media & PR

The Real Effects of Good PR: Q&A with Three Leading Hoteliers

By Lanny Grossman, President, EM50 Communications

When words like “recession” and “economic downturn” punctuate the daily news, companies across industries begin to look for ways of cutting costs and reigning in expenses. In the hotel industry, that is particularly true as properties already battle ongoing challenges like seasonality and are generally more susceptible overall to negative effects from an economic decline. Business travel slows down, events are canceled, and weddings are made smaller. One thing is certain; the hotel industry feels a significant amount of the brunt when the economy tumbles.

As hoteliers look to make cuts, first it will usually be a ‘trimming of the fat’ i.e. replacing floral arrangements every other week instead of every week. But when it really comes down to saving significant dollars, many wrongly jump the gun to pull back on what they refer to as “ancillary” services – such as PR & Marketing. Although it can be an immediate, clear reduction in expenses, it is the opposite of what should happen. It is similar to chopping off one’s leg to lose weight prior to running a marathon. PR is the mechanism that builds awareness, communicates a property’s message and subsequently drives business to a property. It is something that should be increased during challenging times.

That said, to really look at the value of PR and the effects that its efforts can truly have on a hotel’s bottom line, I asked three industry insiders about their belief in (and faith of) the timeless art of Public Relations. Below are answers from: Ed Donaldson, Senior Vice President for JG Blackbook of Travel, a hotel sales and marketing company based in New York with properties across the globe; David Morgan-Hewitt, the Managing Director of the 100-year old, family owned Goring Hotel in London and Ilan Segal, Managing Partner of Tcherassi Hotels, a luxury boutique hotel brand in Latin America.

Mr. Morgan-Hewitt David Morgan-Hewitt, Managing Director The Goring Hotel; London

Have you always believed in the power of PR?

When I first came to London I worked in a PR company. I have always believed that good PR is invaluable. Advertising can help build a brand but it is PR that makes you want it. If you look at Calvin Klein underwear the ads are beautiful, the people exceptional but it's whose wearing it that makes you want to own it. Knowing that celebs and image-makers are wearing it makes you want to be part of the gang. It's the information that causes you to purchase as much as, if not more than, the images.

Has PR had a real effect on the bottom line and if so how? Provide examples?

Our PR company worked hard to bring in the restaurant reviewers over the past few years. As an established restaurant we do not sit on their radar. Critics tend to want the latest fashionable place not one that has been around for 100 years. Michael Winner, food critic of the Sunday Times came for lunch one Sunday. He said it was the best Sunday lunch to be had in the UK and the headline was "Best Restaurant in Europe". You could not get a table here for months. I even received a call from the Blair family who were unable to get in without my help. PR has really worked when the Prime Minister can't get a table!

Why do you think PR works?

PR works because endorsements are what we look for. We want to know that something is good before we go there. Information passed on from others that supports a product needs the consumer to believe in that product and to go and buy it.

Could you imagine opening a hotel without a PR professional on board?

No! Opening a new hotel you would need to get PR up and running months before the doors opened.

What advice would you give to other hoteliers who are on the fence about enlisting PR support?

Get on with it. I can't believe you haven't already got some.

Mr. Segal Ilan Segal, Managing Partner, Tcherassi Hotels; Latin America

Have you always believed in the power of PR?

Yes, when done properly in a strategic manner.

Has PR had a real effect on the bottom line and if so how? Provide examples?

Yes, room revenue; increasing occupancy and driving rate. There is nothing more effective than being in the New York Times, Conde Nast or Travel + Leisure. Short leads also help with F&B sales and promotional packages.

Why do you think PR works?

It increases awareness and introduces/ reminds readers about the hotel. Sometimes repetition leads to bookings. It must be measurable though to fully understand its effectiveness. A call to action, link to a website etc etc.

Could you imagine opening a hotel without a PR professional on board?

No! It’s an essential part of any hotel opening. It’s necessary to get PR exposure in key markets for a strong opening and positioning.

What advice would you give to other hoteliers who are on the fence about enlisting PR support?

It’s a must for hoteliers. The difference between two great hotels is the awareness they receive. A proactive PR strategy translates into added revenue dollars.

Mr. Donaldson Ed Donaldson; Senior Vice President, JG Blackbook of Travel

Have you always believed in the power of PR?

Yes, I am even more convinced now that PR is an important element to the entire sales & marketing process. In the luxury sector, the last 5 years have seen an enormous increase in available inventory and there are lots of options available to the consumers and travel trade. It is imperative to back up the sales effort and marketing spend with an ongoing PR campaign to ensure an overall success. Additionally, there are so many outlets for PR to have an effect between print and electronic formats. You have to be everywhere in order to ensure your message is accessible

Has PR had a real effect on the bottom line and if so how? Provide examples?

In my business, PR is another ingredient in the sales & marketing mix we offer hotels around the world looking for complete sales and marketing solutions. I know it is an element that if it was not part of the service offerings many hotel clients would not be pleased. As I said, PR is an essential ingredient to the complete recipe in properly marketing a property. Without it, the rest isn’t as effective.

Why do you think PR works?

If PR is done correctly, it can most definitely influence a consumer or travel professional’s buying decision. As we all deal with a very perishable inventory, it is critical to ensure the message is consistently out in the market place to help influence that buying decision.

Could you imagine opening a hotel without a PR professional on board?

NEVER

What advice would you give to other hoteliers who are on the fence about enlisting PR support?

I would counsel them to reconsider what their overall goals are and how they want to accomplish those goals. Most often, it will boil down to a PR effort being very much involved with sales, marketing and distribution plans for a successful launch.

Lanny Grossman specializrs in PR, luxury lifestyle marketing and consumer outreach. He began working with notable hotel properties such as the Waldorf=Astoria in New York and Le Byblos in Saint-Tropez, after which he became the Director of Public Relations for two of America’s famous restaurants, Tavern on the Green and the Russian Tea Room. More recently, Mr. Grossman was Director of Brand Communications for Small Luxury Hotels of the World, an international hotel consortium whose portfolio boasts over 450 of the finest hotels in more than 70 countries. Mr. Grossman can be contacted at 646 861 2801 or lanny@em50.com Extended Bio...

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