Ms. Lutz

Social Media & PR

Boutique Hotel Trends 2011

By Didi Lutz, President, Didi Lutz PR

Another year for hotels has passed where little has happened in terms of the economy, but a lot has evolved in the spheres of marketing, communication, and the world of social media. Much has been learned during this time, and 2010 marked the year of digital media in hospitality. While the industry was fairly late in adopting social media, hotels thankfully realized its potential and caught up relatively quickly. While I am unsure of specific numbers and statistics, hotels keep joining Facebook and Twitter everyday. And as they learn how to feed these monsters the right information that can make a difference in the guest experience, it’s important to keep in mind what trends are forming as the economy picks up, albeit at a slow pace.

Rethink marketing completely

With the economy as it has been the past two years, hotels will need to not only prioritize in terms of marketing strategy, but also implement creative tactics. Guests are inundated with promotions and information everywhere these days – from Sunday paper to last minute specials via text - and rethinking your marketing approach will be key. Hotel marketing is currently shifting dramatically; many components affect this change and its important to hire professionals to get your property’s brand ahead.

Digital crowd-sourcing may not work for you

We’ve all seen the hype about Foursquare and Gowalla, currently the two giants in the geosocial market. There are hotels who are embracing digital crowd sourcing via promotions (i.e., check in via Foursquare and get a free spa treatment, etc.) Large hotel chains have started some promotions, but we’re not sure where this is going. While digital crowd sourcing has excellent marketing potential, such as competing for mayorship at a property, it has some serious drawbacks like privacy and security that keep the lines a bit blurred right now. It makes more sense to study your existing digital media channels and how well those are working for you before leaping into something completely new.

Embrace hyperlocal on a global scale

Going glocal, as it is called these days, is probably one of the major trends fueled by social media that will continue to expand. Hotel brands are glocalizing by embracing the world as a small community. The concept is interesting and guests are familiarizing themselves with showing up at a hotel from across the globe but feeling the welcome of home. Facebook, Twitter and LinkedIn have found their niche (at least as of this writing!) within hospitality and are tools that hoteliers should use to “glocalize” the guest experience successfully in 2011 and beyond.

Do everything possible not to drop your rack rates

While this is not my area of expertise, nearly every hospitality professional that I have spoken to in 2010 agrees that rates must go up in 2011. Cutting back on your rack rate at this stage of the economy can prove to be fatal so be careful. Hire professionals to assess your room rate situation if you are having trouble. It’s much better to throw in an extra night or a complimentary breakfast that to slash the rate.

PR is not a luxury, it’s a must have

Traditionally, PR is the first thing that goes when markets turn sour, but 2010 has showed us that not having a strong PR presence has have devastating results. Just the BP oil spill in the Gulf of Mexico alone showed us how crises can affect reputation, social responsibility and profitability for a business. Communicating clear and consistent messages to your guests is not something hotels can afford to lose in the short and long term. Invest in PR plans and enhance you storytelling. With the publishing shakeout, PR has refreshed itself and taken on new and exciting roles that every hotel should have a part in. ASAP action steps from a PR perspective: if you don’t have a blog yet, start one. If you don’t have a social media presence, establish one now.

Master the art and science of online reputation management

This concept involves monitoring everything that is mentioned about your hotel on the web. For instance, scanning TripAdvisor reviews and responding to them selectively and strategically in a timely fashion. It also involves mastering the right tools to engage with guests on social media, which is a long-term process that allows for your hotel’s brand to gain exposure through the eyes of your guests while you maintain the control. Online reputation management slightly overlaps with PR, but it’s a management function that every hotel should have in place. In particular, boutique hotels are more flexible and uniquely positioned to respond to guest needs in real time due to their organizational structure and culture.

Keep going green and empower the guest

The green trend is also here to stay, and I shouldn’t refer to it so much as trend, rather than a movement that will continue to gain footing in the world of hotels. As guests become more educated about your hotels sustainability initiatives, they will feel encouraged to be environmentally responsible. Go beyond the laundry towels and organic toiletries made with recycled packaging. Empowering the guest to participate as your hotel continues to go green is a process that takes time and taking small steps in the right direction will go a long way! Examples may include a recycling system that is easy for the guest for newspapers, or perhaps implement a system that offers loyalty points rewarding guests who cut down on energy costs (i.e., leaving lights on, A/C, TV, cutting down water use, etc).

Fancy stuff: Airport remote check-in and mobile billing

Technology will continue to bring ease and efficiency in the check-in process via fancy applications. Bill everything to the iPhone? That’s a tremendous idea. At the same time, boutique hotels should keep in mind that while remote check-ins can minimize time at the front desk, eliminating the face-to-face contact completely is not a good idea. Independent hotels that offer a boutique experience will have to strike a balance between digital convenience and personalized service, and learn to prioritize those elements for their guests. Technology is excellent for tracking guest preferences until there comes a point when it replaces the warm “welcome back” smile from the front desk agent who acknowledges a repeat guest.

You guessed it: Value, value, value

All signs point that 2011 will follow suit in terms of providing the best service and amenities and a cost that guests are willing to incur. While we are noticing an uptick in leisure and business travel, value is the main consideration when booking. Maybe value lies in beefing up your guest loyalty programs and make them more exciting. Or, perhaps there’s value in offering some cutting edge amenities that are built into your rate. It could be a fifth night free or a cucumber eye mask for women business travelers. It doesn’t really matter what it is, as long as it screams “value” to your guests. It’s important you do your research and see where you might be able to maximize value in 2011, because what works for one property may very well not work for another.

Seeing the hotel market go through one of the toughest economic downturns in history has given us as professionals an opportunity to learn from mistakes, but to also learn from our guests and each other. I am hopeful that 2011 will paint a positive outlook for the hospitality industry, especially the boutique hotels that are looking to grow and find their place in the growing world of social media. Armed with a well thought out approach, the right professionals to carry forward a strategy that embraces new trends, the industry will fare better and eventually prosper once again.

Didi Lutz is an internationally acclaimed hospitality public relations professional specializing in boutique hotels, luxury travel, destination and tourism communications. Prior to starting her own business in February 2005, Ms. Lutz was the Director of Communications for the Hotel Commonwealth, a 150-room luxury property in Boston. Within the first year of the Hotel Commonwealth's opening, she established the media relationship that led to worldwide recognition for the property as one of Ten Best New Business Hotels by Forbes.com. Ms. Lutz can be contacted at 561-628-7422 or didi.lutz@gmail.com Extended Bio...

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