HOTEL BUSINESS REVIEW

September FOCUS: Hotel Group Business

 
September, 2013

Hotel Group Business: Cautious Optimism

Cautious optimism seems to be the prevailing sentiment today for those professionals involved in hotel group sales. Hotel rooms, conference centers and other meeting venues that were sold to groups in the recent past at steeply discounted prices are finally off the books, and managers are re-examining their pricing structures and making positive upward adjustments, without fear of scaring off potential customers. They are also instituting more flexible pricing policies. In the past, a hotel might set its room and facility prices for an entire upcoming year; now their group business rates are being adjusted according to foreseeable demand at the hotel level. Given these circumstances, some hotels are making investments in the group business sector, primarily driven by new technologies. At some hotels, guests are able to make service requests, check email/weather, use the Business Center, print documents, and receive customized messages from meeting planners ? all through a virtual concierge service on guest room TVs. Other hotels are making technology ubiquitous by providing laptops in restaurants, bars and lobbies for complimentary customer use. Perhaps even more important, some hotels are hiring on-site IT teams to ensure that their conferences function smoothly. The need for a knowledgeable IT team that really understands technology and can cater to group business is substantial. The September Hotel Business Review will examine issues relevant to group business and will report on what some hotels are doing to promote and retain this sector of their operations.

This month's feature articles...

Brenda Fields

The latest technology has afforded meeting planners greater efficiency when researching venues, making a booking, and when communicating with attendees. Technology has also enhanced the actual meeting experience for both attendees on property as well as off site with live feeds and video streaming, and real time social media feedback. Meeting attendees take notes on tablets and take photographs and videos of presentations with their smart phones, almost eliminating the need for paper and pencils! To stay competitive and current with the changing trends, hoteliers are adding technological enhancements to the entire booking and meeting experience, but does the job end there for hoteliers? This article will address some “old tricks” in a new environment to help hoteliers get a greater share of the group business and ensure satisfaction for repeat business. READ MORE

Todd  Ryan

Driving conference attendees to avoid attrition can be a tricky task. Sales leaders who ask pointed and meaningful questions and who can openly communicate with a client can establish trust and gain a thorough understanding the client's needs. In turn, the sales leader becomes a trusted expert who can effectively work together with the client to help drive conference attendees. READ MORE

Debi Scholar

Pick up your phone, chat with your buyer buddy, strike a deal and plan a meeting. If these are the steps you use to bring group business into your property, then you've been hiding under your tainted bedspread for too long. Hotels can be more effective in selling their space by triaging and answering the incoming electronic RFPs (eRFPs) using meeting/event date and space availability, complexity levels and value drivers as key factors that influence the time and effort that are dedicated to answering each eRFP. Use the 4-step proven triage method to answering eRFPs and learn the 6 procurement guidelines that your buyers follow. READ MORE

Lou  Carrier

We're all looking for an edge. In the ever-competitive environment in which we operate, it's one of the never changing business constants….find the “edge”! Whether competing for corporate, leisure, government or the increasingly sophisticated segment of “group” finding that edge in the piranha pool of a hotel's competitive set is never easy. Hitching your wagon to a big brand family and the theoretical catnip of the loyalty program is thought to be a business necessity in most every domestic market where corporate and group business fuel a property's financial vitality. READ MORE

Glenn Withiam

International travelers based in the People's Republic of China have heretofore ventured forth exclusively as members of tour groups. This paradigm will gradually be altered as an increasing number of Chinese travelers set their own itineraries and travel independently. A profile of these travelers' preferences depicts a sophisticated set of travelers who seek to gain the most from their trip. Although they appreciate the touches of home (such as the availability of tea service and Chinese-speaking staff), they are motivated to learn and experience as much as possible about the destination. Thus, they place a premium on time and efficiency. READ MORE

Paulo   Salvador

Travel and travel security standards have changed tremendously in the past several years. People travel more, visit more remote destinations, and yet they expect a higher level of safety than ever before. This need for security is especially prevalent in group business. When planning an event, meeting and event planners need to consider myriad security aspects - ranging from personal travel safety to a destination's security status and more. In this article, Paulo Salvador, Worldhotels' Global Vice President Marketing and Sales, identifies trends and key security standards for group business and gives insight into how Worldhotels ensures these standards. READ MORE

Andrew  Abram

The conference and events division and the often-associated group business play a key role in operating a successful hotel, and the evolution of this segment is critical to develop both market share and yield. The segment also contributes profit to a number of revenue centers within the business. READ MORE

Christina DeHaven

In the age of digital RFP's, face time with prospective clients has significantly decreased. Planners want to do business with people they know and trust, yet have limited availability to foster these relationships with their suppliers. The importance of face-to-face exchanges cannot be underestimated. An amazing amount of communication, up to 93%, is done outside of spoken words. Body gestures and tones, which cannot be seen or heard over the phone and through email respectively, play a very important role in the overall conversation. Research for “The Future of Meetings” revealed that networks and relationships were easier to build and ultimately stronger when forged in person. READ MORE

Mike  Hall

Playing the part of a trusted housekeeper in a English countryside manor in the 1930s in the 2001 feature film, Gosford Park, Academy Award-winning actress Helen Mirren notably observed that she “had the gift of anticipation” when it came to knowing what her guests wanted, sometimes even before they, themselves, did. READ MORE

Mike May

The technology trend today is mobile event apps. Planners want to pitch their notebooks, and attendees realize the paper meeting guide is already outdated. While most of us have used conference apps, few of us have probably ever glanced at the behind-the-scenes costs and requirements. This article summarizes the growth trends, what features attendees want, the content management challenge, and how hotels can assist meeting planners and their group business with event app content. READ MORE

Robert Mandelbaum

The U.S. lodging industry is well into its fourth year of recovery from the great recession of 2009. One of the pleasant surprises of the current recovery has been the very strong return of lodging demand. From 2009 to 2012, Smith Travel Research (STR) reports that the total accommodated room nights at U.S. hotels has increased by 15.5 percent, the greatest three-year increase in demand observed in the past 25 years. READ MORE

Todd  Ryan

Many convention trends and factors are shaping today's meeting industry. No one can say what will happen for certain in the future of the industry, but it is important to be aware of, monitor and analyze key trends happening all around us. With uncertainty in the economy, multiple generations, shorter booking windows, advances in technology and changes in the way we communicate, hoteliers and meeting professionals will need to revisit Charles Darwin's reference to the “survival of the fittest” by adapting to the trends that are impacting the industry. READ MORE

Armand  Guillemot

This article will analyze the extent to which pricing has changed within the meeting and events market. It will go into further detail on the type of trends the hotels' have seen in relation to this subject as well as what they have been doing to invest in new technologies to respond to this aspect of today's competitive marketplace. READ MORE

Paul van Meerendonk

In recent years there has been a steady increase in the use of internet sites by customers, especially the use of third party booking programs to assist them in planning their holidays. This has helped to dramatically change the way in which hotels manage their room rates and occupancy levels around the clock. In 2008 alone, it has been estimated that 40% of all hotel bookings will be generated by third party internet booking sites. A figure of such potential magnitude as this obviously represents a large slice of a hotels potential clientele base. As the majority of hotels are continuing to embrace this new technology, many are forgetting to ensure they have the correct revenue management support in place beforehand. READ MORE

Larry  Mogelonsky

Energy efficiency and conservation programs are good for the environment, but they are also excellent ways to cut costs. However, when expressing your commitment to green initiatives to guests, in order for the message to have the desired outcome - that being a greater affinity to your property - you must use physical displays instead of just language to describe efforts. Our emotional connection to words is not nearly as powerful as it is objects we see with our own eyes. Therefore, in order to be perceived as an environmentally friendly hotel, place 'green' upgrades out in the open for your guests. READ MORE

S. Lakshmi Narasimhan

Whether it is an opening hotel for which a solid foundation has been laid with a good network of vendors for supply of good and services of the requisite quality and at an acceptable price over a period of time or it is an operating hotel which runs like a well-oiled machine owing to a guaranteed availability of quality items at a quantity and price which brings economies of scale, there is an appearance given that the profitability of a hotel or group of hotels is magically being enhanced by an unseen hand. While there are contributions made by all departments to this, it is often true that the procurement department ends up being the unsung hero. READ MORE

Laurence Bernstein

One of the most common ways hotel brands clarify the position of their hotels relative to consumer expectations and the competition is through segmentation - that is, identifying a grouping of competitive hotels based on one or more commonalities. Generally in the hotel category, segmentation is price based - properties are grouped in price segments based on ADR. However, this is not the way travelers segment hotels in their minds - or if it is, they are extremely confused as to how much they pay for hotel rooms in different brands. Either way, there is a mismatch between the segments hoteliers think the brands are in and what their guests think, and this may be a major contributor in the eagerness with which travelers default to the cheapest priced option or seek out deals: the brands are charging rates appropriate for segments higher than those the customers believe the brands are in. READ MORE

Bram  Hechtkopf

Think you know what the 'Lo' in SoLoMo stands for? Think again. Spelled out as Social, Local, Mobile, too often the 'Lo' in SoLoMo is thought of as strictly location-based initiatives. But what about the actual locals living in a hotel's proximity? For hotel brands looking to ultimately attract, engage and retain a much wider audience, locals are ideal “test guests” - proving that if you can't appeal to your “home team” then you're unlikely to win over out-of-town converts. The following article examines how hotels are beginning to better engage a traveling subset that recent data shows has largely been overlooked and how hoteliers who find themselves late to the localizing bandwagon can adapt their own tactics accordingly. READ MORE

Jennifer Dunphy

With the growing popularity of consumer-generated media and review sites, it is critical for hotels to have a strong presence on the top review sites. Good reviews can create a solid foundation for future bookings, while too many negative reviews can lead to the demise of the hotels future booking potential. Up to 70% of global consumers say that online consumer reviews are the second-most trusted form of advertising. An additional 46% of travelers post hotel reviews after their vacations. There are strategies that can be implemented to take a proactive approach to receive more positive reviews and actions that need to be taken to mitigate the backlash from any negative reviews and to restore the hotels good reputation. READ MORE

Matthew Grosack

As an increasingly globalized and interconnected world economy continues to emerge and as United States companies continue to expand abroad, what constitutes legally acceptable business practices in the U.S. is often in direct conflict with incongruent foreign business practices and customs. These issues are especially prominent when they concern dealings between U.S. companies operating abroad and foreign officials who act as the gatekeepers to market entrance. Given these complexities, the question then becomes what is a multinational hotel company supposed to do when foreign officials are open and even welcome bribery as an acceptable facet of business or in a country where gift giving, even to foreign officials, is culturally acceptable and expected? READ MORE

Benjamin Jost

If asked to define your "Circle of Trust" you would likely come back with a select handful of your closest combination of family and friends. People who you probably consider your confidants. If you are a hotelier your "Circle of Trust" is growing by the minute. They are everywhere; omnipresent. Never mind a handful; it could be a stadium full. There is never a down moment; when one stops talking about you, the next one starts. Who are these people? What are they saying? Why are they in your "Circle of Trust," a group that is traditionally defined as a much more intimate crew? We'll take a look at this ever expanding circle, the new definition of it and how to keep this circle working for your property to drive positivity and revenue. READ MORE

Bonnie Knutson

Years ago, there was a movie in which someone leaned out of a window and yelled: “I'm as mad as hell and I'm not going to take it anymore!” When it comes to information about themselves, a similar scenario can be applied to today's hotel guests. So what does this mean to your marketing plans? It means that people are increasingly taking ownership of their personal information, forcing management to rethink their approach to gathering market statistics. Historically, guest data has been something that hotels have obtained as a byproduct of their transactions with them. But the days of a so-called free lunch are over. In this article, you'll see how Big Data, Analytics, and Exabytes will be increasingly important elements in your hotel's marketing strategies. READ MORE

Russ Horner

There are no federal or state laws that require you to offer occupational training to your employees, but by law, employers have a responsibility for the safety and health of all employees. Providing a safe work environment includes the obligation to provide safety training specific to an employee's job duties and potential workplace hazards. In many of the hotels we work with, employee training is often forgotten about because there just is not enough time. If you are already allocating time and resources to required safety training, it won't take much effort to add concise water conservation training to your repertoire. READ MORE

Michele  Walters

For decades, hospitality has taken a backseat to other industries when it comes to advancements in technology. Now the industry is about a decade behind in its use of analytics and Big Data to create impactful innovation that lead to new levels of revenue and profit. This problem will only get worse as it becomes almost impossible to lure analytical talent to the hotel industry. Introducing the solution - the Hotel Data Scientist profession. READ MORE

Cindy Woudenberg

Not long ago hotels could survive without producing content, but over the last several years, hotels had to engage in and play in the marketing space of social media, online public relations, blogger relations, and article and email campaigns. Hotels have had to become even more active in digital marketing, and even that has changed tremendously in the course of a few years. The onslaught of information for customers has now forced businesses to have to become even more creative, more engaging and entertaining. Hotels have had to fight for their brand and engage with the empowered and entitled customer. READ MORE

Michelle Millar

Sustainability has come to mean more than just protecting the environment and our natural resources within it. It often now refers to what is called “people, profit, planet”, or the triple bottom line. Community involvement is part of that triple bottom line. It's the “people” in “people, profit, and planet” and may take on many forms. It may include raising money for local charities, organizing clean-up days for local parks or beaches, volunteering for a local Habitat for Humanity project, or simply educating locals and guests about sustainability in general. This article discusses how hoteliers can become involved in their communities, and why it is important for them to do so. READ MORE

Robert O'Halloran

Are you competent? We all like to believe we are. However, we know that not everyone is and that being competent comes with a set of responsibilities. Competence in the work force often is communicated through job descriptions, recruitment, training programs and our own and our colleague's knowledge, skills and abilities. Who hasn't thought "how did my boss get that job? he or she is incompetent". The question at hand is: are competent people unfairly expected to compensate for others that do not or cannot do their jobs correctly? This article examines competent people (management or staff) versus those in the workforce that are not carrying their fair share of the work load. What do we do to level the playing field? READ MORE

Angel  Zimmerman

To gain a stronghold on the competition front, one of the most impactful areas you can spend budget on is localization—adapting your hotel brand's identity and your myriad offerings to new international markets. This requires tailoring your hotel marketing campaigns and other forms of messaging to different cultures in such a way that they resonate just as strongly in your target regions. How do you know which areas of localization you should pursue first? And how can you develop a localization strategy to help ensure a smooth experience? This article will provide guidance on localization initiatives that tend to provide the highest returns from a competitive standpoint, in addition to more general advice on setting up a localization strategy. READ MORE

Simon Hudson

Ritz-Carlton is known worldwide as a leader in customer service. Its quaintly old-fashioned credo is 'we are ladies and gentleman serving ladies and gentlemen'. But how does this translate to a remote island in the South China Sea? This article looks at the Ritz-Carlton Sanya on Hainan Island and focuses on General Manager Michel Goget's efforts to keep the hotel at the number one position on the island. Training is key, but the hotel's policy is to do considerable groundwork before the guests' arrival - even to the extent of providing a 'romanceologist' to orchestrate romantic evenings, proposals and engagements to create the perfect environment for couples. READ MORE

Larry  Mogelonsky

The behavioral psychology principle of the 'Four Stages of Competence' described in the 1970s deserves special attention for hoteliers because of all the learned skills necessary to be successful in the hospitality industry. Whether you are active in the field as a leader, manager or ambitious team member, understanding these four broad phases of learning will help you achieve mastery in your desired profession. READ MORE

Deepak  Ohri

Satisfaction is in the emotional connection guests have with the hotel and service - lebua connects with guests emotionally and knows their mood and behaviors to best meet their needs and preferences. Emotional connection is everywhere at lebua. Our brand concept of service focuses on building emotional bonds with guests at every touch point, whether through language on our website, pre-arrival outreach, personal interaction with guests during their stay, the amenities we provide, or through the surveys we send them after their visit. READ MORE

Coming up in March 1970...