HOTEL BUSINESS REVIEW

November FOCUS: Hotel Sales & Marketing

 
November, 2013

Hotel Sales & Marketing: The Biggest Challenges

In the rapidly changing world that hotel sales and marketing professionals inhabit, they must consistently address an annual question ? how much of their budget should be spent offline and how much should be dedicated to online endeavors. Though the percentages are not static across the industry, it is apparent that online sales and marketing budgets are becoming increasingly predominant, and the reasons for this are becoming increasingly clear. The number of travelers researching and booking online is continuing to grow. More than 114 million people will research travel online this year, while 94 million will actually book reservations which means that more than 50 percent of all travel bookings will be generated through the Internet. In addition, according to Forrester Research, more and more travelers are using their mobile devices to not only research lodging and travel options, but to book and communicate room preferences directly with the hotel. Plus, Google is projecting that by 2013, mobile will overtake PCs as the most common Web-access device. Given that travelers are adopting smartphones and tablets at an astonishing pace, it's crucial for sales and marketing professionals to formulate and implement comprehensive strategies in order to attract and capture their share of the online market. The November Hotel Business Review will explore in-depth the challenges that some leading hotel professionals are facing and what kind of strategies they are devising to meet them.

This month's feature articles...

Dawn  Parisi

The article below embraces what a hotel or resort director of sales & marketing is challenged with during a typical budget process from start to finish. In our current highly technical fast-paced world supported by the ever-changing dynamics of e-commerce, directors of sales & marketing are faced with a multitude of challenges. In order to start to prepare and lead the sales and marketing efforts during the budget season, a director of sales & marketing needs to have a comprehensive understanding of all emerging trends. READ MORE

Jennifer Nagy

Online advertising is very important for companies that execute the majority of their transactions online. Here's why: if you're not visible in the place where potential customers are searching for hotels, then your hotel is not likely to secure a customer's booking. This article will examine the three different online advertising channels that I would recommend for hotels:social media marketing (specifically, Facebook ads), featured listings on OTAs and Google AdWords. READ MORE

Mark Simpson

“People don't like to be sold, but they love to buy!” These wise words are the mantra of sales authority Jeffrey Gittomer and have far-reaching implications for the hotel and travel industry. The statement also illuminates the many reasons why personalization is such an essential tool for hotel marketing. By successfully and meaningfully cross-selling and upselling their guests at their online destinations, hotel marketers can dramatically improve guests' experiences at their actual destinations. Everything you need to know is here in Maxymiser's 5 key Do's and Don'ts of personalization. READ MORE

Bonnie Knutson

Too many hotel managers don't know who their competition actually is. Why? Because the hotels which management identify as competitors are identified from their perspective, not from the perspective of the people who truly know the answer, the guests. While a full market research study can give you a myriad of valuable in-depth information about your hotel and its competition, there is an easy way for you to immediately and accurately identify your competitors. The next time you or some one of your staff is talking with your guests or potential guests, ask them the hotel's version of: The $64,000 Question. In this article, you will learn how the two parts of this game show question can give you valuable insights as to how you can quickly and accurately identify your true competitors, and why your guests and potential guest find them attractive. This understanding will help you structure a laser-approach to more effective marketing. READ MORE

Noah  Parks

When we ask the question, “Is traditional media in hospitality dead?” we really need look no further than the type of media engagement we ourselves have on a daily basis. Does traditional media influence us? Do we engage solely in digital marketing for our daily decisions? I don't believe that traditional media is dead. I don't believe it's anywhere close. Now that's not to say that the nature of marketing hasn't changed, because it certainly has. But what we see today among our customers is a mixture of both traditional and digital brand engagement. A confluence of old and new… a sort of information gathering dream scenario for consumers, and a marketers' worst nightmare. READ MORE

Deanna Shimota

Creating a connection with current and prospective guests on social networks can be a challenge—especially when it's multiplied by the addition of other countries. What is involved with creating a global social media presence? How can you engage with users in real time? What are the overall practical and strategic considerations in translating this valuable content? With a few proven tactics, hotel marketers can make the most of social media on an international scale in order to preserve brand identity, increase engagement and drive up bookings. READ MORE

Brenda Fields

Could it be that following the Age of Industrialization, we have entered into the Age of Impersonalization? How many times have you been a victim of “statistics” and not viewed on your individual merits? For example, did you pay premium rates for car insurance or health insurance just because you were a certain age or gender? Or was a loan denied despite an excellent credit history because “statistics” indicated you were a poor risk? And have you ever felt the frustration of trying to reach a “live” person to resolve a dispute or just to ask a question? And you went round and round in circles by pressing various numbers on your phone, without having an option for your particular issue, just to end up where you started? READ MORE

Gareth  Gaston

When the economy faltered, the hotel industry suffered greatly. The industry put itself further in an already deep hole by racing to the bottom - utilizing short-term pricing and discounting strategies that lowered rate to get more guests through the door, making it difficult to return to normal rates and market position. Our industry has come a long way and is on the mend; hoteliers can capitalize on this upswing to drive more direct business to their hotels in a race to the top by implementing balanced distribution strategies and integrated marketing efforts without resorting to cutting price or costs. READ MORE

Todd  Ryan

Sales lessons are all around us. From professional athletes to actors and celebrities to families shopping for their wish list, inspiration for enhancing the sales approach can be discovered anywhere. The key to refining the sales process lies in your ability to understand the philosophies of the overall process and then practicing your selling skills. A good seller will ask the right questions, look for buying signals and attempt to gauge where the customer is in the process, and then present options for the buyer. Practicing the lessons learned will lead to a polished and sophisticated sales approach. READ MORE

Graham  Wilson

Accor, the largest hotel operator in Asia Pacific, with more than 560 hotels in the region, says that while digital distribution is one of the company's key strengths, the group retains a strong focus on traditional sales and marketing methods. Graham Wilson, Accor's Senior Vice President Sales & Marketing Asia Pacific says traditional marketing and sales tools such as the group's World of Accor hotel roadshow, client events, trade shows, direct mailing, sales calls and off-line advertising still play a key role in the group's success. READ MORE

Chris Campbell

Travel planning has changed. With limitless sources of information accessible in an increasingly social world, travelers have essentially become their own agents. This couldn't be more evident than in the way an increasing number of people now rely on consumer-generated online reviews for their travel plans. How exactly do these reviews shape consumer perceptions of a property? What steps must hotels and hospitality execs take to effectively leverage review data and drive bookings? Chris Campbell, founder of online review management company Review Trackers, explores. READ MORE

Monika  D'Agostino

Everything in today's business environment seems to be about technology, the latest developments, content marketing, microblogs, engagement, SEOs, etc. Some companies have become overly-systematized, as I call it. Everything and I mean everything is left to automation. Once the database is set-up and your name is entered you get emails on a regular basis whether they are relevant to your current need or not. This just happened to me recently where I got a letter from my Bank of ... soliciting me for a lower mortgage rate. I am a client of Bank of ..., they hold my mortgage and you would think that they know whether I qualify for a reduced rate, but as it turned out they didn't. That's what I call over- systemized. Here are some examples of what technology cannot do... READ MORE

Eliane  Barradas

Inspired by the beauty of its mountains and its golden beaches, I decided to continue my professional career as sales director in Puerto Vallarta with a return to the four-diamond beachfront CasaMagna Marriott Puerto Vallarta Resort and Spa. My foray into the hospitality industry began with my first job at the JW Marriott Mexico City and during my career thus far I have spent time in numerous properties around and outside of Mexico including the Marriott Ixtapan de la Sal Hotel and Spa, Lisbon Marriott Hotel Portugal, Airport Marriott Hotel Mexico City and most recently the St. Regis Mexico City. Having spent the majority of my career in major urban cities, moving to the coast has been an enlightening experience, both personally and professionally. Just a couple of months living in this beautiful area, I found that despite being a world-class destination, the coastal city is facing big challenges when it comes to selling this picturesque getaway locale. READ MORE

Loulu  Lima

Revenue Management definition: To sell the right product to the right customer at the right time for the right price via the right channel. But how do you get there? We all know the leaders of data production - Smith Travel Research produces daily, weekly, and monthly reports on your hotels performance vs the competitive set. Travelclick supplies you with more intelligence on rate shops and Travel Agent production through 'hotelligence' and more. According to STR and TravelClick during the HSMAI ROC conference this past June, Transient Travel is increasing however group travel is declining between 2-4%. Furthermore TravelClick statistics show that Leisure travel has increased and is forecasted to continue growth. READ MORE

Simon Hudson

Every business needs to know what its industry rivals are up to in order to meet customer expectations, stay current, and charge competitive prices. For hoteliers, this can involve discreet mystery shopping with visits to local establishments or checking out the websites and social media initiatives implemented by direct competitors. For those serious about being the best in their industry, though, the search for new ideas and customer service excellence can go further than the hotels in the same town, to other countries and even other industries. This article will highlight what some hoteliers around the world do to check out the competition in order to stay ahead of the game. READ MORE

Cara  Garretson

We live in one of the most exciting times in travel advertising history. Digital media has found its groove and most brands are embracing it in big ways. The online advertising space allows marketers to reach their prospects based on their age, income, zip code, online behavior and travel interests. Travel marketers find it exciting to know they are reaching the center of their target audience in innovative ways with very little waste. Exciting as it may be, access to large volumes of data from multiple sources can prove overwhelming and complicate campaign analysis. By understanding the many forces at play with the numbers you will be better prepared to effectively analyze your digital campaigns. READ MORE

Werner Absenger

Color psychology is a relatively new field of scientific inquiry that aims to analyze the effects of color on human behavior. In this article, we will explore what color psychology is and how colors affect human behavior. Hint! Black might be a bad choice for wait staff, hosts and other hotel employees dealing with conflict resolution. People from various cultures have automatic (unconscious), negative emotions to the color black, such as evil, death, fear, anonymity, anger, sadness, remorse, mourning, unhappiness and mystery. Yes, there are positive emotions, as well. The article will weigh the pros and cons with personal anecdotes from my experience at The Amway Hotel Collection. READ MORE

Kathleen Pohlid

Earlier this year, the Bureau of Labor Statistics reported that the percentage of workers who are union members dipped to 11.3%, the lowest in 97 years. The private sector percentage dipped to 6.6%, the lowest level since the 1950s, with the hospitality accommodation industry at 7.5%. For those establishments interpreting these statistics to mean that they do not have to be concerned about unions, think again. Union organizers and leaders are not giving in to the decline in membership and are confronting the challenge urging their members to think big. Establishments should be prepared to respond to union organizing. READ MORE

S. Lakshmi Narasimhan

Is your hotel optimizing revenues and profits in these two key departments? Rooms and Food & Beverage departments contribute a major chunk of hotel revenues and profits. The mix between the two contributions depends upon location factors, number of outlets and so forth. Profitability is also very different between the two departments with Rooms far ahead. However, a well thought out strategy to create a powerful combination will greatly boost bottom line performance. At the end of the day the proof of the pudding is in the profit flow through that Rooms and Food & Beverage departments deliver. We take a look at this phenomenon that features in the thoughts of every owner, stakeholder or even the management. READ MORE

Roberta Nedry

In today's world, a lot of times we think HARD is better. Work hard, Play hard, Drive a hard bargain. Hard may mean strength such as "hard as a rock" versus soft which may seam weak as in "Don't be a softy." Apples taste better hard and to many peoples' tastes, so does cheese. There may be lots of things that work or seem better when they are hard but when it comes to service, it's the soft skills that will enable the most memorable results, not the hard ones. Don't get me wrong.hard skills are essential and important and will get the job done. But, it's the soft skills that will make the emotional connection and inspire the lasting impact most hospitality leaders desire. READ MORE

Benjamin Jost

We often talk about the growing importance, and influence, of online hotel reviews. Recently we took a step back and looked at the review space, specific to USA-based properties, to see what the landscape looked like compared to a year ago just about this time (third quarter 2012 to end of September 2013). What trends are emerging? Are people writing more or less? Are guests being kinder or more critical? Is management chiming in or sitting back? We have the answers around scores, volume, management responses, service, pricing and more. READ MORE

Daniel B.  Lundy

Need funds to build a new hotel? A once little-known U.S. immigration program has become a popular source of development funding for hotels. Known as the EB-5 Immigration program, name brands, such as Marriott and Hilton, have projects that have been financed through EB-5. Because of the flexibility that EB-5 funding offers, it is likely that it will remain a significant funding tool even as credit markets loosen, due to its highly competitive cost as mezzanine financing. For savvy developers who are able to navigate the bureaucratic landscape, the EB-5 program is likely to remain a viable funding option for many years to come. READ MORE

Brian  Johnson

As guests become less loyal to hotel brands and increasingly drawn to hotels that offer experiential stays, unique amenities and flawless service, hotel leaders are hard pressed to create one-of-a-kind experiences that will incite guests to return again and again. But with tightened budgets and the recession-era moniker of doing more with less, how can you create these unique experiences and still hit your numbers? And, how can you tell if they will really benefit the bottom line? In this article, you'll learn how a resort in Tucson, Ariz., melded creativity with business-focused objectives to create experiences that make them stand out in the crowded hotel market. READ MORE

Anne Payne

According to Travel Industry Association of America, changing demographics and lifestyle attitudes are playing a major role in the choice of activities Americans make while traveling. Traditionally, activities such as shopping and dining have topped Americans' travel lists, followed by entertainment, sightseeing, beach, nightlife, and theme parks - each with varying levels of interest based on consumer demographics. While these activities remain popular, TIA's reveals major shifts by age group - with preferences often dictated by whether or not there are children in the household. READ MORE

Vanessa  Horwell

In 1967 the BBC predicted that within 20 years all homes would feature built-in computer terminals and bedside teletype machines. It hasn't worked out quite that way, but it's clear that the news outlet could envision the home computing revolution's outlines fairly well. Today, another technology that has been slowly gaining momentum - augmented reality, which combines digital images with real-time physical environments - has the potential to help hoteliers drive greater loyalty and revenue. For hotels, however, the potential of augmented reality isn't just consumer-facing. The technology can also improve the brand itself. The latest advances suggest unmatched monetization and customer experience potential. The question is: Are hotel brands ready for this change and are they investing in the staff training, IT and creative talent necessary to capitalize on augmented reality's capabilities and guest engagement reach? READ MORE

Jonathan  Sockell

Hospitality reviews on TripAdvisor, Hotels.com, Booking.com, Travelocity, Expedia, and more sites impact revenues. Hotel managers must learn to respond to and act on this crucial form of customer feedback to succeed in their local markets. Jonathan Sockell, Product Marketing Manager at Medallia, and seasoned hospitality and customer experience executive Linda Wiley delve into how to empower the frontline with actionable customer feedback and build a sense of urgency to excel at customer service. READ MORE

Richard Takach, Jr.

It's all about the team. Whether you are looking to fill open positions in an existing hotel, hire a new staff for a property soon to open or add talent at corporate headquarters, attracting and training, evaluating and retaining a top-notch team of individuals is necessary in order to be successful. In doing so, we must select the right people for our needs; be clear and consistent in communicating goals and expectations; insure that all hires have the skills and authority to achieve assigned goals; and provide timely, constructive and fair feedback on performance as a basis for future compensation and promotion. READ MORE

Janet  Gerhard

Just as technology has and is continuing to transform our lives, it's changing the way hotel brands view and analyze their customer experience. Ensuring the vendor of your customer experience measurement program is keeping up with technology is a near impossible task. Yet, the onus is on the hotel brands to be watchful of new technology players who can serve emerging needs. Good customer experience management is fundamental to our industry. And we must be able to analyze, monitor and measure it. Which is why we must continually pursue technology not to eradicate problems, but to take a collective, proactive approach to building brands and experiences customer truly love. READ MORE

Richard Dahm

In the last five years the United States and countries around the world have witnessed many major natural disasters. Such disasters include hurricanes, tornados, tsunamis, severe windstorms and catastrophic flood damage that have left businesses, large and small, unable to recoup from their loss. Damage assessments by risk management and loss control specialists find to often preventative measures could have been implemented that would in part or significantly reduce the overall cost of a claim or the length of recovery time. The intent of this guide is to help business owners in the planning process for preparing and implementing an emergency plan. One that is activated before, during, and after an event. READ MORE

Larry  Mogelonsky

As millennials blossom into a prevailing consumer group, it's vital that you understand their distinctive purchasing habits. Given that F&B is a central part of the overall hospitality experience, mastering this aspect of your operations and remolding it to cater to this demographic will play a large role in determining future occupancy and RevPAR figures. To this end, I interviewed Mike Whalen, the founder and CEO of Johnny's Italian Steakhouse, to extract five keys for hotel restaurants to better appeal to millennials. READ MORE

Jonathan Barsky

In hospitality, with so many options available to customers, a distinctive experience that connects with customers will pay off. Satisfied customers buy more, are less price sensitive, and will generate positive word-of-mouth, all contributing to revenue performance. But hospitality companies have limited money to invest and will only spend on things they believe will have the biggest impact on performance. The challenge for all hospitality businesses is to figure out how to invest to maximize guest satisfaction and loyalty. With advancements in customer feedback and data analysis tools, it's easier to identify the investments that will have the biggest impact on the bottom line. Here are three ways to invest that will help maximize satisfaction, loyalty and the bottom line. READ MORE

Paul van Meerendonk

When major events come to town, such as international sporting competitions or cultural festivals, they often offer unique opportunities for hoteliers to capitalize on increased demand, gain a new loyal following of customers and maximize revenue both over the short and long -term. Yet while major events come with huge potential rewards, if not executed well, they can be very high risk resulting in anything from displacing current loyal customers to a hotel full of empty rooms, or from no-shows to cancellations. Hoteliers need to ask themselves - "Will we manage to capitalize on the increased demand for our rooms? Will we be able to balance the demand for event attendees willing to pay higher rates while also maintaining our existing customer base? Will this fabled demand actually materialize, or will our rooms remain empty throughout the event?" READ MORE

Michelle Millar

A sustainability report is an organizational report that gives information about economic, environmental, social and governance performance, regardless of whether the performance is good or bad, and more and more companies are producing the reports today. Why would any company produce such a report, especially if it may contain "bad" news? Read further for the pros and cons of creating sustainability reports. Most of the "cons" with sustainability reporting revolve around how the report is actually created and presented, but not its content. And the benefits are difficult to measure and quantify. Again, one might ask, why bother? There are plenty of good reasons. READ MORE

Coming up in March 1970...