HOTEL BUSINESS REVIEW

June FOCUS: Sales & Marketing

 
June, 2016

Sales & Marketing: The Rise of the Millennials

Hotel Sales & Marketing departments have endured massive change in the past few years in terms of how they conduct their business, and there is little evidence to suggest that things will be slowing down anytime soon. Technological advances continue to determine how they research, analyze, plan, engage and ultimately sell to their customers. Though "traditional" marketing is still in the mix, there has been a major shift in focus toward online marketing. First and foremost is an understanding of who their primary audience is and how to market to them. Millennials (those born between 1981-1997) are the fastest growing customer segment in the hospitality industry, and they are expected to represent 50% of all travelers by 2025. With the rise of millennial consumers, sales and marketing efforts will need to be more transparent and tech savvy, with a strong emphasis on empathy and personal customer connection. Social media is essential for this demographic and they expect hotels to engage them accordingly. Other targeted groups include cultural buffs, foodies, LGBT, and multi-generational travelers - all of whom are seeking novel experiences tailored specifically to their interests and needs. Finally the Baby Boomers are still a force to be reckoned with. They are currently the wealthiest generation and are becoming increasingly tech savvy, with 33% of internet users now falling into this demographic. It is imperative that hotels include this generation when it comes to their 2016 digital marketing strategies. The June Hotel Business Review will examine some of these markets and report on what some sales and marketing professionals are doing to address them.

This month's feature articles...

Erich Zuri

In under a decade 50% of all travelers will be between the ages of 44 and 28. Travel for meetings, conferences, and knowledge sharing will undoubtedly play a role. Millennials will also be front and center in planning and hosting business gatherings, and Gen X and Boomers will also continue to be strongly in the mix. This generational mash-up, and the intersecting meteoric rise in technology, poses new and interesting challenges and opportunities for marketing hotels globally. Hotels need to create forward looking, fresh ways to engage with planners -- especially online -- tipping tradition on its head and straddling generations more creatively. READ MORE

Dorothy Dowling

Today's millennial traveler is dominating the way that hospitality marketing professionals showcase their products to the consumer. Many of the changes and innovations being seen in the hospitality industry today feature a distinct focus on the millennial. And it's no wonder - millennials comprise a vast segment of the traveling public and it's expected that they will continue to use their discretionary income on travel experiences in the coming years. Best Western Hotels & Resorts is not unlike others in this regard, and we have implemented several strategies to ensure we are evaluating the evolving needs of millennials. READ MORE

Kevin   Fliess

Hotels have spent the last decade trying to come to terms with a changing technology landscape that upended not only their sales and marketing strategies, but their operational processes, too. Now they face an even greater shift - one that will change their sales and marketing culture for years to come - the rise of the Millennial generation, and with that, the emergence of Millennial meeting and event planners. In parallel with a rapid increase in Millennial leisure travelers, this new generation of young adults increasingly comprises the largest age group attending meetings & events, which are very often planned by a Millennial. READ MORE

Laurence Bernstein

Fundamentally, the difference between a “Good Brand” and a “Great Brand” is the ability of the organization, through its products, people and communications to engage on an emotional level. “Good Brands”, and most successful brands are good brands, deliver promised services consistently and achieve high satisfaction ratings. “Great Brands” do exactly the same thing, but achieve off-the-charts satisfaction ratings because they have connected at a deeper level. On a more prosaic level, a visit to the marketing and revenue management teams “Good Brand Inc.” is an immersion into complaints about OTAs and commodity pricing pressures (discounts); a visit to the same group at “Great Brand Inc.” is an eye opening exposure to sustained margins, direct bookings, and eye-watering occupancy figures! READ MORE

Megan Paquin

Millennial travelers crave connections to local culture. Large convention hotels and boutique resorts alike are challenged to offer the authentic, memorable experiences travelers in this influential demographic demand. But, rather than compete with local artisans and tastemakers, hoteliers can boost their bottom line with collaborative initiatives. Along with local influencers, curating native experiences within the hotel can increase incremental revenue and drive repeat business. Locally sourced food and beverage options have become a standard in most hotels. Some hotel restaurants even boast ingredients sourced from their own on-site farms, gardens or breweries. READ MORE

Maja Derviskadic

Millennial's may look to OTAs and Airbnb when they just want to book a room, but they're flocking to social media to build robust itineraries that will be the envy of all their friends. Savvy marketers know that winning over this generation is about immersive experiences that sell the property and destination vs. a package or special room rate. Now is the time to pay attention to emerging platforms on the rise like Snapchat, Periscope and Facebook Live Stream, which can take audiences on a visual journey from the lobby to the bar and behind-the-scenes in 60 seconds or less. READ MORE

Jon Conching

While the millennial traveler is a relatively new demographic, these Gen Y travelers are becoming increasingly important for resort marketers to target in order to gain enduring brand loyalty and consumer trust. They make up a quickly-growing demographic seeking thoughtfully-curated leisure and business experiences and use various mediums to research and finalize travel-related purchases. According to Pew Research, millennials represent the largest generation of consumers today, totaling 75.4 million, surpassing the 74.9 million Baby Boomers. Within this group of consumers, is the millennial family traveler - individuals or couples with children who are looking for travel experiences that fit their wants and needs as a family unit. READ MORE

John  Kraft

A 2012 survey by SilkRoad Technology revealed that some 75 percent of employees use social media on the job, and that 60 percent do so multiple times a day. Of those surveyed, 49 percent said they use social media to connect with coworkers and 44 percent said they use social media to connect with customers. Yet, only 23 percent of employees had received a social media policy from their employers, and only 7 percent had received social media training. Clearly, employers are not communicating with their employees their preferences about using social media. But not addressing social media issues can be as bad as encouraging them. READ MORE

Keith Chouinard

Connected. Conscientious. Curious. Simple, but accurate, these three words sum up the common core of traits Millennials bring to a travel experience. The named generation, defined as those born between 1980 and 1997, range from young adults about to graduate from college to 30-somethings juggling career and family in pursuit of that elusive sweet spot known as life-work balance. While they may be at different stages in their life journeys, research shows Millennials have a keen interest in travel experiences that connect them to their destination. A recent article in G Brief, a digital magazine published by Urbaneer Creative [http://urbaneercreative.com/], a creative consultancy for businesses READ MORE

Jos Schaap

Technology is having a huge impact on how guest preferences are formed, expressed, and received by hotels. The impact of mobility is profound, along with the centrality of guest choice. While technology has evolved, innovation at the front desk has not kept pace. This study examines the forces leading the industry to this point - and proposes some solutions. Should your hotel's guest check in be more like the guest experience at an Apple Store? What would this look like, and would it be a good thing - for you, your ability to manage your property, and above all, for your guests? The concept is not as farfetched as it seems. READ MORE

Ginny Morrison

As the labeled ‘millennial generation' continues its ascent up the corporate ladder and young employees take the helm in management positions, Spire Hospitality - one of the nation's leading and most respected hotel management companies - shares how its leadership is hearing the needs and desires of this particular peer group to identify and provide tools to function in the manner in which these young professionals expect. With this age sector of sales employees continuing to expand as vice president of sales and marketing, I have been chosen to lead the team to discover cutting edge research, create new programs and rollout concepts in 2016. READ MORE

Dave Spector

Every generation and demographic has seen its share of gimmicky marketing and cringe-worthy advertising. Millennials are no different. With all the attention millennials have received as the current ‘it' demographic, hotel brands are being challenged to come up with brilliant campaigns that they can relate to. In this push for creativity, some brands go overboard by jumping on the latest slang, trend, social media platform, or celebrity du jour, with the brand coming off as desperate as a result. While we can all admire a brand that will bend over backwards, they can end up doing the one thing that Gen Y hates the most: Trying too hard. READ MORE

Junvi Ola

It's no secret that millennial travelers, such as myself, are leery of traditional marketing and find it inauthentic. Conventional advertising and hotel marketing, as we used to know it, are one of the many victims being demolished by Gen Y's aversion to old-school ways of doing things. It's now up to hotel brands to throw away some of their worn-down marketing practices and instead act as visionaries in their own industry, creating genuine and remarkable marketing avenues and experiences that excite, intrigue and engage millennial travelers. So, farewell to in-your-face hotel ads. Adios, one-way marketing messages. READ MORE

Bruce  Seigel

As is often our responsibility to inspire the next generation of hoteliers, I recently participated in a career fair at a local college. It is without saying that, as hotel executives, our schedules are rarely flexible; but I felt the opportunity was worthy. So rather than excuse myself with a polite apology and blame my regrets on a busy schedule, I accepted the honor because I knew the day would take me on a trip into a galaxy filled with new life forms: Millennials, a target market many say is essential to the travel industry's future. READ MORE

Walter Isenberg

It's not just the baby boomers and it's not just the millennials, it's everybody. Over the past few years the travel experience has changed across the board. Heads in beds is the cherry on the top but it's no longer the goal, and that's because our guest wants more, and we want more for them. This is the “new traveler” they are the young business professional by day, silent-disco seeker by night and they are the older tourist with a camera who still needs full strength wifi for all of their devices. The lines are starting to blur but there is one constant. READ MORE

Kevin Richards

By the year 2020, millenials will comprise over 50 percent of the U.S. population and they are poised to overtake previous generations in their zest for business travel. According to research conducted by the Global Business Travel Association (GBTA) millenials are nearly twice as likely to want to travel for business then baby boomers (45 percent to 26 percent, respectively). In addition, a strong majority of millennials, 57 percent, say technology can never replace face-to-face business meetings. So ready or not, here come the millennials, the next generation of road warriors, packing their smart devices and looking for b-leisure, READ MORE

Jonathan Bailey

There are roughly 80 million millennials in the United States, and each year they spend approximately $600 billion. Clearly, marketers have recognized this group and are scrambling to reach out to them, connect in a relevant way and convince them of brand relevancy. Some are missing a big opportunity for success, however, because they are operating under the false assumption that all millennials belong in the same gigantic group. There is more than meets the untrained eye here, and properly targeting millennials is a multi-faceted, complicated effort. If you're like me, you are inundated with articles, webinars and conferences READ MORE

Carolyn  Childs

Globally the influence of Millennials on travel and on marketing has been profound. In the US, Millennials are as large a generation cohort as Baby Boomers . In China, they are a smaller generation numerically thanks to the one child policy. But as the first generation to benefit from China's astonishing economic growth, 80s children (as they are known) are a wealthy and high-consuming group. The word Millennial has almost become synonymous with youth. But that is about to change. READ MORE

DJ  Vallauri

A lot has been said and written about the "millennial traveler" and how "different" their travel and hotel needs are. How connected and ambitious they are, the young movers and the shakers in the modern business world. In fact, nearly every major hotel brand believes millennial travelers are seeking new places to stay when traveling, new experiences, new ways to connect, new ways to stay healthy while on the road and so on. New millennial brands continue to launch onto the scene. Brands like Marriott's Moxy, Hilton's TRU, Starwood's Aloft and Hyatt's Centric all seeking to be positioned to grab the growing share of millennial traveler. READ MORE

Sarah Harkness

"Oh great," you must be thinking. "Another article about Millennials. Haven't we exhausted this topic already?" Trust me, as a Millennial I understand your frustration. Feeling like you are consistently labeled as lazy, entitled, distracted, and a contributor to the demise of the English language isn't good for one's self-esteem. I am not here to argue with whatever preconceptions that you may or may not have about my generation, instead I want to tell you what I do know, and why it is important for you as a travel brand to at least try and understand the collective "us". READ MORE

Christopher  Bolger

A good corporate culture of safety and risk management starts at the top and spreads to all staff until it is woven into the fabric of the hotel's daily activities. An effective safety program holds everyone from executives to housekeeping staff accountable for implementation and execution of clearly defined safety procedures. Hotel staff need to be proactively thinking and talking about safety - immediately wiping up spills, reporting pot holes in the parking lot and cutting off bar guests who've had one too many, among other things. By creating and implementing a top-notch safety program and holding employees accountable to it, hotels can significantly reduce their risk exposure and save millions of dollars in avoidable claims or potential reputational damage. READ MORE

Scott Acton

Millennials have become the fastest growing consumer segment in the hospitality industry. Therefore, changes in quality and experiences provided in hotels across the nation are essential in ensuring greater competitiveness and overall success. Millennials, who are heavily reliant on technology and seek non-traditional features in services provided, are looking for a different approach to hospitality; with immersive lifestyle experiences their main priority, resulting in a rising demand for special visual imagery and more comprehensive sensual engagement. Accordingly, it is necessary for the hospitality industry to adjust to this new trend in consumer preferences, demanding that hotels put substantial effort into creating a new environment, appealing to consumers' five senses. READ MORE

Ken Edwards

As hospitality industry executives, being an effective leader is essential for running our companies successfully and promoting a positive work environment for higher productivity and lower attrition rates among our employees. We learn about, and encounter, effective leadership skills from a variety of avenues such as books/articles, first hand experience, education classes, peer discussions, etc. What we don't hear as much about is how important strong management skills are to the organization. For any business to really thrive, consideration of both skill sets is necessary, especially in hospitality. READ MORE

Mark Heymann

The millennial generation is the most socially aware and feedback-driven yet. To attract and engage this cohort, hoteliers must rethink their success metrics, tying them to a higher level of social responsibility. They must be willing to share more information, more freely, with their workers than ever before. And, they must provide frequent feedback, inviting employees and guests to do the same. For managers who are accustomed to holding information close to the vest, this will require nothing less than a mindset change. READ MORE

Charles B. Rosenberg

Investing abroad may present lucrative opportunities in the form of new markets and customers. Hospitality companies, however, often face unique challenges when doing business abroad. For example, in 2009, Venezuelan President Hugo Chavez ordered the expropriation of a Hilton-run hotel on the resort island of Margarita in Venezuela to help develop tourism projects within a socialist framework. Similarly, in 2011, the Sri Lankan government declared ownership of a Hilton-run hotel in Colombo, Sri Lanka following a rent-related dispute with the foreign investor. Hospitality companies considering investing abroad thus should be aware of the tools that may be available to protect their international investments. READ MORE

Richard Takach, Jr.

In this article, we will consider some of the values, attitudes and skills it takes to be an effective leader in the hospitality sector, striving to form a lasting culture of service, teamwork and excellence. Furthermore, such a discussion will help illuminate what hospitality leaders might look for or consider as they nurture a next generation of leaders for their industry. In this way, we turn the mirror upon ourselves, prompting us to rethink our own capabilities, principles and sense of purpose as leaders. READ MORE

Katarina  Puckett

Hotels now face stiff competition from the OTAs as well as from other hotels. To succeed in this challenging environment, hoteliers need to develop an effective hotel website that blends the latest design trends and online marketing strategies to appeal to prospective guests. By incorporating essential hotel design, functionality, and reservation features such as SEO strategies, incentivizing pricing strategies, and web analytics, hotels can use their websites to gain the competitive edge. Discover everything you need to know to create a highly effective hotel website design, so you can successfully increase direct bookings and regain control of your hotel brand. READ MORE

Michael Coughlin

With rapid advancements in technology, video content is taking over the internet. Whether it's through social media platforms, apps, or news publications, companies can miss out on valuable branding opportunities without a high quality video narrative to leverage on these networks. In an industry where building human relationships is of utmost importance, hotels must adapt to this growing medium. Well-produced videos help brands connect with consumers emotionally thus creating genuine brand loyalty. In the offline history of advertising, we've seen media consumers migrate in large droves from reading newspapers in dull black and white text, to reading magazines and newspapers in full and vibrant color, to consuming radio and TV advertising that bring brands to life. READ MORE

Janet  Gerhard

The hospitality industry is constantly under attack. New technologies, new entrants, new regulations, and changing customer demands require hoteliers to be relentlessly vigilant. It is not merely a matter of loyalty. Today's fight is about relevance. In a world of digital transformation, no industry is immune. With every discussion on digital transformation orbiting around customer experience, is there an opportunity to disrupt how the hospitality industry measures customer experience? READ MORE

Judith Jackson

Hotel amenities as a guest offering have become a vital source of attracting business and building a hotel brand. This is a relatively recent phenomenon that has grown in importance as guest's demand for good quality amenities has become universal. As I thought about writing this article I realized I should go to leaders in the hospitality field as well as draw upon my 15-year experience as the creator of a branded amenity line. Hunter Amenities of Canada and Susan Ricci, innovative former hotel managing director and current hotel and club consultant, became invaluable sources of information and comment from different points of view - which I think you will find as stimulating and helpful as I do. READ MORE

Lorraine Abelow

While the vastness of online content through the variety of channels is key to a PR campaign, the traditional print media environment for news impact is undeniable. An article in the New York Times or Wall Street Journal has undeniable lasting power. The sheer proliferation of industry specific print media one sees in Barnes and Noble and the staying power of a major feature article is a vital component to a successful campaign. While thousands may read an article online, the magic of the printed page still holds the attention like none other. Recent studies by the Magazine Publishers of America bears out the value and substantiates to anyone who wants to sustain a powerful PR program, that print media must be integrated into your program READ MORE

Michael Koethner

A collection of data, but not in the old-fashioned, very outdated and very boring numbers approach; rather with a compassionate view on how the industry will evolve, beyond the veil, in the very near future. Let's have a look at how to create a visionary, functional and operational double treatment room that is designed, professionally organized and set-up in such a manner as to fulfill the therapist's performance requirements and to accompany the demands of the new market, as well as the future guests' expectations. It will be crucial to include all aspects from the inside out. READ MORE

Joseph Ricci

Good relationships with all vendors in a hotel's supply chain are critical for smooth, efficient operations. With laundry, the stakes are higher than with many others; encountering stained linens or being forced to wait for towels can sour a guest's experience of a hotel. In this article, we take a close look at what a great hotel-laundry relationship looks like through a case study of the relationship between a large hotel and their commercial laundry contractor. We identify the principles underlying this successful partnership and what it means for hotels looking to close an on-premise laundry or select a new laundry provider. READ MORE

Erik Van Slyke

Most hotel executives understand the strong connection between employee retention and solid financial performance. At the same time in an industry where annual turnover rates average 27-37%, improved retention rates can seem more like a distant objective than something truly achievable. This is especially true if your hotel is not listed in Fortune Magazine's 100 Best Places to Work. The drivers of employee retention are about much more than an admired brand, strong financial performance and best practice HR programs. The best results are achieved when managers at all levels embrace four important principles. READ MORE

Albert Pucciarelli

As a lawyer involved for over 30 years in the drafting and negotiation of contracts for the hospitality industry, I can assure you that disputes are inevitable. Even among parties such as owners and management companies that have the best working relationships, there will nevertheless be issues that cause discord. It is in how we resolve these matters that will determine if the relationship between the disputing parties will survive. If preservation of the contract and the relationship is desired, then the goal of both parties should be to resolve the matter quickly and efficiently, while also recognizing at the outset that neither of them is likely to be completely satisfied. READ MORE

Camille Hoheb

A hotel's vitality hinges on the guest experience. Out of all the business trends, none is more powerful than the growing wellness movement. Wellness is everywhere. This is especially true in tourism, with healthy amenities at airports, airlines and lodging. Healthy hotel brands are leading the way and other properties are following suite. Hotels deliver healthy options related to physical, emotional, intellectual, spiritual, environmental and social wellbeing. READ MORE

Ken Hutcheson

Making guests feel comfortable during their stay is a critical part of a guests' overall experience. Whether they're traveling for business or pleasure, hoteliers to create the right environment—from the interior to the exterior—to satisfy guests' expectations and make them feel at home. For example, business travelers are looking for clean and efficient features, while vacationers are looking for features that will help them unwind and relax. READ MORE

Kelly  McGuire

With the growing presence of UGC, consumers have more information than ever before when they are making a hotel room purchase. The question is: how do consumers use all this information, with price, to establish value and ultimately make a purchase decision? Understanding this, particularly across different segments of guests, will help hotels make better pricing and positioning decisions. The unmanaged business traveler represents a large and very valuable segment for hotels. This group of frequent travelers is potentially highly influenced by their loyalty affiliation. Does their loyalty change their reaction to price and UGC? READ MORE

Coming up in March 1970...