Sunday, December 13, 2009
What hotels must do to rise from recession
This article has been published on December 11, 2009 by Dr Des O'Mahony.
It deals with the influence on the overal economic situation in the hospitality industry and its ocnseuquences on the hotels' strategies.
The article is actually based on certain point of view of the evolution of hotel markets. Indeed, hotel industry goes through cylcles of peaks and troughs, which tend to be 7-10 years ones, depending on location. As it may be observed that there is a certain level out starting in 2009, the author explains hospitality industry might expect a recovery 'in mid to late 2010'.
This cycle basis might in certain way brings some comfort to hoteliers, as they might be able to foresee the future of their business, and act to boost it; adjusting for instance to the trends of the moment, trying to seize the opportunities.
Consumers also have a different behaviour in such hars times. They are now used to book directly on the internet boooking engines, being this way able to compare the offers and evaluate the real value of the products.
Even though the recovery in the hospitality industry is starting, the consumers are keeping this new behaviour.
So the current opportunity for hoteliers is now to work on these online bookings and above all, not letting it being managed by a third parties. Indeed, it is the key of their future recovery, so they absolutely need to manage it it on their own, without loosing any control. Otherwise, they might 'damage their long term viability'.
But it might be difficult for weaker hotels to seize this opportunity since it is more expensive...
So we can wonder which are the future of independant hotels for instance, or ones which could be considered as 'weaker'.
It deals with the influence on the overal economic situation in the hospitality industry and its ocnseuquences on the hotels' strategies.
The article is actually based on certain point of view of the evolution of hotel markets. Indeed, hotel industry goes through cylcles of peaks and troughs, which tend to be 7-10 years ones, depending on location. As it may be observed that there is a certain level out starting in 2009, the author explains hospitality industry might expect a recovery 'in mid to late 2010'.
This cycle basis might in certain way brings some comfort to hoteliers, as they might be able to foresee the future of their business, and act to boost it; adjusting for instance to the trends of the moment, trying to seize the opportunities.
Consumers also have a different behaviour in such hars times. They are now used to book directly on the internet boooking engines, being this way able to compare the offers and evaluate the real value of the products.
Even though the recovery in the hospitality industry is starting, the consumers are keeping this new behaviour.
So the current opportunity for hoteliers is now to work on these online bookings and above all, not letting it being managed by a third parties. Indeed, it is the key of their future recovery, so they absolutely need to manage it it on their own, without loosing any control. Otherwise, they might 'damage their long term viability'.
But it might be difficult for weaker hotels to seize this opportunity since it is more expensive...
So we can wonder which are the future of independant hotels for instance, or ones which could be considered as 'weaker'.
Thursday, December 10, 2009
Sunday, December 06, 2009
Hotel Chains Try New Ways to Earn Loyalty
The article headed 'Hotel Chains try New Ways to Earn Loyalty' has been published on the New York Times's site on December 1, 2009 by Elizabeth Olson.
This article deals with the increasing level of personal attention offered by hotels to their clients.
As a matter of fact, business travelers' loyalty to a hotel brand has been decreasing this year compared to the last one. Indeed, because of the overall economic situation, companies are trying to save as much money as possible on business trips.
As this clientele is a major part of some hotel chains' customers, they are therefore trying hard to attract them anyway, offering added value.
On the other hand, these business travelers tend to claim their loyalty points acquiring during their business stay for personal use.
As a consequence, the more a businessman comes to a chosen hotel, the more he will get points and the more he will come back with its family for week end for instance.
That is why they are trying so hard to find new ways to develop and earn their clients' loyalty: offering them a compact disc of their favorite music, free nights, upgrades, wine testing, or even sotring a guest's suitcase between visits.
Lowering rates is not always perceived by the clients as much as it could, but services offered are something always noticed, and kept in mind by guests. Indeed, hotels are supposed to offer services. So this is indeed the most important to work on. Developping special and inventive loyalty rewards is therefore a most clever mean to make cleints to come back.
This article deals with the increasing level of personal attention offered by hotels to their clients.
As a matter of fact, business travelers' loyalty to a hotel brand has been decreasing this year compared to the last one. Indeed, because of the overall economic situation, companies are trying to save as much money as possible on business trips.
As this clientele is a major part of some hotel chains' customers, they are therefore trying hard to attract them anyway, offering added value.
On the other hand, these business travelers tend to claim their loyalty points acquiring during their business stay for personal use.
As a consequence, the more a businessman comes to a chosen hotel, the more he will get points and the more he will come back with its family for week end for instance.
That is why they are trying so hard to find new ways to develop and earn their clients' loyalty: offering them a compact disc of their favorite music, free nights, upgrades, wine testing, or even sotring a guest's suitcase between visits.
Lowering rates is not always perceived by the clients as much as it could, but services offered are something always noticed, and kept in mind by guests. Indeed, hotels are supposed to offer services. So this is indeed the most important to work on. Developping special and inventive loyalty rewards is therefore a most clever mean to make cleints to come back.
Thursday, December 03, 2009
In Class Exercise 03/12
This exercise about OTA's Characteristics has been done with Camille and Coline.
1- Customer reach :
Business to customer - target individuals: travelers who feel secure to purchase online)
Travelers preparing their travels. Travelers looking for the best rates. Travelers sharing their experiences.
Expedia defines its targeted customers as : "Our internet users are mainly people with a high education level and high revenues: they love to travel and purchase online"
Non travelers looking for ideas for an eventual travel. (first look to decide where, when they can go on vacation or on business travel at the best rates)
Business to business - like Amadeus/Sphinx - Travel agencies that are using this type of OTA to sell at the best price travel products to their customers. (Tour operators- Business travel agency)
2 - Customer communication methods:
Two types of communication can be seen : with the use of the media and below the line
a- with the use of media: adds on the internet, articles published on the touristic and non touristic papers, social media (facebook, twitter, blogs...), television adds (example : Expedia), newsletter
b- below the line media: professional exhibitions (ex: TOP RESA, Salon Mondial du Tourisme...), street marketing : ex: lyflets
3 - Types of products sold
a- main services : flights, car rentals, hotel rooms, packages, cruises, activities (concert or again exhibits tickets, )
b- additional services: travel guides, information about the different countries (currency, time difference...), visas, insurance.
4 - Special Promotion capabilities
Sell the packages all taxe included
Last minute links and promotion
Flash sales for both the first customers and the usual customers through newsletters
Promotion on the top 10 or 20 destinations (ex: Bookit)
Free booking fees (ex Expedia)
Weekend - Spring - Summer promotions (before special dates : Thanksgiving, Christmas, Easter...)
All inclusive travel packages
Hotel nights offered during contest games on the internet
Discount
5 - Online booking conditions + fees
Pay Later (Bookit)
Pay in several times
Pay an extra guarantee (cancellation insurance) and the cost of the travel can be partially reimbursed or used again on the website if something goes wrong (illness or death) (ex: Opodo)
6 - Affiliate program - yes/no
Yes on BookIt.com - Personal and company information, promotional methods (how does the company want to be promoted) are asked
Pepperjam Network Partner Service Agreement (Service Agreement) has to be accepted to become an affiliate.
7 - Affiliate program payment structure
BookIt.com uses:
Paypal
Direct Deposit
Check
8 - Info for hoteliers
Yes in Expedia
1- Customer reach :
Business to customer - target individuals: travelers who feel secure to purchase online)
Travelers preparing their travels. Travelers looking for the best rates. Travelers sharing their experiences.
Expedia defines its targeted customers as : "Our internet users are mainly people with a high education level and high revenues: they love to travel and purchase online"
Non travelers looking for ideas for an eventual travel. (first look to decide where, when they can go on vacation or on business travel at the best rates)
Business to business - like Amadeus/Sphinx - Travel agencies that are using this type of OTA to sell at the best price travel products to their customers. (Tour operators- Business travel agency)
2 - Customer communication methods:
Two types of communication can be seen : with the use of the media and below the line
a- with the use of media: adds on the internet, articles published on the touristic and non touristic papers, social media (facebook, twitter, blogs...), television adds (example : Expedia), newsletter
b- below the line media: professional exhibitions (ex: TOP RESA, Salon Mondial du Tourisme...), street marketing : ex: lyflets
3 - Types of products sold
a- main services : flights, car rentals, hotel rooms, packages, cruises, activities (concert or again exhibits tickets, )
b- additional services: travel guides, information about the different countries (currency, time difference...), visas, insurance.
4 - Special Promotion capabilities
Sell the packages all taxe included
Last minute links and promotion
Flash sales for both the first customers and the usual customers through newsletters
Promotion on the top 10 or 20 destinations (ex: Bookit)
Free booking fees (ex Expedia)
Weekend - Spring - Summer promotions (before special dates : Thanksgiving, Christmas, Easter...)
All inclusive travel packages
Hotel nights offered during contest games on the internet
Discount
5 - Online booking conditions + fees
Pay Later (Bookit)
Pay in several times
Pay an extra guarantee (cancellation insurance) and the cost of the travel can be partially reimbursed or used again on the website if something goes wrong (illness or death) (ex: Opodo)
6 - Affiliate program - yes/no
Yes on BookIt.com - Personal and company information, promotional methods (how does the company want to be promoted) are asked
Pepperjam Network Partner Service Agreement (Service Agreement) has to be accepted to become an affiliate.
7 - Affiliate program payment structure
BookIt.com uses:
Paypal
Direct Deposit
Check
8 - Info for hoteliers
Yes in Expedia
Monday, November 30, 2009
Sunday, November 29, 2009
The Illusion of Brand Control
The article headed 'The Illusion of Brand Control' has been published on the Harvard Business Review blog on November 13, 2009 by Andrew McAfee.
It deals with the increasing impact of the social media on a brand image and which is actually a topical issue in hospitality industry.
As a matter of fact, pictures, comments, or general reviews concerning hotels for instance are now posted on blogs or various websites by guests after their stay. The problem is that the hotel owner has no longer control on what is said about its property and consequently on its reputation.
Developping a marketing strategy including the development of a Facebook official fan page or other offical ways of promotion is somehow part of the counter-attack process. But interested customers would rather read non-official points of view which are considered as more subjectives.
So there is no way to avoid that. Hoteliers have to deal with it. And the advantage is that they now tend to be more careful to the service quality they offer to their clients. So it may be a stimulating source of general improvement in the hospitality supply.
It deals with the increasing impact of the social media on a brand image and which is actually a topical issue in hospitality industry.
As a matter of fact, pictures, comments, or general reviews concerning hotels for instance are now posted on blogs or various websites by guests after their stay. The problem is that the hotel owner has no longer control on what is said about its property and consequently on its reputation.
Developping a marketing strategy including the development of a Facebook official fan page or other offical ways of promotion is somehow part of the counter-attack process. But interested customers would rather read non-official points of view which are considered as more subjectives.
So there is no way to avoid that. Hoteliers have to deal with it. And the advantage is that they now tend to be more careful to the service quality they offer to their clients. So it may be a stimulating source of general improvement in the hospitality supply.
Subscribe to:
Posts (Atom)
