Follow Me on Pinterest

Saturday, July 30, 2011

Summer Travel off to a Strong Start - June Global GDS Results

Once again The Pegasus Solutions has released a comprehensive report that shows global GDS bookings growth over previous month for leisure and corporate travel.

June's global GDS results indicates that recovery is unfolding unevenly across the globe. This is mainly due to the outbreak of protests in the Middle-East and North Africa, where unrest still remains in some countries.

Despite all the challenges facing the international tourism sector, global GDS channel results reflect powerful recovery from the corporate and leisure fronts

According to the report, June delivered solid bookings growth for the second month in a row after the dip in April. Business travel on the one hand, determinedly moves ahead; June bookings still increased by +10.2% over 2010, on top of a greater than +25% increase achieved over 2009. On the other hand, leisure travel results shows a good start for summer vacation travel, actually, bookings have risen higher than those in June 2010 by an additional +7.3%.

Bookings across the globe show potential for growing at a pace of +15% over the summer, with possible stronger growth for the autumn conference season, ADR looks to continue solid growth over prior year through September, with the potential for easing up in October and November.

In the light of these results, one may ask, what hoteliers are planning for and what strategies are they going to adopt? Especially that the majority of hotels were undertaking major budget cuts since the economic downturn of 2007, for instance, in terms of labor and marketing budgets.


For more information get the full report at www.pegs.com


Friday, July 29, 2011

Driving Engagement and Growth Through 'Social Design'





As director of platform partnerships for Facebook, Ethan Beard oversees the network of developers that build on the social media giant's user network to create applications and sharing features for websites. 

In an interview at the recent Wharton Global Alumni Forum in San Francisco, Beard discussed the next wave of growth opportunities for Facebook, and why he expects "social design" to become a source of disruption in a number of industries, from gaming to retail to commerce.


Tuesday, July 26, 2011

How Google+ will reshape search, social media and travel

Google+ in conjunction with the Panda updates could be the biggest shift in search since it took off 13 years ago. Traffic from Google is for many travel companies the largest traffic source to their digital platforms and with Google revolutionizing their algorithms, we have to embrace the change.

Google doesn’t tell you about their algorithm, but they’ve dropped enough hints to suggest that they’re now using human factors to determine the quality of content with their recent Panda updates. The introduction of the +1 button, and its presence in search results suggests that a combination of “+1”, “like” and other sharing tools will play an increasing role.

So the big shift in search is that humans will now have a say in what makes good content, rather than just the machine. According to Google, this means that low quality content and search engine fodder will have no place to hide or, more accurately, Google will hide it much further down the Search Engine Results Pages (SERPs).

Here are some simple steps that travel companies can take to make sure these radical developments in search can benefit their businesses, in addition to some strategic questions to answer to help protect your business in the longer term.

Get the full story at www.webintravel.com


Sunday, July 24, 2011

Overbooking from the Hotelier’s Perspective

Certainly during the high season and especially major events, overbooking in hotels is almost inevitable.

From the hotelier's perspective, overbooking is the means to optimizing room's revenues. It is the oldest and one of the most commonly used revenue strategies implemented in hotels’ operation management to maximize revenue at a particular point in time.
 
Overbooking, nevertheless, if not properly managed could lead to disappointing results - Loss of revenue, customer complaints, damage of the brand and so forth. 

Keeping record of no-shows and last-minute cancellations during high demand periods is vital to optimizing expected revenues. Both revenue and reservations managers, during these periods of high demand, deliberately oversell the hotel to tackle this issue and minimize lost revenue from unsold rooms. 

Compiling and analyzing the no-shows and last-minute cancellations trend could tell revenue and reservations managers about how much to oversell the hotel to reach 100% occupancy during the period.
 
To avoid the hustle and bustle of a crowded front desk I have put together a list of four top tips for revenue and reservations managers which as well could help optimizing rooms revenue during high demand period.


1 - Raise online rates as higher as possible:

Obviously, the first step in dealing with overbooking is to stop sales. Yet, because customers who book the hotel online pay much more higher prices than ordinary customers, online booking providers will not in any way accept stop sales. Thus using fence rates will restrain booking the hotel through online travel agencies as well as maximize revenue during the desired period.

2 - Raise contracted release periods

Zero release day means that customers could check-in at any desired time. Using a longer release period, for instance, 7 or 14 days could result in bookings much more in advance.

3 - Double-check reservations by arrival date:

Double-checking reservations by arrival date is a powerful method used by reservations managers to eliminate potential errors.

4 - Raise minimum stay period:

The length of the minimum stay period if set long enough, could generate better occupancy level for the period which means more revenue for the property.


During high season and major events, revenue and reservations managers have to find the right balance between offer and demand by setting the right rooms rates and applying the appropriate fences in order to maximize revenue and prevent overbooking.


Thursday, July 21, 2011

Top 10 Legendary Hoteliers


In this list there is no ranking order, it's simply a group of 10 legends.

1. Cesar Ritz

If there was ever a name that was synonymous with the very best of hotels it’s Ritz.

And the man responsible for this was hotelier Cesar Ritz.
Born in Niederwald, Switzerland, to a farming family, he began his career at Le Splendide, a hotel in Paris and was maître d'hôtel at Chez Voisin.

In 1878, he became the manager of the Grand Hôtel National in Lucerne and held the same position, in parallel, at the Grand Hôtel in Monaco until 1888.

Ritz’s strength was his ability to understand the needs and desires of wealthy customers and this led to him pioneering the foundations of what we would come to know as luxury hospitality.

In 1888, he opened a restaurant with Auguste Escoffier (thought of by many as the father of modern French cooking) in Baden-Baden, and the two were then invited to London by Richard D'Oyly Carte to become the first manager and chef of the Savoy Hotel.

Ritz is quoted as saying that he put together "a little army of hotel men for the conquest of London".

Under Ritz, The Savoy went from strength to strength and royalty, extremely rich clientele and the powerful could be seen frequenting the hotel and its supper rooms.

In 1898, he opened the celebrated Hôtel Ritz in the Place Vendôme, Paris, France. He went on to open The Ritz Hotel in London, United Kingdom in 1906, which became one of the most popular meeting places for the rich and famous.

The partnership lasted until Ritz had to retire in 1907 due to deteriorating health. Ritz died in Küssnacht, near Lucerne, Switzerland at the age of 68.

Many of the touches that Ritz introduced to his hotels are still standard practice in today’s modern luxury hotels. That is why he has secured his place in the Top 10 Legendary Hoteliers.

2. Conrad Hilton

Who hasn’t heard of Hilton? That’s right, nobody. And while some of today’s generation may first think of his blonde granddaughter, hoteliers conjure up the legend that was Conrad Hilton.

Hilton developed his entrepreneurial flair while working as a young boy in his father’s general store in New Mexico.

He purchased his very first hotel in 1919, a 40-room property called Mobley Hotel in Texas.
The purchase of the property was a matter of chance, as originally Hitlon planned to invest his money in a bank, but the plan fell through.

Luckily it paid off, as the hotel business boomed and he expanded his portfolio across the state.

His first high rise hotel was the Dallas Hilton which he opened in 1925 before expanding into New Mexico.
However, trouble loomed and when the Great Depression hit, Hilton was forced to sell some of his hotels to avoid bankruptcy.

Despite this he was retained as manager of the hotels and bought them back when the economic climate improved.

In 1946 he formed Hilton Hotels Corporation followed by Hilton International Company in 1948.
Fuelling American’s desire for travel and business on a global scale, Hilton became the first international hotel chain, a truly remarkable feat.

He passed away in January 1979 but his legacy is still thriving as the multitude of international lodging companies vie for opportunities in every corner of the world.

3. Bill Marriott Jr.

Now there was certainly an argument to be had as to whether to put his father in the Top 10 hotel Legends list.

However, despite J. Willard being the founder of Marriott and the hotel group’s mentor, it was his son ‘Bill’ who took the company and turned it into the hospitality giant it is today.

His leadership spans more than 50 years and he has taken Marriott from a family restaurant business to a global lodging company with more than 3,100 properties in 67 countries and territories.

Known throughout the industry for his tireless work ethic and his attention to detail, it was his decision to follow a franchise model that allowed the company to compete on the global stage.

His business innovations and ability to oversee a company that is consistently honoured as being a top company to work for firmly establishes his position on the list.



Saturday, July 16, 2011

Increase Revenue in 5 Ways During a Major Event

For a fact, events such as Football World Cup or the British Royalty Wedding have a major impact on hotels occupancy level and revenues.

Whether you are the manager of a B&B or a famous beach resort; without a proper planning prior to any major event, you may find yourself overwhelmed by the patronage you experience when the event begins. 

IdeaS Consulting has put together 5 recommendations for hoteliers and revenue managers  to ''best manage'' bookings during major events.


1 - Minimum length of stay:



Enforcing minimum length of stay requirement will encourage longer booking periods and will have a positive impact on occupancy levels throughout the area.


2 - Find the appropriate balance:

Paying attention to the balance between normal business base and the actual period of the major event will help guarantee that all long-term occupancy levels will be improved.

3 - Optimal pricing strategies: 

A careful and direct marketing strategy needs to be put in place to entice visitors to arrive early than the significant periods of the event. 

4 - Pre-payment plans:  

To minimize the impact of costly last-minute cancellations, it is recommended that hotels implement a system pf phased pre-payment restrictions.

5 - Overbooking: 

Appropriate overbooking levels should be set to counteract the expected rise in cancellations.



The implementation of these recommended strategies, combined with careful and detailed observation of the levels of demand, will allow hoteliers and revenue managers to achieve the correct balance between price and demand.

For more information please visit www.ideas.com


Sunday, July 10, 2011

Creating Value for Women Business Travelers


''Creating Value for Women Business Travelers - Focusing on Emotional Outcomes'' is the title of the latest report by The Center for Hospitality Research
Unfortunately this report did not generate much buzz around it like any other report from The center for Hospitality Research would have.

Thus, this comprehensive white paper suggests a holistic approach to capture the women business travelers segment and focuses on how combinations of services, amenities, and facilities contribute to the desired affective responses sought by women business travelers.

According to the report, gender is increasingly being considered as a variable in attracting the business travel market in the hotel business.

Women have stronger emotional, personal responses to their experiences than do men. Creating a hotel experience with the goal of eliciting positive affect is likely to have a particularly significant impact on women travelers.

Besides the facts that business women travelers is a strong growing market and that women travellers account for nearly half of all business travelers in the States; hoteliers should consider creating value for this new segment of business travelers as soon as possible for the following reasons:

- Business women travel more frequently than businessmen,

- Over half of room-nights spent by women are associated with multi-night stays for meetings, conferences, or conventions,

- During their stay, women include personal time as part of their business which mean they get to use the hotel's facilities more than men - 44% of women business travelers incorporate leisure experiences into their business trip.

That's been said, hotel managers and marketers should focus on the emotional element of the hotel experience considering the fact that women respond to the emotional aspects of their service experience to a substantially higher degree than do men; emotional awareness and emotional intensity appear to be stronger for women.

For more information get the full paper at www.hotelschool.cornell.edu


Friday, July 08, 2011

Google+ brand pages coming in two weeks


Soon after the launch of Google+ came the inevitable next question: When can brands set up pages there, as they have successfully on Facebook? Now, an answer: in about two weeks.

Soon after Google launched its most ambitious foray into social media, a number of companies have already set up hacked pages on the service, most notably Ford Motor Co. In response, Google has set up an application page where firms can apply to become part of Google's initial test phase for business pages. Most likely, Google's forthcoming branded accounts will be somewhat similar to Facebook's company pages, which have become the dominant and driving force behind that social network's advertising revenue.

Meanwhile, Google said it can barely keep up with requests. Christian Oestlien, the lead product manager for social advertising at Google, talked to Ad Age about how the company plans to bring in big companies into its budding social network.

Read more at www.adage.com


Tuesday, July 05, 2011

Why hotels shouldn’t sell a $200 hotel room for $50


I came across a very interesting article today about online channel distribution management; what did really interest me in this article is that it was published by an actual hotelier - it intends to respond to Jennifer Mellet, Expedia’s senior director.

Let's read! 

Rather than abet Expedia in its drive to become a traveler’s supplier of choice, it might be wiser to gamble that hotels’ own channels can achieve more than one sixteenth of what Expedia/Groupon could produce.

 
Tnooz’s June 22 article “Expedia: What Groupon Getaways with Expedia means for hotels,” (why a hotel should sell a $200 hotel room for $50) posits an interesting case. But does it withstand a closer look?

To make the argument, Jennifer Mellet, Expedia’s senior director of new channel sales, presents the following hypotheticals.

$100: What the customer pays
$ 50: What the hotel receives
$ 40: Cost per occupied room (CPOR)
$ 10: Net to the hotel

Assuming 1,000 people buy the offer, the hotel nets $10,000.

Ms. Mellet further claims that “those are 1,000 largely incremental room nights that would have otherwise gone unsold.” No doubt some of the business would be incremental, but how much is really an unknown. It is also true that some cannibalization would occur, which again is an unknown.

At a gross level of analysis, $200 is four times the $50 that might otherwise be sold. On the margin, however (using the article’s $40 CPOR), the Expedia/Groupon deal is sixteen times less than what the $200 sale is worth:

$200 - $40 = $160. 160/10 = 16.

Is it realistic to believe that the Expedia/Groupon offer will deliver sixteen times more sales than the hotel would realize without running the special? Anything is possible, but as a hotelier I would be more than a little skeptical.




Sunday, July 03, 2011

Hotel Social Media Strategy


Embracing social media does not necessarily mean creating a bunch of accounts on different platforms: Twitter, Facebook, Youtube, etc.  

Hoteliers who use the number of their fans, followers and subscribers to assess their social media return on investment are just not effectively embracing social media. De facto, they do not have any strategy at all.

Thus, a strategy is all about where the business is trying to get to, how can the business get there, and how results could be measured.

As they consider their company's social media strategy, the following  are six steps for hoteliers to determine whether they really have a plan worth calling a Social Media Strategy.

According to a report released by Converseon called ''when can you say we have a social media strategy''; a social media strategy should:

- achieve measurable business outcomes
- rest upon unique insights
- specify where to engage
- use the company's unique growth
- define internal changes required to achieve the strategy
- belong to a team with conviction to act on the strategy 

Achieve measurable business outcomes

The strategy that hoteliers should develop must quantify the business outcomes that they expect to achieve through investing in their strategy.    To make a long story short, any effort to grow the fan or followers base should be founded upon clear understanding of the value of that fan or follower.

Rest upon unique insights 

While social media monitoring has a very important role in modern business, no amount of staring at a monitoring dashboard will give the information required to make the critical, strategic decisions that will set your hotel apart from the competition.

Specify where to engage

80% of the variance in revenue growth across companies is explained by choices about where to compete, leaving only 20% explained by choices about how to compete.

Use the company's unique growth

The hotel's social media strategy must clearly articulate the audiences it intended to reach, the actions it intend for them to take, and some explanation regarding why the strategy uniquely suits the audience and the brand.

Define internal changes required to achieve the strategy

The social media strategy you intend to create will only work to the extent that internal teams collectively agree on the changes required to achieve the goals of the strategy.

Belong to a team with conviction to act on the strategy

A strategy will only succeed to the extent that all involved teams share the set of beliefs that support the strategy.


For more information visit www.converseon.com


Friday, July 01, 2011

Engaging Online Travel Shoppers Through Integrated Marketing


According to The Center for Hospitality Research more than 80% of travelers perform an online travel-related search before booking a room. Google reported that the average online shopper visits 22 websites across 9 or more sessions prior to making a reservation.

In the light of these findings, HSMAI in partnership with Vizergy® - Hospitality Marketing Strategies for Hotels and Resorts - has released a white paper to help hotel marketers understand travelers behaviors in terms of online booking and to adapt their marketing strategies accordingly.


According to the paper by HSMAI, the traditional purchasing process passes through 4 stages which are: Awareness, Interest, Desire and Action - AIDA. While this funnel seems to be simple; in reality a person preparing to make a travel reservation online is typically exposed to several touch points as they traverse their complex purchase path: Paid search, Natural search, Email, Banner advertising, Brand websites, Mobile websites, and/or Online videos to name just a few.

What is integrated marketing?
Integrated marketing identifies the best customers and directs efforts towards speaking to them in their language and on their terms. It uses multiple marketing channels, working in concert with one another, to expose your guest to a consistent message throughout their purchase decision process.

As stated in the paper, the role of hotel marketers is to create a ''surround sound'' approach, putting relevant and consistent messages in front of customers at each of their interactions with the hotel's brand - whether through search, OTAs, online reviews or the hotel's own website.
The report identifies three different types of channels in terms of interacting with customers; these are: paid channels, owned channels and earned channels.

Paid channels represent most traditional media and include paid search, display advertising, sponsorships, retargeting efforts and OTAs.
Owned channels represent channels that the hotel controls itself and include the hotel's website, mobile site, blog, and search engine optimization efforts.

Earned channels comes from customers themselves. The most common forms include word of mouth, online reviews, and virtual marketing.

At the other end of the spectrum, hotel marketers should not focus solely on driving the most reservations possible. They should be conscious of whether they are looking to drive awareness, interest, desire, action or ultimately, satisfaction with the brand.


For more information get the full paper at www.vizergy.com