We Are Number 1!

Some of you see it as a valuable tool while others see it as just another “social media” website. No, I am not talking Facebook, but in this case, Trip Advisor.

Last week Htel Serviced Apartments reached the number one spot on Trip Advisor in the “specialty lodgings” category.  The ascent to the number one spot has come 1.5 years after Htel revamped their marketing initiatives and implemented a new strategic marketing strategy. At the core of this new strategy was an emphasis on online marketing, their website and social media providers.

In addition to the number one ranking on trip advisor, the deliverables of their new strategy have been two-fold:

1. Revenue generation from their website (and its internal booking engine) have surpassed projections/expectations.
2. The monetary costs associated with this strategy have it ranked among the lowest of all marketing/distribution channels in our industry.

To summarize – overall marketing costs decreased 35% and business has increased beyond expectations - proving that there may be some merit to this type of strategy. As a result, Htel and their formula is worthy of our respect, recognition and analysis.

Is your hotel currently exploiting the online market place or are you somewhat lethargic in embracing the internet, your website and social media? If you are in the latter category I encourage you to take a quick look at the article on Htel (sourced at the bottom of this post), and take a critical look at your online presence and its effect on your business. Htel has proven that, should you leverage your resources appropriately, tremendous opportunities can be garnered from an aggressive and strategic push into the online marketplace.   

Please feel free to view the original article of Htel's strategy here.

Getting Smart About Smart Phones

My Monday morning started like every other Monday however, my brain would very soon be racing as I contemplated mobile phones and their place in not only our business, but the world.

Pedro Colaco, President and CEO GuestCentric, provides a commentary regarding the use of smartphones and their relevance to hoteliers. Specifically he feels it is in a hotels best interest to ensure their website is, at the very least, mobile friendly, with a separate mobile site being the preferred manner to engage Smart Phone users. Pedro notes the following trends are currently occurring in our industry:

1. 19% of hotel queries are initiated from a mobile device. 
2. Mobile traffic/Smart Phone penetration is growing exponentially month-by-month 
3. 3% of mobile visitors engage the hotel 
4. 1% of mobile visitors will book a hotel room

I think we need to look at the preceding trends appropriately and realize that there is a shift in the way consumer’s access information. As hoteliers, and for that matter business people, we need to adapt to the changes in the market place to ensure that purchasing our product is made as easy as possible for potential customers. 

Pleaseclick here for a directly link to Pedro’s commentary.

Resistance Is Futile: PCI Compliance

PCI (Payment Card Industry) compliance have you heard about it? Apparently it is a big deal these days?

Despite the flippant nature of the intro, no matter your business, you need to be cognizant of PCI standards as they can have tremendous repercussions on your business.

I had the privilege of watching a short video today on this very issue.  I felt the issues discussed were extremely important, and as a result, I endeavored to write a quick blog post on the subject so anyone who is dismissing PCI as a fad or the flavor of the week will reconsider. PCI is here to stay and you need to adapt.

The short video – link provided at the conclusion of this entry – profiled Carla, a business owner.  Her POS system was breached, and this breach went unnoticed for 7 months. During this time the hackers stole her customer’s credit card information, encoded the mag stripe on fake credit cards and subsequently sold these cards for use.

Needless to say this has been a headache for many reasons including:

• Carla was fined by her merchant bank – as when a breach happens the Credit Card Company fines the merchant bank, whom then passes these fines onto the retailer.

• The merchant bank now holds an unspecified percentage of Carla’s transactions “in case” a subsequent breach occurs and Carla is fined.

• Carla has spent about $110,000 USD trying to sort out this issue

• Carla’s business has faced a drop in repeat business

It is interesting to note that when a business is compromised, as many as 60% of their customers will never frequent said establishment again. This is a jarring number. We all heard of the TJ Max incident, but what we never hear about are the small businesses, like yours, where fraud happens every day. I hope by writing this blog you will think about this issue and take the appropriate precautions. The following is a short list of places to start, but by no means is it exhaustive of all precautions you should be taking within your business:

• Use a firewall, anti-virus and ensure your software is up to date.

• Change you passwords frequently

• Turn off remote access to your system when it is not in use/needed

• Contact your PMS/POS provider, ensure they are PCI compliant and ensure they do not store ANY information you do not require.

• Finally stay educated, this is paramount to ensuring you are aware of the latest news and developments regarding the security of your transaction related data. 

Please feel free to take a quick look at the following video, it is 12 minutes in duration but trust me, it is 12 minutes well spent. 

But Last Time I Stayed You Only Changed Me….

Imagine, no more seasons, event weekends or rate codes which apply to the market as a whole. In the future, when you book a hotel room, your rate will not be applicable or available to anyone but yourself. 

Or so is the dream. 

Currently hotels offer various rates which apply to the entire market or,  if you possess certain qualification - for example corporate, AAA - a subset. However, in the future when you call to book a room you may receive a rate which has been tailored for you based on your previous stay history. 

According to an article posted on ehotelier, such a strategy is already being employed by Harrah’s Entertainment. The article goes on to explore the relationship between consumer relationship management (CRM), which has traditionally been used as a database to track customer information and possible integration with a revenue management system (RM).

This hybrid CRM/RM takes a longer term view of a guest, taking previous stay history into account when drafting a price for their stay. The end goal of this new system is to allow hoteliers to predict, with greater accuracy, the spending habits, behavioral patterns and ultimately, the lifetime value of any individual customer.

Product customization is critical for any business going forward. Consumers want one on one relationships and anything your business can do to individualize each of your clients is integral to future successes. 

To take a look at the article in its entirety please visitehotelier by clicking here.

Riding Off Into The Sunset

Well done Fairmont Hotels. 

Fairmont just announced that they are expanding a partnership with BMW to provide guests with complimentary bicycles - on a side note, yes, BMW does make bicycles.

Fairmont Hotels has previously only offered complimentary bicycles to guests in Canadian and US properties. But as stated, as of today, they are expanding this program to virtually all hotels which bear their name.

I find this idea to be a very smart move by Fairmont Hotels. For a minimal investment (per property) they have: added value to their offering, garnered favorable media attention for the Fairmont brand and have appealed to the growing concerns of consumers as it relates to their environmental footprint.

Would a similar program work in your geographic location? Is your geographic location conducive to bike travel and without a Fairmont Hotel. If so, perhaps you can employ a congruent strategy to that of Fairmont; build your brand in the media and add value to your offering, all for a minimal investment.

In a time where, in many markets, we are confronted with an oversupply of rooms, initiatives which add value will allow your property to cement your position in the market and grow your business over time.

Please click here to see the announcement in its entirety courtesy of Fairmont Hotels.

Let The Walls Come Down

Short term growth, meaning the next 3 years, will be secured by removing barriers within your organization. Or at least this is what Amadeus and Robert Cole suggest in a new report. 

According to the report hotels need to align their overall business strategy with their IT strategy. There is a perception, among those who compiled the report, that a gap exists between a hotel’s technology, marketing and operational departments. 

To make this change as quick and efficient as possible the author’s introduced the concept of an IT Pathfinder. The goals of the pathfinder, which could be a person, role or organizational approach, are three fold: 

• To understand how the operating environment impacts key business drivers

• To link IT initiatives to corporate strategy

• To roadmap ways to create economic value from IT initiatives

This report is very timely as we are emerging, albeit slowly, from the recession. Trends seem so indicate the next 3 years will be much more profitable than the last three which makes this an opportune time for investment into your business.

The article is about 30 pages long, but it well worth the read as it discusses some issues which every hotelier should think about, specifically organizational alignment and its role in growth.

Please check out of article courtesy of Amadeus here.

Coming To A City Near You (If They Already Haven’t)

Tax, argh! My stomach gets tight just thinking about the dreaded T-word. However, it appears as if those of us in the hotel industry will have to face this reality sooner rather than later, if you have not already that is. I am of course talking about what is known as the destination marketing fund.

After reading an article earlier today by Dale Dyck I am more convinced than ever this taxation scheme will appear in more and more locations not only in Canada, but around the world.  Dale discussed and I would agree with, the fact that tourism usually flies under the radar, in terms of government attention, when compared with more traditional industries.  When American visitation (Canada’s largest source of tourism revenue) fell during the last couple years, where was the government to lend a hand to struggling hotels and hospitality operators? The Government was  too busy bailing out the auto industry with their large unionized work force; and a little thing called tourism slipped under the radar.  

However, despite government neglect, the tourism sector consists of resilient and brilliant problem solvers who find a way to survive no matter the cost. Subsequently Dale references hotels and their desire, more so than other tourism operators in the same city, to ensure the long term success of their industry. Until this point it has been the hotels, not tour operators, who have been implementing and collecting the tax. Is this fair? Probably not, but it is likely to continue into the future and you need to be prepared. 

Please feel free to take a look at Dale’s article here. It is an interesting read about an issue which is going to become more and more prevalent in various markets around the world.

How To Buy Property Managment Software

Capterra, the online software marketplace, recently conducted an interview with one of our employee's. Trevor had a chat regarding how to buy software and some considerations every hotelier should have atop their mind when undertaking the process. See below for the link the Capterra's blog.

Check out the blog post here!

Changing The Way We Purchase Vacations

Expedia, one of the world’s largest third party distributors of travel products, and Groupon, the daily deals website, have partnered to create “Groupon Getaways with Expedia.” 

The new partnership is going to follow Groupon’s current business model. Customers will receive emails, with a daily deal and have a finite amount of time to purchase said deal. The deals do not have to be used right away, so a user could purchase a deal and subsequently plan the trip for a future date. 

My question to you, as hoteliers and individuals involved in the hospitality industry is does this new partnership matter to you? Are you going to use this method to reach an audience who may or may not have tried your offering in the past? 

Initially this seems like a great way to unload inventory in your less busy times of the year. While your ADR would be a lower it could have a dramatic impact on your RevPar. However, I do question a person’s willingness to impulse buy hotel room nights (with or without the packaging of an airline component). Typically these decisions take some thought and foresight. Will this new business model change the status quo regarding the decision making process a person typically undertakes when planning/booking a vacation? It may be too early to tell, but with Groupon Getaways with Expedia set to launch in June 2011, we won’t have to wait long to find out.

Hospitality, You Will Be Terminated

Ask yourself the following question: what is the biggest influence on the overall satisfaction of your guests.  If you are like me in your thinking, you will say the service provided by your staff. Well, to quote the Terminator franchise, guest service, prepare to be terminated. 

In an attempt to be on the leading edge of change Starwood Hotels is launching an innovative initiative when it comes to their Aloft brand. The main point of interest is the introduction of what Starwood calls the “Smart Check In” which is available to Select Starwood Preferred Guests at five Aloft properties.

The procedure is simple, when a person wishes enrolls in the program they are sent an enhanced Aloft branded RFID keycard. On the day of check-in the guest receives a text message to their mobile with their room number. Upon arriving at the hotel the guests can go straight to their room where their enhanced keycard will open the door and thus, completes the fastest check in of all time. 

The question for us, meaning all of us in the industry, is will people value efficiency over service and the personal connection which accompanies it. Would you rather by pass check in and proceed right to the room with no waiting and/or hassles. I know I would. 

As participants in this industry we all need to be cognizant of innovations such as this; technology is enabling advances in the industry which were once deemed impossible.  

Source: Starwood Hotels