Travel Leaders - Improved Business Travel Outlook for 2011

Travel leaders reveal business travel trends for 2011

I found this article very interesting, as it shows the results of a survey made by travelleaders.com. It reveals the 2011 business travel trends: the top five selection for business travellers while choosing a hotel and the level of business travel for 2011.

The top five selection while booking a hotel room for business travellers are:

1. Location - near meeting venue, or business company (82.8%)
2. Rewards program - frequent guest points (ie. Miles and More) (54.4%)
3. Free WiFi - in guest rooms (31.4%)
4. Near Airport (17.7%)
5. Free breakfast (13.2%)

I am not to surprised to see that business travellers mostly favour a hotel near the business venue or company, as they are on business travel to work, and not to include leisure, although many travellers mix both business and leisure (65.7%). Corporate negotiated rates between companies (ie. Société Générale, LVMH, etc) and hotels are usually contracted as hotels are near a satellite office of the company.

In regards to companies business travel policies, a slight majority answered to say that their had not been any changes compared to 2010, apart from an increase in the level of business travels and therefore in hotel bookings. Indeed the survey showed that the booking levels would increase to 39.7% (28.6% in 2010).

This increase is positive for the hospitality industry as it will give a boost to the activity. However, the hotel activity will have to wait until 2012-2013 to regain the activity of 2007. Furthermore, hotels still have to be creative to stay attractive and competitive as although the level of business travels will increase, companies still try to reduce travel costs.

Link to the article

Comment on Caroline's article - The future of travel loyalty programs

I agree with Caroline on the fact that hotels will need to be more creative to compete with the existing loyalty programs. However, I believe that hotels do not automatically have to create their own loyalty programs. They can create partnerships with existing ones. For example, hotels can create partnerships with Miles & More so that guests can accumulate Miles. Many travellers can be influenced in choosing a hotel if they can accumulate Miles. They can, in the future receive discounts or free flights or room nights.

Alinean Research Reveals Social Media Hierarchy of Needs

This article was written and originally published by Alinean Company, which provides dynamic sales and marketing tools to vendors who work on a B2B level. Through this white paper, Alinean points out a new approach to Social Media to increase a hotel's return on investment. It showed that ROI is increased through engagement, driven by a set of best practices through a Social Media Hierarchy of Needs. This Hierarchy of Needs was created in relation with Maslow's well known hierarchy of needs. Maslow's pyramid represents the human developmental psychology through 5 stages of human needs: Psychological, Safety, Love / Belonging, Esteem, Self actualization.

The hierarchical set of engagement best practices include content, campaigns, monitoring and collaboration. The research's results show that there is a higher return on investment and cost savings if there is a good social media level of engagement from marketers to attract and correspond with followers, influencers, readers ... on social medias. The article adds that all the 4 steps should be well implemented by marketers in order to obtain an effective level of engagement.

I found this article very interesting as I believe that as a future hotelier, every new marketing approcah is good to focus on and analyse to be very effective and efficient in the future. Social Medias are the current best marketing approaches today.Many hotels create accounts on social medias, but they do not really know how to use them correctly, and make the most out of them, therefore this social media hierarchy of needs can be a helpfull tool for hoteliers to create new business and increase their ROI.

Link to article

Comment on Alia's article - Almighty Tripadvisor

Thanks Alia! This article was very interesting. I find it a good initiative from Trip Advisor to let customers leave reviews on airline companies. Airline companies and hotels are part of the same business, which is tourism, so I believe they should also be ranked. I find it fair enough that customers could make their booking decicions thanks to other customers comments. I agree with the importance of transparency. I believe Airline companies should take it as an opportunity to improve what needs to be improved, or changed.

Link to blog

For hotel marketers, Groupon is not as attractive as it looks

Groupon.com is the current it-website, just like you have it-bags in fashion. It offers special deals  with up to 60-70 % discount on hotels, restaurants, spas, ... rates. It is very attractive for customers, but a little less for hoteliers. It may seem at first very interesting for hoteliers as it is a new source of revenue, but it is not to be used at all times.

Indeed, the article reveals the advantages and inconvenients of working with Groupon through hoteliers' points of view. It appears that the special deals made on the website is not very interesting for hoteliers as they have to considerably cut down their prices; more than they expected. To make special deals to appear on the website, hotels have to lower their prices of at least 50%, with an additional 10% commission rate towards Groupon. That leaves a small revenue in the end for hotels.

I agree with the article when it says that it is interesting for hoteliers to publish special deals, but only through rough times. When the activity is low, it can bring revenue.

"...some revenue is better than no revenue at all."
This statement is true, but I believe that hoteliers should be careful not to sell too cheap. Indeed, if they reduce their prices too much, they might sell at a loss. A very cheap deal is great for customers, but on the other side, it can cost much more for hoteliers. Indeed, they have to make sure they cover their fixed costs before selling cheap. Hoteliers should analyse when to work with Groupon, and at which price.

Link to article

Affiliation Program - Part 2

Affiliation Program Part 2 on Prezi

Affiliation Program - Part 1

Affiliation Program on Prezi

Comment on Emilie's article - How travelers use online and social media channels to make hotel-choice decision?

I agree with the fact that it is better for hoteliers to get direct bookings rather than reservations through OTAs as they have a high commission rate. As Emilie pointed out, it is important that hoteliers understand guests booking priorities. This article and Emilie's comment are interesting and relevant when they state that hotels should be more visible on search engines and social media. These web tools are part of the booking process, as well as hotel reviews websites. Hoteliers should also bear in mind that nowadays, customers are looking for the best deal rather than brands.

Link to blog

Buyers Facing Longer, Tougher Hotel Rate Negotiations

Within the last context of economic crisis, the international tourism has decreased since end of 2008. This decrease has touched all segments related to the tourism industry: airline companies, touristic monuments and mainly hotels. Both individuals and companies had reduces their travel expenses in order to make savings.
As companies had reduces their travel expenses, they reduced the budget allowed to hotel negotiated rates. Therefore some companies had to negotiate rates with 3 star hotels instead of 4 star hotels for example; they reduces hotel ranking. In order to stay competitive, 4 star hotels decreased a lot their usual rates and did not automatically include amenities such as breakfast, internet access or access to the fitness center.

Today, hotels activity has started back, but is not as successful as in 2007. Consequently hotels are increasing their negotiated corporate rates, which I believe is a right thing to do; but companies do not  really see the situation as being positive. Hotels have increased their rates by 10-15 %, and I understand that companies are not willing to pay rates that high. This leads to long negotiations.

In my personal opinion, I believe that it is important for hoteliers to increase their rates in order for them to recover from the economic crisis. Rates have considerably been reduced during the last 2 years.  If hoteliers do not increase their RevPar and GopPar, it will be very difficult for them to stay competitive and regain their 2007 health.10-15% is a high rate increase, but it is essential on along term basis.

Link to the article

Reputation Management - Aria Resort & Casino Las Vegas

Reputation Management on Prezi

Sixth Sense in luxury hotels

Digital Marketing MBA - Sixth Sense MIT on Prezi

Comment on Deborah's article - Are customized prices next for the travel industry ?

I believe customised prices can be very tricky for consumers. Indeed, some people may not understand the variations of prices as they do not automatically read the conditions of sales involved, so they book the cheapest price without reading the sales policy. I believe their is a duty for the company to be very clear with these sales conditions, as they are not always very well explained. On the other hand, there is a duty for the guest to read these sales conditions.


I agree with the fact that airline companies can sell additional services such as additional meal, or a bigger seat. I encourage upselling as long as the guests are willing to pay for these services. We can already find this time of upselling in the hospitality industry. Some hotels have added the dynamic packaging to their booking engines, to encourage consumers to book additional services while booking the guest room.
 
Link to comment

Do hotel brands still matter?

Today, the hotel industry worldwide is full with thousands of hotel brands. Some brands are much more internationaly known than others. But the real issue here is to understand if brands still matter. Customers have changed their booking priorities since the Great Recession. This article points our these new priorities as being price & value and the rise of generation Y.

Nowadays, customers book a room based on the price. They look for the cheapest price, the best deal rather than the brand behind. They also look for the added value to this price such as breakfast included; free internet access; or if they are additional charges. According to a survey, the attribute "brand name of the hotel/resort" was further down on the list of priorities compared to the value attributes. People also like to compare the hotel prices through OTAs, and therefore do not really look for the hotel brand.

The generation Y is feared by the hotel professionals as these new travellers seek for authentic guest experience, and are much more willing to discover new places each time, which makes brand loyalty much more difficult.

I believe that since the economic crisis, customers have neglected integrated hotels and franchises towards independent hotel, which means they have neglected famous hotel brands. Some people have the impression of entering into a factory when staying in a hotel like Marriott, Hilton or Holiday Inn. They believe they receive a more cheerful and welcoming service from independent hotels. In my personal opinion, I would rather stay in an independent hotel for its uniqueness rather than staying in a franchise. I am not really brand loyal, but more looking for a unique experience.

These new booking priorities have led to an increase of voluntary hotel chains on the hospitality market. They are being more and more competitive as they reprensent independent hotels. Hotels need to take into account the changing needs of travellers. They need to be very well positioned on the market in order to stay competitive, which they can do by being very creative and attractive towards OTAs, customers, etc. This makes the business even more challenging!

Link to the article

Influence Marketing - K West Hotel

K West hotel

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