August 25, 2008

E-Commerce - Perception versus Reality

Electronic commerce over the Internet is predicted to grow at an ever-increasing rate over the next few years, with on-line sales already heading for several billion. Yet, instant gratification is still the current perception of e-commerce on the Internet to the world at large. A profusion of web-sites announce, "Three steps to build your website" - "Use our Shopping Cart Wizard and be selling on the Internet in a few minutes" - "Free templates" - "Free Hosting" - "Complete web-sites 'Only $199' - "Four million e-mail addresses only $24.95" - "Search engine submissions to 2,000 search engines only $19.95". So, the myth is perpetuated.

See here for the full article - http://www.imscart.com/Reports/hotel_ecommerce.htm

"This article is still relevant - Why would you take a free reservation software? Who gains by using your efforts to promote their website and not yours? Or, are there hidden commissions?"



Best Practices on Monitoring Hotel Review Sites - An Action Plan for Monitoring and Responding to Internet Chatter about Your Hotel - By Max Starkov and Mariana Mechoso

Hoteliers often ask HeBS how they can monitor the Internet chatter surrounding their hotels and whether or not they should pay for services that offer this type of monitoring. What hotel review websites should you monitor? How often should you check for reviews about your hotel on these websites? Should you provide a rebuttal for reviews? These are just a few of the questions hoteliers ponder on this subject. This article offers a free, quick, and easily implemented action plan for monitoring reviews about your hotel.
Background:

It's common knowledge that the Internet has certainly changed how travel consumers perceive the credibility of information. Any discrepancy between "official" and "unofficial" content should be dealt with immediately. A travel supplier has to stand by its product/service, but cannot ignore the 'popular vote' for its product's quality. HeBS surveys and our own research show that consumer-generated content on social media sites and networks is perceived as more credible by online travelers. And the bigger the disparity between official and unofficial content, the bigger the gap in credibility.

Social Media (Consumer-Generated Media) is online content created by Internet users and made available to other Internet users via Web 2.0 interactive technology applications. Hotel review sites such as TripAdvisor.com are part of the Social Media phenomenon.

Fact:
- 38% of US Internet users (72 million) use a social media site at least once a month

- 89% of US Online Buyers read customer reviews before they buy
- 43% most of the time, 22% always
(eMarketer)

So what are the most important hotel-related customer review sites? As part of a brand-defensive strategy, it's unnecessary to monitor hundreds or thousands of review sites, but only the handful that the majority of travel reviewers' visit. These sites are:

- TripAdvisor.com: TripAdvisor receives over 30 million visitors every month. The hotel can actively respond to any customer review via the 'Hotel Owner's Page' by using the link located at the bottom of the page with customer reviews and then clicking on the 'Respond to a Review' link.

- Expedia.com: Expedia is the largest online travel agency (OTA). Currently the hotel can monitor all of Expedia's customer reviews, but cannot actually respond to a review.

- Google.com: Google is the largest search engine with 60% of search traffic in the United States, and more than 75%-80% of traffic in Europe. Google provides a sampling of reviews for each hotel from TripAdvisor and other review sites (type in the hotel name + location, and then click on Reviews under the hotel listing). You can then visit each of the review sites and respond to an actual review there if allowed.

A Word about Web Reputation Monitoring Tools

Several vendors have launched "Web Reputation" monitoring tools for hotels. The cost ranges from the absurd for more enterprise-level applications, to more affordable solutions at a cost of $150-$250/month. These new tools supposedly automate the process of monitoring who says what about the hotel on as many as 25 million consumer-generated sites, plus they claim to automate the hotelier's response to such postings. Here is what we think about services like this one:

- What these services do for $150+/month, Google Alerts and Technorati Watchlist do for free. Google is the most comprehensive search engine that now indexes the whole blogosphere and consumer-generated sites as well. Techorati is the most comprehensive blog and consumer-generated media search engine today.

- Some of these vendors claim that they monitor 25 million consumer-generated sites out there. Google searches 12 billion web pages. Technorati searches 101.2 million blogs and over 250 million pieces of tagged social media.

- There are only a few customer review sites that matter and these are TripAdvisor, Expedia and Google.

- Some vendors say they inform you of the negative postings about your hotel and "automatically post your responses" - however the most important sites like TripAdvisor, Yahoo Travel Planner, etc. do not allow such automatic postings.

Action Plan for Monitoring Internet Chatter about Your Hotel

One designated person at the property needs to be responsible for monitoring reviews and comments on a weekly basis about your property on Google, TripAdvisor, and Expedia, so they can immediately address any issues and act appropriately. You must authorize someone specific at the property to respond to reviews (both negative and very positive).

Important Considerations:

- Determine who 'owns' the process of monitoring and responding to customer reviews and then issue an internal memo:

- Make a staff member responsible for monitoring customer reviews on TripAdvisor, Expedia and Google on a weekly basis

- Authorize someone at the property to respond to:

- Extremely positive customer reviews

- Negative customer reviews that are dead wrong

- Negative customer reviews that are right on target

- Address the issue of when, and in what cases, the GM should be alerted

Our experience shows that the Front Desk Manager or DOSM can handle this responsibility equally well. This person may simply review these three websites on a weekly basis as well as sign up for both Google Alerts and Technorati Watchlist.

Here are some quick tips for responding to customer reviews:

- Thank the customer for taking the time to write a review

- Apologize profusely if the customer is right on target with their negative review

- Provide a simple, short explanation of what really happened (if such an explanation is possible)

- Assure the reviewer and hotel guests in general that every possible step has been taken to address the problem or service in question

- Offer a direct line of communication between hotel management and the reviewer (via email, direct phone line, etc.) in order to rectify the situation

- To conclude the response, use any elements of the customer's comments that are constructive (e.g. great hotel location, comfortable rooms, etc) to put a positive spin on a negative review.

Conclusion

Hoteliers need to work hard to nurture happy customers and avoid negative postings. They must monitor reviews on hotel review sites, TripAdvisor in particular, and react immediately if an extremely positive or negative review is posted. Designate one person at the hotel to monitor these reviews weekly and to use tools like Google Alerts and Technorati to monitor all online chatter about your hotel.

It's much better to react to these postings and show your current and potential customers that you are 100% committed to serving them by addressing any and all problems, rather than ignoring complaints. You may be under the impression that responding to a negative review is a wasted effort because this customer will probably never return. However, your response should be primarily focused on assuring the traveling public that the issue is being addressed and the hotel is dedicated to customer service. Your response will also speak to future potential customers who might stumble on this review and the hotel's response.

As you evaluate your property's Action Plan for monitoring hotel review sites, seek advice from an experienced and ROI-centric Internet marketing hospitality consultancy to help you adopt industry's best practices and implement the latest trends.

About HeBS
Max Starkov is President & CEO and Mariana Mechoso is Director, eMarketing Services at Hospitality eBusiness Strategies (HeBS), the industry's leading Internet marketing and distribution strategy consulting firm for the hospitality and travel verticals. Based in New York City, HeBS has pioneered many of the "best practices" in hotel Internet marketing and direct online distribution. HeBS specializes in helping hoteliers build and enhance their direct Internet marketing and distribution strategy, boost the hotel Internet marketing presence, establish interactive relationships with their customers, and significantly increase direct online bookings and ROIs. The firm brings a unique perspective to the industry, gained through working with over 500 hospitality companies including major brands, independent hotels, casinos, convention bureaus and hotel management companies worldwide. Find out more about HeBS at www.hospitalityebusiness.com, or contact HeBS at (212)752-8186 or info@hospitalityebusiness.com.

Is This The Summer Of Our Hospitality Discontent? - By J. Ragsdale Hendrie

It has been tough, folks, and we do not need to beat the drums about the obvious, particularly in the United States. But, there are always silver linings, admiration for those Hospitality companies which have hunkered down and navigated the economic trough, as well as those who understand the cyclical nature of the business and have planned forward.

Consultants to the Hospitality Industry usually have some down time in the summer - time to work on their tan, their golf handicap, garden weeds, and bikini contests. There is great opportunity to digest all the white papers, opinions and news about the 'devaluation' of our Hospitality brilliance - restaurants going under, development curtailed and spiraling, room rates and occupancy way down, travelers herded into truncated flight patterns - the price of everything just sky rocketing - very tough times for we Hospitality providers. Can we make that silk purse out of this sow's ear? Absolutely!

Keep your Brand in the public eye. We should have learned that absence does not make the heart grow fonder, rather you fall off the radar screen, in this case the Internet. Our content providers have been generating news, but very general in nature. This is the time to tell the marketplace what you have been doing - your promotions, your innovations and your successes. There has been a real void this summer. Fill it with your advertising and press releases. Be judicious with your budget and media buys, but get out there with the Brand message.

Beware discounts. This can be very tricky, for you want to fill some rooms and tables, so 'specials' populate the landscape - free gas, breakfast buffets, dates with Brittany, etc. Once these become expected, they become the norm, and it is very difficult to elevate the business and charge more for what we used to give away.

The usual just does not work anymore. We all know this, yet we retreat to the comfortable, the familiar, the time tested. It certainly has not worked for the Newspaper business or the automotive industry, where innovation was crushed for the immediate gain, which was elusive. You see this approach particularly in the Destination Marketing world, where they throw out clever ideas, invest heavily in promotion, and then the destination community cannot deliver. That is what we are selling - delivery on the expectation, where every player has a role and responsibility to deliver an authentic, honest Experience, differentiated by service. So, do not turn just to Management to drive the innovation process, engage those who do it every day, your employees.

Ah, the warm bodies. Sourcing talent certainly has become no easier. Talent may be the wrong reference here, although that might be the goal. The labor pool has changed dramatically, and we need to look at what we are offering to, in many ways, a disenfranchised level of applicants. There is an active battle going on - living wage, affordable benefits, respect, impacted by language, culture even religion. It is the changing face of Human Capital. Hospitality careers are not at the top of the list. Many of our leaders see this as the number one priority - manpower planning, development, and deployment.

These are not just 'end of summer' musings. The issues are very real. They touch upon sustainability and sensibility. We are living challenges right now, but we know this will not last forever. However, what will we see at the upswing? By all indications, we will face a very different Hospitality marketplace. If we have not done our homework and applied a little introspection, we will enter this new phase unprepared rather than undaunted. We need to get on track! For others of us, our boards are waxed and surf's up. Tally ho!


The author, J. Ragsdale Hendrie, believes that Remarkable Hospitality is the portal to the Guest Experience and offers solutions through www.hospitalityperformance.com.

email: jrhendrie@aol.com
phone: 978-346-4387

Web Cast - Preparing for an Economic Recovery - Trends and Tactics for Hotel Sales and Revenue Managers

This web cast takes a look at the trends and scenarios for 2009 and what hotels can do now to prepare to take advantage of an upturn in the economy.

There are a few points of light poking through the clouds of economic gloom - the price of oil and gas at the pump is coming down, the housing market is stabilizing in many markets and unemployment, while higher than a year ago, is still at a reasonably low level below 6%. The tight credit markets are preventing many new hotel development projects from moving forward that would add to additional supply in the medium term.

What do these glimmers of a fragile economic recovery mean on the ground at the property level for hotel sales and revenue managers? 'What I am hearing from hotels is that they read the news but want guidance on tactics they can use at their hotels - now,' states Carol Verret. 'If there is a recovery beginning in late Q2 2009, the consensus is that it probably won't mean a swift return to the 'boom' years of 2004-2007.'

This web cast takes a look at the trends and scenarios for 2009 and what hotels can do now to prepare to take advantage of an upturn in the economy.

- Revenue Management. What is the potential impact of lower oil prices? What will be the impact of airline capacity cuts? What does this mean for consumer buying behavior? What impact will this have on hotels' ability to increase rates and by how much?

- Online Travel Agencies. The OTAs are posting double digit profit increases. As these are probably the most expensive of all reservation channels, will the leisure traveler still look for price and value over brand loyalty? Will the entry of the OTAs into the corporate travel market impact hotels?

- RFPs and Corporate Travel. If you hold the line on rate, will you be leaving money on the table if an economic recovery occurs? Negotiating rate and terms such as last room availability - will it really be a 'buyers market' in the longer term through the end of '09?

- Group Business - Corporate and Leisure. Will the corporate and association meetings markets return to travel patterns of the past - national meetings, longer stays, less attrition? Will the social group market come back and begin to look for value and not price?

While there are no hard fast answers, we will look at the trends and explore strategies that will allow hotels to develop tactics for walking the line between being too aggressive versus not aggressive enough.

This web cast should be attended by revenue managers, sales and marketing professionals as well as GMS and anyone else involved in the planning process.

The web cast will take place on August 22 at 1:00pm EST, noon CDT, 11:00 am MDT and 10:00am PDT. The fee is $139 for a single connection and $129 for two or more connections from the same company.

To register click here.

Also, join us in Portland, OR at the Hotel Fifty on September 19 for the sales seminar 'I Hate Cold Calls' - a cost effective way to provide the sales staff with the skill sets they will need in this economy. For more information click here.

Sheraton Hotels & Resorts Transforms the Hotel Lobby Experience with Microsoft Surface

Sheraton Hotels in Five U.S. Cities Debut Microsoft Surface, Putting a Virtual Concierge and Unique Entertainment Experiences at Guests' Fingertips

Sheraton Hotels & Resorts and Microsoft Corporation (NASDAQ: MSFT) today introduced an entirely new hotel guest experience with its debut of Microsoft Surface, Microsoft's first commercially available surface computer. Featuring easy-to-use technology and a natural way of accessing information, Surface units will be placed in the lobbies of select Sheraton hotels in Boston, Chicago, New York, San Francisco and Seattle. Microsoft Surface breaks down the traditional barriers between people and technology, providing simple and instant access to information and entertainment. Sheraton will be the first hotel to offer Microsoft Surface, creating a new Sheraton brand experience that will bring interaction, connectivity and a social setting to the lobby, providing guests with an entirely new way to explore local tourist highlights and enhance their hotel stay.

Microsoft Surface is a 30-inch display in a table-like form factor that several guests can use simultaneously. The intuitive user interface works without a traditional mouse or keyboard, allowing people to interact with content and information in a more natural and familiar way, by using their hands and gestures. Sheraton will unveil Surface today at five hotels: Sheraton Boston Hotel, Sheraton Chicago Hotel & Towers, Sheraton New York Hotel & Towers, Sheraton Gateway San Francisco Airport Hotel and Sheraton Seattle Hotel.

With each unit, Sheraton is offering a customized version of the Microsoft Surface developed suite of applications to provide entertainment and information about local attractions. Surface, and these unique applications, are designed to serve the needs of the brand's core guests who are social individuals seeking to share the travel experience with each other. The placement of the Surface units in Sheraton lobbies enables guests to leverage and experience the offerings in a social way.

Three highlighted applications are:

CityTips(R) - At the guests' fingertips are the Surface 360-degree satellite maps and tools to search for local restaurants and bars, entertainment, recreation, shopping, transportation and services, such as banks and pharmacies. Guests can discover all a city has to offer by simply moving their hands across Surface.

Sounds of Sheraton - Microsoft Surface also serves as a lobby-based digital jukebox, enabling guests to create personal music playlists by choosing selections from Sheraton's exclusive offering of Sony BMG artists, including John Legend, Kenny Chesney and Lauryn Hill.

Sheraton Snapshots - Guests can explore Sheraton hotels and resorts throughout the world by simply browsing the Surface photo library of Sheraton resorts and hotel properties to help them plan for future business or leisure travel.

'Sheraton is redefining the hospitality experience by offering our guests technology that will allow them to interact with each other and our hotel in a revolutionary way,' said Hoyt H. Harper II, senior vice president for Sheraton. 'We are proud to partner with Microsoft to offer the groundbreaking Microsoft Surface product, which will enable our guests to stay informed, connected and entertained while traveling.'

'We're excited to be working with Sheraton in its efforts to feature innovation and redefine the guest experience in its hotel properties,' said Pete Thompson, general manager, Microsoft Surface. 'Surface takes a common activity, such as looking up information about a local city, and transforms it into an intuitive and social way for hotel guests to plan their visit. We believe this is just the beginning of how Surface will completely change the hotel guest experience.'

Sheraton Locations Featuring Microsoft Surface

Sheraton New York Hotel & Towers - 811 7th Avenue 53rd Street, New York
Sheraton Boston Hotel - 39 Dalton St, Boston
Sheraton Chicago Hotel & Towers - 301 East North Water Street, Chicago
Sheraton Seattle Hotel - 1400 6th Ave, Seattle
Sheraton Gateway San Francisco Airport Hotel - 600 Airport Boulevard, Burlingame

Microsoft Surface brings to life a whole new way to interact with information that engages the senses, improves collaboration and empowers consumers. By utilizing the best combination of connected software, services and hardware, Microsoft is at the forefront of developing surface computing products that push computing boundaries, deliver new experiences that break down barriers between users and technology, and provide new opportunities for companies to engage with people.

August 18, 2008

The Challenges and Opportunities for Independent and Boutique Hotels in a Difficult Economy - By Carol Verret

Independent and boutique properties have a several advantages over their branded counterparts. The first is the trend in experience travel and the second is the use of the internet in making travel decisions.

The internet is the great level playing field with equal opportunity for both brands and independents. 'Fully 72.2% of Internet users in the US named the Web as their primary source for travel research in June 2008,' (EMarketer quoting a Prospectiv study, July, 08)

In a research article in July 08, USA Today reported that the Luxury sector of the market was holding up well and that '...households earning $100,000 and more now account for about one-third of hotel stays.' The 'sort of' good news appeared in another report by eMarketer where a survey indicated that 'The focus on value matters because price trumps brand in an economic downturn, according to a survey of consumers.'

These two would appear relatively contradictory but the key word here is value and not just in terms of price. Robert Mandlebaum with PKF recently published a study of boutique hotels that indicated they prosper more in good economic times than their branded counterparts but also are also more highly impacted in poor economic times. (PKF, 4/22/08)

In terms of independent conference facilities, a PKF report by Dave Arnold on Trends in the 'Conference Center industry is relatively upbeat (July 08). The study goes on to say however, that the industry is currently battered by '...meetings being postponed or cancelled due to corporate fear of deeper economic problems. In addition, the problem of attrition is surfacing for the meetings that are being held', he believes that the downturn may have 'bottomed out'. '(T)he historically low value of the dollar is making our industry more desirable for foreign visitation, while international meetings for US firms are economically unviable. New supply of conference centers is being greatly restricted due to the tight financial markets. This only serves to make existing centers more valuable...'

Four things that independent hotels and resorts can do now to enhance their revenues in this economy:

- Define the uniqueness of the experience. What makes you special? How can you add special experiences to enhance the 'unique' quotient? One unique, historic hotel has added 'wine tasting' dinners in partnership with a regional vineyard. They promote these periodically in the off season and they have been highly successful. These enhance F&B revenues as well as room revenue as they are marketed to a regional market. What venues of local interest such as museums or festivals can you partner with to package an enhanced experience?

- Align with third party organizations that contribute to the sales effort. What affiliations do you have with third party representatives to enhance you position on the internet. How much have these affiliations actually contributed to revenue? There are some third party affiliates such as Luxe Hotels, among others, that actively 'sell' groups and provide connections with other revenue generating channels for their members. A cost benefit analysis of some of these affiliations is in order during tough times when any marketing initiative is compelled to prove a price/value equation.

- Have a powerful presence on internet channels - both group and leisure. Visitors to the online agencies as a whole were up 8% in May, according to comScore, while traffic at hotel sites was flat in May '08. Having Merchant Agreements with the OTAs is critical and offers such benefits as packaging options and placement on special travel experience searches, such as Beach Vacations, etc. Being present on group RFP sites both corporate such as StarCite and social sites such as Groople.com provides another channel that can enhance the property's sales effort. Don't forget the critical importance of review sites - better yet, start a blog that invites comments from past and regular guests.

- Focus sales and marketing efforts regionally. Both leisure and meeting travel is drawing into more regional destinations unless you are located in an international gateway city. The 'one tank of gas' rule has been the benchmark for summer auto travel (New York Times, August 3, '08) while meetings are also falling into that category. Wendy Desabaye runs a consulting business in Boston that plans corporate meetings for companies based in New England. She says rising airfares have caused companies to stop scheduling meetings outside the region. "I've been in business 10 years, and I've planned more meetings this year in Boston than in the past 10 years," Desabaye says. "Instead of requesting meetings in Hawaii and other faraway places, my clients are booking meetings where their employees can arrive by car or train." (USA Today, August 4, 2008)

The good news is that independent hotels and resorts can move forward on new strategies very quickly and shift their focus just as quickly if something isn't working. This flexibility is not as easy for branded hotels that are corporately owned and/or operated by large management companies.

Remember, in this economy, if you keep on doing what you've always done, you will get less than you did before!

Watch for the I Hate Cold Calls revenue generation seminar coming to Portland in September and Minneapolis and Phoenix this fall! Email us for further details at carol@carolverret.com.

Carol Verret and Associates is offering a series of public hotel sales seminars nationwide this year in response to growing demand from the hotel community. For more information on where they are to be held or how your hotel or management company can sponsor one, email Carol at carol@carolverret.com or call (303) 618-4065.

Carol Verret And Associates Consulting and Training offers training services and consulting in the areas of sales, revenue management and customer service primarily but not exclusively to the hospitality industry. To find out more about the company click on www.carolverret.com. To contact Carol send her an email at carol@carolverret.com or she can be reached by cell phone (303) 618-4065. Visit www.hotelsalesblog.com.

Is Your Hotel Ready for the Downturn - By Brenda Fields

Key markets, world wide have experience unprecedented occupancies, average rates, and RevPAR for over a decade. New York City and London in particular have experienced average occupancies well over 80% for the past several years, driving record average rates and RevPARs.

The immediate outlook remains promising but the future is less bright according to prominent analysts i.e. PricewaterhouseCooper and Smith Travel Research. One school of thought is 'If it ain't broke, why fix it?'. But we know that the hotel industry is driven by various economic factors that create many ups and down. The bad times don't last forever and the good times don't last forever, either. So what better time to address any weaknesses in the organization, flaws in the system, or product deficiencies, than when occupancies are strong and the outlook is favorable?

The return on investment on ensuring high standards in all areas is far greater than the cost of a major upgrade and marketing expenses to bring customers back after their bad experiences in your property.

This article will address the benefit of early prevention and will identify areas to evaluate in order to ensure that your property is well positioned for any downturn so that it will remain profitable and vibrant.

Physical Condition:
Continuous periods of high occupancy create lots of wear and tear on a property and taking rooms out of inventory for maintenance and deep cleaning is most likely not an option to most owners or managers when demand is high. During these feast periods, guests will pay the going rates just to have a room and will accept it in almost any condition rather than forgo the business trip or family holiday. But, once occupancies start to fall the tide will turn and hotels will experience a 'Buyer's Market'. Those properties that had noisy air conditioners, stained carpets, or slow shower drains, will find themselves eventually making the investment to be competitive in the new business environment. So why wait when we all know that 'A stitch in time saves nine'.? A minimal investment now and minimal loss of revenues will more than be made up by having a loyal customer base, which will stay with you with the market turns.

Technology:
Technology advancements have allowed property's greater ease and efficiency in dealing with customers in areas such as making reservations, sending out confirmations, and preparing the invoice upon check out, just to name a few. We know, too, that maintaining the latest equipment is a major expense. The days of telephone as a line item on the P & L Statement are long gone, as now, free domestic phone calls in guest rooms are becoming the standard. As guests travel with iPods, cell phones, and lap tops, the demand for the latest technology in-room is great. So, it may be wise to evaluate your property and the needs of your customers to analyze the effectiveness of your technology, research what is available to you, and decide what, if any, areas should be upgraded for you to remain competitive in the marketplace.

Employee Training:
With continuous high demand, it is difficult for owners and managers to ensure that customer service is top of mind with their employees. Housekeepers are rushed to clean rooms for that next check in and the front office is typically rushing to check guests in, find rooms, check out guests, and answer phones, all at the same time. And when occupancies are high in your local market place, it is easy to become complacent with service that is not excellent. But when the demand falls and guests have a choice of properties, they will remember who treated them well and appreciated their business. Therefore, the commitment to invest in training during this strong market along with ongoing follow u, will place the property in a much stronger position to enjoy and maintain good business during the down times.

Direct Sales:
The cost of a direct sales effort can typically represent 50% of the marketing expense budget, with most of the expense in labor and benefits. When business declines, this is a key area that is evaluated to ensure that there is a return on investment. But, what is happening with direct sales during the feast periods? Many times, there is no direct sales plan in place. Sales people meet their targets because of the great demand and there is little, if any, proactive sales approach to ensure that there is a database of potential business that is well-qualified based for present and future business. Therefore, it is important to place systems and procedures in place so that in a downturn, good habits and work ethics are already in place to ensure that your property excels in market share.

Web Site:
The web site is probably the most cost effective marketing tool available. Web site research and web site bookings have steadily and dramatically increased, contributing to an average of 50% of the bookings. So why wait until bookings fall of to ensure that your web site is well designed and fully optimized to generate bookings? And why wait to ensure that you have the best booking engine to capture that guest who wants instant information and instant booking capabilities. Put a program into place so that you can proactively address needed enhancements to your web to stay current with trends and technology.

Therefore, to ensure that you are well positioned when there is a down turn, it will be very important as of now, when business is strong, to implement these initiatives on an ongoing basis. This will allow an owner or manager to enjoy profits, satisfy guests, and attract and maintain top employees.

This article is reprinted with the permission of its author and HotelExecutive.com.

About the author
In her more than 25 years as a marketing and sales pro in the hospitality industry, Brenda Fields has emerged as the "go to" consultant for independent and/or privately owned hotels and resorts seeking real-world solutions for today's market challenges.

From small boutique hotels to large convention properties, Brenda has created and implemented highly successful Strategic Plans that enable owners to achieve target results despite market conditions. With extensive expertise in pre-openings and repositionings Brenda was responsible for the successful opening and stabilization of the Paramount Hotel in New York, one of the first boutique hotels.

With a "who's who" roster of clients, Brenda has worked with a number of industry leaders and real estate investment companies including Starwood Lodging Corporation, Planet Hollywood, Choice Hotels International, and Olympus Real Estate Corporation, among others.

Brenda is currently President of the Hospitality Sales and Marketing Association International Greater New York Chapter of over 500 members and was recently awarded "The Top 25 Most Extraordinary Minds in Sales and Marketing by HSMAI. She also received 'The Best of the Best" award from HSMAI for the Awards and Recognition committee work Brenda can be reached at: 518.789.0117/phone or brenda@fieldsandcompany.net

Hoteliers' Online Action Plan in Slowing Economy

In today's economy, one has to be careful about how to spend their money wisely, and this is especially true in the hotel industry. Hoteliers invest their money in marketing to bring in more guests, but in a tough economy, business slows down. So how is it possible for us to thrive, despite slow business?

The answer is: keep marketing, and don't slow down. This does not mean simply market every way you know how, it means be careful in how you invest your money - what marketing methods work, and what don't. It is more important than ever that we pay attention to our return on investment (ROI). So, stick to proven marketing methods that have a high ROI, and your worries will remain small.

Eighty-three percent of travel planning is booked online. This means that the internet has emerged as the premier distributor of hospitality. Since this is the case, it only makes sense that we work through the internet for the best possible ROI. Instead of cutting your marketing spending, look at the most effective ways to attract guests through internet-related means: online advertising and direct response initiatives as opposed to offline and brand-building methods. Plus, with web analytics tools, it is easier than ever for a hotel to track how their online marketing initiatives are performing.

Word of Mouth advertising is the best possible advertising. It is important that you monitor and measure your online reputation as determined by the websites like Facebook, YouTube, Flicker and other social sites along with travel chatter sites like TripAdvisor, IgoUgo, Hotel Chatter and many more. Once you have a monitoring and measuring method or tool, you need to implement a procedure to utilize this information to improve internal operations, build your Public Relations and integrate into your property marketing. Where possible you should interact with consumers with postings, networking and blogging. Granted your marketing spend during a slow economy has to be productive and it is difficult to determine your ROI from social media. But people do utilize these sites as part of their planning process for both business and leisure travel. You need to capitalize on good reviews and respond to offset bad review

So, as a hotelier, the majority of your Internet marketing spend should focus on internet marketing strategies that center around ROI to reach potential new customers, and this includes local online marketing as well. These campaigns should revolve around your unique selling proposition (USP). Doing so will differentiate yourself from the market - which means more attention and more guests. While you are thinking big, however, make sure that the basics are taken care of first, which includes:

- Optimization of your current website

- Strategic Linking

- Email and Search Marketing (eMarketer reports that 80% of all internet activity comes from search engines)

- Web Analytics and Performance Tracking

So, here are a few steps to get you on the right track to marketing success this year:

1. Look at the budget numbers for this year's marketing plan. Drop any investment in marketing strategies that are unproven or not bringing in a good return on their investment. Limit your experimental investments this year, that is, stick to what you know works and will bring in the guests. Make sure that your marketing is directed towards the most influential audiences, i.e. travel planners, businesspeople, and vacationers.

2. Market your hotel wisely. Try to find marketing strategies that perform above the industry averages for your property. Make use of web analytics to track the bookings and activities of the guests coming to you online or by phone as a result of online information. Adjust your marketing based on the information from the analytics. A good analytics company will cost money, but the results can give you a serious edge.

3. Focus on the best use of your hotel's website. This means making sure that your site is both attracting prospective guests and pushing the sale. Attracting guests means utilizing search engine optimization and email marketing, as well as proven advertising methods, such as banner ads. Then, make sure that your site is user-friendly and welcoming. You want your guest to be able to quickly and easily make that booking. Simply the look of the website is also crucial, so push to redesign the site to make sure it looks sharp and professional enough.

4. Define your unique selling proposition. Your hotel needs to have something different about it to stand out in today's market. Why should people come and stay on your property as opposed to someone else's? Talk to your guests: what do they like most about staying there? What attracted them in the first place? Answering these questions and adjusting your marketing accordingly can give you a large boost in business. Then use that information to develop a plan to differentiate your hotel from the competition.

5. Set achievable goals. Draft a strategy to optimize your marketing methods for the upcoming year and put it into practice. Having your goals in front of you will push you to make the smartest decisions based on where you want to be in the next year.

Marketing simply does not have to suffer just because the economy is. Situations like this call for smart spending, and that starts with your marketing. Every dollar you spend on marketing should be attracting someone to your hotel. When you focus on fundamentals, you can have the assurance that your time and money are being spent on something effective that will attract new guests and keep bringing back the old ones. You need to use these times as opportunities to grow in the face of a struggling economy.

About Lodging Interactive
Lodging Interactive is a leading provider of Internet Marketing Services to the hospitality, spa and restaurant industries. The company provides a portfolio of effective Internet Marketing Services to hundreds of hotels, resorts, timeshares, spas and restaurants. Clients included branded hotels from nearly every major brand as well as prestigious, landmark independent hotels.

The Company offers effective online tools and services: ChatterGuard.com, an online social media monitoring and reputation management system, CommentCards.com, a full-service business-2-consumer comment card service, eProposalSystem.com, an online RFP response system hotel Sales Managers, RFPLink.com, a group RFP lead generation and reporting system, HotelDirectBoook.com, a consumer hotel portal site and DiningClick.com, Internet Marketing Services for the restaurant industry.

Lodging Interactive is a proud member of the American Hotel & Lodging Association (AH&LA), The California Hotel Association, and a supporter of the Hotel Sales & Marketing Association International (HSMAI). For more information contact Richard Walsh, Vice President of Business Development at rjwalsh@lodginginteractive.com or at 877-291-4411. The company's website is located at www.LodgingInteractive.com.

August 12, 2008

Splendia Emerges In North And South America With Strong European Support

Splendia, a leading online reservation service offering a selection of luxury and character hotels, has increased the size of its portfolio by more than 318 hotels since its official entry into North and South America this year.

Given the current demand among hoteliers for affluent European leisure and business travelers, Splendia has capitalized on its European roots leading the way with a branch in North and South America.

'Approximately 75% of our site traffic originates from Europe with the majority interested in North and South America,' stated Raul Vega, Hotel Business Director for Splendia. 'Europeans also tend to stay longer which offers good ancillary revenue opportunities to the hotels in our portfolio, making the value proposition even stronger. Along with our risk-free business model and fresh approach to developing partnerships, hoteliers are responding by affiliating to our program in growing numbers.'

With more than 1,000,000 unique visitors per month and more than 200,000 opt-in email subscribers, Splendia has earned an enviable position in the marketplace. Now, with a regional office in Miami, Splendia is poised to raise its North American presence both on and offline.

'The wonderful thing about what's happening is that, until now, we have strictly been growing organically,' stated Greg Romanelli, Marketing Manager for Splendia. 'Our growth has come as a result of demand and the type of discerned traveler we bring to our hotel partners and, now that we have dedicated resources to address the needs of our markets, we expect the size of our portfolio to increase exponentially.'

This week, the U.S. Department of Commerce announced that visitation from markets overseas has grown each month for the past 13 months. Arrivals from Western Europe are up 16% year to date while arrivals from Eastern Europe have increased 15% for the same time period. Most notably, arrivals from Spain are up 48% while French and Italian arrivals are up 25%, respectively. Romanelli states, 'Given the fact that Italy, Spain and France are the top three traffic generating countries for Splendia, this announcement presents much needed revenue opportunities for our North American hotel affiliates.'

For more information on Splendia, visit www.splendia.com.

About Splendia
Splendia heightens the online travel reservation experience, bringing the perfect balance of luxury, lifestyle and travel into a streamlined service. Striving to exceed traveler's expectations in booking memorable and quality hotels, Splendia facilitates ideal matches between travelers and destination and assures guests a quality label complementing the simple and secure booking process. Founded in Morocco in 2004 by Elie de Coignac and Benoit Durand, Splendia has accelerated internationally with an expert team of 80 spreading throughout five global offices and with access to more than 2,000 hand-selected hotels of distinct character. www.splendia.com

See - http://www.imscart.com/hotel_chain_reservation_system.html

Anatomy of an Internet-Savvy Hotel Manager - By Neil Salerno

It's 1:20 am and the hotel manager is reviewing last month's profit & loss statement, room revenue is below planned budget and expenses were higher than ideal. That's not great news, but the really bad news is that forecasted revenue looks weak for the next several months. Something has to be done quickly.

This scenario is not uncommon, the challenge is to drive more business and/or cut expenses but deep cuts in expenses will usually begin to negatively impact service levels. This could easily start the dreaded downward spiral, poor service levels would lead to less business, which would lead to further cuts and on and on. After months and months of boom business, gas prices and the economic downturn are beginning to catch-up to the hotel industry.

The conundrum is that the hotel industry has always been reactive, rather than current, to the economy, often enjoying good business levels for months after a downturn begins and suffering that downturn for months after the economy recovers. Smart hoteliers know that last month's revenue is more likely the result of what marketing was done, or not done, several months ago, positive changes made today can take months to show substantial improvement.

Many years ago, when I was a sales pup, this scenario was more depressing than it is today. We simply had no sales or marketing vehicle which could or would produce quick results. Most hoteliers have never been advocates of advertising, few hotels have the money with which to advertise on a scale which would be beneficial. Advertising programs are expensive and provide no benchmarks or promises for producing results and could take months to show those results.

The answer is to have a strong Internet marketing program. But, before you flinch, it doesn't have to cost a fortune and the payback is relatively quick. The fact is that many hotels are paying far too much for web site design and allocate too little or nothing for generic search and sales promotion. The savvy hotel manager understands that an attractive site isn't necessarily a productive site and any site needs to be promoted to be successful.

The most unique and wonderful element of Internet marketing is that results are almost totally measurable, something we could never achieve with media advertising. Sometimes, even a small change or addition can make a huge improvement in reservation production. The ability to quickly measure the impact of that change is priceless.

The true function of any kind of promotion is to produce incremental business. The Internet savvy manager isn't satisfied with simply knowing how many people sees his/her ad (web site), it's the number of reservation conversions that count, that's measurable too.

Using the Internet during Difficult Times

Faced with these challenges, the Internet savvy manager turns to the Internet. Due to the sheer nature of the Internet and the ways, in which people use it, the Net has the ability to produce quick and lasting results.

The Internet-savvy manager knows that a properly designed web site is the foundation of any successful online sales effort. The big question is 'what is a properly designed web site?' There are those who believe that all one needs is a web site which demonstrates hotel facilities, amenities, and services, with plenty of photos. The fact is that this information alone does nothing to help make your site searchable. Before you commit to paying for a new site, make certain that the company knows why and how people select hotels on the Internet and what sales elements are necessary.

The Internet savvy hotel manager knows that the best place to start is to have someone analyze and evaluate the 'workings' of your hotel's web site. This makes sense even if you have already decided to have a new site developed, this analysis will act as a guide or blueprint to avoid mistakes on the new site with the how's and why's to incorporate certain necessary elements.

Third-Party Travel Aggregators

The Internet savvy hotel manager also knows that Third-Party sites still play a huge role on the Net. Hotel franchise sites have improved greatly and some are finally participating in pay-per-click advertising and generic search protocol, but third-party sites still hold the advantage with the unique ability to sell total travel, air, hotel, and car rental.

It may be painful, for some owners and managers, to actually pay a commission to help fill vacant rooms, but this is makes far more sense than reducing rates on all your rooms, which never works. Most, if not all, business derived from online agencies would not have been booked directly with the hotel. Stop thinking of third-party sites as competition and start recognizing them as an additional sales source.

Social Media Dilemma

Our industry is still struggling to find ways to utilize the sales potential of social media. The one area of social media which is currently viable for hoteliers is travel oriented social media such as TripAdvisor. This area of social media has become a valuable collaborator with the hotel industry.

One of the results of the popularity of Internet and electronic sales has been to create a void in the personalization of travel. When it was necessary to call to make a hotel reservation, travelers had an opportunity to ask questions and 'feel good' about their reservation choice. TripAdvisor provides the valuable service of allowing travelers to read comments from satisfied travelers to validate their reservation choice.

Hoteliers should closely monitor travel social media sites like TripAdvisor. Good, even bad, comments from your guests will provide you with valuable information to improve your product and services. Comments from former guests can also provide hoteliers with insight into new marketing opportunities to build business.

Destination-Focused Marketing

The Internet savvy hotel manager understands that the selection of a hotel almost always comes after the decision to travel to a specific area. Knowing this, a savvy hotel manager decides to provide the 'reasons' to travel to where the hotel is located. This can be done in the form of destination-focused marketing and the listing of activities and attraction on the hotel's site.

Travelers search the Internet for activities and places to visit, D/F marketing can help them to also find your hotel.

The Bottom-Line

The Internet savvy hotel manager recognizes that, properly used, the Internet can provide valuable market exposure and incremental business for his/her hotel. In these uncertain times, the Internet can produce a large portion of a hotel's overall business. Become Internet-savvy, it could become the difference between success and mediocrity.


Contact:
Neil Salerno, CHME, CHA
Hotel Marketing Coach
www.hotelmarketingcoach.com
NeilS@hotelmarketingcoach.com