Mobilizing and Monetizing The Lobby Experience

The following article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared on Hotel Executive.

Jackpot!

That’s the exclamation (not to mention double entendre) that’s likely doing cartwheels inside the heads of corporate higher ups and casino/hotel bookkeepers that are busy tallying their property’s profits. It’s a joy especially potent considering that a large portion of the green in their piggy banks stems from those very same gaming additions.

It may seem obvious to any Las Vegas traveler who’s ever stepped foot in the MGM Grand, The Bellagio, or Mandalay Bay, but it’s important to remember that at sometime, at some point, hotel designers reached this no-brainer conclusion: Instead of building casinos and hotels as separate structures, why not build them as single entities? Better still, why not pair the hotel and casino branding? That way, room rates, the mainstay for a hotel’s revenue, can be partnered with an entirely new income stream: gambling money. Everybody knows tourists are coming to cities like Las Vegas to try their hand (and luck) at the one-armed bandit. Why not give hotel guests what they want right in the lobby, and monetize the experience?

A simple idea, for sure, but it’s the aesthetic and business success at the root of the world-famous Las Vegas strip. And when it comes to creating revenue opportunities in common spaces, the burgeoning world of mobile, digital signage and location-aware technologies could learn a thing or two. Like the resort-casino model, mobile’s next frontier – or certainly a frontier as it relates to hotels, is the lobby. It’s a potential revenue, entertainment and loyalty source so significant that hoteliers who choose to mobilize their lobbies should be shouting “jackpot” too.

Mobile’s Winning Combination: Engage, Entertain, Enjoy

Of all the places mobile technology has reached, (through smartphones or tablets) it’s surprising that the hotel lobby has yet to be tapped – even less so than the hotel room, which is beginning, finally, to find its digital footing.

And as an “always on” technology, with penetration rates exceeding 95% for standard phones and upward of 64% for smartphones (in the 25-34 age group within the United States), a central and social meeting place like a hotel lobby is the ideal location to further engage guests throughout the booking and hotel stay process. But also through that same technology, sow the seed for future visits through the technology’s entertainment value allowing guests to download games or video content and continue the mobile hotel marketing experience well beyond the lobby’s main entrance, furthering the customer connection.

In fact, some 82% of business travelers polled in a 2011 Travelport survey said that they expect every hotel room they visit to be WiFi accessible by 2016, no, ifs, ands or buts. Travelport also found that already 56% of business travelers search and book their stays via their mobile device. Google, too, has reached similar conclusions, finding that nearly 60% of personal travelers have looked for travel-related information through their phone or tablet. In other words, travelers of both sets, expect hotels services and amenities to go where they’re already leading.

Hotel Lobby 1.0 versus Hotel Lobby 2.0

Think about a hotel’s loyalty and ROI possibilities and imagine the following scenario. A customer walks into a hotel lobby exhausted from their late-night travels and delayed flight. The last thing on their mind is having to put on that obligatory smile for the front desk and begin the check-in process.

It goes something like this: a hotel guest fishes for their credit card in a cluttered wallet, obtains a magnetic card room key, learns about check-out times, the continental breakfast, and collects a smattering of printed material –some of which might be out of date – and all of it, decidedly so last century in terms of paper and ink technology. Then there’s the added hotel expense of having to pay employees to staff on what can be graveyard shifts. None of this is a recipe for revenue or loyalty success.

Now consider this. A mobile lobby has the potential to radically change this scenario. Imagine instead a tech-centric experience where that same travel-weary customer walks in. But this time, instead of the traditional static entranceway, the guest is surrounded by a collection of interactive digital “smart” signs. Using Bluetooth technology that detects a phone’s proximity to the sign, (and for privacy reasons, not the guest’s exact location) the sign immediately sends the guest’s phone a timely relevant message about their stay. Upon a guest’s opt-in response, the sign can begin sending the guest coupons to the hotel’s restaurant or bar, upgrade packages, or it can even send the phone an augmented reality map of directions to the guest’s room, the fitness center or the pool. Need to find what’s around town? No worries there either as the digital sign-phone partnership all but does away with the need for the concierge. And no need for pen and paper in this scenario either.

And with companies like Orbitz, (which launched its Orbitz-Hotels app for iPad last summer), and Priceline, (that added a “Tonight-Only Deals” to its iPad app in October), estimating upward of 60% to 65% of mobile users book their trips the same day of their stay, finding new ways to engage the traveler both before and after their trip has never been more important. Even if a trip is booked within 24-hours of a stay, that doesn’t mean the proverbial wheels start turning long before that.

The Future (Is Almost) Here: Hotels Mobilizing their Mobile Effort

Little by little hotel chains and technology solution providers are starting to get digital sign’s mobile message. And like the hotel-casino model, they are starting to cash in. In spring 2011 Canada-based iSIGN Media, a provider of location-aware mobile advertising partnered with RTown Communications, also of Canada, to yield the perfect duo: iSIGN supplied the “smart” software and RTown, a digital media marketer, supplied the digital signs within hotel properties. Distributed through a system of some 27,000 hotel rooms in 346 locations throughout Canada, the network effectively delivers a host of branded content, special offers, coupons, discounts, loyalty program messages and other rich-media offerings of guests’ choosing. And by opening up a digital signage network to outside advertising, hotels can accept ads from companies looking to sell to travelers. In addition to delivering real-time content via in-room TV, hotels took the added step of delivering their content via digital signage in hotel commerce areas and even outdoors.

In a related digital move, Wyndham Hotel Group, in conjunction with the MCG, in summer 2011 launched a text to win campaign linked to the PGA FedEx Cup. The hotel chain was looking to increase interaction with hotel guests and through the campaign, offer rewards. Additional community outreach was achieved by donations, issued through Wyndham’s charity arm, Wishes By Wyndham. While the campaign did not rely on lobby-based digital signage, it’s the unique kind of guest engagement that such signs in the future might be able to better promote. Rather than just receiving a simple text, imagine if a rich-media image of a 3-D golf ball had come off a digital screen, offering some discount at a nearby golf course? Along with the appropriate text to connect the image to the cause or promotion, greater redemption rates seem likely. It’s also the type of social experience that, if launched in a lobby setting, might set the stage for further in-lobby and social media-driven conversation.

But more on that in the section that follows…

From the Jetway to the Jetsons: Welcome to the Kinder, Gentler Lobby

Ultimately lobby 2.0 won’t just be about the technology. In an ironic twist, it’ll be about how the technology is bringing people together in more genuine ways. As mentioned above, the ability to connect guests to each other in meaningful ways, (say for example, guests looking to organize a hotel-based tour group for the city they’re visiting and an offering from the tour group incentivizing its use via smartphone and digital signs) will help drive both online and offline conversations.

Increasingly, the linked, synched and wired lobby will take a more living room-like or Starbucks approach where guest spend more time hanging out and interacting with their mobile gadgets and other guests who are using them as well, rather than using the lobby as an austere “waiting area” before embarking on the next part of their day. Hotels like A-Loft, Hyatt, Hyatt Place, Marriott Courtyards, and Hilton’s Home2 Suites extended stay brands have already begun installing mega-sized touch-screen TVs that display information like the weather and day-trip excursion information. While that’s a first step, imagine if those touch screen TVs, like digital signs, began offering branded content?

The A-Loft hotel brand is also testing its “smart check in” technology. Starwood Preferred Guest program members are sent a radio frequency identification (RFID) keycard in the mail. On the day of a guest’s arrival, a text message is sent to their mobile device with a room number, allowing the guest to bypass the front desk entirely. And according to David Strom, writing for ReadWrite Enterprise, the technology is in place at A-Lofts in New York, Massachusetts, Texas, Florida, and London. Also, the Oslo Comfort Xpress hotel has automated lobby kiosks that dispense RFID room cards. Admittedly, these technological advancements risk bypassing the lobby altogether. But it’s incumbent on the next generation of interactive digital sign designers to find ways to the keep the digital conversation in the lobby.

Continuing this look into the future, next generation digital signage, as seen by Samsung’s Transparent Smart Window at the recent 2012 Consumer Electronics Show, will merge the aesthetic of real windows with the virtual world. With advanced touch-screen technology, the 4-inch thick screens will allow up to 50 simultaneous “points of contact” or users.

Revenue Per Square Foot: From Slots to Signs

Anyone who’s been to a Las Vegas casino, or any gaming establishment from California to Monte Carlo, knows that it’s the slot machine – not the table game games – that generate the most revenue per square foot. About to turn 117, slot machines have for decades proven their worth to the hotels who’ve turned their lobbies into gaming halls, giving guests what they want, when they want it and in close proximity to their hotel rooms.

The parallels with in-lobby digital signage are striking. Both technologies – one from the 19th century and another from the 21st – engage the guest, build loyalty, and of course, improve return on investment.

Maybe the next generation of a casino-hotel’s digital signage will feature interactive images of slot machines where through contactless data transfer (NFC or Bluetooth connectivity) guests play the slots through their mobile devices? Instead of winning cash, players might receive coupons, discounts and loyalty rewards redeemable at the hotel.

Whether it is casinos, hotels, motels, or any lodging establishment in between, mobilizing the lobby is the revenue and loyalty way forward. Tech-savvy and mobile-equipped travelers continue to lead the way. It’s time for hoteliers to gather their resources and mobilize their lobbies today and hit the digital signage jackpot today.

The following article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared on Hotel Executive.

When a Sinking Ship Gives that Sinking Feeling: Costa Concordia and Its PR Disaster

Where do I begin with this one?  How about the basics?

Why is it that big names seem to go with big doings? And I’m not talking about positive “big doings,” I’m talking about the ironic, disastrous kind. Perhaps if we didn’t christen giant cruise ships with bloated titles like Titanic, whose name means enormous size, strength or power and Costa Concordia, meaning harmony in Latin, these types of human and public relations tragedies wouldn’t happen?

Somehow, though, with 320+ days left to go in 2012, I’m sure this won’t be the last global PR nightmare, nor do I believe a simple name change could inspire a change of outcome. Maybe we even need these types of ironic names to help jolt us out of our collective lunacy and help avoid making repeat mistakes. At least the Costa Concordia, the Carnival Corp.-owned luxury cruise liner that ran aground off the Italian coast earlier in late January, didn’t ram an iceberg, or fail to have enough lifeboats on board. Oh hang on a sec, it didn’t.

But if that’s the best we can say about the tragic maritime crisis, we’re not doing very well. And as public relations professionals, charged with handling, directing and shaping a client’s message, somewhere, somehow, someone, could have, should have done better.

While media attention was first focused on the negligible and cowardly actions of Captain Francesco Schettino, who abandoned ship by accidentally falling into a lifeboat, then refusing coast guard orders to “do your duty” and return to ship, there’s been increasing anger and outright disbelief thrown at Carnival, the parent company of Costa Cruises, which ran and built the ship.

And rightly so.  Carnival and Costa are responsible for ensuring the safety of their passengers and translates into having the right equipment and people.  The Wall Street Journal’s  recent article “Carnival CEO Lies Low After Wreck,” was as blunt as the company should have been at the start of the crisis. “Where is Micky Arison?” was the article’s four-word sentence opener.

Good question. Where was he indeed?

The golden rule in any public relations disaster is to get ahead of the story and go into immediate damage control. From the moment the scope of the disaster was learned, Carnival and Costa should have been unwavering in their public openness. Instead what we got was a delayed, reactionary-type response that paints Arison as “a delegator” and one who is working tirelessly from afar at Carnival’s Miami headquarters. While that may be all well and good, once again, it’s important to remember that very often it’s not reality that matters so much as the perception of reality.

Reality vs. Perceived Reality

Take for example last winter when after repeated snowstorms, Newark, New Jersey Mayor, Cory Booker, after hearing complaints from city residents over unplowed streets,  began tweeting his whereabouts as he physically joined the city’s snow removal crews. Residents tweeted their street and roadway conditions and Booker responded in live time when a plow would get through.

He even helped shovel snow and directed the plows to the most congested areas.

Whether it’s a snowstorm or a near-sinking luxury liner, that’s the kind of honesty, transparency and take-no-bullsh*t response that speaks volumes to people everywhere, whether they’re snowed in on Broad Street, Newark, or capsized off the island of Giglio in the Tyrrhenian Sea.

For a golden rule, it’s rather incredible just how often this golden standing gets tarnished. Besides, when it comes to gold, Carnival seems more interested in counting its post-sinking pennies than doing what is right. The Wall Street Journal also reported that the company expects the wreck will lower the company’s net income by $155 million, but that according to a company statement, “the incident will not have a significant long-term impact on our business.”

But isn’t that the very point? The “incident” – that lovely euphemism that translates to mean “an occurrence of seemingly minor importance,” should have a significant long-term impact on the Carnival brand and its business.  It certainly has on the passengers onboard the vessel, and the on the families of those who died.

With uninspiring statements like that coming from a company with the PR-prowess of Carnival you can be sure that 2012’s harmony will be upset by further titanic missteps.

At least big doings will continue to be big fodder for my future blog posts, like Susan G. Komen and Goldman Sachs.

The following article by Vanessa Horwell, Chief Visibility Offirce of ThinkInk, originally appeared on eHotelier on 12/14/11. 

Shhhhhh. Listen. Can you hear them?

It’s the sound of millions of consumers, leisure travelers, hotel guests and on-business patrons alike, across all demographics, adding to the mobile phone bandwidth super highway by jumping on the mobile phone bandwagon.

Roughly a quarter century into mobile phones’ mainstream release, the technology – and its uses – has sure come a far piece.  Mobile phones and their increasingly “intelligent” smartphone cousins have morphed into the ultimate digital Swiss Army Knife -marrying the best of computer-based processing power with the ease, simplicity and functionality of a 5-ounce pocket-sized device. Not bad, huh?

For hotel managers looking to capitalize on these rapid and profound changes there are only two words: Game on.

Without doubt, the mobile phone has become ubiquitous: 77% of the world’s population (5.3 billion people) owns at least a basic mobile phone, capable of receiving SMS messages. Not to be outdone, though, the smartphone is playing some Major League catch-up ball, making up anywhere from 17% to as much as 63% of the global marketplace in some regions. Today the average global smartphone penetration rate hovers at around 27%, but is growing rapidly.

Increasingly mobile phone users see their devices as “always on” extensions of their everyday lives. From so-called “couch commerce,” to mobile couponing, to booking airline flights while sitting at a traffic light (hands free of course), the mobile phone and the opportunities presented by the channel are just too great for hoteliers to ignore.

With this background picture in your mind right now, it’s surprising, then, that the hospitality industry, specifically hotels, has been relatively slow at embracing the mobile platform. While the challenges to embrace mobile are real, ranging from hiring the necessary tech-savvy staff, to ensuring data security, guarding against errors, and incorporating an ability for users to book their stays on the go, and even choosing which mobile operating system to embrace, none of these obstacles  should relegate hotels to the mobile sidelines.  Surveys indicating a strong desire for hotels to adopt mobile (92%) don’t seem to be enough, however.

In many cases, actions can speak louder than words, so let’s see some action in the mobile game please hotels!  That said, “action” without a game plan or playbook is equally foolish. For hotels, going mobile isn’t simply a catch-all phrase or something that screams, “hey, we have an app too.” It’s about knowing your customers’ wants, desires, and mobile habits: today’s hotel booker is no longer tied to the home or office computer – but is mobilized with mobile in hand, capable of searching, comparing and booking from anywhere, at anytime.

So here are my five recommendations for hotel managers to consider when launching their mobile programs:

#5 KNOW THE DIFFERENCE between web surfers and web hunters. Here’s the deal: laptop and desktop Internet users tend to “surf” the web, casually scanning data, comparing prices, and toggling between multiple sites. In other words, they take their time. Mobile customers lack this luxury. Instead, due in part to a smaller screen size and limited ability to multitask, (or multitask as effortlessly) mobile users are said to be “hunters,” carefully picking and choosing exactly what they want from the website’s they’ve visited or the app they’ve accessed. For hotel managers that means designing a mobile website that contains less superfluous data. Leave the “About Us” section for the web and instead have engaging, lively pictures and video of your hotel and current guests (with their permission). Consider thumbnails, though, and don’t overwhelm a mobile users viewing space. Interactive maps, too, help zero-in on what your hotel is trying to promote in terms of neighborhood and curbside appeal – all of which a mobile user would like to know.

#4 DUE TO MOBILE USERS’ hunting nature, they tend to book their trips in an even narrower window than their laptop or desktop counterparts – a tech sector that has also seen a closing of the booking widow. Earlier this fall, for instance, when New York, New Jersey, and Connecticut were hit with an intense power line-collapsing snowstorm, mobile bookings for hotel stays onPriceline.com jumped 270%. Although mobile booking on hotel sites directly remains a small part of the marketplace, there’s every indication that if hotels build it, customers will come.

#3 APPS ARE NOT ALL THAT. Rely on what works: Here’s the caveat to the above. Mobile bookers, regardless of whether they use a meta-search engine or an online travel agency, (OTA) want simplicity. It may not be necessary to have both a mobile-formatted website and an app. Choose which one works best. The time, money, and effort that goes into designing an app could, perhaps, be spent better elsewhere. With more than 500,000 apps in the iTunes App Store alone, it’s incredibly easy for a hotel app – even a great one – to become buried in the digital noise.

#2 MOBILE GUESTS WANT TO TALK… about you: Mobile users increasingly expect and demand an ability to post their thoughts and opinions (good or bad) about their travel stay and booking experience. This is already being done through aggregator and OTA sites, as well as through Facebook and Twitter. Why not shift that buzz back to your hotels’ mobile site?

#1 USE MOBILE TO WELCOME YOUR GUEST - long before they step foot in your lobby: Mobile patrons are often tech-savvy, out-of-the-box thinkers. Hoteliers can use this to their advantage, as customers are increasingly receptive to purchasing in-hotel amenities like movies and room service, or securing hotel conference space, gym and spa time – all while on the go.

Considering that smartphone penetration rates are likely to increase, it’s fair to say -as many already have – that a critical mass of public interest and user engagement is being reached. Whether or not 2012 is the year that crosses that threshold is anyone’s guess.

But like the airline and retail industries before them, the hotel industry, armed with the above knowledge, needs to fully embrace the mobile channel and all its capabilities while understanding the unique characteristics of their users, their potential guests. Is your hotel in the mobile game yet, or still sitting out on the sidelines?

The following article by Vanessa Horwell, Chief Visibility Offirce of ThinkInk, originally appeared on eHotelier on 12/14/11. 

To Post or Not to Post

The following article by Vanessa Horwell, Chief Visibility Officer of Thinkink, originally appeared on ehotelier on 11/22/11.

“Get it in writing.”

It’s a phrase one often hears when guarding against legal action. It’s also a physical affirmation of something positive or constructive. But when it comes to hoteliers, “getting it in writing” has a more nuanced meaning. 

Ever since the first hotels and temporary lodging facilities arose, hoteliers have had to weigh the advantages and disadvantages of their most valued resource: their customers – especially when it came to the delicate world of written feedback. 

But what was once relegated to a quaint leather-bound book on the corner of some concierge desk has expanded exponentially. First came widespread travel publications that would print with equal care both positive and negative reviews. Today, those efforts seem decidedly quaint as social media and the increasingly ubiquitous nature of mobile and smartphone technology allows current and former guests unparalleled commenting access – without the filter of a publisher. While it’s easy for hoteliers to remain skeptical over such unfettered open access, the benefits of “going social” for hoteliers far outweigh the risks.

The logic behind this embrace is simple. The proverbial Pandora’s box has already been opened. Former and future guests alike are already posting their opinions on sites like Facebook and Twitter about their travel experience, beginning with the initial booking and following through all aspects of the travel cycle including: dreaming, researching, experiencing and sharing. In addition, user generated content sites like TripAdvisor, and online travel agencies like Expedia and Priceline, among many others, are similarly embracing user comments. If hoteliers are concerned about losing control of their messaging, the best way to track what’s being said about their hotel is by promoting a guest shift from private and independent site postings to include the more controlled public arena of a hotel website or its affiliated Facebook or Twitter page. 

Recognizing the inevitability of this trend, a growing number of hotels are already jumping on board. Earlier this month Marriott Hotels announced it would allow guests from several of its locations, (Marriott Marquis in New York and the Marriott Courtyard near Orlando, among others) to post comments about their stay regardless of the quality of their experience. The announcement follows a similar move by Starwood Hotels & Resorts that also began allowing their preferred customers the ability to post comments directly to their website. 

To be sure, hotels that choose this route require a firm commitment and necessary web-savvy staffing. In other words, it can’t be done half way. Whether or not Marriott’s open-access approach or Starwood’s more limited approach is best for online guest reviews remains to be seen. One thing is clear. Even if hotels fail to embrace online customer reviews, they are already being written on numerous personal and public sites. Growing smartphone penetration rates, (around 62% for young adults ages 24-35) suggests postings will be grow easier, more mobile, and more frequent. In time not only will reviews alone be important to future guests, but the transparency and openness of a hotel that allows such access may also be factored in a guest’s lodging decisions. This is similar to how some restaurant patrons choose their dining experience as much based on food quality as they do on whether the establishment offers free Wifi: an expected service.

So whether it’s via text, personal website, or a hotel’s own webpage, getting a customer’s review in writing has always been a component to the hotel-guest relationship. It’s time hotels welcomed the modern social media conversation by letting their guests joins theirs.  

The following article by Vanessa Horwell, Chief Visibility Officer of Thinkink, originally appeared on ehotelier on 11/22/11.

Making Marketing Work What works, what doesn’t and what hoteliers should expect for 2012.

Hoteliers need to think beyond the press release. That’s the philosophy at ThinkInk, a public relations company that deals with the travel sector.

Chief Visibility Officer Vanessa Horwell said the idea is to use creative thinking and experience that goes beyond PR to develop compelling stories as a more effective way of generating coverage and interest. She said this approach has generated better results for clients – results that change perceptions, shape opinion, and create new business opportunities.

Buyer Interactive asked Horwell to share her insights for marketing in 2011: What works, what doesn’t and what hoteliers should expect for 2012 and beyond.

As far as marketing: why don’t you start by giving a definition of what marketing is, and how it differs from public relations, advertising, or social media. Then, please explain how these four disciplines intertwine.

It’s easy to see how public relations, advertising, and social media can be related to or confused with marketing – particularly with mentions of new hybrids and the overlap of these industries. Differentiating marketing from public relations has a lot to do with agenda: marketing is concerned with the public and selling, whereas PR starts with the relationships both interoffice (a CEO and employees) and with those linked to the company for a variety of reasons (such as shareholders or investors) – and it’s seen as a two-way street. Marketing’s goals are business driven and customer focused.

That said, marketing and public relations do overlap. They are complimentary; a public relations team can create the company reputation that a marketing group seeks to promote. As for advertising? It’s a single component in the marketing process that can create positive talk and awareness about a product, a business, or service. Social media marketing is an additional component of the marketing process recognizing that we can influence a consumer both before and after sales – and it’s best when combined with other forms of marketing. There should also be a lot more discussion between these groups as the outcome can be so successful. When we integrate our efforts with a client’s ad agency, creative team and/or marketing department, the results are incredible.

What marketing does work for hoteliers?

Recent observations about the hotel industry can rattle hoteliers who aren’t entirely engaged with marketing. Value is king; consumers want to be more comfortable than ever – with perks – but they also don’t want to overpay. They know they have the power to affect a hotel’s reputation with a few clicks, too which has created an entirely new breed of hotel guest. Before settling on a marketing campaign, hoteliers needs to dig deep and ask themselves what reviews they’d like to see in a best-case scenario perspective. After they envision the hotel they’d like to be known as, they can begin making that a reality. Developing a service culture starts with such a vision, and that is what guests buy into. Some basic marketing strategies that work for hoteliers include:

Refining Copy and Being Consistent – this may sound trite or very common, but many hotels are repeat offenders. Copy and layout across all the channels you use (web, email, print) need to be professionally polished and completely in line with your marketing goals. Who is your audience, and does your site/channel speak to them? Too many hotel marketing campaigns lack creative spark, are template driven, and are not sufficiently targeted or personalized.

Using SEO – Organic search results are a great place to start refining your marketing efforts, and it reduces or balances dependence on OTAs. This latter point, reliance on OTAs, is a theme we are going to see come up again and again over the next year as hotels (and travel operators) try to regain control of their customers and those relationships.

Engaging Mobile Travelers – The mobile channel opportunity is immense, as is the market potential for relevant ancillary services. Aligning yourself with a mobile-ready site and strategy can help you attract the always connected guest whether for business and pleasure. More and more travelers are also using location-based services, and combing mobile commerce and social into their travel purchasing patterns.

Promoting Your Hotel’s Green Side – It’s not a trend that you should approach through greenwashing, but if you have made real attempts to be green, you should find a way to make the most of it. I don’t think green has ever realized its full potential – certainly not from a hotel marketing standpoint. But it can be a differentiator, and it will appeal to a passionate and dedicated demographic.

Developing Appealing Special Offers – The more you learn about your visitor profile, the more you’ll be able to appeal to them – and through a variety of channels. But beware of “the deal.” While deal platforms may be all the craze this year, like social media, consumers are going to experience deal fatigue quite soon. Establish your value proposition and stick with it. Don’t undervalue your brand for the sake of a short term cash spike.

What doesn’t work, marketing-wise and why?

Following trends won’t necessarily help attract new customers. As I mentioned above, deals are the new marketing go-to for some hotels, but dangerous in my opinion. Any initiative that devalues a hotel brand through discounting tactics also works against building loyalty. And while maybe old-school, communicating value, service, and most importantly, relevancy is very effective. As is personalized communication. I can’t tell you how many times I have received the most off-target emails and offers from hotels – and ones that I am loyalty program member of. If hotel marketers thought more like retail marketers, the end results would be drastically different. Hmmm, now that’s a thought…

We’re entering 4th quarter 2011, and travel is going to ramp up with the holidays. How can hoteliers take advantage of this busy season?

Strategy is key. In order to maximize bookings, make sure that everything is functioning on your sites and on all partnership sites/OTAs. Think about solutions that maximize revenue opportunities. It’s a basic step, but you’d be surprised how often a booking bug can affect performance, particularly in the case of high-volume traffic.

Look at previous numbers to determine accurate patterns of traffic surges to better time promotions and special offers. Consider what perks – not discounts – you can use to enhance the booking experience this season since we know that customers have become more demanding in terms of value-for-money. Seasonal social media promotions are just as important as they are year-round.

What should hoteliers expect in 2012?

Market predictions provide the most eye-opening glance at 2012. A new PhoCusWright report reports that by the end of 2012, one in three hotel stays will be booked online. Social media will continue to play a large part in online promotions, and we can expect even more customer service issues to be handled in an accelerated manner online, thanks to social media. Leading on from that I think that experiences will be key for hotels in 2012. Creating experiences “beyond the room” will drive incremental value and turn hotels into destinations. Look at SLS. Hoteliers can bank on that.

What’s the best piece of free advice – that hasn’t been heard before – that you can give our readers?

Pay attention to developments like Google’s Hotel Finder, which can help fine-tune online efforts for maximum bookings. While still in beta, Google’s experiment has opened up a lot of opportunities to examine best practices from a new perspective and re-evaluate hotel sites with the most current recommendations in mind. Work with channel partners that can help your brand grow. There’s a lot of new information about what travelers need and want. The booking window has shrunk, booking behaviors have changed, we are dealing with mobilized consumers, and strategies and tactics need to change as a result. Hoteliers by and large are risk averse, but a degree of risk taking is absolutely needed in this market. I hate to use the cliché “adapt or die,” but it’s true. Many hotels are marketing like it’s 1999, not heading into 2012. I was recently brought into a project to work on a very large chain’s loyalty program, and the marketing they were using was the same as it was five years ago. Look head, not behind. This may not be said often – or at all (because no one really wants to hear it), but that is my free advice.

Article by Erica Lamburg, posted on Hotel Interactive: http://bit.ly/mVt17i

Say Goodbye To Soaps, Shampoos And The End Of An Era

 

 

 

 

The following article originally appeared in Luxury Daily, “Soaps, shampoos and the luxury hotel.”

Traditionally, luxury has been marketed through exclusivity, status, quality and excess – the latter of which implies “more,” not “less.”

This is what ran through my mind recently as I read a Reuters article, “Greetings trump giveaways at luxury hotels,” about how luxury brand hotels are doing away with the fancy freebies – amenities such as shampoos, lotions, soaps – and replacing them with more “enhanced” service in the form of personalized greetings. Whatever that is, anyway…

In my mind, this is very misguided thinking on the part of luxury hotels.

Bar none
Speaking at the Reuters Global Luxury and Fashion Summit last month, Arne Sorenson, chief operating officer of Marriott, expressed the view that, as rates rise back to pre-recession levels, customers will expect more.

“I think, as rates begin to go back up, which they have been doing since roughly midyear last year, you start to see customers expect more … as they expect more, it will cause us, on balance, to increase service in most brands,” Mr. Sorenson said at the Reuters event.

So, tell me, if consumers are expecting more, why do the soaps have to go?

The disconnect here is that while hotels admit that customers are expecting more with increased rates, hotels are, in fact, giving them less by taking away amenities.

So, in place of this bundle of amenities – a staple of hotel luxury over the last few decades – hotels are expecting that “Hello, Mrs. Smith, welcome back!” is somehow going to excuse a lack of shampoo in the room?

How will hotels convey this message to Mrs. Smith, “Sorry, Ma’am, but instead of shampoo, we’ve memorized your dossier.”

It sounds silly, as it is meant to, but it highlights an important point: luxury hotel guests like amenities, will expect amenities, and given the absence of amenities, will ask for them.

Are hotels ready to explain to Mrs. Smith that it is due to cost cutting, when she is paying a higher rate?

Is the front desk ready to tell Mrs. Smith that her shampoo was replaced by a smile and greeting as she entered the lobby just a few moments ago?

Won’t wash
In working with travel brands and hotel companies, I understand the financial argument: replacing costly extras with enhanced personal service always looks better on the books.

However, luxury customers do not care much about the hotel’s books.

Such customers are willing to pay more, to get more, in both service and amenities. And if they do not get what they want – or expect – they will simple go elsewhere.

Both amenity products and enhanced personal services are part of the “experiential” nature of luxury goods – something that we are going to see a lot more of from travel and hotel brands.

When Mrs. Smith buys a service, she purchases a set of intangible activities carried out on her behalf.

But when she buys an experience, Mrs. Smith pays to spend time enjoying a series of memorable events that a company stages to engage her in a personal way.

It could be argued that when luxury guests check-in, they are buying into such an experience from the hotel.

Personalized greetings, enhanced services, and superior products – products that are different than what they normally use – all combine to form the entertainment and escapism necessary to provide luxury consumers the experience that they are expecting.

Additionally, in luxury marketing, enhanced and personalized services are seen as “a special touch,” or a unique way to make the customer feel even more exclusive.

Luxury consumers see such services as an added bonus – one that adds to the experience.

In no way are these services seen by the luxury guest as a replacement for a bundle of physical products that the he or she has received and enjoyed for many years.

Suds, not duds
The only time that luxury brands should even consider getting rid of amenities is in a recessionary, low-rate period, since the customer might excuse the loss of amenities at the lower rate.

To continue reading at luxurydaily.com, click here.

Need PR and Marketing Help? Ask Away! Q&A with Jennifer Rodrigues of TravelInk’d

By Jennifer Rodrigues

From EHotelier

Q: What is a media FAM and should I be arranging one for my hotel?

A: A media FAM, which stands for a familiarization trip, is an organized visit to a hotel that is put together to give members of the media a first-hand experience your property. These trips, which are often arranged by an inside or outside public relations team or sponsored by another organization such as the local visitors’ bureau, include accommodations and a schedule of complimentary activities that may include a site inspection of your property, spa treatments, meals at the on-site restaurants, and visits to local attractions.

Though they do require careful planning and a lot of follow-up with participants for optimum results, hosting media FAMS can definitely be an asset to your hotel because it will promote your property to the very individuals who will be writing, blogging and broadcasting about it. Plus, what better way to get the word out about your hotel-and make people fall in love with it-than allowing individuals to experience and enjoy all its amenities first-hand?

Q: What type of media should I invite to a media FAM held at my hotel?

A: Typically, media FAMS include a good variety of media personnel, ranging from local TV reporters and newspaper reporters, to travel bloggers and international magazine writers. When planning your media FAM, do your research. While it’s a good idea to target well-known travel magazines like Conde Nast Traveler and Travel & Leisure-or even TV stations like the Travel Channel-it can also be very beneficial to seek out travel bloggers, niche spa publications, food writers (which can end up writing articles and features about your property’s chef or on-site restaurants) and freelance writer who may be able to write about your hotel for travel brochures or guidebooks. Social media sites like Twitter and Facebook can be a good start in seeking out potential media contacts (preferably those with a strong social media presence and following) to invite to your media FAM.

Q: Are group FAMS better than individual FAMS?

A: When it comes to media FAMS, there are two ways to go: organized group FAMS, where anywhere from 4 to 20 individuals come out to your hotel for 2 to 3 days (or longer, depending on how much you want them to experience) and have a chance to talk to hotel management, tour the property, dine at its restaurants, and experience the spa and other onsite amenities. Group FAMS often also include tours to local attractions, including theme parks, shopping districts, landmarks, national parks and other historic sites that may be unique to your hotel’s destination. Individual FAM trips, meanwhile, include one journalist and may or may not feature a set itinerary and escorted activities.

Neither type of FAM is necessarily better than the other, though each offers a different experience for the media participants. Group FAMS allow a hotel to market its property a certain way, ensuring that participants see/do exactly what you want them to experience.  However, some would argue that individual FAMS give participants a more “authentic” experience as they are able to explore the property and surrounding areas at their leisure, often traveling with a spouse or companion (or even their children) and having a more similar experience to that of a would-be guest. Individual FAMS might be beneficial for writers or bloggers covering a specific angle like romantic travel or family travel.

Q: How often should I host media FAMS?

A: There is no set number of times a hotel should host a media FAM. Many hotels do an annual media FAM, while others do them a couple of times a year (for example, one in the summer and one in the winter). Many hotels may only do FAMs to promote new additions to their hotel such as renovations, special seasonal events or new spa and restaurant offerings.

Q: How often can I ensure media coverage from FAM participants?

A: In order to ensure coverage from participants, it may be beneficial to have participants confirm a story before confirming attendance to your media FAM. This can also help you get a feel as to what type of coverage/angles your hotel will be receiving and can allow you to have time to invite additional participants if needed. It also is crucial to follow-up after the trip and stay up-to-date on scheduled media coverage as some journalists may not publish a story until months (or even a year) after a FAM trip.

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Did this information help you?  If you have other questions, I’d love to hear from you – please don’t be shy!  Send an email to jlr@travelinkd.com.

And don’t forget to check back twice a month for more PR and Marketing Q&As.

 

About Jennifer Rodrigues

Jennifer Rodrigues, Visibility Development Manager with ThinkInk and TravelInk’d, is a seasoned public relations professional with a passion for the hospitality industry, which is expressed in her role at ThinkInk’s travel division, TravelInk’d. At TravelInk’d, she is responsible for developing cost-effective and creative public relations and marketing strategies for clients in the travel and tourism, airline, lodging, cruise and meeting/event sectors. For more information on TravelInk’d, please visit www.travelinkd.com or contact Jennifer at jlr@travelinkd.com. For more news about PR and marketing in the travel industry, follow TravelInk’d on Twitter @TravelInkd and visit the TravelInk’dFacebook Fan Page.

Hotel Public Relations – Marketing Against External Factors like the BP Oil Spill

With the BP oil spill in mind, how can hotels effectively market themselves amidst factors beyond their control?

Monday, June 21, 2010

By Jennifer Rodrigues, TravelInk’d

Reprinted from younghotelier.com

The BP oil spill has dominated headlines lately for many good reasons. It is the largest environmental disaster in the history of the United States; it has caused untold ecological destruction to wetlands, shorelines, and to the Gulf of Mexico itself; and it represents a massive failure of both commercial conduct (BP) and government oversight (Dept. of Interior).

In Florida, and indeed in many of the resort towns along the Gulf Coast, one of the most significant impacts of the spill, in addition to the ones listed above, has been the potential disruption of tourism to the area. The sugar sand beaches of the Florida panhandle as well as the pristine coastal vacation areas in Alabama, Mississippi and Louisiana are well-established draws for travelers coming from around the world, and, if spoiled, would present possibly insurmountable challenges to area hoteliers.

So what is a hotel manager, owner or operator to do? It is a particularly vexing question, particularly considering there are two obstacles to overcome. First, the impact of the spill itself, and second- perhaps more important, as it has affected travel and tourism entities already- is the impression being created by the media coverage of the spill. It is that impression that is influencing travel decisions of thousands of would-be tourists, and thus posing the greatest spill-related threat to hoteliers.

Since hotels lack the capacity to change the circumstance- i.e., plugging the leak, preventing oil from reaching the shore- the only other option is to try and change the conversation. This is accomplished through marketing and public relations.

Marketing against external factors is one of the more difficult aspects of any outreach and visibility program. There are inherent limitations to what can be done, and common sense guidelines to what information or claims can be highlighted. When external factors are involved, marketing often becomes an exercise in putting forward a concurrent- not contradictory- message designed to emphasize positive aspects unaffected or overcoming the external factors. For hotels, and particularly for Gulf Coast hotels in the current situation, this can seem impossible. But it isn’t.

Changing the Story
The old maxim “there’s no such thing as bad publicity” has never really rung true for hotels, where consumer experience is the core product and the bottom line. This is especially true about the Gulf Coast; certainly, the tourist areas have received an extraordinary amount of publicity in the last few months (or, counting since Hurricane Katrina, in the last few years), but almost no hotel owner or operator in the region would claim that such publicity has helped their business. What hotels need at this time is to build the right kind of awareness about their properties. This is an opportunity to present a different face to the public, to highlight different aspects of the property that may sometimes go unnoticed in favor of beach proximity. Another strategy would be to emphasize what a property is doing despite the current events, or in response to them. A story about hotel employees volunteering to help clean beaches away from the property can build goodwill, and good visibility.

Contradictions Are Double Negatives
The knee-jerk reaction for many hotel marketing departments might be to issue statements denying that external factors are affecting the property at all. In the current situation, this might be a press release (or worse, marketing materials) that assert that no oil has reached the local area. If this is deliberately disingenuous, then it will profoundly impact the property in a negative way, and any temporary increase in bookings will be immediately counteracted by poor customer reviews and public reaction at having been ‘duped’. If such a statement is not a purposeful misrepresentation, then it will simply ring hollow. How can any individual property on the Gulf coast claim to be immune? The public is well aware of the crisis, denying it will not advance the cause of a hotel in the affected area. The public sector (local and state governments) will handle official pronouncements of affected areas; individual properties are better served by acknowledging the facts and shifting the message to something more positive when possible.

Understanding Limitations
The fact that the public will be well aware of the situation speaks to the limitations of marketing against external factors. When it comes to most marketing strategy, the limitations are only existing public perception of the individual property (or brand). This allows marketers to work in a vacuum, essentially; their efforts stand alone. In a circumstance where the public is well aware of factors affecting the property, marketers have less opportunity to create the story and message- though the opportunity to shape it still exists. A marketer is not going to convince potential guests that the oil spill does not exist, but it can convince consumers that it need not dominate their travel plans. Understanding this limitation can go a long way toward developing an effective marketing and communications strategy in the face of significant external factors.

Writing about something as catastrophic as the Gulf oil spill in terms of the marketing challenges it presents to hotels may seem a little callous. But to say that public perception of how the spill has affected tourist destinations in the region is significant is an understatement. Public perception- the one aspect of this entire crisis that individual hotels have a small degree of control over- is perhaps the single greatest factor impacting hotels, behind the spill itself. Understanding how marketing and public relations can help shape and subtly modify that perception is the key to retaining and recovering lost bookings. Hotels that can identify the limitations of marketing in this situation, and then go out and spread the right message and emphasize the right aspects of their operations without explicitly contradicting the facts, will survive this latest test.

One final note – We at TravelInk’d want to express our support for all of those hotels (and all of our sister industries) that are being affected by this terrible crisis. We wish you the best of luck this summer and, if you need ideas, questions answered or help figuring out how to best create a successful PR and marketing campaign to counteract consumers’ worries about the oil spill, please don’t hesitate to contact me at any time – jlr@travelinkd.com.

Jennifer Rodrigues, Visibility Development Manager with ThinkInk Communications, is a seasoned public relations professional with a passion for the hospitality industry, which is expressed in her role at ThinkInk’s travel division called TravelInk’d. At TravelInk’d, she is responsible for developing cost-effective and creative public relations and marketing strategies for clients in the travel and tourism, airline, lodging, cruise and meeting/event sectors. For more information on TravelInk’d, please visit www.travelinkd.com or contact Jennifer at jlr@travelinkd.com.

8 Things that Won’t Happen in 2010

Reprinted from www.younghotelier.com

By Jennifer Rodrigues, TravelInk’d

If you’re anything like me, you’re probably getting very sick of reading new predictions released daily about what 2010 will bring for the hotel industry. Have you noticed a theme in all of them yet? I have, and it goes something like this: bad news, bad news, bad news and more bad news.

So, to lighten the mood, I’ve decided to put together my list of unpredictions for the hotel industry in 2010; basically this is a list of things that I’m pretty sure WILL NOT happen in the hotel industry next year.

Let’s start the countdown:

#8 – Consumers decide that value ISN’T the most important thing in choosing a hotel; decide to pay full price for all bookings.

With the advent of technology, the hotel industry has had to make their rates much more transparent. And with more and more OTAs springing up every day, transparency is the only way forward for hotels. Even though we, as an industry, may be suffering, charging high-season rates during the off-season will never equal more bookings or higher RevPAR; instead, it will result in a hotel losing out on valuable bookings to their competition. Think value, and your hotel will be thinking successfully in 2010.

#7 – Social media sites Facebook and Twitter, die peacefully in their sleep from lack of usage, moved on to social media heaven. Hoteliers worldwide sigh with relief.

At this rate, the only people not on Facebook and Twitter by the end of 2010 will be my grandparents. Oh, I just got an email: ‘grandpa is now following you on Twitter’. What?? Well, that proves it. If you’re not using Facebook or Twitter (or both) to promote your hotel, then you’re not reaching a huge audience… everyone!!

Hotels need to embrace social media as an efficient and cost-effective way of interacting with consumers. While it can be confusing to figure out what works and what doesn’t, if you don’t, you risk missing out on the opportunity to develop the brand loyalty that makes your customers keep coming back for more.

#6 – Hotel rates continue to fall. Free hotel rooms all the rage!

I think that we’ve seen the end of one cent rooms and hotels giving away the house (or rooms). Hoteliers have learned their lesson; increased occupancies without a proper rate, does not equal more dollars in the pocketbook. In 2010, the emphasis for hoteliers will be more on RevPAR rather than just filling space. And it’s not a moment too soon!

#5 – Consumers stop travelling altogether; recession to blame.

Lodging supply actually grew in the third quarter of 2009 (again according to PwC, which revised its room supply prediction to 3.2% growth for 2009) so I know for a fact that this unprediction won’t happen. With the recession at an end, consumers will start to feel more comfortable with the thought of spending money and the travel industry, including the hotel industry, will start to pick up again. It will be slow going for most of the year but in my mind, any increase is a good thing after a year like we’ve had in 2009. Don’t you agree?

#4 – Hotels at 100% occupancy worldwide.

While hotel rooms won’t be empty, they also won’t be completely full. It will still take at least a year until occupancy rates are back up to the levels that we’ve seen in previous years, and even at the best of times, occupancy rates (in general) are rarely coming in at 100%.

Hotels can increase their occupancy by focusing on value and offering value-adds to distinguish their property from its competition (rather than focusing on slashing rates). Consider free breakfasts, WiFi, passes to area attractions, or even a buy one, get one free coupon for longer-term stays.

#3 – Customer service falls to the wayside.

In a market where online travel reviews are almost the norm, customer service becomes of utmost importance. Many consumers use previous hotel reviews to gauge whether or not they should also choose to stay at a particular property so it’s important that hotels don’t disregard the importance of these reviews.

It’s simple: bad customer service=bad reviews=decreased bookings. Hotels need to focus on delivering the best experience possible to their guests in 2010. And when there is a problem, hotels need to make sure that they address it immediately and to the guest’s satisfaction, to prevent them from spreading negative reviews online.

#2 – Expedia goes out of business, closes its virtual doors. CEO Dara Khosrowshahi out of work!

Again, never going to happen. Expedia is a leading OTA and a constant innovator in the travel space. Until the web is replaced with another primary booking channel, Expedia will be around, charging hotels commissions.

Which reminds me, although we all hate those pesky commissions, Expedia and the other OTAs are something that we have to just grin and bear through 2010. They will continue to be even more important for the success and revenue generation of hotels, especially in North America, but increasingly worldwide.

And last but not least, Numero Uno – Hotels become obsolete; RVs back in style!

Hotels have been around for hundreds of years for one reason – consumers love them. While RVs offer the benefit of being able to pick up and go, hotels will never be beat when it comes to luxury, amenities and ambiance.

But that doesn’t mean that hotels don’t need to stop thinking about continuing to innovate and distinguish themselves from their competition. In 2010 and beyond, hotels will need to keep moving forward, embracing the future and keeping themselves ahead of the pack in order to survive in today’s post-recession world.

In 2010, keep reading my columns to find out how your hotel can use marketing and PR to establish your property for continued success. And don’t hesitate to contact me at any time if you have questions about your marketing programs – jlr@travelinkd.com.

Happy holidays to you and your family and I look forward to hearing from you next year!

About the author: Jennifer Rodrigues, Visibility Specialist with ThinkInk and TravelInk’d, is a seasoned public relations professional with a passion for the hospitality industry, which is expressed in her role at ThinkInk’s travel division, TravelInk’d. At TravelInk’d, she is responsible for developing cost-effective and creative public relations and marketing strategies for clients in the travel and tourism, airline, lodging, cruise and meeting/event sectors. For more information on TravelInk’d, please visit www.travelinkd.com or contact Jennifer at jlr@travelinkd.com.

JetBlue Reneges on All-You-Can-Jet Offer Two Days Early

 

Kathryn Elizabeth Tuggle

 

JetBlue Airways (JBLU: 5.24, 0, 0%) has sold out of tickets. 

Well, not exactly — but the low-cost airline carrier has stopped selling its “All-You-Can-Jet” passes two days early due to heavy demand. JetBlue began selling its unlimited travel passes on Aug. 12, and had intended to offer them through Aug. 21 “or while supplies last.”

The passes, which retailed for $599 each, allowed passengers to travel as much as desired from Sept. 8 through Oct. 8. On Wednesday the airline announced that the “or while supplies last” caveat would have to be invoked, and the passes were pulled from the market.

“We limited the number of passes sold to make sure that everyone who purchased a pass would be able to take ample advantage of it,” JetBlue announced on its Web site. JetBlue would not disclose how many of the passes were sold, or how much the demand has exceeded the supply thus far.

“There could be a potential backlash if consumers feel JetBlue was not transparent about the offer,” said Vanessa Horwell, a spokesperson for Airsavings.net, a worldwide airline consultancy.  “However, if they overbook and they can’t fulfill on their promises, that would cause more of a backlash than retracting this offer.”

Because JetBlue is a low-cost carrier, it gives them a bit more leeway to pull an offer like this one off the table, than say, American Airlines (AMR: 5.03, 0, 0%), Horwell said. JetBlue already marches to its own, lower-cost beat. As such, sales come and sales go.

With air travel expected to be down by 3.5% over the Labor Day holiday, Horwell said that anything to get Americans traveling again was a good offer, no matter how long it lasts.

“Given how troubled air market is, airlines need to fill their planes,” Horwell said. “I think this is indicative of the fact that people will travel at the right price. When there is value, people will fly.”

http://www.foxbusiness.com/story/markets/industries/retail/jetblue-reneges-jet-offer-days-early/