The Power of Partnerships: Productive Methods to Leveraging Like Brands

By Lanny Grossman, President, EM50 Communications

As resources become scarcer for marketing departments across various industries, marketers need to start finding more creative ways to reach target customers. Businesses need to now drive sales by building brand awareness with the constraints of markedly decreased budgets. This can be achieved through strategic promotional partnerships with non-competing, complementary brands looking to reach a similar audience. The "Power of We," as Jonathan Tisch, Chairman of Loews Hotels, describes the practice, is essential to growing a business and maximizing marketing reach.

The first step in the process is to identify two things: what assets you have to leverage and what types of companies you would ideally like to work with in order to achieve your stated goals. Each party needs to bring something to the table in order for the partnership to be balanced and successful so you must determine what you have that can be of value not only to you but to somebody else in the absence of cash. It could be a database of qualified customers, hotel room nights or even meals at a restaurant. Once you identify what assets you have to work with, you then need to determine to whom it will be offered. When choosing potential promotional partners, it is important to select companies or brands that make sense; other operations that align with yours as far as target consumer but one that exists in another industry or non-competing manner to which you do business. I suggest making a 'Wish List' of potential partners by category - travel, retail, media, non-profit, credit cards, etc. - and then developing those strategic partnerships one at a time.

As mentioned above, in order for a partnership to be successful, it needs to be mutually beneficial. It is first advantageous to understand who their customers are, how their business functions and what programs have they implemented in the past to achieve similar results, if any.

Additionally, having an understanding of what your goals are, as well as the partners', is helpful to create the right program moving forward so both parties are successful. Is it simply an exercise in raising brand awareness? Are you trying to get people to attend an event? Is your potential partner trying to drive sales or raise their brand profile or both? Once all of these questions are answered you can develop the appropriate plan. Create a dialog between parties that shows the other side that you are truly interested in a positive outcome for both sides.

For example, if you operate a hotel and you are looking to raise your brand awareness and reach a new group of potential customers, first establish what your currency is going to be; which in most cases for a hotel is a number room nights. As an example, if your goal is to raise your name recognition across the country, you may partner with a national retail chain and offer them room nights as an incentive for their customers to purchase more in-store or to simply sign up online for a prize giveaway building each of your databases, which we will come to in a bit. So right away, you have created a balance between the partners. Retail partner X now has something of value to offer its customers, which in turn has the potential to build brand loyalty and/or drive sales for them (depending how the giveaway is structured). On the flip side, you get your name, logo and hopefully website in front of a plethora of new, targeted customers at a very minimal cost.

It's all about the database. One of the most successful scenarios of a marketing partnership is when two brands can come together and reach out to their respective customers with a cooperative message and/or offer. Keep this in mind as you develop any kind of online or offline business, since collecting customers' names and information will later equal a valuable currency both in your direct to consumer marketing efforts and also in your partnership possibilities. The first scenario we explored was an in-store promotional opportunity with a retail brand, but the more you can hone in on a targeted audience the better. Let's say you are a hotel chain with properties in Washington, DC and you want to increase your weekend business from within driving distance. You can look to partner with AAA(R) for example and extend a unique, exclusive offer to all AAA(R) members. AAA(R) can then communicate that information to members within a four hour drive from Washington, DC. Alternatively, you can reach out to all of your previous guests who live within driving distance as well with information on the benefits of AAA(R) including the exclusive offer you created. The benefits MUST flow in both directions.

Now that we have covered the mechanics of forming the partnership, it is essential to remember that the success relies upon not just the numbers of people but reaching the appropriate people for that particular partnership. Brand alliance is just as important, if not more important. If you are a luxury hotel, you are going to want to partner with brands or services that effectively reach the same level of customer you desire, such as any of the luxury retail brands like a Ferragamo or Neiman Marcus. If you are a mainstream, family resort chain, partnering with a Macy's or Six Flags may be more appropriate. By aligning yourself with recognizable and qualified brands, consumers that may not be familiar with your brand will now automatically associate the characteristics of your partner to you; something that can favorably effect your brand recognition as much as anything else. The old saying goes that you are only as good as the company you keep and that is certainly the case in partnership marketing.

Regardless of the industry, companies are fighting for consumer dollars more than ever and are open to new, creative ways at trying to get them. First, figure out what you want to achieve and how you can leverage your business to help a potential partner. Then, choose a desired partner and tell them why it is beneficial for them to work with you. Everybody wants to increase sales and reach more customers. All you need to do is find somebody as open minded as you are, with similar goals, to create a mutually beneficial relationship that minimizes cost and maximizes results. Promotional partnerships are a highly effective tool in achieving your marketing goals and driving additional business while leveraging your assets in the most efficient manner. Trade agreements between countries, airline alliances, affinity credit cards - these are all forms of partnerships created to leverage the brands' networks, customers, financial standing and name brands to further the rewards for each involved. Partnerships are the foundation of smart business expansion, growth and opportunity. Whether small, large, simple or complex, partnerships bring companies and people together to do great things.

Lanny Grossman specializrs in PR, luxury lifestyle marketing and consumer outreach. He began working with notable hotel properties such as the Waldorf=Astoria in New York and Le Byblos in Saint-Tropez, after which he became the Director of Public Relations for two of America’s famous restaurants, Tavern on the Green and the Russian Tea Room. More recently, Mr. Grossman was Director of Brand Communications for Small Luxury Hotels of the World, an international hotel consortium whose portfolio boasts over 450 of the finest hotels in more than 70 countries. Mr. Grossman can be contacted at 646 861 2801 or lanny@em50.com

Top 10 Social Media Trends for 2012

Following up on last month’s look back at the top trends of 2011, we take an analytical look at what’s hot and what’s growing in the social world for 2012. Focusing on these items early in the year can give you a great leg up on the competition.

Social media has seen some amazing innovations in the last few years, and it doesnt show signs of stopping any time soon. As more users turn to friends and connections to get answers to their questions, search engines are working hard to build social signals into their algorithms. Staying on top of social media is about working smart, not just working hard. Based on where the industry is moving, these ten trends should be strong influencers in 2012.


1. Socialization of search: Search engines started using social signals in their ranking algorithms in the end of 2010, and increasingly in 2011. As Google and Bing continue testing and perfecting their algorithms, the search results for any individual users will become increasingly personal based on location and his/her social connections.

2. Hard ROI metrics: As with all marketing campaigns, at the end of the day it is important to see some measurable returns from social media. The concepts of "brand exposure" and "building engagement" are great buzz words, but in order to improve your efforts on a regular basis you need to be able to measure results. When a social marketing plan is developed correctly, real ROI is able to be measured and reported.

3. Merging of marketing channels: As search engines begin incorporating the data from many different departments into their algorithms, it becomes more important for members of various marketing teams to communicate and share strategies. The lines between traditional, paid, organic, and social marketing are blurring.

4. Location-based social media: The technology in mobile devices is more powerful and more affordable than ever. This combination of power and economy is contributing to an increase in mobile social activity. A large user base with geographic ties allows brands to target small, qualified groups of users with unique and relevant messaging.

5. Social media fatigue / content aggregation: With so many different social networks available, it is easy for the average user to burn out and get tired of staying on top of every new channel. In some ways this is already evident by the large number of accounts on Google+ that were created and quickly abandoned. Users are starting to focus on the one or two social networks that fulfill their unique engagement needs. To be able to connect across so many networks, it is imperative for businesses to have a strong listening foundation, and the ability to adapt targeted messaging to diverse networks.

6. Infographics: The idea of sharing large amounts of complex data in a friendly, visual manner is not new. However, the rise of infographic popularity on the internet is astounding. Creating compelling infographics is a great way to get fun information out to your customers, but also a way to reach new users with popular keywords. Search volume for the words "infographic" and "infographic" on Google. Source: Google Trends

7. LinkedIn: As search engines rely more on social signals, it is important to have an active presence in the channels that carry the most search engine weight. LinkedIn is one such channel, and can be a very effective tool for connecting with business consumers as well as getting yourself to rank higher in search engine results.

8. Identifying sales leads: The real-time nature of social sharing presents the potential to proactively reach out to users and cultivate potential sales leads. The key is to develop effective listening methods that allow you to identify and contact potential consumers in a way that allows you to contribute to ongoing conversations.

9. Facebook sharing: Facebook's open graph technology is making it easier for users to connect and share things on Facebook while outside of the FB platform. As developers create applications that take advantage of the open graph network, "liking" will become more ubiquitous to include other verbs and not require physical clicks of a button.

10. Consumer lifetime value: Too often, marketing promotions focus on ways to grab attention for one purchase or event, and fail to take into account the potential value of consumers over a lifetime. Using social media to reward customer loyalty can ensure a long and profitable relationship.


Contributed by Mike Supple, Sr. Social Media Manager, Milestone Internet Marketing, Inc.

2011 Year-End Hotel Technology Review

Well, it wasn’t the year we’d hoped for; initial optimism that we were at last coming out of the recession was replaced by reminders that there was still a long way to go. Nevertheless, many properties took advantage of slow business to upgrade their systems and lay the foundations for more efficient operations once traffic does return, and equally as many vendors enhanced their systems for greater integration and flexibility.
The importance of IT innovation in the hospitality world was recognized once again by InformationWeek’s listing of the U.S.’s 500 most innovative business technology users, which included seven hospitality companies in the top 250. The highest-ranking hospitality company honored this year was Vail Resorts at #10, whose EpicMix Web and smart-phone application appropriately highlighted the integration of guest service with mobile technology.

The year of mobile technology

It was definitely the year mobile devices of all types became mainstream, along with a growing integration of social media sites into more traditional hotel systems. IHG (InterContinental Hotels Group) released iPhone booking apps for each of its seven brands, launched 120 free iPad Concierge Insider Guides and reported a nearly 1,000 percent increase in room night bookings from mobile devices. MGM released Android versions of 12 hotel applications for booking rooms and activities, and Motel 6 released an app for Apple devices. Genares and InnLink released mobile booking engines, Expedia announced an app for the iPhone and iPod Touch, and RIM released a BlackBerry Travel app integrating itineraries, profiles and flight status updates into BlackBerry Calendar.
To help international travelers, FCS’ i-Guest Hotels Finder app played recordings of directions to a hotel in the local language for lost guests to play back to taxi drivers, and Marriott offered its mobile app for Apple and Android devices in Chinese, Spanish, German and French. RateTiger released a Blackberry version of its revenue management RTSuite, and Alloso Technologies ported its hospitality business intelligence app to the iPad.
Bringing social media into the mix, Availpro released a Facebook booking engine and RateTiger used Cultuzz Digital Media’s CultBay to post hotel availability on eBay. Sabre’s SocialConversion product suite helped hotels maximize their social media presence; Appnostic and Genares integrated their hotel booking apps with Facebook, and Regatta Travel Solutions launched a Facebook booking engine tool for Destination Marketing Organizations (DMOs). VFM Leonardo released a Mobile Media Player for its VBrochure, formatting hotel photos, virtual tours, videos and marketing copy for mobile devices.
Protel introduced an iPad “bookatonce” version of its GMS and released its Voyager browser-based mobile app for Apple, Android or BlackBerry. ResortSuite released ResortSuite MOBILE; Resort Data Processing (RDP) announced four new mobile modules. Fuel Interactive’s Guestdesk Mobile Booking Software added mobile booking of tee-times and other activities, as did Open Hospitality for food and beverage, special amenities, event tickets, flowers and other add-ons. W Hotels unveiled an iPhone app that lets guests order room service and request other services, in addition to booking guestrooms; Crave Interactive’s GuestService+ in-room application included food and drink ordering for Room Service or in Hotel restaurants.
POS wasn’t left out; Agilysys released InfoGenesis Roam mobile POS software for the iPod, and Squirrel put its Professional POS system onto Apple iPads. MICROS integrated Tabbedout into its POS systems, allowing guests to pay restaurant and bar tabs with their smartphones. All in all, look for mobile F&B ordering to become much more common in this coming year.
On the guest services side, Acentic’s mobile versions of its high-speed Internet and iTV services platform allowed users to check a hotel’s offering of movies or other services from their own phones and to use them as TV remote controls. Intelity released ICE Mobile for Android, and TAC developed a phone-based loyalty card app. Starwood offered FaceTime video calling for loyalty-club members to contact customer service agents, and GoConcierge released native iPad and iPhone versions of its system. MTech released an Android app for H2GO, its mobile version of HotSOS, and hotel SystemsPro released its hotel ServicePro asset management system for the iPad. Adaco extended procurement system to iPads and touch-screens.
Conference/event software also went mobile. Passkey’s GroupMAX used OneClick Mobile to generate customized mobile sites for events, and released a widget to embed availability on event websites and social networks. QuickMobile launched MobileEvent Express Edition, an iPhone app for meetings and events. StarCite’s Mobile Attendee tool delivered key information (including agendas, logistics, maps and news alerts) directly to meeting attendees’ mobile phones and devices; Swank Audio Visuals released its SwankDraw iPad-based room layout application. Intriguingly, The Knowland Group’s SmartPhone Leads, a location-aware augmented reality app, lets hotel sales teams focus their smartphone cameras on a hotel and see on-screen pop-up bubbles showing groups that have held meetings or stayed there, with contact data.
Speaking of cross-system integration, OTRUM launched its Enterprise portal, combining check-in information with details from a hotel’s CRM database to profile guests as to type, gender, age, language and home country, thereby letting the hotel send customized communications, advertising, service offerings and price points to each individual guestroom TV. MConcierge Systems rolled out a Guest Relationship Management system that links hotel profiles with guests’ social media profiles and rewards guests using the hotel’s mobile application for every activity performed using it, with loyalty points for immediate on-premise redemption.
And if all that wasn’t enough, Marriott even released a hotel-themed online game (My Marriott Hotel) and InterContinental released a Kitchen Cookbook iPad app of its hotels’ recipes. Where will it all end?

Guest Management Systems

The new breed of GMSs all made progress this year. Agilysys’ Guest 360 officially came out of beta with installations at the Gotham Hotel and two GrandLife Hotels, all in New York City. Infor-SoftBrands’ HMS found its first customers in the Larkspur Landing Hotel in Hillsboro, Oregon and the Fitzpatrick Hotel Group’s two hotels in New York. Dynamique Hôtels Management (DHM), with 150 properties, became the first customer for Amadeus’ new centralized Hotel Platform, which combines central reservation, global distribution and guest management systems. PAR Springer-Miller launched its ATRIO system with a strikingly new visual approach in its user interface, and Stoney Creek Inns was the launch customer for the first module of MICROS’ new OPERA 9 suite, channel management.
Central hosting of management systems continues to grow in popularity, for all the usual reasons of greater data consistency, system security and ease of reporting. Germany’s Rilano Group installed SoftBrands’ Starlight for all five locations, AC Hotels by Marriott picked MICROS’ centrally-hosted OPERA and Simphony POS for 91 properties, as did Cedar Point Amusement Park for its six hotels. Joie de Vivre added MICROS OPERA Customer Information System, Business Intelligence and Sales Force Automation to its already-centralized implementation of OPERA, and Orient-Express Hotels picked MICROS’ OPERA and POS systems for its 49 properties. Hospitality International named SKYWARE its preferred GMS for all 300 franchise properties, and Jebel Ali International Hotels installed protel MPE at all five sites.

Cloud Computing

After the massive hype of the last couple of years, true cloud computing settled in as a viable architecture for specific needs, although some costing issues still need to be ironed out. EZYield upgraded its infrastructure to run on a 40-gigabit InfiniBand network and Amazon’s Cloud, and OTRUM moved all of its Digital Signage services to IBM’s SmartCloud Enterprise. Online travel network TravelShark (née Swiftrank) moved to Amazon’s Web Services (AWS) cloud platform. Libra OnDemand expanded the functionality of its Force.com cloud-based CRM/Hospitality Management System significantly, and Dolce Hotels and Resorts implemented it across all 27 properties.

Guest Reviews

Guest reviews and feedback continued to have high importance. GetThere, with its Hotel Traveler Reviews, let corporate travelers share online hotel reviews, and Starwood launched its own online review function. Lodging Interactive extended its Guest Review System to let hotels collect and share guest reviews directly from their Facebook pages. Whiteboard Labs used FeedMagnet’s social curation technology to power Telltales, allowing hotels to integrate content from social channels into their websites and marketing programs. RateGain launched its BrandGain guest satisfaction and online reputation management system to consolidate and analyze feedback, and, to try to keep things honest, researchers at Cornell University developed software claimed to be able to identify fake hotel reviews by their linguistic structure.

CRS

Google got serious about the hotel market with the launch of its Hotel Finder search tool, a rival to several meta-search engines, but the traditional CRS vendors saw strong growth as well. Regent Hotels & Resorts properties and Vantage Hospitality Group switched to Sabre’s SynXis, and Castle Resorts & Hotels (25 properties) and Kosmopolito Hotels International (22 hotels) went with TravelCLICK. Destinations of the World joined Amadeus and took it past the 100,000 property mark. Orient-Express Hotels picked Pegasus’ RezView NG for 40 properties, and relative newcomer Whiteboard Labs picked up Centerstone Inns, Hotels and Plaza Hotels for its Windsurfer CRS, along with a number of independent properties.

Revenue management

Revenue management showed strong growth, as properties not only expanded their use of it but began integrating it into more of their guest management and marketing operations. EZYield had a strong year, picking up Swiss-Belhotel International (20 properties), Fairmont/Raffles (100+ hotels), N. Daskalantonakis Group (30 Grecotel Resorts and Classical Hotels), Lindner Hotels (34 properties) and developing an interface with Passkey for conference rooms booking. IDeaS integrated with RateGain’s ChannelGain and PriceGain as well as SiteMinder’s Channel Manager, and gained Dusit International (13 properties), Scandic Hotels (chain-wide) and Anantara (15 hotels). Toga Hospitality installed EzRMS in fifty properties, Guoman Hotel Management in another 37 and Brazil Hospitality Group in 20.
RateTiger launched RTSuite Content to distribute and manage marketing content centrally, Brook Hotels implemented its RTSuite channel manager at 12 locations and NH Hoteles adopted RTConnect for all 400 properties. China’s New Century Hotels & Resorts picked RateGain’s ChannelGain for 14 properties, PROS built Lixto’s competitive price data into its price optimization software, and Best Western International adopted Lixto for all 4,000 properties. TravelClick added over 200 Hotelligence360 clients in Europe in two months alone, in July/August.

RFID

RFID seems finally to have become a mainstream technology, especially for guestroom door locks in all sizes of property. VingCard’s Signature RFID locks were adopted by Starwood’s Aloft flag, the 500-room Royal Palm Plaza in Campinas, Brazil, the Holiday Inn City of Knowledge, Panama City and Kyriad Marseille Centre-Rabatou in Marseille, France, two Starwood properties in Greece and, brand-wide, by Mexico’s first extended-stay brand ExtendedSuites. KABA’s Saflok RFID locks were installed by the Peabody Orlando (1,641 rooms), the Holiday Inn Knoxville, Hotel Harrington in Washington, DC and Howard Johnson Admiral Inn on Tybee Island, the Comfort Hotel Xpress in Oslo, Norway (with OpenWays acoustic couplers built in), the YOTEL New York (669 rooms) and the 70-room Arnold Palmer’s Bay Hill Club & Lodge.
Peninsula Hotels is replacing the guestroom door locks in all properties with Saflok RFID units, and is reported to be looking at much wider use of RFID for guest services. Looking further ahead, ASSA ABLOY introduced its Mobile Keys Platform for the NFC (Near Field Communication) mobile phones as they come into more widespread use, and partnered with RIM to develop NFC-enabled door key software for Blackberry phones. Outside of locking systems, InvoTech’s UHF-RFID version of its GIMS uniform and linen tracking system gained several new orders as its viability and cost-savings became apparent.

Multiple-property orders

Many chains extended a single-system philosophy by placing chain-wide orders for all types of application. Roadchef rolled out Guestline’s suite at 14 properties across UK, Richfield implemented ProfitSage Financial Business Intelligence throughout its portfolio of 500 hotels, SKY Hospitality selected Aptech’s Execuvue business intelligence system for nine Microtel Hotels, and Ameristar Casinos picked Teradata Data Mart Appliances for its seven casinos. Royal Caribbean selected InfoGenesis for additional seven ships, and Resort Collection of Panama City Beach picked Springer-Miller for six condo properties. The Trump Hotel Collection standardized on MICROS’ OPERA and Newmarket’s Delphi MPE across all seven properties, and Lindner Hotels and Resorts moved 32 properties on OPERA and myfidelio.net to MICROS’ Data Center. Lane Hospitality implemented hotel ServicePro across 19 properties and Loews migrated all 18 properties to MTech’s HotSOS.



Guest services

Integrated guestroom services continued to gain ground. Intelity had a banner year with its ICE product winning HTNG’s 2010 Most Innovative Hospitality Award and being implemented by many properties, including the Plaza Hotel, JW Marriott Indianapolis Downtown, Mondrian Soho, Hotel Beaux Arts, Miami, Eccleston Square Hotel, four Chicago hotels and the Hilton Inn at Penn, Morgan’s Delano in Miami and Hudson in New York, the Four Seasons Los Angeles at Beverly Hills and the Dorchester Collection’s Hotel Bel-Air, and its first properties in Asia (L Resort Krabi, Thailand ) and South America (three Hoteles Charleston Colombia). Runtriz was adopted by The Westin Riverfront Resort Spa at Beaver Creek Mountain and the Hôtel Americano in New York. Roomlinx was adopted by Prime Group’s new 610-room Chicago property and the 216-room Holiday Inn Resort Orlando – The Castle. iRiS unveiled its Personal Valet Application for iPads and smart phones, ZDirect’s Mobile Passport offered guest services via smart phones, and SuiteLinq interfaced with MTech’s HotSOS for fulfillment of guest requests. KoolConnect announced that its implementations in the first nine months of 2011 significantly exceeded those of any previous full year, and introduced its 1Connect concept covering FTG TV, HSIA, TVs, iPad/mobile apps, network services, digital signage, single-remote control, PVRs and more.
WiFi became an even more essential service; although the cost of providing ever-increasing bandwidth to meet guests’ demands is significant, an iPass survey indicated that hotels may very well lose business travelers through bad Wi-Fi offerings. iBAHN launched dynamic Bandwidth Management to help hotels provide tiered pricing for different service levels. Swisscom’s ConnectedHotel TV/digital services platform gained several new clients, as did iBAHN’s IPTV application (ETVi).
Digital display boards expanded their functionality; JANUS added boarding pass printing to its Concierge Board touch screen display, enabled an interface to guests’ and meeting coordinators’ tablets, and released motion-triggered signage using a Kinect device. Courtyard unveiled version 4.0 of its GoBoard digital lobby display, developed in partnership with Four Winds Interactive and expanding the range of interactive guest services offered.

Inventory/procurement

Keeping an eye on cost controls, many hotels implemented inventory/procurement systems. Wyndham Worldwide deployed Adaco’s .NET system enterprise-wide, the Imperial Treasure Restaurant Group picked Eatec for 13 locations in Singapore, and relative newcomer Yellow Dog Software found success with five independent clients.

Energy management

Energy management seems to be keeping up its slow but steady growth levels, with some interesting developments. The Peabody Orlando, for example, integrated HotSOS with Control Green guestroom monitoring to pro-actively deal with rooms running at less than optimal efficiency, and both Encelium Technologies and Verve introduced new low-voltage occupancy sensors, the latter being self-powered. Telkonet’s SmartEnergy platform was adopted by the Springhill Suites Las Vegas and Crowne Plaza Times Square Manhattan. The Waikiki Beach Marriott Resort & Spa installed INNCOM’s Deep Mesh Network, and the Atlanta Marriott Marquis installed Inncom Guestroom Occupancy Sensors in all 1,569 guestrooms.

M&A

It was an unusually active year for mergers and acquisitions. Sabre Holdings acquired GMS vendor SoftHotel and its 4,500-strong client base, NCR took over Radiant Systems, Infor picked up Lawson Software, Newmarket acquired both MTech and Libra OnDemand, and RTP was taken over by The Active Network. GMS vendors AutoClerk and Bay Lakes Information Systems merged, as did InnPoints Worldwide and CARINO Hotels and Resorts to form Centric Hospitality.
EZYield was acquired by TravelClick, which also took over Rubicon. PAETEC acquired XETA Technologies. Passkey International gained UK-based Velvet Software, and Safemark Systems acquired Best Lockers. Xn Group sold its Leisure Systems subsidiary to Jonas Computing, and Philips transferred its television business to a joint venture set up with TPV Technology. Web developers were in demand; Pegasus took over Open Hospitality, Cendyn acquired RoundTableHQ, eRevMax acquired Lunar Logic Polska and TripAdvisor bought GPS-app developer EveryTrail and mapping vendor Where I’ve Been before being spun off from its parent, Expedia. Quadriga acquired pay-TV specialist SmoovieTV and Los Angeles-based NxSystems, intending to use the latter’s NXTV brand as the basis for its entry to the Americas market.

Overall

Overall, a surprising amount of progress was made in what turned out to be a much more difficult year than most in the industry had hoped for. We’re not out of the woods yet, but my sense is that last year’s optimism that “this year will be different” has been replaced by a much more solidly-based and confident “we’re going to make this year different.” I think the industry has turned a corner, and we’ll see many more systems and technology developments and upgrades than in recent times. One thing’s certain, though; we’ll all need more WiFi bandwidth!

HOTELS Interview: Is Groupon good for hotels?

By Jeff Weinstein


Its launch of flash sales for hotel stays in July 2011 has given Groupon tens of millions of dollars in business worldwide via partnerships with hotels.

However, the industry has mixed feelings about selling rooms via flash sales to say the least. Critics assert that flash sales for hotel rooms do not engender brand loyalty and that the deals are not supplier-friendly enough.

To further examine how this new channel affects hotels’ bottom lines, HOTELS talked to Simon Goodall, Groupon’s vice president and general manager of travel, to discuss their burgeoning hotel flash sales business. Further coverage of Groupon will be featured in the March issue of HOTELS Magazine.

HOTELS: The prevailing thought is that these are customers that are going to be there when you’re going to provide a great deal, 50% off the usual rate, but that you’re not really helping create any loyalty. In fact, you’re helping make customers more brand agnostic.

Simon Goodall: I think every hotel has to look at that differently. They have to look at the sources of their business and make a determination of what are the sources that drive their key business and what segments drive revenue for them. There are different segments of customers that exist and we have to work with each property to see what that looks like.

You don’t generate loyal customers without generating trial, and that’s what this is all about.

HOTELS: Some in the industry warn that no hotel should use flash sales. Are you going to evolve to be more supplier-friendly?

Goodall: I think we are very supplier-friendly. I fundamentally disagree with that. I can’t speak for what others are doing.

We help drive incremental demand. What a hotel has to look at is that a hotel is a very high fixed-cost business.

HOTELS: You’ve had the advantage of coming to the market during a recession where there are a lot of available rooms and when owners are telling their managers, "I don’t care if it’s cheap business, we need the cash flow.” When the economy eventually recovers, there are some that say that flash sales are just a recessionary phenomenon and not a distribution channel that is here to stay. How would you respond to that?

Goodall: I would also disagree. I’ve been in travel distribution for 10 years. I’ve seen great times for suppliers and more difficult times for suppliers.

Until a hotel is 100% full at an infinite price point, there’s always room to grow. There’s always room to increase occupancy and rate. We can help with base loading inventory, to give them the confidence to raise rates in the overall marketplace and to help them increase occupancy when demand is soft.

We’re not about selling during their peak period time. We’re about adding value, helping hotels when they have periods of need.



Simon Goodall

HOTELS: Back in 2003, the OTAs started implementing rate parity similar to what hotels wanted. The flash sale is against best rate guarantee principles. On a bigger scale, average rate decreases when hotels give inventory to flash sale sites. How do you deal with that, how do you respond to that?

Goodall: I disagree that we’re lowering rate. We’re increasing RevPAR.

I think there’s a way we can increase ADR, because we drive awareness of the property. Outside of the period when the Groupon deal is valid, we collect zero revenue.

I think your question was about rate parity. We don’t sell rooms. We sell a voucher and the face value of it is for a room. We’re not selling the same thing as OTAs or hotels do on their own websites. We sell experiences, complete packages that are more than a hotel room. To drive incremental demand, often just selling a room isn’t the best thing to do. You need to create experiences.

HOTELS: The cost of distribution via flash sale sites is disproportionately high compared to a hotel’s own website. What are you hearing from your suppliers about cost and how do you respond to the fact that there’s such a high cost to distribute via flash sites?

Goodall: I think hotels have to look at it a little bit differeintly. You have to look at what is the incremental net revenue. I completely agree, a hotel website is the best place to distribute. If a hotel is filling all their rooms by their own channels, that’s what they should be doing. But while they are in that, they should be rational about how much they are spending on the acquisition. People don’t always factor in the total cost of their acquisition.

What are you spending on paid search marketing, what are you paying for upfront advertising and what is the incremental value of those ads? How are they presenting your property? Are they doing it in a way that enhances the brand?

They have to look if this is benefitting their bottom line, if this is getting customers they would not already have. I think the [Groupon] cost is actually very, very low in that regard.

HOTELS: As far as the booking rate you tend to get, is that number moving higher as demand recovers? Do the booking numbers tends to go up, are the deals not quite as enticing as demand goes up?

Goodall: We’re pretty consistent in what the deals are. Our consumers know us for driving great value for them and we’re not willing to compromise on that, as that is what drives consumer interest.

Just seeing "$99 off" doesn’t inspire you. It’s a whole experience backed up by a great deal.

It’s not all about the price point, but the price point is an important part of the deal.

HOTELS: Can you share any broader numbers on your hotel business and what you’ve generated in terms of booking or revenue?

Goodall: In our first full month we did over US$10 million of hotel business. That was in August. This business is growing as a whole.

HOTELS: Is Groupon doing any hotel business outside the U.S.?

Goodall: Yes, there is a lot. Each of our local countries has their own travel business and they are working with hotel partners to offer deals. Any country around the world has different options. Each of our countries is run more or less autonomously.

HOTELS: Is there any particular area of the world that’s been notable for its strength on the hotel side other than what you’re doing in the U.S.?

Goodall: A lot of our European countries have significant business in the travel and hotel marketplace. Our Brazil business has a fairly heavy merchandising of travel.

Three rules of work

“Three Rules of Work: Out of clutter find simplicity; From discord find harmony; In the middle of difficulty lies opportunity.”

"Três regras de trabalho: fora da desordem encontrar simplicidade; De discórdia encontrar harmonia; No meio da dificuldade reside oportunidade."

Success before work?!

“The only place where success comes before work is in the dictionary.”

"O único lugar onde sucesso vem antes de trabalho é no dicionário".

Achieving Excellence

“If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude.”

"Se você estiver indo para alcançar a excelência em grandes coisas, desenvolver o hábito em matéria pouco. Excelência não é uma exceção, é uma atitude prevalecente".

Serious work

“Surround yourself with people who take their work seriously, but not themselves, those who work hard and play hard.”

"Cercar-se com as pessoas que tomam o seu trabalho a sério, mas não se, aqueles que trabalham duro e jogar duro".

How a dream becomes reality

“A dream doesn't become reality through magic; it takes sweat, determination and hard work.”

"Um sonho não se torna realidade através da magia; Ele leva suor, determinação e trabalho duro".

All I Want for Christmas

By Jean Francois Mourier, REVPAR GURU

As the 2011 Holiday Season has ended, many hoteliers are putting another year of robust revenues on their holiday wish list, in which they continue to rebound from the wayward economy.

Thankfully, numerous data sources point to even better times ahead. However optimistic the predictions may be though, it takes more than a “letter to Santa” to keep hoteliers in the black.

To gain more insights into the expectations, opportunities, and trends for the year ahead, I sat down with Heiko Dobrikow, the General Manager of The Riverside Hotel, a 214-room independent property in Fort Lauderdale, Florida.

Hotels have seen occupancy numbers rebound 5.3%, jumping to 59.8% this year (predicted) from 54.5% in 2009. Looking ahead to 2012, what are some strategies that revenue managers should pursue in order to get those numbers up?

My number one strategy for hotel managers is for them to find new business. An excellent way to achieve this is through pursuing and cultivating a strong online travel agency (OTA) relationship. OTAs are an ever-growing arsenal. I remember when the Riverside Hotel was on around 100 or 120 OTAs. Today we are featured on more than 500. My second strategy is for hoteliers to gain a better understanding and focus on the narrowing booking window, especially as it relates to leisure travel. Revenue management systems, capable of adjusting prices based on instant demand are highly effective. Another growth strategy comes down to two words: International travel. It behooves us to go after markets that are growing, the low-hanging fruit. Lastly, regarding attracting international travel, it never hurts to take a more traditional route and hire staff fluent in multiple languages and familiar with a country’s local customs and culture increase the perception of hotel sincerity and genuineness to attract and hold to new guests.

The past year saw a lot of heavy discounting, as deal sites like Groupon and LivingSocial seemed to be everywhere. What do you feel will be the discounting climate in 2012? Will there be a continuation in this strategy, or will the predictions for a profitable 2012 drive hoteliers away from that?

I believe the strategy of flash sales will continue and will grow in the coming year, the difference will be in the manner in which discounting and flash sales are used, switching to strategic placement and not mass bill boarding of deals. Speaking specifically for the South Florida market, September is often a lower hotel occupancy month, sometimes as low as 50%. However, effective use of discount promotions can raise occupancy sharply. The Riverside Hotel, for instance, saw its year over year September occupancy grow 21%. It’s also important revenue managers balance flash sales with package deals, as package deals usually do not detract from overall revenue. Other promotions like WiFi and even a free drink upon arrival all help to drive customer satisfaction, turning a once deals-based customer into a regular guest. As the 2012 global economic outlook remains cautious at best, discounts and deals will remain a major part of the revenue equation.

As we approach the end of 2011, some hoteliers believe OTAs, through payment fees and mass broadcasting of multiple hotel listings, unfairly sap potential customers from other places to stay. Do OTAs help or hurt your average hotels’ bottom line and ability to attract guests? Where do you feel OTAs will go in 2012?

I truly believe that OTAs help hotels, as the exposure you get is so much more massive if you manage it successfully. The trick is revenue managers must use their technology to truly analyze the type of business coming in. Rates need to be manipulated fairly, but at the same time, money can’t be left out on the table either. In other words, too low a room rate can be just as disastrous as an overpriced stay.

That being said, OTAs are not a lifeline to occupancy and revenue success. While OTAs help fill occupancy gaps, the long term goal is to use OTAs in a way that helps turn guests into “regulars” and not just daily deal hunters. One way to do this is to carefully track the OTA traveler data coming in to your hotel. For instance, consider offering deals to returning customers if they book directly from your site the second time. Being creative when it comes to attracting guests is critical and OTAs are an excellent component and their impact is likely to grow.

What is on the horizon for revenue management in 2012? How will technology (both consumer and hotel) play a role in 2012?

Technology is king and revenue managers need to tune in. I truly believe it’ll be the forefront of travel, as it’s all about customer engagement. Social media is an excellent format to drive referrals and free exposure. Smartphone mobile applications will continue to explode in the coming years, with more costumers switching to a book-it yourself model, due to the rapidly changing and portable nature of our technology. As more travelers are using their Smartphones to book their travel stays at the airport, on the plane, or upon arrival, the booking window will continue to shrink.

What do you feel will be the greatest challenges facing the hotel industry in 2012?

Without question, it is the continuing global economic uncertainty. Questions like “What’s going to happen in Europe, in Latin America, and elsewhere,” continue to weigh heavily on economists and revenue managers alike. Even though one market may be promising today, there’s no guarantee that they will continue to be fruitful. Another 2012 challenge will be in the continued downsizing of business group travel. It used to be that group business trips would be as large as 300-500 guests. Now these groups are using technology like virtual conferencing instead or sending smaller groups. But the last challenge for revenue managers is how to better handle the increasingly leisure traveler last-minute travel plans, as planning is no longer six months to a year ahead, but as little as 14-90 days.

Finally, returning to our article’s holiday-appropriate title, what are your goals and wants for the holidays into 2012 for the hotel industry?

I see continued growth for international markets as key to a hotels’ ‘wants’, in the coming year. Expanding relationships -of all types -is central to growing ones business and having a balanced OTA strategy that turns one-time discount visitors into guest regulars is key. Revenue managers and hotel staffs in general must keep abreast of social media trends, interacting with their guests, and better understanding their new buying habits. Considering the downsizing of group business travel, hoteliers need to be especially attuned to regional corporate meetings and domestic niche markets.


About REVPAR GURU

Jean Francois Mourier is CEO and Founder of REVPAR GURU, a company that provides automated revenue and rate optimization solutions. REVPAR GURU’s real-time pricing solution combined with automated online distribution helps hotels maximize occupancy and increase their profits. The company’s Dynamic Pricing Engine, an integrated revenue optimization and pricing solution, adds unprecedented power and real-time adaptability to the pricing process, leaving revenue managers more time to run their hotels, make better decisions and do what they do more efficiently. You can reach Jean Francois through www.revparguru.com or by calling +1.786.478.3500 .

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Secret to success

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
    
"Não existem segredos para o sucesso. É o resultado de preparação, trabalho duro e aprendizagem de falha".

Nine Surefire Ways To Destroy Employee Morale

By Kim Bhasin

There's more to being a boss than just telling people what to do. It's about building a rapport and fostering a real relationship with your employees, so that you trust each other and can get things done.

Unfortunately, many managers don't care about their employees' morale, and spur them on by any means necessary. They fail to realize that it all has an impact on how well your company runs, and can have a major impact on your productivity, ability to retain talent and your bottom line.

There's no one-size-fits-all method, since every company has a a different corporate culture and every manager has their own unique style. But there are things that should be avoided in most situations if you want employees not to hate coming to work every day.

Here are nine guaranteed ways to completely ruin employee morale. Many of them come down to two basic ideals: treat your employees with respect and dignity, and that's how they'll treat you back.


Not accepting responsibility for mistakes

The blame game can ruin a company's workplace. If a subordinate makes a mistake, the blame shouldn't fall solely on him or her-it's on the whole team. That includes the others working on the project, and the person in charge of them.

Frequently, the boss refuses to accept responsibility for their worker's mistakes and dumps all the blame on the single person, and that can ruin not only their morale, but make their colleagues timid and fearful.


Calling employees out in public

There's no reason to put people on the spot publicly. Don't try to teach people a lesson or make an example of them-they aren't children. Instead, pull them aside and deal with the situation in private. Public embarassmentcan only serve to make employees scornful and ruin the office environment.


Dishonesty

Tell your employees the truth, always. It's okay to keep things from your employees if they're sensitive topics, but never lie to your employees about them or their nature.

This includes promises that you make to your workers. Honor the rewards that you've committed to (like a promotion or raise you promised), because once you start down that slippery slope, it's difficult to ever earn that trust back. Employees will never work to their full potential for someone that they don't trust.


Setting impossible goals

Goals exist to encourage people to perform, but when employees are consistently coming up short because the bar's set too high, their morale is going to plummet. They'll feel like they're underperforming, even though they probably aren't.


Threatening their jobs

Making someone fear for their livelihood only causes fear, anxiety and distrust. When you make people feel like they're instantly replacable, they have little incentive to perform. It's easy to crush someone's spirit if you treat them like a number, and not a unique individual with distinct abilities.


Giving vague or incomplete instructions

Clarity is important in the workplace. Some managers feel like they're entitled to give instructions that lack specific direction because they're busy, but their employees' time is equally as important as theirs.

It's frustrating not knowing exactly what you're asked to do, and then if they do it wrong and are reprimanded by their boss for it, that just makes things worse.


Micromanaging

There are few ways to demoralize a worker faster than micromanaging their every move. Nobody wants someone looking over their shoulder, combing through everything they do and second guessing their work.

When you micromanage an employee, you're telling them that you don't trust their abilities. That sort of discouragement is enough on its own to make someone hate coming to work, even if they like everything else about the job.


Never offering any praise

People need some sort of reinforcement that they're doing a good job. If they go through their entire work life without any, it can take a toll on their spirit.

That's not to say you should constantly be showering your workers with compliments. Be able to identify when your workers go above-and-beyond the call of duty,


Holding workers back if they're doing well

It's frustrating for someone when they feel bottled up. If people have initiatives they want to propose, or ideas to make things better, at least let them have their say. Every once in a while, there will be good ideas out there that you can use, and employees would love to see their own ideas in action. Let them own the idea, and give credit where it's due.

Watch Out QR Codes, Here Comes NFC

Adoption of QR codes picked up dramatically in 2011 as compared to 2010. As with all technology, there is always something new on the horizon, and Near Field Communication (NFC) is gathering steam.

It's been a busy year in the realm of real-world to digital mobile technology. According to ScanLife's recently released Mobile Barcode Trend Report, 2011 saw a 440% year-over-year increase in the number of QR Codes scanned. This is due to several factors, including the exponential growth of smart phones sold, adoption of QR codes by businesses, and most importantly the increased awareness of Quick Response codes by consumers. Finding a QR code online, in-store, or on print publications has gone from a rare occurrence to a daily certainty.

MOBILE Q3 2011 TREND REPORT BARCODE

As quickly as it roared in, QR codes already have a competitor: 2011 also saw the first wide-scale adoption of Near Field Communication technology, commonly known as NFC. Smart phone manufacturers introduced numerous NFC-equipped devices during 2011, with over 40% of smart phone models in 2012 planned to include the technology. With this large increase in the manufacturing of NFC equipment and the continued burgeoning growth of web-enabled mobile devices, it is easy to see that this too could become a commonly-used technology very soon. The major hurdle that NFC technology has to clear is the fact that QR codes have a very low entry cost for businesses and brands, while NFC requires significant investment in devices to carry chips, read the chips, and software to program the chips.

Some larger companies have already expressed interest in the future of NFC. Evidence of this theory can be found in the fact that Google, the world's largest technology company, already has switched from using QR codes with its Google Places platform, instead opting for what it calls "proximity-enabled information tracking."1 Considering Google now has the majority of its 2012 Android devices featuring NFC chips, one can only assuming they are referring to Near Field Communication in their reasoning to move away from QR codes.

The good news is that NFC has the potential to consolidate things like car keys, mass transit passes, home climate control, business cards, loyalty cards, coupons, and many other items all onto one digital device. For hotel chains such as Clarion, which has already begun an NFC pilot program, their studies have found that hotel guests enjoy, and in most cases prefer, to have "NFC room keys."2 Replacing physical room keycards with a digital key on a smart phone not only allows the convenience of not having to worry about forgetting one more thing on your way out the door, but also the ability to check-in, check-out, and purchase add-on services, among other things, from your phone.

The Potential of NFC for Hotels

•Convenient Room Keycards
•Express Check-In & Check-Out
•Brand Loyalty programs
•Last Minute Hotel and/or Package purchases
•Integration with Online Coupons
•Simple guest database collection


In the short of it, NFC has the ability to do what QR Codes could not: multi-task. And without having to make the effort of snapping a photo, NFC's much more passive connectivity allows for a smaller learning curve. Who knows, within the next 5 years the hospitality industry may have all of its front desk services, package deals, and on-site access all on your mobile phone.

Contributed by Tyler Harding, eStrategist, Milestone Internet Marketing

Digital Marketing Resolution - Case#10 By Max Starkov & Mariana Mechoso Safer

10. I will partner with savvy digital marketers who know it all and can guide me through this process, so I can drive the most revenue ever through my most cost-efficient channel – my hotel website.

Situation:
Navigating the online marketplace can be confusing and overwhelming. The pace of change in this industry, including technological advancements, updates to search engine algorithms, and new solutions for driving direct online revenues are almost impossible to keep up with.

Additionally, most hoteliers are already shuffling many different priorities each day and are not able to devote the majority of their time – if any time – to keeping up with industry trends and best practices.

Action Plan:
In this dynamic industry it is important to stay on top of quickly moving trends, prioritize initiatives that generate direct online bookings, and be flexible enough to continuously adjust hotel digital marketing campaigns for optimal results.

Partner with digital marketing experts who will make driving direct online revenues for your hotel their priority: Experts who will keep you up to date with best practices without you having to ask, who will proactively bring forth ideas to generate the highest website revenues and ROIs.

Work with a team of savvy digital marketers who will show you new ways to recoup lost opportunities, teach you how to stay on top of changes in the industry, and provide your hotel and team with real value, not just a service.

Digital Marketing Resolution - Case#9 By Max Starkov & Mariana Mechoso Safer

9. I will focus on determining the effectiveness and ROI of my digital marketing campaigns and make smarter use of analytics technology to determine true ROI and campaign effectiveness, as well as test, test, test to achieve better results.

Situation:
Is social media a hotel distribution channel? Is the mobile Web generating bookings? Do we still have to engage in the "old-fashioned" email marketing, which many hoteliers have branded "ineffective"? What are the ROAS (return on ad spend) from my search engine marketing (SEM)?

The explosion of social media and mobile marketing, along with channel convergence and multi-channel marketing, has made it more imperative for hoteliers to track the effectiveness of hotel digital marketing initiatives and optimize returns from their limited budget resources. The available analytical technology tools today offer cost-effective yet powerful ways to track the results. They allow us to track conversions from the hotel website and all digital advertising campaigns such as SEM, banner advertising and re-targeting. Call analytics allows us to track the effectiveness of the voice channel, as well as the mobile Web and print ads.

In addition, we can retarget and behaviorally target website visitors and have more access than we have ever had to consumer's browsing and purchasing habits. So why do we work so hard to get consumers to our website, yet fail to make the same effort in making sure our website meets the needs of these visitors? Making small tweaks to a hotel website may often result in significant increases in conversions.

Action Plan:
Invest in analytics technology in 2012 if you haven't already! Having a full understanding of which initiatives work and which don't will offset the cost of the investment.

For your website, utilize a web analytics tool like Adobe SiteCatalyst, powered by Omniture, the most advanced web analytics technology today, used by many major hotel brands and OTAs alike. For your paid search campaigns use Adobe SearchCenter, powered by Omniture, a sophisticated real-time paid search campaign management tool.

For your banner advertising and re-targeting campaigns, use a banner delivery and tracking tool like DART to track post-impressions and post-click activity and conversions and gain a deep understanding and knowledge of your banner campaigns' returns.

Did you know that 7 of 10 hotel bookings from mobile devices actually happen via the voice channel? Track the contribution of mobile website and mobile marketing initiatives, as well as voice reservations from your desktop website, via call analytics to determine the true effectiveness of these media. Using call analytics and QR Codes in your offline print advertising has become the norm.

As discussed above, social media is not a distribution channel and social marketing initiatives should be reviewed with "sober eyes" and within the context of their impact on the multi-channel marketing strategy of the hotel. Instead of focusing on bookings and revenue when measuring results from social media, consider the quality and quantity of "customer engagements" such as "Likes", initiated conversations, comments and questions on Facebook and @replies, and retweets on Twitter, as well as the impact of social marketing initiatives on customer service, customer relationship, buzz- and brand-building for the hotel, as well driving relevant, engaged traffic to the property website.

Invest in a tool like Adobe® Test&Target™, powered by Adobe Omniture®, to test multiple versions of a webpage to separate targeted populations. Track each version for key revenue metrics and visitor behavior in order to compare results. Suggested test projects include: testing locations of the booking engine widget on four different sections of a home page; rearranging the display of promotional tiles for greater usage and visibility; testing different marketing messages on the home page hero space; and comparing a rollover drop down navigation vs. static navigation on the main navigation. Dedicating some time and resources to tests such as these will give you insight into how best to structure the elements of your website for the highest conversion rates.

Digital Marketing Resolution - Case#7 By Max Starkov & Mariana Mechoso Safer

7. I will decrease dependence on the OTAs this year, adding thousands of dollars in incremental revenues to my hotel's bottom line.

Situation:
Did you know that since 2007, OTAs have increased market share by 32% at the expense of the hotel direct online channel (hotel websites)? STR estimated that the true cost of OTA distribution in 2010 alone was more than $2.5 billion in the form of abnormally high merchant commissions. It is 10 to 15 times cheaper to sell your rooms via the direct online channel compared to the OTA channel.

We do not envision a scenario in which 100% of Internet bookings are made via the direct online channel. The OTAs and other intermediaries in the indirect online channel do play a necessary role in certain areas of the travel planning and purchasing process (dynamic packaging). Even pre-Internet, approximately 25% of all hotel bookings in the U.S. came via the indirect channel (travel agents, tour operators, and wholesalers).

Action Plan:
Driving bookings through the direct online channel – the hotel website – needs to be every hotelier's priority in 2012. In addition to being the most cost-effective distribution channel, the direct online channel provides long-term benefits and competitive advantages. It prevents rate and brand erosion, helps the hotel "own" the customer, enables cross-channel and multi-channel marketing initiatives, builds brand loyalty, and more. The OTAs' fair share should not be higher than 15% for franchised and 25% for independent properties from all Internet bookings. We should not be seeing the current industry average of 40% OTA contribution.

Start by changing the property mindset: OTA commissions = marketing dollars. Do a distribution cost analysis. Maintain strict rate parity and a best rate guarantee. Focus on and budget accordingly for the direct online channel. Redesign the hotel website as per Google's Panda and Freshness updates – you will gain competitive advantage over the OTAs and your comp set. Learn how to market your hotel better and smarter than the OTAs do. Embrace the mobile distribution channel and utilize social media to engage your customers. Focus on the customer experience.

And finally, utilize the OTAs as an incremental distribution channel: low season, group cancellations, weekends, or other scenarios.

Digital Marketing Resolution - Case#8 By Max Starkov & Mariana Mechoso Safer

8. I will NOT resort to desperate measures and use social buying and flash sales sites in 2012.

Situation:
Social buying and flash sales sites emerged as a result of the recession. Social buying and flash sales sites in travel and hospitality, such as Groupon Getaways with Expedia, LivingSocial.com, and SniqueAway.com are an integral part of the economy and the supply-demand market equilibrium. For social buying and flash sales sites to exist, there must be market equilibrium (price-quantity) between the demand side (quantity of members/engaged social buyers) and the supply side (quantity of fresh, intriguing deals).

In 2012, all signs are indicating that the hospitality industry is in recovery mode. STR projects that all three of the key performance measurements (occupancy rate, ADR and RevPAR) will realize steady increases for the year as a whole.

As travel demand improves, hoteliers have become reluctant to participate in social buying/flash sales sites because of their "open discount" business model need for steep 50%-60% discounts. Online travel consumers, disappointed by the lack of fresh hotel deals on the social buying sites, are reverting back to traditional booking channels: hotel direct, OTAs, GDS and voice.

Action Plan:
Some hoteliers participate in social buying and flash sales sites merely because their competition is doing so. Our advice? Don't succumb to the devil. Stick to the fundamentals in hotel distribution and make sure you are covering all the bases in the Direct Online Channel.

Hoteliers should realize the existence of "The Law of Unintended Channel Share Loss" which stipulates the following: Any booking via the most discounted channel (i.e. Flash Sales Sites such as Groupon, LivingLocal.com or SniqueAway.com or an OTA) is one fewer booking for the same hotel via the hotel website, call center and GDS (in that order).

This is why we recommend that hoteliers focus on the direct online channel (the hotel branded website), which is by far the cheapest distribution channel. A booking via the property website of an independent hotel costs $10-$11, including all marketing and advertising expenses.

Digital Marketing Resolution - Case#5 By Max Starkov & Mariana Mechoso Safer

5. Now that I know social media is a customer engagement channel and not a distribution channel in hospitality, I will use Social Media correctly to create "buzz" around my hotel, target receptive audiences, provide customer service and enhance customer experiences. This will ultimately stimulate hotel website visits, interactions and conversions on the hotel website.

Situation:
There is no doubt that social media has changed how travel consumers research and plan travel, access travel information, and perceive the credibility of information. Internet users are increasingly influenced by social media sites and peer reviews. By utilizing a comprehensive social media strategy, smart hoteliers engage their customers and enhance their experiences, generate buzz and improve customer service.

Many hoteliers have underestimated the complexities and involvement required for managing the property's social media profiles. Infrequent or bland, "sales pitch" postings, lack of interactivity, creativity, fun and intrigue plague the social media presence of many hotels.

Action Plan:
In 2012 social marketing should continue to be an important component of your property's marketing mix and part of the comprehensive direct online channel strategy for any hotel company.

Social media and social marketing initiatives should be reviewed as part of the overall multi-channel marketing strategy of the hotel. Instead of focusing on only bookings and revenue when measuring results from social media marketing, use social media for brand-building and buzz-building; as a medium to interact with and engage customers; as an important customer service channel; as a source of engaged and relevant traffic to the hotel website, and a way to make the hotel look current, cool and up-to-date.

This year work on establishing or enhancing a brand consistent Facebook and Twitter presence; monitor customer reviews/engagements for any customer service issues; use engaging posts (ask questions, use trivia, hold contests); locate/designate your on-property Social Media "Champion", and partner with a social media strategy and technology firm to provide strategy, training, and technology implementations such as Facebook custom tabs, contests, etc.

In light of the recent Google Panda updates (to be discussed in more detail in the next resolution), allowing your website visitors to share your site's content with Facebook Like/Tweet/Google +1 buttons is important to stimulate conversation and for search engine optimization purposes.

Avoid the all-too-common mistakes made my many hoteliers when participating on social media channels, including posting infrequently, only focusing on promoting packages and specials, not responding to questions and comments made to the hotel, and deleting comments.

Digital Marketing Resolution - Case#6 By Max Starkov & Mariana Mechoso Safer

6. I will rise to the challenge imposed by the recent Google Panda and 'Freshness' updates!

Situation:
Today's hotel website must adhere to very high expectations from not only website visitors but also the search engines. In a typical year Google makes more than 500 updates to its search algorithm. 2011 saw two major updates: the Google Panda Update (now in version 2.5) and the Google "Freshness" updates, which made most hotel websites obsolete by introducing very strict requirements for content, interactivity, and page download speeds. The Panda update requires websites to have engaging and unique website content (as opposed to bland, old and tired content and in addition to the existing requirement for deep and relevant content) that increases the site's "stickiness". The recent Google "Freshness" update requires that hotel websites maintain fresh and new content to rank high in the search engines.

Why are these updates important for the hospitality industry? Between 50%-70% of hotel website visitors and website bookings originate as leads from the major search engines. Traditionally, hotel websites are content rich vs. news rich, with descriptions and information featuring and explaining in detail every facet of the hotel business and service, from the bed linens to the capacity of a meeting room. The "static" content is there, but the "unique and engaging" and "fresh" content is lacking. This is the main issue with current hotel websites after the latest Google algorithm updates.

Action Plan:
In 2012 hoteliers must work harder than ever to enhance the uniqueness and engaging nature of the content on the property website by employing professional hospitality copywriters and maintaining fresh content on the hotel website year-round.

Build promotional landing pages and tiles for timely specials and events. Create new content pages on various topics including seasonal and sports events, local festivals and customer segment-specific content. Use "micro-formats" applied to every local promotion and event, which signifies to the search engine that these events are in fact standalone current events, with exact starting and ending times. Incorporate Schema codes on all time-sensitive content pages. Maintain a blog highlighting specials and events along with general hotel news. Talk about local events, highlight someone's stay, seasonal activities in the area, or feature infographics about your hotel or region that deeply engage users.

Another must is incorporating real-time Twitter feeds and Facebook interaction information in the hotel website to ensure that interaction is recorded, up-to-the-minute, and relevant.

Updating the hotel website should not be a costly endeavor – a good content management system should give hoteliers the tools they need to perform these updates easily, efficiently, and without extra cost to the hotel, as well as ensure automated push of new content (e.g. promotions, events, packages, etc.) from the "desktop" website to the property mobile site and Facebook and Twitter pages.

Digital Marketing Resolution - Case#4 By Max Starkov & Mariana Mechoso Safer

4. I will take advantage of the Mobile Channel, especially in this marketplace where my competitors are behind the times.

Situation:
Today's hyper-interactive travel consumers demand instant information and transaction capabilities, user location-oriented services, and personalization, attributes only the Mobile Web can deliver. Mobile users demand not only instant access to travel planning and booking capabilities, but a Mobile Web user experience that rivals and surpasses the Desktop Internet experience.

Mobile Internet usage will surpass desktop Internet usage by 2014 (Morgan Stanley). Google reports four-fold YOY increase in mobile search, and that one out of five hotel queries come from mobile devices. Coda Research projects 65% compounded annual growth of mobile commerce from 2010 through 2014, to reach $24 billion. Many OTAs and hotel chains reported several-fold increases in their mobile bookings in 2011. Last year more than 4.7% of website visits and more than 3% of all bookings came from mobile devices across our hotel client portfolio.

Smart hoteliers already know that the mobile Web adheres to different rules than the conventional desktop Internet. Mobile users have shorter attention spans than do traditional desktop users. They have less time to browse and are often on the go.

Action Plan:
Hoteliers need to develop and implement mobile Web-specific marketing initiatives, and not try to adapt existing "desktop" Internet assets like the property desktop website for use in the mobile space. It has become obvious that trying to squeeze your wide-screen 1280 x 1024-pixel "desktop" hotel website onto the tiny 320x480-pixel screen of a mobile device is a futile exercise that inevitably destroys usability and conversion rates.

In 2012, hoteliers should continue to focus on building and enhancing their mobile websites and launching mobile marketing initiatives, such as mobile SEM, SEO, mobile-social media initiatives, interactive sweepstakes and contests. In 2012, hotels should spend 9%-10% of their overall digital marketing budget on mobile marketing initiatives.

Start with the mobile website, your mobile hub for customer engagement. Is your mobile website specially designed to provide an excellent user experience in a mobile environment? Does it offer an engaging, contemporary design and functionality? Does it include content sections targeting your main customer segments? Have you increased your mobile site's "discoverability" via mobile SEO and mobile SEM (e.g. Google mobile AdWords) and mobile media initiatives? Have you made the mobile website more interactive via mobile-social media initiatives, interactive sweepstakes and contests? Is your mobile website compatible with the recent Google Panda and "Freshness" updates and their requirement for unique and engaging content?

Here are the top mobile marketing initiatives hoteliers should focus on in 2012: mobile SEO, mobile link building to the site from mobile directories and sites, mobile SEM (paid search) campaigns, mobile banner advertising in the main mobile feeder markets, mobile contests and sweepstakes, and mobile promotions via SMS. Read our "Top 20 Secrets to Success in Hotel SMS Mobile Marketing" to help you get started.

As for the question of whether hoteliers should develop mobile apps or focus on developing and enhancing their mobile website, we firmly believe that hotels do not need a mobile app if they are a single-property, independent hotel. Nor do franchised hotels and resorts or smaller and mid-size hotel chains and multi-property companies. These hotel companies are better off focusing on building and enhancing their mobile websites and promoting the mobile site via mobile marketing initiatives. A single-property mobile site is six to ten times cheaper than a comparable mobile app. With rapid advancements in mobile technology, the lines between mobile apps and mobile websites are disappearing. Also, a mobile website is by default a cross-platform entity that can be viewed on all mobile platforms (iPhone, BlackBerry, Google Android, Windows Mobile, etc.), while apps or a customized version of an app must be created for every major platform.

Digital Marketing Resolution - Case#3 By Max Starkov & Mariana Mechoso Safer

3. I will continue to account for the continued shift from offline to online, and engage the hyper-interactive travel consumer via multi-channel marketing efforts.

Situation:
The shift from offline to online continues. The online channel has been rapidly growing for 16 years straight. Internet bookings for the top 46 hotel chains now constitute 54% of all the chains' CRS bookings. The online channel has grown by 25% in the last four years alone, while the share of the GDS travel agent channel and voice channel has decreased by 25% and 11.1% in the past four years, respectively. It's critical that budget dollars are shifted to online marketing budgets, and that these budgets stay focused on hotel distribution channels that generate the most bookings, are cost-effective, and protect rate parity and price integrity.

In 2012 the mobile Web and social media will further establish the new breed of hyper-interactive travel consumers who demand "immediate, anywhere and anytime" customer engagement, information access, transaction capabilities, content sharing and customer service in real-time. Marketing to this new type of consumer requires a completely new, multi-channel marketing approach where the hotel engages consumers at all touch points.

Action Plan:
Multi-channel marketing is the foundation for a smart direct online channel strategy. In this environment, the hotel website, SEM campaigns, email marketing, social media presence, mobile, etc. have a symbiotic relationship. For example, if you launch a website promotion, you should also send an email to the hotel's opt-in list, announce it on Twitter and Facebook, launch a paid search campaign and publish a blog posting via the hotel blog.

In 2012, hoteliers need to invest in technologies and expertise needed to better execute these types of multi-platform and multi-format campaigns. For example, invest in technology that allows for smart and centralized marketing content delivery: All new special offers and events at the property and destination are automatically pushed by your hotel "desktop" website Content Management System (CMS) to your property's mobile site and Facebook and Twitter accounts.

What line items should you include in your 2012 hotel digital marketing budget in order to drive revenue through the direct online channel? In our recent article, The Smart Hotelier's Guide to 2012 Digital Marketing Budget Planning, we provide detailed recommendations how to allocate your 2012 budget to achieve the highest direct online revenues and ROIs.

Digital Marketing Resolution - Case#2 By Max Starkov & Mariana Mechoso Safer

2. I understand this industry is complex and will work to make sense of a very convoluted digital space/online marketplace.

Situation:
Hoteliers have been rightfully confused by the myriad of headlines about the changing landscape of hotel distribution, from articles titled "Google will change your hotel's distribution strategy" and "Facebook as an E-commerce engine," to "How to make Twitter Sell" and "Mobile Apps to Impact Hotel Distribution." In other articles OTAs are proclaimed to be a "good thing" because of the so-called billboard effect and contribution to new client acquisitions. On a daily basis, hotel owners, managers and operators are bombarded by far-fetched and often conflicting messages and claims.

The recession brought an onslaught of new players to the travel marketplace, which further convoluted the complex online marketing and distribution channels and online travel consumer behavior. Social buying sites (group buying, flash sales sites, member-only sites) and last-minute mobile sites are all presenting themselves as the "future of hotel distribution." To add to the confusion, mobile and social have forever changed the way people research, plan and purchase travel – shorter booking windows, greater transparency, and peer recommendations are just some of the ways the integration of social and mobile have affected purchasing habits. Understanding this increasingly convoluted digital space and the increasingly complex online travel consumer behavior can feel like a monumental undertaking.

Action Plan:
In this dynamic industry, taking time on a daily basis to stay current with hotel digital marketing trends is a must. To start, adopt a business approach when analyzing whether or not use these new marketing formats and channels. In spite of all that is happening in the digital space, hotel marketing and distribution fundamentals have not changed. Try to correctly categorize these new sites, players and business models by asking yourself a set of simple questions: Is the site an advertising medium or a distribution channel? Does it work against accepted rate parity and best rate guarantee principles? Would a promotion via one of those sites alienate your existing corporate, group and leisure clients? Does working with these new players adhere to industry's best practices in marketing and distribution?

Look deeper to understand the influence of each digital marketing initiative on the new online travel consumer. Advanced analytical tools can also help you make sense of this convoluted space. In this increasingly complex environment, consider partnering with a direct online channel strategy consulting firm to keep you informed and ahead of the competition.

Digital Marketing Resolution - Case#1By Max Starkov & Mariana Mechoso Safer

1. I will bring social, local and mobile marketing initiatives to the forefront of my hotel digital marketing plans this year.

Situation:
In 2012 hoteliers will be hearing a lot of the buzzword SoLoMo (SOcial, LOcal, MObile). Meant to convey the convergence of these three major media, the term SoLoMo describes a "marriage made in heaven" between the three content and marketing platforms. Why does this mean for hoteliers? Hotel guests are avid SoLoMo services users. Most social network engagements by travel consumers are done via mobile device. Consumers perform more than 3 billion local searches every month, and one in three mobile searches have local intent vs. one in five desktop searches (Google).

Unlike the desktop Web world, SoLoMo allows hoteliers to combine real-time customer geo-location with their demographic and psychographic information and time- and location-relevant promotions. The success of location-based social media such as Foursquare has shown us that rewards and recommendations are only the beginning. Hoteliers need to consider how to best utilize SoLoMo to engage their customers and generate incremental revenues.

Action Steps:
By focusing efforts on social media, local marketing, and mobile marketing, hotel marketers have the ability to deliver more personalized, relevant content and engage existing guests and potential customers like never before.

To begin with, how well optimized are your property profiles in the main data providers, which feed many local directories and geo-social sites? How well optimized are your property local search listings on Google Places, Yahoo Local, and Bing Local? What about all the local online directories and yellow pages? Do you have a local citation listing program in place?

Once you take care of your local content and listing strategy, it is time to enhance your mobile marketing presence. How deep, relevant and engaging is the local content on your mobile site? Do you have automated push of specials, promotions and local events from the property "desktop" website to the mobile site to keep your mobile presence "fresh?" Do you use micro-formats and Schema codes to relay the time- and location-relevant nature of these promotions and events to the search engines? Does your property take advantage of coupon promotions through Google?

Other recommendations include engaging your local customers via time- and location-relevant check-in promotions and rewards, launching social media promotions, contests, and post series via Facebook and Twitter, and blogging. Geo-social marketing initiatives allow hoteliers to integrate into customers' lifestyles and connect (and stay connected) with them in ways that were not possible before. Industry experts already predict the end of the Foursquare-type check-in and envision a deeper and more experiential form of "social sharing" instead. Social, local and mobile marketing are great for time- and location-sensitive promotions. In 2012 focus on SoLoMo initiatives and you will remain ahead of the competition.