Catégorie : Accommodation

Catégories
Accommodation Sustainable tourism

Tendency of adherence to green labels in hotels across Canada

Improvements of environmental performance by the accommodation sector are not measured systematically and this makes it hard to estimate the extent of real change. In Canada it is certainly not uniform according to adherence to the programs detailed in Table 1. Although some hotels continue greening their performance, the sector is only at the beginning of reducing its ecological footprint. For example, if we compare the results of Table 1 to the number officially registered accommodation establishments in Quebec by the Corporation de l’industrie touristique du Québec, less than 2 % of the sector participates in any of these programs.

analyse_green_certification_JP

Green-Keys Eco-Rating Program

analyse_green_certification1_JPThe Green Key Eco-Rating Program was launched in 1997 and it is administered by the Hotel Association of Canada (HAC). The number of green keys recognizes participating establishments and more keys mean more « green » measures implemented. Although any establishment can apply for the label, the program is still designed for large hotels. Participation is comprised of a self-administered on-line audit that consists of 140 questions across 5 categories of operation. Since 2007 the HAC performs random on-site audits.

At present about 600 properties are registered with the program across Canada (Table 1). The aim is to reach 1000 by the end of 2008, which would represent 30 to 40 % of all hotels in Canada with 50 rooms or more. In March 2008 Ontario and British Columbia had the most hotels participating in the program (Table 1) and most were part of a chain and had a 3 key rating . Hotels with a five key rating are considered to have the highest standards in environmental management and social responsibility throughout all areas of operations set at an international standard for sustainable hotel operations (refer to list at the end for examples).

In Quebec labeled establishments are unevenly distributed on the basis of official tourist regions. Montreal has the highest number of establishments followed by Quebec and Montéregie, but some regions have no participants at all. 

Eco-rating programacross different tourism regions of Quebec.

Greenleaf Audubon

analyse_green_certification2_JPAudubon International’s eco-rating program is offered jointly with TerraChoice Environmental Marketing, Inc. and exists since 2000. Participating establishments are recognized by the number of green leaves (1 to 5) and more leaves imply more environmental measures implemented. Participants conduct a self-evaluation covering six key areas of operation that are analyzed by TerraChoice Environmental Services, who also direct the independent verification process and conduct random on-site spot checks of establishments.

Although any type of accommodation facility can join the program, in March 2008 only 44 were members in Canada and mainly in Manitoba, Nova Scotia and Ontario (Table 1). Most Canadian participating establishments had 3 leaves. The only two establishments in Quebec were in Montreal and each had two leaves. The low number of participants in a Canadian context is due to the popularity of the HAC’s green-key program although some hotels participate in both.

Réser-vert

analyse_green_certification3_JPIn November 2007, l’Association des hôteliers du Québec with its private and public sector partners announced its own program to recognize establishments who have implemented sustainable development principles. Participating establishments receive the logo of Thuya occidentalis, whose different colors represent the 3 pillars of sustainable development. Similar to the other programs, this one also involves an initial self-assessment of 140 specific operations in 10 categories. Any, accommodation establishment is eligible to apply. Given the program’s recent creation, statistics are not yet available to show participation rate.

 

 

LEED

analyse_green_certification4_JPThe most rigorous program for the built environment is LEED, administered by the Canadian Green Building Council. It is applicable to newly constructed and establishments in renovation and participants conduct an assessment of performance measures. Once registered, participants conduct an evaluation across various operational categories to obtain silver, gold and platinum certificates. In March 2008 there were six hotels registered in Canada, half of which were in Ontario (Table 1) and the highest-level of certification was gold.

Does the market care?

There is proof (at least suggested by large hotel chains) that being green means a good image, savings and net improvements of economic performance. As the market is starting to adjust to the « green revolution », being green will continue being important. Most studies also suggest a rising demand for green accommodation although how this translates in real figures in different destinations is not yet ascertained. However, it appears that the eco-coconscious traveler is no longer satisfied by symbolic environmental efforts such as opting to reuse towels.

European reports indicate that corporate social responsibility will become an even more important factor for the meetings and events sector over the next years and this trend appears to be the same in North America. Based on the 2008 Hotel Association of Canada / Fleishman Hillard Travel International Travel Intention Survey, greenlodgingnews.com reported that 29 % of business travelers compared to 21% of leisure travelers were prepared to pay 5 % more for a more eco-friendly stay. The same study also showed that 52 % of all travelers surveyed sought hotels with strong green practices « occasionally » or « as much as possible » compared to 46 % who said « rarely or never ». Interestingly 91 % of all respondents were not familiar with Canada’s Green Key Eco-Rating program. When asked if their organization had a green travel policy 60 % said no, 8 % said yes and 32 % did not know.

In the meantime the hotel industry needs to do what makes business sense. An establishment that is weak on both values and commercial competence will mean bad business in the future. The snapshot of adherence to green certification programs suggests that small hotels are laggards in environmental responsibility given that most of the hotels labeled today belong to chains, even if in reality many small establishments are actually improving their sustainability performance. The challenge to translate environmentalism into profits may be much higher for them. Given that tourists are not yet green enough means time is in their favor. There might be other forces at play that will push them in the « green » direction such as the prediction that energy prices could be 70 % higher in some Canadian provinces and landfills fees over the next five years.

All hotels must change their practices to move towards sustainable operations and there are literally hundreds of resources to help with the process today, including many examples of good practice.

Best practice hotels according to labels mentioned in this analysis:

Siwash Lake Ranch

The Fairmont Chateau Lake Louise

Hospitality Inns & Suites, Lloydminster

Monterey Inn Resort & Conference Centre

Trout Point Lodge

Aurum Lodge

E’Terra Inn

Endnotes:

Participation costs in programs is variable. For members to an organization, the costs are as follows to the aforementioned programs:

Green Keys of Hotel Association of Canada: CAD 350 (+ GST) annually per property.

Audobon’s Green Leaf: CAD 500 (+ GST) plus $ 1/room, for establishments with less than 50 rooms and CAD 800 (+ GST) plus $ 1/room for establishments for those with more than 50 rooms.

Reser-vert: Hotel Association of Quebec: For members it CAD 150 to enter the program and subsequently the program costs CAD 350 (+GST) annually.

Leedership in Energy and Environmental Design: The cost of participation is dependent on the size of establishment. For a hotel with less than 500 m2 surface area in Quebec certification would be around CAD 4200 (+ tax) plus registration cost CAD 1000 + GST). For establishments that are in renovation the fee is about 50 % less, including registration fee.

Sources:

– Audubon Green Leaf Eco-rating Program: [http://www.terrachoice.ca/hotelwebsite/indexcanada.htm], last accessed March 30 2008.

– Buckley, R. (2002) Tourism Ecolabels. Annals of Tourism Research, 29(1) p.183-208.

– Canadian Green Building Council: [http://www.cagbc.org], last accessed March 30 2008.

– Corporation de l’industrie touristique du Québec (CITQ) (2008): [http://www.citq.info/nouvelles/statistiques.asp] last accessed March 30 2008.

– Font, X. and Harris, C. (2004) Rethinking Standards from Green to Sustainable. Annals of Tourism Research, 31(4) p.986-1007.

– Hasek, G. (2008 a) Leed Gold-Certified E’Terra Inn is Natural Fit for Niagara Reserve. Green Lodging News, 02-06-2008. [www.traveldailynews.com], last accessed March 30 2008.

– Hasek, G. (2008 b) Canada’s Hoteliers Gather to Explore Green Trends, Best Practices. Green Lodging News, 02-26-2008. [www.traveldailynews.com], last accessed March 30 2008.

– Hospitality and Sales Association International Summer 2007 edition. Resources for Resourceful Hospitality Firms. p. 28-30.

– Hotel Association of Canada: [http://www.hacgreenhotels.com/index.htm], last accessed March 30 2008.

– Hotel Association of Quebec: [http://www.hoteliers-quebec.org/fr/accueil.php], last accessed March 30 2008.

– McDonald-Gibson, C. (2008) Des hotels écolos tendent la main aux voyageurs. Agence France-Presse, le jeudi 3 avril 2008.

– Reiser, A. and Simmons, D. G. (2005) A Quasi-experimental Method for Testing the Effectiveness of Ecolabel Promotion. Journal of Sustainable Tourism, 13(6) p.590-616.

– Terra Choice Environmental Marketing (2008): [http://www.terrachoice.com], last accessed March 30 2008.

– Verikios, M. (2007) CSR Higher on the business agenda. Travel Daily News, 19-10-2007. [www.traveldailynews.com], last accessed 19 October, 2007.

– Verikios, M. (2008) Focus on environmental responsibility within meetings industry. Travel Daily News, 09-04-2008. [www.traveldailynews.com], last accessed April 10, 2008.

Catégories
Accommodation Trends

CouchSurfing: profile of a virtual community of travellers

The accommodation sector is experiencing an intense diversification phase, where establishments worldwide continue to distinguish and redefine their image by incorporating themes amongst other things to create an authentic visitor experience. The same process of diversification is also present in the cyber travel community CouchSurfing, where authenticity has a meaning that goes well beyond traditional tourism products and landscapes.

CouchSurfing is an online travel community of globally minded and socially conscious community of travellers. It “seeks to internationally network people and places, create educational exchanges, raise collective consciousness, spread tolerance and facilitate cultural understanding”. It is all about seeking authentic visitor experiences while staying at other couchsurfers’ homes at any destination. Although many couchsurfers may join the community to save money on accommodation, there are many benefits that accrue to both hosts and guests.

Couchsurfing in Practice

CouchSurfing is enabled by an interactive Web 2.0 Website that offers free membership to anyone, thereby facilitating social interactions amongst people. The profile page is a basic prerequisite for membership and it indicates the person’s intended level of interaction with the general couchsurfing community. This can include to “offer a couch” for sleeping or just “meet up for coffee or tea”. The profile page also shows a member’s involvement in the community over time and contains a friends list that states how a person knows others on the list. By clicking on someone’s profile page, it is possible to see whom he or she has hosted and when, where he or she has traveled and with whom they stayed at each location. Couchsurfing communities at any given destination organize a range of social activities such as parties and get-togethers where live interaction takes place between members who have not had prior personal contact via email or the community’s Website. When couchsurfers travel, they contact other members at their destination and request accommodation on their ‘couch’. The latter is a term used symbolically to represent any private space provided for an overnight stay in the home of a couchsurfer. The average length of stay is 2 to 3 nights per host and a visit of a week or more at the same destination is usually spent at different hosts. This may be alternated with hostels if no host is available.

CouchSurfing became publicly accessible in January 2004 and by January 2008 it counted over 400 000 members, making it the largest community of its kind in the world. Website statistics show that couchsurfers are predominantly from industrialized countries with Europe representing approximately half and North America around 30%. On a country basis, the United States of America accounts for about a quarter of all members worldwide. Couchsurfing is clearly a male-dominated activity, as females represent just under 40% of all members. Couchsurfers are also young: 70% fall in the 18-29 age group and the average member age is 26.

CouchSurfing strives to build connections worldwide that create and strengthen (inter)cultural understanding because members seek deep intense experiences linked to discovery. Based on a survey of 3000 members, over half (56,21%) of all respondents are motivated to learn about themselves and the world around them via meeting like-minded strangers at their destination.

Organization and Management

As an organization CouchSurfing provides its members with a series of practical tips to facilitate safe lodging and it also provides advice to members to build awareness about staying with members in the event of problems. Except for some technical staffers who maintain the Website, CouchSurfing is entirely run by volunteers where some members have particular responsibilities within the organizational structure of the community. There are around 700 ambassadors worldwide who organize gatherings and activities that attract both local and travelling couchsurfers. In Montreal, couchsurfers are known to organize larger meetings that coincide with international festivals and these gatherings vary in duration, location, size and member composition. After Paris, Montreal has the second largest local couchsurfing community in the world, although this position is presently rivaled by London.

As couchsurfers stay with other couchsurfers, they are excluded from official accommodation statistical counts, but nonetheless they are still important contributors to local economic activities. They visit tourist attractions, participate in a range of cultural activities and frequent bars and restaurants just like regular tourists. The biggest difference is that, with the help of their local hosts, they are likely to visit places off the official tourist map in their search for the authentic visitor experience. Thus, their economic contribution is likely to include the consumption of products and services outside the realm of the average visitor.

The future

CouchSurfing is a product of modern tourism in the age of mobility and it regroups the Internet-minded and the globally networked. It is a form of tourism that moves travellers away from the simple consumption of traditional tourism spaces and it also changes people’s expectation of a memorable visitor experience. Although they may have similar travel patterns compared to regular tourists, couchsurfers are likely to be more responsible towards the host community and their local environment. Given that the majority of couchsurfers seek the authenticity of their destination by by building deep emotional connections to places through personal contacts, the role of the traditional tourism landscape becomes less important. This means that iconic tourist attractions and spaces become secondary and social interactions as primary, if not the core of the visitor experience. However, the very essence of seeking out ordinary private spaces and new local people at a destination means that any place on the planet can become a potential couchsurfing haven. Given the direction of global telecommunication patterns and the general expansion of the travel sector, communities like CouchSurfing will continue to exist and grow. Consequently, there may be an increase in spin-offs, resulting in smaller communities that are more specialized and suited to the needs of those users in search of yet a different experience.

This article was written with the collaboration of Joris Sprakel, a lawyer and CouchSurfing ambassador for the city of Amsterdam in the Netherlands.
analyse_couchsurfing_en

Sources:

– Bialski, P. (2007). Intimate Tourism. Friendship in a state of mobility – the case of the online hospitality network. Master’s Thesis. Institute of Sociology. Department of Social Psychology. University of Warsaw, Poland. 85 pages.
– CouchSurfing (2008). Website: http://www.couchsurfing.com/ Last accessed January 23, 2008.
– Hospitality Club Website: http://www.hospitalityclub.org/ Last accessed January 23, 2008.
– Global Freeloaders Website: http://globalfreeloaders.com/ Last accessed January 23, 2008.
– Péloquin, C. (2007a). “Facebook, the new darling of Web 2.0,” Tourism Intelligence Network, UQAM, September 6, 2007.
– Péloquin, C. (2007b). “What is Facebook’s impact on the tourism industry?” Tourism Intelligence Network, UQAM, September 21, 2007.
– Servas International Website: http://joomla.servas.org/ Last accessed January 23, 2008.
– United Nations World Tourism Organization (2008). http://www.unwto.org/frameset/frame_sustainable.html Last accessed January 23, 2008.

Catégories
Accommodation Management

Building a customer database

To begin with, customers are the very heart of your organization; they keep your company alive. Without your customers, you would not be in business.

LL Bean, an outdoor equipment and apparel company in the United States, displays this saying on its office walls: “A customer is not dependent on us, we are dependent on him.”

At Disneyland Resort Paris, there are no “customers,” but “guests.” In the service industry, especially the travel and leisure sector, the customer is indeed a guest.

This is why I would like to add a fifth P (People) to the 4Ps of the marketing mix (Product, Price, Place and Promotion), to cover customers and customer relationship management.

Knowing your customers is one key to successfully boosting sales because it enables you to:

  • Suggest the right product or holiday package
  • To the right customer
  • At the right time

Quite often, the 20/80 rule is very accurate when analyzing a company’s clientele: 20% of the customers account for 80% of the business volume. Therefore, creating a customer database and becoming familiar with its features can definitely help improve sales and consequently your company’s profitability.

The database should enable you to extract customers or prospects so you can:

  • Boost sales and profits
  • ncrease the number of new customers, thanks to word-of-mouth from satisfied customers
  • Encourage customer loyalty with new products and special offers
  • Get your message to your customers at the right time, for example, when they are planning their next vacation or weekend getaway with friends

Find the appropriate information

One has to begin by opening drawers and looking at your business’ customer records. Files should be consulted chronologically, in the following order:

  1. Marketing – Information Requests
  2. Reservations
  3. Reception – Front Desk
  4. Leisure and Recreation – Classes
  5. Dining: Meal Plan or Theme Supper
  6. Customer Accounts
  7. Customer Satisfaction Survey
  8. Commercial Services – TO/Agencies & Groups/Seminars

Some of your company’s divisions deal directly with customers and have a lot of useful information (like the contact information obtained when the customer last booked a stay or requested information).

Is your site a family holiday destination? Information about your customers (adults, parents, children and grandchildren) can be useful when you are creating new products or packages, like spring holidays aimed at seniors or family getaways on long spring weekends.

Some campground operators specifically target families with children ages 12 and under, while others seek teens and young adults. If you know your customers well, you can target potential customers that resemble them.

It is estimated that your customer base erodes at an average annual rate of 10%. Therefore, your file of new contacts and prospects must be replenished regularly. Since your current customers are the best ambassadors of your product, you should seize the opportunity to ask them for their friends’ and relatives’ contact information.

Organize the customer database

The data gathered must be organized and recorded to suit its ultimate use. Some words of advice: keep it simple and functional.

Too much information becomes useless information. Not every piece of information is useful or workable, in any event, not at first. It is better to start out simply and then develop your database as your needs grow.

Set realistic goals when launching your customer database and share these goals with your associates. They will no doubt have comments and suggestions on how best to collect and use the information gathered.

Monitor two indicators

In addition to qualitative data like the customer’s name, contact information and, of course, email address, it is useful to monitor two other types of customer information:

  • consumption history
  • communication history
  1. The consumption history includes information like:
  • dates of stay
  • duration of stay
  • number of adults and children (and their ages)
  • any reservations for rented accommodations – cabin, RV, bungalow, trailer
  • special features of campsite location – near a lake, in the woods, a specific site
  • several accommodations reserved with friends or relatives
  • optional activities: classes or reserved activities like horseback riding, tennis, canoeing, kids’ club, etc.
  • reserved dining options, such as a theme dinner
  • specific services like a baby monitor
  • outside products or services like a sound and light show being presented in the area

Of course, a consumption history will incorporate all information from prior years.

Experience shows that customers tend to spend the same amount of money at their vacation destination as they do on the rental. By monitoring your customers’ consumption during their stay, you can quantify the economic importance of each reservation and define profiles for targeting the most promising potential customers.

If you have more than one site, it would be useful to consolidate them when renewing contracts with third parties and travel professionals.

    2. The communication history records the dates and messages sent to each customer. You can monitor and measure the effectiveness of your communications and promotional offers.

As always in a communication campaign, it is recommended that you test your promotion on a representative sampling of your target clientele. A well-organized customer database will make it easier to quantify and evaluate your communication activities. The communication history is necessary for building customer loyalty. It enables you to develop a lasting relationship with your customers by taking their preferences and shopping habits into account.

Remember, wooing back an old customer is one-fifth the price of finding a new one.

By combining these two approaches (consumption and communication histories), you can, with a little experience, extract information and group together the profiles of similar or closely matched customers.

  • Once you define qualification criteria, you can use them to segment your database. Criteria like postal code, holiday period, family make-up, activities and purchasing method, either direct or indirect, will help you extract customers with similar characteristics.

For example, to tell your customers about a spring weekend promotion, you would extract all the addresses located less than three hours away by car. A four-day June package to explore the Loire Valley and learn about wine-tasting would be sent to customers who are able to travel at that time of year, like seniors.

Knowing your clientele is also necessary for properly positioning your product. In an increasingly competitive economy, it is vital that your market position and marketing goals be clearly stated.

The tools needed

There are many customer database management software programs available on the market. Select a customized tool that will enable you to format the customer database in accordance with your goals and uses. The ideal tool is one that you can develop as your needs progress and that functions with your office software programs (e.g. Excel, Word, Access).

Finally, you should be able to connect your customer database directly to your Website and operate it from the site.

With the Internet, you can communicate with each and every customer. Nowadays, it is indispensable to have a direct marketing tool for communicating and selling, because over 50% of all people search the Internet for information on their destination and holiday spot and 40% have used it to reserve travel products.

Should you operate more than one tourism business, building a customer database on your extranet site will make it even more efficient and functional. Some information can be centralized on it, or made available and useable for each department in your company.

Of course, access must be secure and adapted to each user’s responsibility level. The marketing department does not need the same data as the front desk or the person in charge of supplemental activities.

Customer databases are the property of a business and an important factor in its future success. Therefore, a responsible individual must be appointed to manage and coordinate the project with the input of the departments involved.

Use the database

Offering all customers the same benefits or discounts will only lower your profitability without guaranteeing an increase in sales. Often, this tactic simply leads to ongoing price-cutting. The only rule: any promotion or discount offered to a customer must always be justified and reflect the history of the customer’s relationship.

Analyze the reservations made and study your customers’ profiles to better understand their buying habits and then use this enhanced customer knowledge as part of your marketing efforts. You could improve business during slow periods or increase average revenue per customer.

You could launch a loyalty program that uses preferential treatment and specific extras to develop privileged customer relationships. Preferred customers will agree to receive communications from your company and send you valuable information about their preferences and future needs.

It is essential to involve your associates and increase their awareness. Without their daily input, your database will quickly become unworkable due to its incorrect, incomplete or simply out-of-date information.

A good database must be selective, exhaustive, nominative, up-to-date and accurate.

Catégories
Accommodation etourism and technology

Wireless access in hotels: luxury or necessity?

Over the past few years, hotels have invested heavily in order to satisfy their clients’ internet access needs. However, although the demand is obvious, customers’ willingness to pay is less so. Also, because a growing number of clients now travel with laptops, wireless networks are becoming increasingly popular. Do hotel owners have to resign themselves to losing some of their customers if they fail to provide these high-tech amenities? A survey of American business and leisure travellers, conducted by Yesawich, Pepperdine, Browne & Russell (YPB&R), yielded some interesting results.

An expanding service

Around the globe, an ever‑increasing number of places now offer wireless internet service (wi‑fi). According to an ABI Research study, the number of wi‑fi hotspots worldwide will grow by over 25% in 2007, for a total of 179,500 of those areas so beloved by laptop owners. About 72% of them are found in North America and Europe, but the Asia‑Pacific area is showing rapid growth in that respect.

It’s not just the offer; the interest on the part of internet users is also rapidly expanding. In addition to the burgeoning number of internet subscribers there is an astonishing growth in wireless use, as people become more and more used to going online to check the internet and e‑mail.

The trend reaches accommodation

The hotel industry is well positioned to make the advantages of wireless internet available to its clientele. There are currently 46,000 wireless hotspots in various kinds of accommodation establishments. This amenity confers an obvious competitive advantage that many large hotel chains are eager to acquire. Some operators also use wireless networks for their internal communication.

Two recent surveys conducted in January 2007 by YPB&R shed some interesting light on the relative importance of wireless internet service in hotel rooms. The first survey was conducted on 304 leisure travellers, while the second focussed on the same number of business travellers. Both samplings surveyed American travellers who had travelled over 120 km from their home and spent at least one night in commercial accommodation.

Internet in the room

Clearly, the internet is becoming an essential service and, increasingly, clients expect it to be offered free of charge. Business travellers more or less demand high‑speed wireless internet access in their hotel room (Figure 1). Over 39% of business travellers surveyed said that this free service is extremely important, and 46% of leisure travellers said it was very important (see ratings in columns 4 and 5). The stated importance of this service to travellers decreases significantly as soon as there is a cost attached to it.

CP_2007-05_wifi_htl_grphq1

Since an increasing number of travellers use laptops, customers obviously prefer wireless internet service. However, both clientele segments still displayed significant levels of interest in having wired connections in their rooms (Figure 2). However, it is to be expected clients will increasingly prefer wireless access.

CP_2007-05_wifi_htl_grphq2

When questioned about the importance to them of knowing that an accommodation establishment had a public space with high‑speed internet access, almost half (49%) of the business travellers surveyed (compared to 36% of leisure travellers; see Figure 3) felt this amenity was very important as long as it was provided free of charge. Travellers who are prepared to pay for this type of service are in the minority.

CP_2007-05_wifi_htl_grphq3

As soon as a cost is attached to internet access it becomes clear just how much travellers expect to receive it for free (Figures 4 and 5). Interestingly enough, 9% of leisure travellers not only refuse to pay for high‑speed internet but would quite simply stay elsewhere where the service is provided for free. Almost one quarter (23%) of business travellers feel the same way.

CP_2007-05_wifi_htl_grphq4

The majority, or 58%, of leisure travellers have less definite opinions: although they do not necessarily want to pay for internet access they would not change establishments in order to get it for free. However, 37% of business travellers would. Regardless of the type of travel, one out of five feels that $5 a day or less is an acceptable amount to pay for this type of service. Only 2% of tourists and 7% of business people would pay $10 or more.

CP_2007-05_wifi_htl_grphq5

There is one final factor that only affects business travellers, and that is the availability of Internet access in conference rooms. Roughly 44% feel that high‑speed wireless service is very important when it is provided for free, compared to 24% who still think it is important even if there is a charge for that service.

CP_2007-05_wifi_htl_grphq6

As the number of wi‑fi hotspots grows they will become an increasingly large part of consumers’ everyday life. In fact, a number of cities are working toward turning some of their neighbourhoods into wi‑fi areas, with either paid or free access. For instance, in September 2006, Toronto’s financial district went wireless. Industry players, particularly hotel owners, need to adapt to this trend because clients are becoming ever‑more demanding in that respect.

Catégories
Accommodation Around the world

Getting Out of the Hotel Business and into the Business of Hotels

Our expert, M. Michael Nowlis from Tourism Control Intelligence, traces three related trends that have revolutionized the global hotel industry over the last 25 years.

It begins by chronicling the emigration of hotel assets from American ownership to foreign investors in the 1980s and their subsequent repatriation starting in the mid-1990s. Second, it examines how the management focus of large international hotel groups has shifted from a real estate orientation to an emphasis on brand management. Finally, the article explains how this business reorientation resulted from the increasingly shorter planning horizons of global investors.

The Great American Sell-off

Recent reports in the press speculate that InterContinental Hotels Group (IHG) will be the target of a US$ 11.2 billion takeover bid in the coming months. The stratospheric price tag stuns even seasoned industry analysts who have followed hotel mergers & acquisitions for decades. IHG has an impressive portfolio of internationally recognized brands – InterContinental, Holiday Inn, Crowne Plaza and Indigo among others. The company is well diversified in terms of market segments and global coverage. Nonetheless, IHG’s 60% increase in share price from August 2006 to January 2007 raises numerous issues concerning market speculation, quality of management and company financial fundamentals. Industry analysts predict an American REIT (Real Estate Investment Trust) or private equity group will make an unsolicited offer of 1500p for outstanding IHG shares during the first half of this year. Such an offer would represent an 80% premium over the August share price (840p) on the London Stock Exchange.

An IHG takeover would be significant for reasons in addition to the lofty price. The two most frequently cited contenders are US investment firms – Barry Sternlicht’s Starwood Capital and the Blackstone Group, a private equity firm with extensive hotel assets. The acquisition of IHG by American investors would bring the international hotel industry full circle, reestablishing North American dominance in the global lodging sector.

The American withdrawal from international hotel markets began in 1981 when Pan American Airways sold its InterContinental division to Grand Metropolitan, a British food and hotel group. The sale sparked a prolonged sell-off of North American hotel companies to foreign investors. Most notably, Holiday Inn, the world’s largest hotel company at the time, was sold to England’s Bass Brewing Company in 1987.

The InterContinental sale sparked another trend that would radically transform the travel industry over the coming years. Airlines began to shed their hotel assets to focus on core transportation activities. Within a period of a few months in 1987, Chicago-based United Airlines sold its Hilton International, Westin and Camino Real hotel subsidiaries to British and Japanese investors. In the following years, all of the world’s major airlines liquidated their lodging divisions. Travel industry executives came to reject the conventional wisdom that airlines and hotels, operated by the same company, were strategically complimentary business units.

Asian investors were particularly eager to acquire American hotel groups. Hong Kong-based New World Development purchased the Ramada International, Renaissance and Stouffer’s hotel companies. Regal, another Hong Kong group, acquired Richfield, one of North America’s largest management companies with a vast portfolio of hotels flying Sheraton, Hilton, Choice and Holiday Inn flags, among others. Dubai’s Kingdom Hotel Investments went on a Canadian shopping spree, picking up Delta and CP Hotels, as well as taking significant positions in Four Seasons and Fairmont.

While Asians were focusing on the luxury segment, French investors turned their attention to the US budget sector. With its purchases of Motel Six and Red Roof Inns, Groupe Accor acquired more than 1000 lodging establishments in the US and Canada.

As one hotel company after another was sold to foreigners, North American investors were accused of an obsessive focus on short-term profits. Analysts claimed that Asian and European investors with longer planning horizons would reap handsome returns further down the road. American impatience, it was argued, was allowing foreign investors to purchase the crown jewels of the global hotel industry at prices that were likely to appreciate at supernormal rates of growth.

Coming Home

Just as the American sell-off appeared to have reached the tipping point, a curious thing happened. In 1994, a group led by little-known Starwood Capital and Goldman Sachs purchased Westin from the Japanese Aoki group, returning the company to US ownership. While Aoki had liquidated some non-strategic assets, the $537 million selling price was approximately a third of what the Japanese had paid United Airlines for the company in 1988. Analysts claimed the Westin takeover was an opportunistic acquisition that did not portend a trend in hotel asset repatriation. It did not take long, however, to prove them wrong.

In 1997, Marriott purchased Renaissance, Ramada International and New World Hotels from their Hong Kong-based proprietors. More recently, Hilton Corporation bought Hilton International, its British based namesake, for $5.7 billion. The Hilton acquisition reunited the company 42 years after the international division had been spun off to Trans World Airlines and nearly 20 years after it moved its headquarters to the UK.

American investors are not known for tiptoeing into business markets any more discreetly than the US Army tiptoed into Baghdad. Such was case with their return to international hotel investment. Not satisfied with merely reclaiming « American » hotel companies, US investors went on a shopping binge, acquiring a vast array of international lodging firms. Sheraton purchased CIGA, the Rome-based company that maintained a virtual monopoly on Italy’s upscale hotel market. The Carlson Companies, parent of Radisson Hotels, purchased Regent International, the Hong Kong-based hotel group that had established Asia’s reputation for luxury hotel keeping. Starwood picked up Le Meridien Hotels, a chain founded by Air France and sold to British interests in 1994. Starwood also acquired Hotels du Louvre, Europe’s 2nd largest hotel company which included the upscale Concorde brand.

Shorter Investment Planning Horizons

Have American capital markets given up short-term investing to concentrate on long-term asset appreciation? Nothing could be further from reality. The return of US dominance to hotel equity markets manifests the economic globalization of international investment activity in general. Investors of all nationalities are calculating risk and return for increasingly shorter planning horizons. In uncertain times, why would Hong Kong investors wait several years for investment returns when the Shanghai Composite Index was up 122% in 2006? Bourses in Peru, Vietnam and Venezuela appreciated at168%, 144% and 156% respectively last year. In the interconnected and interdependent world of the 21st century, investors from Albania to Zambia are using the same investment criteria to identify the most lucrative opportunities in global markets. Calculations no longer focus on the net present value of expected cash flow for decades to come. The key is to assess appreciation of asset values (real estate or management contracts) next year or even next month.

The Hotel Washington in the US capital provides an illustrative case study of this trend. Gal-Tex, which owned the hotel for 65 years, sold it to Westbrook Partners for $120 million in the spring of 2006. Barely six months later, Westbrook turned the property over to Istithmar Hotels for $150 million, reaping more than $1 million profit for each week it had owned the hotel.

The Savoy Group in London provides an even more astonishing example of such rapid-fire turnover of trophy assets. The Savoy Hotel and its three sister properties with a total of 772 rooms were purchased by the Irish investment group Quinlan Private in May 2004 for $1.36 billion. The 226-room Savoy Hotel was valued at approximately $380 million at the time of sale. Within a few months, Quinlan sold the Savoy to Kingdom Hotel Investments for a reported price of $475 million. Measured by the $1.8 million per room price tag, the sale represents one of the highest prices ever paid for a hotel. While Quinlan had been widely criticized for overpaying for the Savoy Group, the acquisition provided a $95 million profit on the sale of just one hotel that it owned for less than a year.

From Real Estate to Brand Management

The plethora of hotel transactions also manifests the value of non-tangible assets in the hotel industry. As lodging companies divest of real estate, the value of management contracts, franchise agreements and internationally recognized brands has become increasingly easier to assess. When Hutchinson Whampoa, the proprietor of the Hong Kong Hilton, demolished the hotel in 1995 to build a commercial office complex, it was obliged to pay Hilton $125 million to buyout the remaining 20 years of its management contract. In a bizarre paradox, the sum was not being paid to manage the hotel but rather to not manage the hotel. In testament to the potential value of a management contract, Hilton made clear that it did not want a payment of $125 million. The company preferred a continuation of the management contract. In the end, Hilton was legally obligated to vacate the premises and accept the settlement. The case illustrates, however, the radical changes that have turned the hotel sector upside down.

The growth of franchising has further altered the basic structure of the industry. While franchising of lodging establishments was pioneered by Holiday Inn’s standardized motels in the 1960s, only recently have upscale international groups been willing to permit owners to manage their hotels under a prestigious corporate banner. Almost all of the major international hotel companies now engage in franchising as a capital-free vehicle for rapidly growing their brands. The Carlson Companies have taken the concept to the extreme, having sold all of their hotels and given up most management contracts. The group now focuses almost exclusively on franchising its Regent, Radisson, Park Plaza and other hotel brands.

As hotel franchisers and management companies put increasing emphasis on international product recognition, brand management is becoming the critical skill for competitive advantage. This revolution has been manifested in recent years by the selection of brand management professionals (rather than hoteliers) to head the world’s largest lodging companies. Ian Carter, President of Black & Decker EMEA was appointed Chief Executive of Hilton International in 2005. When Hilton Corporation acquired the company the following year, Carter was the only top executive retained by the parent company, where he now serves as Chief Executive Officer for international operations.

Andrew Cosslett, President of Cadbury Schweppes EMEA, was named head of InterContinental Hotels about the same time Carter joined Hilton. The following year, the logic for hiring an executive from the confectionary industry to head a hotel company was explained in a CNBC broadcast. Interviewer Ross Westgate asked Cosslett, « Because you manage hotels now rather than own them – you’ve sold a lot of the assets off, so is it now brand management – is that essentially what you do? » The new chief executive replied, « That’s really our focus. »

When Starwood Hotels founder Barry Sternlicht decided to step down as Chief Executive Officer, none of the short-listed candidates to replace him were from the hotel industry. Steven Heyer, President of Coca-Cola was eventually recruited to assume the CEO position at Starwood, primarily for his branding prowess. Shortly thereafter, Starwood recruited Javier Benito, President of Coke’s US retail division to serve as the company’s Executive Vice President.

While peddling Coca-Cola in supermarkets may appear greatly removed from selling St. Regis suites on the web, the success of both depends on the effectiveness of brand management. The fact that executives with no hotel experience are increasingly recruited to manage the world’s largest lodging companies has significant implications for hoteliers, investors and educators. If branding skills are the most important qualifications for heading a global hotel company, what is the future of the industry? Where is the value in a hotel company?

Traditional hotel executives may scoff at such trends but stockholders are euphoric. The recent 60% rise in IHG share price has persuaded investors that hotel companies need a new breed of leader to maximize return on investment. If the IHG takeover bid is successful, providing stockholders an 80% share appreciation in less than a year, it will be difficult to argue with them.

Conclusions

The increasing divergence of hotel ownership (real estate), operations (management) and marketing (brand distribution) will intensify in the coming years. « Hotel management » will refer only to those activities that directly impact above-GOP (Gross Operation Profits) controllable expenses. Private equity funds, REITs and institutional investors are dominating the hotel real estate markets. Franchisers are achieving competitive advantage in sales and distribution. Increasingly, companies once considered at the core of the lodging industry are getting out of the hotel business and into the business of hotels.

Catégories
Accommodation Issues

Restaurant industry in change: be proactive!

New regulations are being introduced in the restaurant industry. Now that consumers want to eat better and know more about the origins and composition of their food, some lawmakers are taking action. Not to be outdone, Canada will likely follow suit and pass its own new regulations in the near future. The hotel and food service industries can wait and then react to such legislation, or businesses can, as some chains have done, be proactive and take advantage of this trend to distinguish themselves from the competition.

New York City gets things started

The New York City Department of Health and Mental Hygiene has unanimously voted to phase out the use of artificial trans fats* in the city’s 24,000 restaurants by July 2008. In another first, the same department has also adopted a measure requiring restaurants with standardized menus (in other words, approximately 10% of all restaurants) to post calorie information on menus or menu boards. Although New York is the first city to adopt such regulations, if the large number of states and municipalities currently considering such measures is any indication, this is indeed a growing restaurant industry trend.

Reactions to these measures have been varied, but the NYC health department maintains that 95% of the comments received during the public consultation process supported the proposal. Complying with these new regulations may be onerous and costly for many establishments. For major restaurant chains, changing a recipe is a major logistic challenge. In addition, posting the number of calories on menus not only involves research and printing costs, it can create a crowded display.

Three days after NYC’s announcement, the Loews hotel chain was the very first such chain to announce its intention to eliminate artificial trans fats from all restaurants, shops and mini-bars in its 18 US and Canadian properties by June 2007. Restaurant chains like Taco Bell and KFC are preparing similar strategies, while Wendy’s International has already phased out trans fats from its 6,300 restaurants. Marriott International will be the second hotel chain to follow suit by eliminating all trans fats from its 2,300 establishments in the US and Canada.

The sale and production of foie gras

In addition to trans fat bans and calorie labelling, there are other regulatory measures affecting food. For example, the production of foie gras is now prohibited in many countries (e.g., Germany, Denmark, Finland, Ireland, Israel, Italy, Norway, the Netherlands, Poland (the world’s 5th largest producer before the 1999 ban), the UK, Sweden and Switzerland) and Chicago has outlawed its sale. In this case, the goal is to discourage cruelty to animals. California will also outlaw the sale of foie gras as of 2012 and the city of York in Great Britain is considering adopting a similar measure. The restaurant industry is therefore being subjected to new standards that may, in some cases, be very restrictive.

Where does Canada stand on the issues?

When it comes to foie gras, Canada remains a country open to both its production and sale. However, the elimination of trans fat is another matter. Since November 2004, Health Canada has been working with the Heart and Stroke Foundation of Canada to develop recommendations and strategies for reducing trans fats in foods to the lowest level possible. Canada was also the first country in the world to make trans fat labelling mandatory (December 2005). A proposal to phase out trans fats was tabled, but in the fall of 2005, agro-food industry representatives successfully petitioned the federal government to postpone the measure to give them time to develop alternate solutions.

Nonetheless, Canadian lawmakers are very aware of the issue and will most likely move to outlaw or severely restrict the use of trans fats in the near future. Some establishments have already adapted their menus accordingly. As of December 2006, the Pacini restaurant chain was still the only Canadian chain to have completely eliminated all artificial trans fats from its menu. This change was made with the help of clinical nutrition and cardiology specialists from the Centre hospitalier de l’Université de Montréal (CHUM) and is a concrete example of the feasibility of such adaptations. The A&W chain has significantly reduced the use of trans fats, while Starbucks has committed to eliminating them from its menu by the end of 2007, in both Canada and the US.

At the present time, there are no proposals in Canada to require calorie labelling for restaurants offering standardized menus. However, it will be interesting to follow the evolution of this awareness-building trend in other cities and states; we may be pulling out our calculators in restaurants sooner than we think!

A plus for tourism?

Although the regulations discussed here have been implemented for other reasons, their impact on tourism is also worthy of consideration. A key element in the tourist experience, food can even be the primary travel motivator. At the same time, consumers are increasingly health conscious, especially with the advent of more information about the dangers of trans fats, GMOs (genetically modified organisms), mad cow disease and the avian flu, in addition to being motivated by ethical or environmental considerations. As such, the number of regulations and incentives to reflect these consumer concerns are likely to increase.

The elimination of trans fats is part of this trend. Whether it is the subject of a municipal ordinance or simply a hotel or restaurant policy, it could be a differentiation strategy worth studying. Like the smoking ban enacted in bars and restaurants, it is attractive to many types of tourists. Although such changes can be costly, they will have to be made sooner or later. Be proactive and help your business take full advantage of its foresight!

Sources:
– The New York City Department of Health and Mental Hygiene. Press releases of September 26 and December 5, 2006, [www.nyc.gov].
– Association des restaurateurs du Québec. Press releases of October 4, 2006, and September 8, 2005, [www.restaurateurs.ca].
– Boyd, Christopher. « Loews Hotels Set To Ban Trans Fat, » Orlando Sentinel, December 9, 2006.
– Rosolen, Deanna. « Marketing to Quebecers, » Food in Canada, June 2004, Vol. 64, No. 5.
– Quan, Shuai and Ning Wang. « Towards a Structural Model of the Tourist Experience: An Illustration from Food Experiences in Tourism, » Tourism Management, June 2004.
– Health Canada. [www.hc-sc.gc.ca].

Catégories
Accommodation

Marketing 101 for small inns and hotels

Marketing is never an easy undertaking, especially for small inns and hotels with limited time and budgets. While the following does not provide an exhaustive list of advice, options and how-tos, it does offer a checklist of various suggestions for improving visibility.

Turn an improvised strategy into an effective one

Starting with some general information (e.g. the typical guest at a small inn or hotel is a leisure tourist who has selected this type of lodging for its ambience and personalized service, and more often than not, these customers reserve by phone) and doing a little background work (defining the target audience, determine distinctive features, etc.), a business can begin the marketing process.

Exploiting the opportunities of the internet

Although the internet is not currently the means by which most small inn and hotel guests make their reservations, it is still a primary source of information. More and more people are automatically turning to the Web when they need to find or recommend a place to stay.

While the internet offers a sea of opportunities, there is also the danger of drowning in it. For this reason it is not enough to have a Web presence; the site must also be searchable. However, understanding how search engines work is a complex task requiring time and expertise. At the same time, because these engines evolve and change along with the competition’s positioning, there must be a strategy for periodically reviewing the process.

Trying to compete with the major players on their own territory is a waste of time, so small inns and hotels are better off using other methods. Instead of associating the site with the most popular terms typed into search engines, focus on those used by the target audience. For example, many such people will refine a search by typing « Saguenay inn » rather than « Quebec hotel. » Another option is to sponsor a link on the search result page of a local festival.

Improve and assess the effectiveness of methods used

Once again, to make a product stand out from competing major hotel chains, one must innovate and adopt original presentation methods (visuals, ways of communicating, etc.).

  • Clearly define the target audience so reach it effectively
  • Develop a specific niche (such as family parties, company activities, honeymoons, special events, etc.)
  • Establish partnerships with companies – even those outside the industry – to develop an unusual product or innovative marketing strategy

To measure the validity of promotional efforts and retain only the most effective measures, ask guests where they found about the establishment and how they made their reservation.

Sources:
– Carroll, William J. et al. « A Comprehensive Guide to Merchandising Bed and Breakfast Inns, » Cornell University, School of Hotel Administration, The Center for Hospitality Research, CHR Tools, No. 8, August 2006.
– Hursh, Patricia. « Winning Big with a Small Search Marketing Budget, » [searchenginewatch.com], August 28, 2006.

Catégories
Accommodation Around the world

Luxury hotels now include… camping?

More and more travellers are turning to nature tourism, e.g. trips to unique sites, package tours and outdoor activities. However, these same consumers also want to enjoy comfort, safety and relaxation. Although these needs may seem incompatible, some hotels have successfully combined them by offering camping as part of their latest deluxe products!

A desire for nature and a simpler time

According to French sociologist Jean-Didier Urbain, the desire for nature is one of the primary « needs » generated by city life; the yearning for a natural environment is a reaction to an everyday life of streets and pavement. Furthermore, this phenomenon is likely to increase: it is estimated that by the year 2015, over half the world’s population will be living in cities, especially in the West. For tourism professionals, this nascent trend offers incredible potential.

For his part, sociologist Michel Maffesoli highlights the emergence of a « post-modern paradox »: the prevailing search for luxury, combined with a desire to return to the past. In other words, a desire to get back to the basics. Therefore, those who develop products cleverly combining luxury and nature seem destined for success.

Nature tourism

Defined by the World Tourism Organization (UNWTO) as a « form of tourism in which the main motivation of the tourist is the observation and appreciation of nature », nature tourism responds to the desire for nature by organizing access to exceptional natural environments. To complete the nature tourism experience, the tourism industry has had to develop accommodation solutions that provide a level of comfort to meet customer needs without « de-naturing » the natural environment of the host location. The creation of ecolodges is part of this trend.

Luxury meets nature

Having picked up on this trend – and not wanting to miss out on this market segment – the luxury hotel trade has drawn its inspiration from the tent, a type of lodging traditionally associated with the great outdoors. To attract urban travellers, luxury establishments are designing innovative accommodations that recreate the spirit of adventure so often associated with camping.

First Four Seasons camping site

To help travellers slake their thirst for direct contact with nature, the latest resort from the prestigious Four Seasons hotel chain offers 15 tent accommodations in the Golden Triangle of Northern Thailand. Each spacious tent features a unique décor, zippered doors and windows, a large bed, recycled teak floor, oversized copper bathtub, outdoor shower, high-speed internet access, a safe, and more. A « first » for the hotel group, this pilot project will be used as a benchmark for developing new camps in the future.

Interest on every continent

In 2005, the luxury Resort at Paws Up in Montana added « Tent City » to its product line, offering the American plan (all meals) for US$595 per night. Each tent includes a comfortable bed (fine linen and feather duvet) and artwork on the walls, while the nearby spa provides outdoor massages on the banks of the Blackfoot River, with essential oils from the surrounding region. The concept has been so successful that 6 tents and a new spa will be added in 2006.

In Australia, the Voyages Hotels and Resorts group, which manages 23 luxury resorts, opened Longitude 131°, a 5-star wilderness camp, on July 1, 2004. Located in the heart of a national park, this site -affiliated with the Small Luxury Hotels of the

World group, offers 15 elegant tents mounted on pilings, equipped with air conditioning and satellite television.

Not surprisingly, similar camps can also be found in Dubai (where the Al Maha Desert Resort is located in a 225 square km desert wildlife preserve) and in the Tunisian Sahara, a national park in Namibia as well as some natural sites in Bolivia.

The myth of the adventurer

Amused by the behaviour of city-dwellers wanting to re-experience the past while incorporating the comforts of the city, Jean-Didier Urbain notes that large tourism-based businesses are justified in using the terms « camp » and « camping », because they are referring to the consumer fantasy of being an adventurer. That being said, hoteliers nonetheless seem to have successfully created a promising new market niche by cleverly combining the desire for nature with a taste for luxury.

Sources:
– Hamam, Nadia. « Palais de toile sous les étoiles, » Madame Figaro [www.madamefigaro.fr], February 14, 2006.
– Maffesoli, Michel. ?Un désir de retour à l’archaïque,? Madame Figaro [www.madamefigaro.fr], February 14, 2006.

Catégories
Accommodation Marketing @en Trends

Are tourism brochures still effective?

Technological advances have called into question many traditional models, including the common tourism brochure. And yet, this form does not appear on the brink of extinction. Two studies have confirmed its usefulness, for it remains one of the most popular information sources for tourists. This is all the more true since most travellers alter their plans while travelling. In this respect, brochures play a greater role than the Internet, for example, in influencing the decisions of travellers who have already left home.

Measuring effectiveness

A traveller’s impression of a destination and choice of vacation spot and tourism services are influenced primarily by the individual’s prior experience. When a traveller opts to visit a place for the first time, other information sources like name recognition, reputation, price, advertising, the Internet, word of mouth, etc. are all very influential.

Kathleen L. Andereck, a professor at Arizona State University, wanted to better understand the effectiveness of the tourism brochure as a decision-making tool for tourists. To that end, she administered a survey to a sampling of people who had requested tourist information about Glendale, Arizona. According to Professor Andereck, the study showed that traditional brochures still have a major influence on travel decisions. Potential tourists who had requested a brochure showed an increased interest in the region, thanks to the information they received (Figure 1). In fact, 51% of respondents said they were interested or extremely interested in visiting Glendale after they received the brochure, while only 19% said this before they received the brochure.

Tourist brochures have a significant influence on other major travel decisions, particularly the decision to include the region in one’s travel plans (33%) or stay longer in the region (15%). The study’s author concludes, nonetheless, that a traveller’s initial impressions of a destination remain the strongest predictor of whether or not it will be included in one’s travel plans. On the other hand, a brochure’s effectiveness definitely increases interest in the destination and plays a part in determining how much time a tourist spends in the area.

The experience factor

Two segments were defined to measure the effect of the brochure: repeat visitors (those who had already been to Glendale) and visitors with no previous visits. The data showed that repeat visitors were more interested in visiting the area than the others were, before receiving the brochure. Interestingly, however, the two groups expressed virtually identical interest levels after receiving the information.

Therefore, among tourists who have never visited a given destination, a brochure can be very effective at positively influencing their level of interest. In addition, tourists who had never visited Glendale also indicated that the advertising had significantly altered their initial image or expectations.

Brochures appeal to women

The study sampling also illustrated significant differences in brochure effectiveness, according to the socio-demographic profile of potential visitors. The researchers noted that women were more likely than men to be positively influenced by this form of advertising. This was also true for the population segment of middle-aged people with lower incomes.

For destinations that are further away or less popular, as well as for organizations with limited financial means, confirmation of the traditional brochure’s effectiveness is good news. Relatively low production and distribution costs make the brochure accessible to everyone. However, it is important to take full advantage of the brochure’s two primary strengths, simplicity and colourfulness, and to find appropriate distribution points.

What about the Internet?

There has been much discussion about the importance of the Internet as a travel planning tool. According to the latest data from the CEFRIO (Centre francophone d’informatisation des organisations), 35% of all Quebeckers report that they use the Web to plan their travel. Obviously, destinations need not question the importance of a strong online visibility strategy. On the other hand, it is important to remember that not all travel decisions are made before leaving home and that many details get worked out during a trip. In fact, 62% of travellers look for information while travelling.

Professor Patrick Tierney from San Francisco State University interviewed 2569 tourists in Canada, the US and Ireland at hotels, attractions and visitor centres. His study reveals that once travellers leave home, brochures become the top planning tool (21%), followed by friend/relative and travel guides (15% each). Few people bother consulting the Internet while they are on vacation (11%).

The study also points out that, among tourists who had taken a brochure from a rack, 37% changed their travel plans due to the information in the brochure and 47% purchased something featured in the brochure.

Adapting the message

Another important consideration is the role of women in deciding and planning family vacations. Too often advertising is geared towards men, when women are the ones making the decisions. Furthermore, since women are more likely to be influenced by this form of marketing, it is crucial that promotional strategies be adapted to ensure that women can identify with the message.

Many experts are predicting a rosy future for electronic brochures, because they cost less to produce and are easier to update. However, they do not meet the needs of travelling tourists. It is also important to remember that the behaviours described above were in fact observed among people who wanted to receive a tourist brochure. The expected results of a mass mailing via a major daily or through other unsolicited channels would certainly not be comparable to the examples presented here.

Producing an attractive brochure is only half the battle. It must then find its way into the proper hands at the proper moment.

Sources:
– Andereck, Kathleen L. « Evaluation of a Tourist Brochure, » Journal of Travel & Tourism Marketing, Vol. 18 (2), 2005.
– Bieger, Thomas and Christian Laesser. « Information Sources for Travel Decisions: Toward a Source Process Model, » Journal of Travel Research, Vol. 42, May 2004.
– Riseley, Mark and Adam Daum. « Tour Operators Taking First Steps to Shelve Traditional Brochures. »
– Tierney, Patrick. « Comparison of the Effectiveness of Brochure Distribution in Racks to Other Tourist Information Sources, » San Francisco State University, December 15, 2003.

Catégories
Accommodation Around the world

Commentary from Michael Nowlis on the hotel classification

Michael Nowlis is Managing Director of Tourism Control Intelligence. He has rated hospitality establishments for various guides and trained AAA inspectors.

Why make things simple when you can make them complicated?  Such a rhetorical question summarizes the obfuscation created by tourism authorities, intergovernmental organizations, travel companies and trade associations in their discombobulated initiatives to classify hotels. Many European countries categorize hotels using a system of one to five stars. However, that's just the beginning.  The French government awards a maximum of four stars but has an alternative category called « four-star luxe » and another, termed « HT ». In Dubai, a major destination for European vacationers, there is a seven-star hotel. Spanish lodging establishments are graded using a star scale with additional qualifiers such as « R », « H » and « Hs ». A modest Madrid hostel, for example, could have a rating of « ** R Hs ». European hotel classification is a jumbled litter of incomprehensible stars, diamonds, letters and numbers.

While hospitality industry has long resisted Brussels' initiatives to harmonize hotel categorization in the name of consumer protection, national tourism authorities are also losing the battle to standardize hotel ratings. Devolution and decentralization have resulted in classification standards becoming increasingly diverse rather than more uniform. In Spain, each of the seventeen regional authorities has its own approach to grading lodging facilities.