Étiquette : hotels @en

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
Trends

What’s coming in 2006?

Each new year brings with it a new batch of forecasts and predictions on a variety of topics. From new technologies, to the hotel sector, to the latest hot destinations, here are some things to watch in the coming year.

Leisure travel

In 2006, leisure travel will continue to drive tourism growth. According to some US experts, rest and relaxation motivate more than half of all leisure travellers. Destinations like spa resorts and those offering a stress-free atmosphere look the most promising. A recent Tripadvisor.com survey showed that 50% of the 3000 respondents planned to take a spa vacation in the next year. With short stays still in vogue, the challenge facing the industry is to offer the most relaxation within the shortest amount of time.

Visits to national parks will rise, while attendance at amusement parks will drop. The cruise industry should continue its upward climb and enjoy an excellent year, notably due to the launch of new boats and the growing popularity of this product among families. Timeshares on cruise ships have been identified as a promising new trend in the coming years.

Cities that emphasize fun and a wide variety of activities within a small area – ideally within walking distance – are likely to attract more travellers. And, finally, the increased demand for leisure travel has led experts to encourage consumers to reserve early to ensure that what they want is available at the desired time.

Business travel

North American business travel will enjoy a good year with projected growth of 5% in 2006, compared to the 4% recorded in 2005. This increase will be driven primarily by the meetings and conventions sector. However, for their daily corporate needs, business people continue to seek alternatives to having to travel for business.

Recent forecasts from Meeting Professionals International (MPI) confirm a 7% increase in meeting expenditures and the number of events for next year. This forecast is based primarily on national markets, because American and European organizers do not expect more events to be held at international destinations. In Canada, the number of visitors attending American conventions should remain stable.

Good news for suppliers: MPI anticipates that convention lead times will begin to increase. In 2006, it is estimated that lead times will grow by nearly 40%, translating into an additional two or three months between the invitation to tender and the event date.

Hotels

In North America, increased demand and slow growth in supply means average room rates should continue to rise in 2006. The upscale and luxury sectors in particular should benefit from this situation. Furthermore, in 2006, the hotel industry, like all travel and tourism sectors, will face the dual challenge of staff shortages and human resource management. According to a recent US study, 25% of hotel industry employees are dissatisfied with their jobs and 32% of these people would like to find a new job in the next year. The year 2006 is also likely to be challenging for hotel owners in major US cities because many collective agreements are up for renewal.

Transportation

Pressures on the North American airline industry will persist as discount carriers continue to invade the traditional routes of the major airlines. In this competitive environment, ticket prices will remain low, but an expected increase in fuel prices (combined with fewer available seats) should nudge average prices higher among regular carriers. There will also be an increase in the number of pay-per-use in-flight services (pillows, blankets, meals, snacks, etc.).

As for airports, we should see an increase in the services offered to travellers. The addition of shops, restaurants, gyms, beauty salons and professional services are some of the tactics being adopted by airport managers to diversify revenue sources and improve the customer experience.

In 2006, the Airbus A-380 will begin commercial flights. The world?s largest passenger jet, the two-storey airplane will be the first to offer on-board areas for socializing.

In the United States, train travel will grow in 2006. Improved services and schedules, and especially the opportunity to transform travel from a utilitarian role into an experience unto itself, have piqued consumer interest in this service, especially among Generation X travellers.

Technology

Travellers, both business and leisure, are increasingly demanding the opportunity to « plug in » anywhere and any time. Hotels, resorts, convention centres, airports and various types of public transit will intensify their efforts to provide high-speed internet access (for free, if possible!). Sometime in the year 2006, US airlines will begin offering wireless in-flight internet access.

Increased internet use by consumers continues to revolutionize the marketing and distribution of travel products and services. In 2006, the number of online transactions will continue its strong growth. The firm PhoCusWright predicts that by the year 2007, 40% of all travel-related purchases in the United States will take place online.

Furthermore, tourism now constitutes a growing presence on major search engines (Google and Yahoo) and general online shopping sites (Pricegrabber). With more comparison tools now available, the resulting price transparency is forcing suppliers to work even harder on their brands, since the consumer?s perception of value is a combination of price and supplier image.

Tourism marketing should attach greater importance to the internet. It is expected that the concepts of « best price guaranteed », dynamic packaging and search engine positioning (pay-per-inclusion) will grow in popularity. Experts are also pointing to the growing popularity of internet-related media like blogs and instant messaging. Individuals will have a fast and growing influence on the commercial success of products and services.

Destinations

At this point in the year, China is still the destination that excites the most interest and curiosity. According to guidebook publisher Lonely Planet, this country heads the list of hot destinations, followed by Mali, Brazil, Iceland and Serbia & Montenegro. As for destinations offering exceptional value, the publisher puts Argentina at the top, followed by New Zealand, Morocco, India and Mexico.

In Europe, according to American Express, Great Britain, France and Italy remain the most popular destinations for Americans. However, Eastern Europe continues to attract a lot of interest, particularly the countries on the Adriatic Riviera (Croatia, Slovenia, Montenegro), which are a less expensive alternative.

Sources:
– Armstrong, David. « Travel, Tourism Bouncing Back – Conventions and Visitors Returning, but Room Rates and Airfares Are Going Up, » San Francisco Chronicle, January 8, 2006, p. J1.
– Cruise Lines International Association. « Cruise Industry Trends for 2006, » [Traveldailynews.com], January 16, 2006.
– Grossman, David. « What’s in Store for Business Travelers in 2006? » USA Today, January 9, 2006.
– Harpaz, Beth J. « 2006 Hot Spots Include Colorado, China & Croatia, » Associated Press, [CNN.com], December 29, 2005.
– Jones, Steve. « Steady Growth Forecast for Business Travel, » [Travelmole.com], January 3, 2006.
– Meeting Professionals International. « Meetings Industry to Grow in 2006, » [4hoteliers.com], January 11, 2006.
– Randall, Judy. « Top Travel Trends for 2006, » The Charlotte Observer, December 25, 2005.
– Sloan, Gene. « China, the New Croatia? » USA Today, January 5, 2006.
– Westenberg, Kerri. « Travel Trends: Where it’s at in 2006, » [StarTribune.com], January 2, 2006.
– Yesawich, Pepperdine, Brown & Russell. « Ten Trends to Watch in the Year Ahead, » [ehotelier.com], December 30, 2005.

Catégories
Human resources Management

Mobilize your staff to surpass customer expectations!

In today’s very competitive marketplace, many tourism-based organizations would like to differentiate themselves by trying to provide service that surpasses customer expectations. If they are to succeed, these businesses must first mobilize their human resources to offer customers superior service quality and a distinctive experience.

With customer service now the cornerstone of a value-based, rather than cost-based, approach, managers of tourism-based businesses must successfully mobilize their staff to afford visitors a quality experience. Mobilizing staff can also help improve job satisfaction – and satisfied employees offer superior quality service!

Managers wishing to mobilize their employees can choose from various human resource management approaches: staff involvement, participatory management and employee empowerment are some of the most common. The Quebec tourism industry offers the following definitions – and concrete examples – of each approach:

Involvement: Rules, procedures and activities to help employees better understand the organization and its issues so they can support and contribute to the achievement of its goals.

An example of this management approach is the use of staff memos and meetings to communicate the company’s position, performance, challenges, specific objectives and action plans. By increasing employee awareness, management helps employees understand their role or function within the organization; this, in turn, helps create or strengthen their sense of usefulness and belonging.

Participation: Rules, procedures and activities used to offer employees opportunities to influence or take part in organizational decisions – at least those that affect them directly. Typical of this type of approach are staff committees, suggestion boxes, employee surveys, etc.

In Quebec, for example, the Novotel Montréal Centre has made this method part of its recruitment process. Regardless of the position to be filled, three staff levels are involved in hiring interviews:

  • the head of the department involved: to verify the candidate’s technical skills
  • the hotel manager: to verify the candidate’s attitude
  • an employee occupying the same position (to verify the candidate’s attitude and skills)

To be hired, candidates must receive positive evaluations from all three interviewers. The goal is to ensure low staff turnover and it seems to be working: staff turnover at the Novotel Montréal Centre is only 19% compared to Montreal’s hotel industry average of 49%. Furthermore, employees have also developed a strong sense of company pride and allegiance.

Empowerment: Rules, procedures and activities used to give employees greater latitude by granting them discretionary power in their jobs so they can better achieve corporate goals. In terms of customer service, the concept of empowerment is most often employed to help resolve problems experienced by customers.

For example, at Parc Safari in Hemmingford, all employees – regardless of their position in the organization – have the power to offer guests (customers) who are dissatisfied with some aspect of their stay a free pass for a return visit to the park.

At the Hilton Lac-Leamy in Gatineau, the concept of « dream service » allows hotel employees to pamper guests with certain rewards (a free drink, for example) without having to obtain authorization from management. The approach has been so successful, it has been extended to the entire Lac-Leamy complex (hotel, casino, casino theatre and convention centre).

Satisfaction and loyalty

According to a recent study by Maritz Research, and contrary to what some in the hotel industry may believe, the pro-active approach of surpassing customer expectations is more effective at encouraging customer satisfaction and loyalty than the problem-solving approach. In fact, customers who enjoy a problem-free experience that exceeds their expectations are more likely to come back, or refer the company to a friend, than are customers who encounter a problem during their stay, even if the problem is solved more effectively than the customer expects.

Further, professors Anthony J. Zahorak and Roland T. Rust of Vanderbilt University in Nashville recently conducted a study on customer satisfaction showing that 25% to 40% of so-called « satisfied » consumers would still not return to a business where they had enjoyed an experience that was merely satisfactory.

This surprising piece of information illustrates that today’s businesses cannot survive if they simply aim for customer satisfaction. Certain well-informed and experienced market segments are curious and increasingly demanding, which means managers must now identify new ways to surprise and attract customers.

Shep Hyken, a professional speaker and author in the US, has an interesting suggestion for businesses: create « demanding customers. » By setting a high standard of service, a business helps create demanding consumers. If such customers decide to do business with a competitor, they will expect the same service quality they have become accustomed to; the higher the bar, the harder it is for consumers to find another business able to satisfy their needs and the more likely they are to remain loyal!

« It is the service we are NOT OBLIGED to give that people VALUE the most! »

– James C. Penny –

Sources:
– Conseil québécois des ressources humaines en tourisme and Tourisme Montréal. « Recherche et analyse de bonnes pratiques en ressources humaines – Destinations métropolitaines en Amérique du Nord, » April 2005.
– Hyken, Shep. » Building Customer Loyalty, » [www.hyken.com], no date.
– McGunnigle, Peter.  » Resource Guide to Employee Empowerment, » Hospitality, Leisure, Sport and Tourism Network [www.hlst.heacademy.ac.uk], no date.
– Orilio, William. « SERVICE – Boy, do customers know it! » e-hotelier [www.ehotelier.com], December 2, 2004.

Catégories
etourism and technology Marketing @en

Show me the room!

When it comes to reserving a hotel room online, what criteria are important? According to a recent survey of US internet users, being able to see the place is key. With the increased adoption of high-speed internet, suppliers can now do a better job selling an experience, rather than just a price.

According to a recent survey of approximately 2,900 adult US internet users conducted by Harris Interactive for VFM Interactive, after considering price and location, consumers now want to see photos when they reserve a hotel room. In fact, 73% of the respondents who stay in hotels said they went online to research their accommodations. Of this number, 71% considered the written description very important while 69% said the same of the visuals.

The survey also showed that some groups of online travellers are more interested in the visual aspect than others.

This is true for the following:

  • women (36%), compared to 21% for men
  • families with children; in fact, 35% of households with children find visuals important, versus only 25% of those without children

For 28% of online travellers, visuals were rated « very important, » ahead of:

  • description of property (23%)
  • information about the destination (17%)
  • star ratings (14%)
  • customer testimonials (13%)
  • hotel brand (11%)

Internet and streaming video

Streaming video is a technology that should encourage the travel industry to take a second look at the internet. With its ability to transmit both audio and video, the internet is ideal for conveying information, and with the increased use of high-speed (broadband) connections, streaming video is now more common.

Although still photographs work well as promotional tools, streaming video is an even more effective medium. All businesses using the internet to sell or promote products should consider the use of this technology:

  • a night in a hotel (the Ice Hotel, for example)
  • a day at a spa (the Scandinavian Spa in Tremblant, for example)
  • a show (in Las Vegas, for example)
  • an entire region (BonjourQuebec.com, for example)
  • a gourmet meal in a top-rated inn
  • a tour of the Père-Lachais cemetery in Paris
  • or any other product or service
  • and don’t forget 360-degree virtual tours.

Streaming video can present a highly realistic portrait of your business: a virtual tour, an overview of the site, a demonstration of a product or service, a commercial, filmed testimonials from satisfied customers, etc.

Video can capture dreams, desires and longings. It is therefore an ideal communication tool well-adapted to the tourism and recreation sector. Video can inform and reassure consumers; it inspires trust and can help break down the final barriers to the act of purchasing.

It is not complicated to add streaming video to a website (webcasting). However, for visitors to be able to view it, they must have an appropriate multimedia application (that can be downloaded for free). Although Media Player is the most common program for Windows users, it is always a good idea to offer videos in several different versions so they can be read by other applications like Real Player and QuickTime, for example.

Although the quality of the video depends on the user’s connection speed, the technology is very promising because it can make information available in real time, just like television. And with more and more homes now enjoying the same type of high-speed connections found in workplaces, the market should really explode in the coming years.

When speed is an advantage

According to a recent survey of 3,000 Canadians conducted in May and June of 2004 by the Canadian Internet Project (CIP), 72% of the Canadian population uses the internet, either from public or private sites. Some of the survey’s other findings:

  • a majority of Canadians use the internet a lot: 56% say they spend at least seven hours per week online
  • most of the time, they use the internet at home or at work, rather than in public places
  • internet users spend less time than non-users on traditional media like television or newspapers and magazines

In Canada, broadband internet services have made major inroads in a short time. In 2003, 66% of businesses had high-speed access (compared to only 48% in 2001). Overall, in both homes and workplaces, Canada is a world-wide leader in broadband penetration. In fact, in 2005, 67% of Canadian households enjoyed broadband access and some experts believe that this number will rise to 81% by the year 2007.

In the United States, according to the latest estimates of the Pew Internet & American Life Project, broadband adoption at home has also grown in recent years. In May 2005, 53% of the internet users surveyed had a high-speed connection at home (compared to 50% in December 2004).

In conclusion, high-speed internet and related technologies like streaming video are proving to be fundamental tools for businesses of all sizes. For users, the technology has many advantages, and with the growing popularity of media for private viewing (like podcasts), videos can be downloaded and viewed on cell phones and iPods, or saved and forwarded to friends. The possibilities are endless!

Sources:
– eMarketer. « Travel Shoppers Say: ‘Show Me a Picture’, » November 16, 2005.
– PRNewswire. « The Majority of Online Travelers Rate Hotel Visuals Among Top Influencing Factors in Selecting a Hotel Online, » November 14, 2005.
– Horrigan, John. « Broadband Adoption at Home in the United States: Growing but Slowing, » Pew Internet & American Life Project, September 21, 2005.
– Uhrbach, Mark and van Tol, Bryan. « Broadband Internet: Removing the Speed Limit for Canadian Firms, » Statistics Canada, Science, Innovation and Electronic Information Division, September 2004.

Catégories
Distribution networks Management

Make your pricing scheme work for you

Although business-people often tend to set the price of their products by looking at the cost and the desired profit margin, this is by no means the optimal approach to pricing because it does not take into account what each market segment is willing to pay. For Yves Cornu, a consultant with Capgemini, managers must change their attitudes towards pricing if they want to improve business profitability. Welcome to the world of dynamic pricing!

Blame it on the GDS

In the travel industry, the arrival of the GDS (global distribution systems) led to the first dynamic pricing strategies, also known as yield management, by enabling travel agencies to easily compare prices among competing companies. The advent of the internet has simply encouraged this comparison phenomenon. In an environment of virtually transparent pricing windows, dynamic pricing is even more important. Certain experts make a distinction between dynamic pricing and yield management; the former is a pricing strategy defined over the medium or long-term, while yield management uses this approach in the short-term.

Adopting dynamic pricing

An effective dynamic pricing strategy can help improve the profitability of a business. The traditional approach of many managers was to prioritize cost-cutting to increase profit margin. In today’s more open business environment, the idea of adopting a well-defined pricing strategy for one’s product has become a very interesting alternative. According to the firm of Simon Kucher & Partners, a pricing specialist, dynamic pricing can increase net profitability by anywhere from one to four percent.

With the help of technology, many hoteliers like Hilton and Intercontinental have recently adopted a much more dynamic approach to pricing. Jim Kilroy, vice-president of Starwood Hotels, feels traditional pricing models based on ceiling rates are a thing of the past and hotels should be more responsive to the market.

Before testing the waters of dynamic pricing, Xavier Marcé of XMO Consultants suggests that businesses follow the guidelines below to increase their chances of success:

  • Find out how your clients react to fluctuations in price. It’s also important to realize that demand is composed of several blocks and that it can fluctuate according to market segment, originating market, dates, etc. During certain high seasons, it is much less flexible.
  • Be familiar with what your competitors are offering. You must know who your prime competitor is before you can develop an effective price strategy. For example, the Montréal Science Centre recognizes that the Biodome offers more direct competition than an ordinary museum does.
  • Adapt your products and services to your customers’ expectations. When you are knowledgeable about your customers, you can adapt your products to specific segments. Ski areas, for example, attract retirees by offering special season passes that can only be used outside peak periods.
  • Identify demand for each period of the year. The travel industry is subject to major seasonal fluctuations in demand. Since this problem will always exist, detailed knowledge of the phenomenon’s extent, combined with dynamic pricing, can attenuate the effects.
  • Select the ideal distribution channels. While the internet has definitely encouraged an increase in direct sales to consumers, it has also created a greater number of sales channels. Online sales are a particularly flexible and responsive method of marketing one’s wares. Selecting your distribution channels also means selecting the partners who will act as intermediaries. For example, many hoteliers have regretted their decision to join forces with online agencies like Expedia that use the merchant model, because this has translated into a loss of control over the online sale of their rooms.
  • Set price barriers. By making certain prices conditional on specific situations, you can avoid losing some of your traditional customers who might be attracted to discounts. For example, offering an « early-bird » special can help counteract the effects of « last-minute » deals while maintaining less price-sensitive customers who will simply reserve later. You can also restrict the availability of products at certain prices. Finally, a method commonly used in the airline industry is to limit the options of changing or cancelling in the case of certain discount products.

Many advantages

Improving one’s pricing process is clearly more advantageous than trying to cut costs. First, it does not require a large financial outlay. Second, a new pricing strategy generates immediate results and can quickly enhance cash flow. Third, dynamic pricing usually creates a more substantial impact than simple cost-cutting.

It is also important to remember that one must never compromise product integrity. After all, for potential buyers, price is still closely related to quality and – above all – to perceived value. Consumers can be annoyed if prices are constantly being cut or products put on sale. Studies have shown that, even during a crisis, it is not profitable to drop one’s prices.

Although it may not be a science, dynamic pricing requires thought and deliberation on the part of managers so their organizations can adopt consistent strategies that reflect their corporate philosophies.

Sources:
– Boehmer, Jay. « Hotels Float Rate Change: Chains Attempt to Expand Dynamic Pricing to Corporate Travel, » Professional Pricing Society [www.pricingsociety.com], August 2, 2005.
– Brault, Franck and Sabrina Brouzes. « Le pricing dynamique, une formidable opportunité pour les tour-opérateurs, » Revue Espaces, No. 226, May 2005.
– Cornu, Yves. « Un produit n’a pas un coût, mais un prix! » Revue Espaces, No. 226, May 2005.
– Marcé, Xavier. « Les entreprises touristiques découvrent l’art du pricing, » Revue Espaces, No. 226, May 2005.
– Serlen, Bruce. « Hotel Rates Go Dynamic: Hilton, Intercontinental End Fixed Pricing, » Business Travel News [www.btnmag.com], October 18, 2004.
– Simon, Hermann and Kai Bandilla. « Maîtriser la chaîne des prix pour accroître ses profits, » Revue Espaces, No. 226, May 2005.

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.

Catégories
Trends

Commentary from Michael Nowlis on the tourism trends in 2006

François Chevrier's article concerning tourism trends in 2006 summarizes the broad expectations of many analysts in the North American market. As it is difficult to address the multitudinous industry developments in such a brief piece, I am pleased to suggest a few international trends to complement his list.

Gen Y hybrid consumers will use price transparency provided by the Internet and the euro to combine five-star hotel accommodations with low-cost flights, both reserved at discount travel sites. Although practitioners of conspicuous consumption, the Millennial Group sees no contradiction in following a 5-minute lunch at McDonald's with a 5-hour dinner chez Ducasse. New concepts of value for money will result in consumers mixing and matching products to satisfy their desire of the moment.

Merger and acquisition activity in the hotel sector will continue at a torrid pace. Starwood's recent purchases of Meridien and Société du Louvre, the Fairmont-Raffles merger and the reunification of Hilton are precursors of the rapid consolidation ahead.

Multi-brand lodging companies will further capitalize on the reputations of their flagship properties to create upscale product groups using brands such as St. Regis, Waldorf-Astoria and Crillon. These super-luxury properties will justify stratospheric rates by offering enhanced amenities and employing database technology to introduce new standards of service excellence.

As budget airlines emerge in new geographic regions, they will expose the long-ignored fact that air transport is a commodity where low-cost leaders are most profitable. Investors who shied away from traditional carriers will find confidence in these new airlines as manifested by Ryanair's ranking of maintaining the second highest market capitalization of European airlines (behind Air France-KLM).

While travelers become increasingly accustomed to living in an unsafe world, security will play a significant role in selecting leisure destinations. Disease, crime, air safety and terrorism will become important criteria for holidaymakers planning trips abroad.

While Mr. Chevrier provides a broad optimistic forecast for North America, other destinations will manifest greater variations in demand. In Europe, the United Kingdom, Austria and the Netherlands will see increasing growth in their business and leisure markets while Poland, Germany and Sweden will struggle to fill hotel rooms and tourist facilities. François Chevrier cites the growing attraction of China and India but Asian tourism markets such as Indonesia, Sri Lanka and Nepal will suffer from political instability.

In 2006, analysts, scholars and industry leaders will discover the meaning of Albert Einstein's observation that « The only constant in the universe is change ».

Catégories
Products and activities

Amusement parks: What can we expect in 2005?

The opening of the gigantic Tropical Islands theme park just outside Berlin has all of Europe talking. What amusement park trends will emerge in 2005? +++ The Commentary from Liping A. Cai, Professor and Director at the Purdue Tourism & Hospitality Research Center.

Water play

One segment in particular seems to be enjoying exceptional growth: indoor waterpark/hotel resorts. Although this trend could be a passing fancy, recent developments in this sector are too significant to ignore.

In North America, hotels with indoor waterparks are becoming increasingly popular and will continue to develop at a faster rate than the traditional hotel sector. In fact, according to some experts, in 2005 this new type of resort will experience an annual growth rate of 23% to 29%, while traditional hotels will only grow 1.3%.

Many facilities have already opened their doors and more are on the way. For example, in January 2005, Ripley Entertainment broke ground on a hotel/waterpark/aquarium complex in Niagara Falls.

This CA$200-million project is one of Ontario’s latest major family resort destinations. Covering 25 acres (10.1 hectares), the complex will include a 406-suite hotel (the Great Wolf Lodge), an indoor waterpark and an aquarium (to be built in 2006). Once the entire development is completed, it is expected to draw 2.5 million people annually.

Like the city of Orlando, Florida, Niagara Falls is developing at an incredible pace. Over the past few years, various tourist projects have transformed this small industrial town into a veritable vacation destination. Over 40 hotels and motels have been built in the past decade and the tourism industry pumps more than CA$1.73 billion into the local economy each year.

When asked about changes in the theme park industry, Philippe Pichon, Director of Development for Grévin & Cie in France*, emphasizes that locating a hotel near attractions (aquarium, waterpark, shopping mall, casino, museums, restaurants, etc.) creates a « one-stop shopping » effect that keeps customers on-site for an additional day or two. Captive visitors tend to take part in « local » recreational activities and stay close to the hotel.

In the medium term, it would not be surprising if this type of pairing (hotel/indoor waterpark) also became popular at winter sports resorts, golf courses, convention centres, etc.

Other changes on the horizon in 2005

  • Technology. According to Philippe Pichon, European parks are not likely to scramble for high-tech additions. Such a strategy requires a level of investment that only the United States can afford. Along these lines, in January 2005, LegoLand California announced it would build five new attractions at a cost of US$5 million, thanks to a significant increase in earnings in 2004 (+11%).
  • The China factor. China represents an enormous potential market, but it is uncertain whether it will turn out to be the expected windfall because only a small portion of its population can afford to visit a theme park. Mr. Pichon believes that it would probably be more profitable to develop recreational projects designed especially by and for the Chinese. Activities should be based on the Chinese culture and admission fees should be adapted to the Chinese standard of living. However, American amusement parks like Disneyland are unquestionably very popular among Asian tourists.
  • Distribution channels. Distribution channels are not likely to undergo any major changes. However, theme park operators could use the Internet more efficiently to enhance customer loyalty through targeted marketing campaigns.

The year 2004 in review

According to recent estimates from trade magazine Amusement Business and research firm Economic Research Associates, attendance at the United States’ 50 top amusement parks jumped nearly 4%, the first significant increase since the terrorist attacks of 2001 (this compares to the 2.2% rise recorded for the world’s 50 most-visited parks).

Some reasons behind this increase are the weaker US dollar (which probably encouraged European tourists to stay longer and spend more) and the desire of Americans to stay close to home.

Major amusement parks are fighting a fierce battle for customers: millions are spent on new attractions each month, each one larger and more modern than the next. For example, the Six Flags Group has announced five new « adventure » rides for its parks, including the Halfpipe, a U shaped, 100 foot high roller coaster in Denver, Colorado.

There is also the growing phenomenon of Retailtainment (a combination of retail and entertainment) (for more information, see Les parcs à thèmes en Amérique du Nord: maturation, consolidation et diversification). By transforming an entire shopping mall into an adventure, operators can hold the interest of both local and foreign visitors for several hours.

In Europe, the year was marked by two phenomena: profit margins dropped 7 to 9% and attendance fell. This was due to poor weather and the fact that demand was spread among an increased number of European products. Fortunately, average spending increased, which helped maintain overall sales.

As for the theme-park clientele, it is ageing. Although the children of baby-boomers are taking their own young families to amusement parks, these children are still too young – 0 to 10 years old – to constitute a new, distinct market segment. And teens do not have the purchasing power of baby-boomers. Furthermore, today’s young parents are less attracted to amusement parks. They seek educational opportunities and so prefer theme parks like Vulcania and Futuroscope.

* Grévin & Cie is a French company that operates thirteen recreational facilities (amusement parks, tourist sites, nature and animal parks) in the Netherlands, Switzerland, Germany, Great Britain and France, including Astérix Park and the Bioscope. In 2005, the company intends to pursue its Europeanization strategy. Finally, Grévin & Cie was also the company that wished to purchase Montreal’s La Ronde amusement park in the winter of 2000.

See also

On the web:
– Amusement Theme Parks
– Great Wolf Lodge
– Grévin & Cie
– Futuroscope  

Sources:
– Orlando Sentinel. «Forecast 2005: Theme parks outlook», 10 janvier 2005.
– USA Today. «Attendance at theme parks increases, reversing 2 years of decline», 13 décembre 2004.
– Fink, James. «Ripley’s Great Wolf start $200M N.F., Ont. project», The Business Journal (Milwaukee), 18 janvier 2005.
– Michelmore, Bill. «Indoor water park on tap», The Buffalo News, 15 janvier 2005.
– La Dernière heure. «À la recherche d’armes de distraction massive», 11 juillet 2004.

Commentary from Liping A. Cai

Many amusement parks feature water-based themes or activities, which can be created entirely man-made or staged with the natural setting of a water space. However, not all amusement parks contain water-based themes or activities for visitors; and the latter do not necessarily take place in the context of the former, which are mostly outdoors. Are the indoor waterparks within or adjacent to a hotel complex considered amusement parks? The author, who notes the increasing popularity of indoor waterparks as a trend, seems to believe so. Without engaging in a dispute on the definitions of amusement parks and indoor parks, it is perhaps more conducive to debate the role and trends of water-based themes and activities in developing a destination, be it a beach (lake) community, an amusement (theme) park, or hotel resort.

Water has been a product attribute of a destination as long as there has been leisure travel. It is presented in two major forms to please the senses and desires of visitors and guests. One form is natural, such as a scenic lake or river. The other is man-made, such as fountains and electric-powered waterfalls in an urban park. These two forms are certainly not mutually exclusive. A lakeside resort features both forms. The indoor waterparks and the pairing of hotel and waterparks are more tipped towards the man-made than the natural. A viable topic of inquiry is what underlies the popularity. Is it another me-too fad driven by competition for product differentiation? This is then not the first time that hoteliers have tried a water-based product attribute or amenity – whirlpools and Jacuzzis, indoor fountains and canals, and swimming pools even in the economy and budget hotel sector. Or, is it indeed a trend of an industry to respond to the demands of the market?

Water is life, and makes life itself possible. Water as an attraction to visitors and vacationers in the form of beach, lake, or river is rooted in the human’s dependence on and longing for water. The water flow links nature and humans through water’s many parallel functions as the « blood stream » of both the natural environment and the embedded human environment. Does the popularity of indoor waterparks suggest that the outdoor nature of water is less appealing? Do people seek a more controlled and safer environment to get close to the water flow?

It is very fitting that the author mentions the China factor in a writing that focuses on « water play » at amusement parks and hotels. The Chinese attach a great importance to water in leisure travel. In fact, an age-old Chinese idiom equates the leisure travel to « Touring Mountains and Playing Water ». If water is so significant to the Chinese visitors, then the element of water must be seriously considered in the planning and designing of destinations and recreational projects that target the China market. It is a myth, though, such destinations and projects should adapt admissions fees to the Chinese standard of living. Reports are not lacking that the Chinese traveling outside their Mainland outspend their counterparts from more developed originating countries.

Liping A. Cai
Professor and Director
Purdue Tourism & Hospitality Research Center
Purdue University

Catégories
Accommodation Around the world

Hotel classifications vs. customer expectations

Spain's Cantabria University conducted a study to determine whether that country's hotel classification system was an accurate indicator of the quality of actual hotel experiences. The results showed that customers staying in luxury establishments had proportionally higher expectations than average. Since the criteria for awarding stars is based primarily on tangible elements, this sometimes leads to a discrepancy between customer expectations and customer perceptions. +++ Commentary from Michael Nowlis, Managing Director of Tourism Control Intelligence +++

Widespread systems

Classification systems to define the quality of hotel establishments are widely used in tourist destinations. The criteria used to determine the number of stars (or other symbol of recognition) usually correspond to tangible, measurable factors (room comfort, availability of parking, furnishings, etc.): the higher the rating, the more one can expect the room to be luxurious and costly.

However, it is also important to consider factors that, while they are not so easily quantified, strongly influence customer satisfaction. Did the room meet the customer's needs and expectations? What elements most often tend to disappoint customers in each of the various hotel categories?

Survey results

In Spain, establishments receive up to five stars, according to their ability to meet certain technical criteria with regard to the services provided and the hotel's characteristics. Customers seeking superior rooms are, of course, going to have higher expectations. The question is, do these hotels actually meet customer expectations? The survey results show that, in most cases, the actual perception of the product was inferior to prior expectations (Table 1). For each of the criterion rated, respondents indicated their agreement on a scale of 1 to 7, with 7 meaning « strongly agree. »

Table: Comparison between ratings of customer expectations and customer perceptions, by hotel category

Hotel category

Expectations

Perceptions
4 and 5 stars 6.76 6.45
3 stars 6.18 5.89
2 stars 6.35 6.01
1 star 6.08 6.20
Source: Department of Business Administration, Cantabria University

The only category in which perceptions surpassed expectations was that of 1-star hotels. Since stars are attributed on the basis of a combination of specific, predefined criteria rather than the quality of the experience, hotels in this « tourist-class » category appear to pleasantly surprise their guests.

Sources of disappointment

For the purposes of the survey, the service quality assessment criteria were divided into four major categories:

  • Reliability (staff discretion, guaranteed reservation, problems solved quickly and effectively, quick and able service)
  • Characteristics of the personnel (courtesy, professionalism, individualized service)
  • Tangible elements (rooms are comfortable, quality food and drink, premises are safe, visually attractive premises)
  • Complementary offering (location is pleasant and restful, information available about diverse activities, wide range of services offered by hotel)

In Table 2 below, the sources of the discrepancy between expectation and perception are illustrated for each hotel category. A plus sign (+ or ++) means that, for the given criterion, the customer's experience was superior or largely superior to initial expectations. If the experience was inferior or largely inferior to initial expectations, this is indicated with a minus sign (- or –).

Table 2: Breakdown of differences between customer expectations and customer perceptions, by hotel category

1-star hotels

2-star hotels

3-star hotels

4 and 5-star hotels
Reliability ++ – – –
Characteristics of the personnel + – + –
Tangible elements ++ — — –
Complementary offering – — — —
Source: Department of Business Administration, Cantabria University

Proliferation of rating systems = more confusion

A single destination often employs a number of classification systems which can create confusion for consumers, notes Michael Petrone, director, Tourism Information Development for the Automobile Association of America (AAA).

Many online travel agencies also use their own classification systems, although they rarely have a field staff of evaluators to physically inspect the properties. In many cases, evaluations are supplied by the hotel itself and not by an impartial intermediary. It is therefore difficult for consumers to assess the significance of the various ratings, let alone their accuracy.

As for the top two North American hotel rating systems – the five diamonds from AAA and five stars from Mobil – a comparison by Hotel Online concluded these systems are very similar. Both recognize the top lodgings and are prestigious, respected by the industry and trusted by travellers. Although not perfect, they are certainly credible.

Sources:
– Nobles, Harry and Cheryl Griggs. « 5 Star vs 5 Diamond: What's the Difference?, » Hotel Online, November 2004.
– Petrone, Michael. « Internet Hotel Ratings Causing Confusion for Consumers, Says AAA, » Business Wire, December 6, 2004.
– Fernandez, M. Concepcion Lopez and Bedia, Ana M. Serrano. « Is the hotel classification system a good indicator of hotel quality? An application in Spain, » Tourism Management, Vol. 25, May 9, 2004.

Commentary from Michael Nowlis, Managing Director of Tourism Control Intelligence

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. Italy has an obligatory five-level scheme administered by the Ministry of Tourism but permits local authorities to add supplementary requirements. The four regions of the United Kingdom – England, Wales, Scotland and Northern Ireland – each maintain their own classification criteria. In a seamless Europe where holidaymakers can travel from Finland to Portugal without ever stopping at a border and use a single currency along the way, the lack of coherence in hotel classification is an embarrassment to the tourism industry.

Faced with resistance and a lack of governmental coordination, the World Tourism Organization and International Hotel & Restaurant Association have abandoned efforts to standardize hotel classification. Where governments and official organizations have failed, the private sector is filling the void. When Europeans speak of « Relais & Chateaux », they are not necessarily referring to the limited number of member hotels that belong to the marketing network. The name has become a generic adjective to describe any lodging establishment with personalized service, luxurious appointments and extraordinary cuisine. Just as the Mobil and AAA guides have become the preeminent hotel rating authorities in North America, Michelin is considered the bible for travelers in France and throughout much of Europe. If national tourism authorities and intergovernmental organizations are unable to forge a consensus on hotel classification, they should step aside and let the private sector do it.

Catégories
Trends

Global Megatrends Revolutionizing the Tourism Industry at the Dawn of the Third Millennium

Tourism Trends

> The cruise industry will experience explosive growth.

> An older, better-educated population in Europe and North America will increasingly seek ecotourism and cultural travel products.

> « Slow cities » and « slow food » trends will expand from Italy to much of Europe.

> London, New York, Sydney and Dubai will be the leading tourism poles through the end of the decade.

> Non-residents will pay significantly higher entry fees to tourist attractions than those paid by locals (Venice, Petra, Bath, etc.).

> Tourism Satellite Accounting will be adopted by several developing countries but ignored by the U.S., China, Japan, Russia and most Western European countries.

> Prayer rooms and compasses will be installed on most passenger aircraft serving the Islamic world.

> Antarctica will become an ecotourism tourism destination complete with hotels, restaurants and full-service tours.

> Shopping, from mega-malls to folk craft centers, will increasingly become a critical feature for tourism destinations.

> Rides on private spacecraft will become a recreational outing for the wealthy.

> Mega-resorts (Las Vegas, Orlando, Sun City, etc.) will do what no one thought possible: get bigger.

> Cruise ships will sell condominiums, becoming ocean-going resorts.

> In spite of organized international efforts to fight them, sex and drug-focused tourism will flourish.

> Airlines, travel agents and tour operators will ally themselves with financial institutions to offer consumer travel loans.

> Western tourists will shun countries with immense tourism potential but « rogue » leaders (Zimbabwe, Libya, Iran, North Korea, etc.).

> MGM Mirage will beat out rivals Hilton, Harrah's and Bally's to become the undisputed leader of the casino industry.

> National economies in Cuba, Egypt, Spain and Thailand will become dangerously dependent on tourism.

> « Rave » tourists will travel further abroad in search of the perfect party (BringItOn! Travel, Like Hiptrips, Experienceibiza, etc.).

> Enormous infrastructure projects will significantly expand automobile-accessible tourism options (Channel Tunnel car lane, Bahrain-Qatar causeway, etc.).

> China will be the first country to receive 100 million international arrivals in a 12-month period, sometime around 2018 – France will follow within 2-3 years.

Product & Service Trends

> Hotel rooms, increasingly equipped as offices with full-size desks, computers and advanced communications technologies, will minimize the need for business centers.

> Expansion of Europe's high-speed train network will eliminate short haul flights.
 
> Hotel meeting and dining areas will be designed less formally in an attempt to attract the casual business traveler.

> Small super-luxury boutique inns will take market share from Four Seasons, Ritz Carlton and Fairmont.

> Hub airports will install capsule-cocoon hotels in terminal facilities.

> Hotel and restaurant facilities will be designed for an aging population with lower rise steps, more handrails and wider doors.

> Travel guidebooks will become highly specialized and more frequently consulted – primarily on the web.

> The distinction between business and leisure hotels will erode as business clients seek fitness and entertainment activities and vacation guests demand advanced telecommunications IT.

> « 100% Satisfaction Guaranteed » will replace « Let the Buyer Beware ».

> Growth in demand for home food delivery will outpace all other food service segments.

> An aging population and growing infatuation with healthful living will bring a wave of European holistic spas and  'health-tels' to North America and Asia.

> A new wave of budget conference & exhibition hotels will be built to meet the convention needs of cost conscious companies.

> European and Japanese new-build hotels will be obliged to design larger guest rooms closer to North American standards.

> Restaurant groups will operate F&B outlets wherever people gather (Laundromat bars, espresso counters at service stations, etc.).

> Center-city urban resorts will challenge sun, sand & sea vacation villages in the leisure market.

> Credit card check-in/check-out, F&B vending machines, self-cleaning bathrooms and self-serve laundries will eliminate most human contact in budget hotels.

> Luxury resorts that once shunned children will welcome them with an expanded array of activities and tailored dining options.

Investment & Finance

> Hotel real estate assets will be increasingly concentrated in the portfolios of fewer investors, particularly private equity funds.

> Intense competition for hotel operating contracts will push management fees as low as 1% of gross, 5% of IBFC and $4 per reservation.
 
> Airlines will continue to rack up significant losses as they struggle to deal with high fuel costs, new security requirements, an onslaught of no-frills carriers and brutal competition from 'open skies' agreements.

> Following the big American sell off of the 1980s and 1990s, hotel companies will be repatriated to the U.S. (Westin, Ramada, Renaissance, etc.).

> Airline alliances of the 20th century will evolve into acquisitions as weaker players struggle to survive (Air France-KLM, American-TWA, etc.).

> By the end of the decade, a score of management companies will control the world inventory of branded hotel rooms.

> Hotel feasibility studies will become an unprofitable commodity for hospitality consulting firms.

> Hotel operating companies will sell their remaining equity in real estate to free up capital for expansion of management contracts.

> Per room hotel acquisitions in Europe will reach stratospheric new records (i.e. Savoy Group).

> Franchising will experience explosive growth as hotel companies strategically reposition to get out of the hotel business and into the business of hotels (i.e. Radisson, Choice, Cendant, Holiday Inn, etc.).

> Fewer new-build hotels in Europe and North America, more existing property renovations.

Human Resources

> Critical shortages of skilled staff will encourage hospitality corporations to develop or outsource proprietary training centers.

> The introduction of new technologies in the upscale tourism industry will not replace the human element in service delivery – to the contrary, it will gain importance.

> Unionized hotel and restaurant workforces will trade scheduling and task flexibility for job security and quality-of-life benefits.

> Tourism and hotel management schools will move out of the classroom and out of the library, onto the web and into the field.

> Powerful unions, a shorter workweek and reluctance to taper social benefits will maintain Europe's standing as the world's most expensive tourism destination.

> Middle Eastern countries enforcing employment quotas for nationals will experience reduced productivity and higher labor costs.

> Airline employees will accept significant wage and benefit cuts to prevent their employers from going bankrupt.

Marketing

> The Internet will become the dominant distribution channel for all travel and tourism products eliminating most intermediaries.

> Understanding customers as people – their likes, dislikes, habits, interests and hobbies – will become critical to establishing competitive advantage in hospitality marketing.

> Customer retention will replace customer acquisition as travel agencies' strategic objective.

> Homogenization of airline services will render them commodities while lodging products will continue to focus on differentiation.

> Data warehousing and data mining will provide one-to-one and relationship-marketing opportunities never imagined.

> Print media advertising will move onto the Web.

> Increasingly value-conscious customers will demand more and better product information.

> Consumers will increasingly expect to negotiate hotel and airline rates.

> Cross-sector strategic alliances between food service, lodging, travel and entertainment companies will prove to be effective marketing formats.

> Better understanding of psychographic consumer behavior will lead to more precise identification of customer segments and sub-segments.

> As marketers increasingly distinguish between loyalty and satisfaction, frequent use programs will become more elaborate.

> Hotel revenue management systems will become more sophisticated and be relocated from the reservations department to sales & marketing.

> Revenue management tactics will be applied to pricing in restaurants, amusement parks, golf courses, tour buses, cinemas, convention centers and sports stadiums.

> Hotel companies' PMS standardization will result in the transfer of database and data warehousing responsibilities to CRS for greater operational and marketing efficiency.

> Market share and product profitability will be replaced by customer share and customer profitability as measures of marketing effectiveness in the hotel industry.

Safety & Security

> Consumers will systematically consult travel health sites before checking ticket or room availability.

> Security concerns in the Holy Land encourage religious tourists to make pilgrimages to sites in Ethiopia, Cuba, Greece, Italy and Morocco.

> Crime and terrorism will render some traditional tourist destinations unsellable.

> Customer credit cards will replace coded key cards in most hotels.

> Guest room safes will be enlarged to accommodate standard laptop computers.

> International hotel companies will refuse management contracts and franchises for hotels without in-room sprinkler systems.

> Terrorism fears will keep Israel, Indonesia, Iraq and India off the mainstream tourist circuit for the foreseeable future.

> Advanced encryption technology will make on-line payment genuinely secure.

Financial Management & Cost Control

> Zero-based budgeting will become the industry norm.

> GOPAR will replace RevPAR as the standard measure of hotel sales profitability.

> Speech recognition technology will lower staffing levels and operating costs in CRS call centers.

> To improve energy and water conservation, hotels will install usage meters and levy charges for consumption.

> Deregulation of the global telecommunications market will benefit the hospitality industry more than the deregulation of the airline markets.

> As hotel reservations made through global distribution systems diminish, GDS will exploit communications advances to reduce fees and costs.

> While hotel and café guests will increasingly expect wireless Internet access, other factors will encourage hospitality operators to invest in it – serving as a platform for mobile point-of-sales, reducing cable costs and more efficient restaurant table auditing.

Tourism Control Intelligence
E-mail: Nowlis@aol.com