2) How has the economy
downturn affected your business? What steps
have your taken to help hoteliers in this economy?
Any special deal, discount, or offer?
It has been widely reported that the hospitality
industry has suffered in this economic downtown,
and the luxury segment of the industry has suffered
most. Affluents are traveling less and trading
down, and the aspirational luxury traveler has
pretty much dropped out of the market. I mention
in my speaking engagements, articles and to
clients, “value rules the day at all price points
and will continue to do so through 2010.” Early
in 2009, many marketers thought that offering
“value adds” would be enough – i.e. a four night
stay for the price of three, a resort credit,
a free dessert when ordering an entrée, etc.
As the year progressed, it was obvious that
these initiatives weren’t enough. The overall
rate had to be priced right as well. The winning
combination is value add and the right rate.
For instance, for one of our resort clients,
we developed a double upgrade promotion (the
upgrade is the amenity luxury travelers most
value) at the minimum rate. Within 90 days,
calls to the contact center were up as much
as 40% depending on the resort, and it’s so
successful we’re continuing the promotion through
the fall. For the affluent, it’s not only a
question of being able to afford certain hotel
rates, but getting a good deal is a perceived
badge of honor - a way of demonstrating to friends
and colleagues that they are smart travelers.
Even more challenging is the large amount of
hotel product out there. The competition is
more aggressive than ever, so it is extremely
important that hotels clearly differentiate
themselves from the competition, with a clear
message of what is special about the product.
We help hoteliers identify what USPs already
exist that could be better capitalized upon,
and develop low cost/no cost ideas for services,
facilities, packages and promotions that will
add value, reinforce the brand message, and
generate press coverage and sales. We have come
across so many hotels that are in need of reinvigorating
or reinventing the product and their messaging,
that we launched a consulting division where
we do short term projects to provide this particular
kind of counsel.
3) What do you see as the future of
hotel industry? What major trends will impact
hotel business in coming 20 years?
The hotel and travel business will undoubtedly
bounce back as people view travel as a necessity,
not a luxury. That being said, business travel
will continue to be challenged by budget restrictions
and advances in meeting technology’s ability
to replace face-to-face meetings.
Another major industry change will be a growing
diversity of new product. As I wrote in my recent
newsletter “Reinvention Revolution”, since Ian
Schraeger and the birth of the boutique hotel,
there has really been very little innovation
and development in new kinds of hotel products.
However, this is starting to change with new
and original brands ranging from Aloft and Yotel,
to CitizenM and RoomMate hotels. Also, expect
more in the development of niche and micro niche
products geared to special interest markets.
We’ll also see more emphasis on hotels that
create a sense of place, rather than the homogenized
model where guests wake up and doesn’t know
they are in New York, Mumbai or Sao Paulo. Also
look to see more options offering “affordable
luxury”, three and four star hotels that offer
luxury where guests say it counts the most.
4) What benefits and key advantages
you offer over competition? Why should over
readers consider doing business with you?
Strategic thinking and creativity are today’s
new currency and those are among the key attributes
of our firm. Especially today, hotels need to
relook and sometimes retool their hotel product
and marketing. Our position as thought leaders
and use of our KWEst
PROcess (a strategic market positioning
and product development tool that uncovers untapped
potential to create competitive advantage) is
a key competitive advantage. This is especially
valuable for independent hotels and resorts,
which generally have a lean team so need to
outsource resources. Moreover they benefit from
objectivity and fresh ideas that come from outside
the organization. We do the execution as well,
so it’s all a seamless operation. We offer my
personal involvement for each client, which
is possible because we limit the number of clients
we take. And most importantly, we get results,
which is the reason we’ve had many clients for
over a decade and one, Hyatt, for 24 years.
5) Do you provide E-commerce or online
payment facility? Can our readers book your
products or services online?
No, the programs and services we provide are
bespoke are tailored for each individual client
and, therefore, are not appropriate for online
purchase.
For more information: Call: 305 476 5424 Fax:
305 476 5434
Visit www.kwegroup.com
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