Category Archives: Marketing to Gen Y

Is the Keyless Key the End of Hospitality?

Hotel-key-smartphone

If you own a smartphone, the next time you travel you may not need a key for your hotel room. In fact, you may be able to bypass the registration desk altogether.

This is not a new concept to the ResortsandLodges.com blog.  In a recent post, we discussed the merits of streamlining the check-in process with mobile options or check-in kiosks, which both allow travelers to avoid the waiting game involved with traditional check-in options.

Brandon Ambrosino recently wrote an article for Quartz, a global online news briefing service, discussing how the disappearance of the room key marks the end of hospitality as we know it.

A virtual key is the latest innovation for an industry that prizes efficiency of service.  However, the move is also a departure from what guests really want in a hotel stay: personalization.

Research shows that travelers are looking for a more personalized experience.  The millennial generation is looking for a unique travel experience, and views personalization as a way to build loyalty with a given property.

In a recent Forbes article, Micah Solomon argues that what customers are looking for is humanity and personalization, not just more efficiency.  Such experiences are predicated upon human interaction.

Ambrosino notes that a keyless key is a reversal from this customized interaction and a return to standardized automation.  He also recognizes that the hotel industry has always had to navigate the fine line between these two poles.

A Brief History of Hotel Room Keys

The forms of hotel room keys have varied greatly since the Le Grand Hotel, the world’s first hotel, was constructed in 1862.  At that time, metal keys were the standard and were kept at the front desk on an oversized key ring.  This was a time when keys were not allowed the leave the property.

A lawsuit in the 1970’s placed hotel security under scrutiny while forcing hoteliers to turn to the keycard.  Electronic keycards were created in 1978 and initially sold to Atlanta’s Westin Peachtree Plaza.

Even though keycards were a step toward practical efficiency, guests still had to interact with the hotel staff in order to check-in and pick up their card.  Although these conversations typically brief and predictable, they set the tone for the remainder of the stay.  To this day, hotels like the Ritz in London continue to use metal keys, in part to ensure friendly interaction between hotel guests and staff.

Three Key Points

-Acquiring room keys from a hotel front desk during the check-in process creates an initial contact point between the traveler and the hotel guest.  The advent of keyless keys takes away this potential contact and takes some personalization away from the experience.

-Modern travelers trending away from the traditional hotel experience, and are looking for a unique and personalized experience.  To millennial travelers, personalization equals loyalty.

-It will be important for hoteliers to balance personalization with efficiency to meet guest expectations in the future.

Using YouTube to Generate Bookings

YouTube-Mobile-600-iStock

Content may be king of the marketing world, but the modern consumer is less interested in text-based advertisements and more interested in video.

The video content site YouTube claims to host more than one billion unique user visits to its website each month.  These one billion viewers spend more than six billion hours watching videos.  These numbers may seem astounding and nearly incomprehensible, but it follows the trend of a tech-savvy population looking for the quickest and easiest way to digest information.

Nielsen, a company known for producing television ratings, has noted that YouTube reaches more U.S. adults ages 18-34 than any cable network.  Seeing that this age group, commonly referred to as Generation Y or Millennials, will become the core customer within the hospitality and travel industries over the next five to 10 years, it is important to understand the best way to reach them.

If these numbers are accurate and video marketing is the key to attracting attention of hospitality’s largest audience going forward, why is video so underutilized today?

According to DJ Vallauri, Founder and President of Lodging Interactive, hoteliers simply “need guidance as to how to create videos for search engine marketing and guest engagement.”

Marketers must continue the evolution from keyword proficiency, to content-driven marketing that helped maximize search results for websites.  Now similar practices will be required to optimize video.

Valluri believes that the best way of turning lookers into bookers is found in delivering creative, yet relevant, content that informs and entertains travelers and prospective guests, and there is no better vehicle to do that than video.

Why is Video Effective?

“Authentic, compelling and informative video content will entice travelers and convey a hotel’s unique experiences to online visitors,” said Valluri.  “A video embedded on the homepage of a hotel’s website and also uploaded to YouTube and the other leading social media channels can be what sets your property apart from other destinations.  Video conveys visual and emotional touch points which are present in almost every travel offering, and that is what drives bookings.”

Facts and Stats About Video

-Bookings are 67% more likely to happen when a video tour of your property is available.

-Internet shoppers who view your video are 89% more likely to book.

-Google purchased YouTube in 2006 for $1.65 billion when the video site was only a year old.

-Both Google and YouTube offer tools such as “Google Trends” and “YouTube Videos Keyword Tool” to help hoteliers identify keywords to use in video titles.

- When it comes to engagement, Comscore says online video is 5.33 times more effective than text, and, site visitors who view video stay two minutes longer on average and are 64% closer to purchase.

Three Keys for Effective Video Marketing in the Hospitality Industry

1) Increase Awareness

2) Generate Buzz

3) Boost Bookings

To read more about the role of video marketing going forward, click here.

Personalization Equals Loyalty with Millennials

millennials

A key question facing hoteliers and property managers in today’s travel landscape is how to build loyalty with the millennial generation.  Points-based loyalty programs are proving ineffective in capturing this ever growing demographic, so what is the answer to building this important connection?

Panelists at the 2014 Americas Lodging Investment Summit recently dove into this topic and what the trade-offs will be if hoteliers are able to build loyalty with millennials.

Teresa Y. Lee, a senior analyst at HVS and a self-described “token millennial”, explained that the loyalty of the generation is up for grabs. “It’s up to you to design a program we want to be loyal to.”

For travelers born between 1980 and 2000, personalization equals loyalty.  Benji Greenberg, founder and CEO of BCV, explained that millennials want to be wowed, and they want these amazing experiences built for them.  “They want to feel special,” said Greenberg.

Fortunately for the hospitality industry, today’s younger travelers serve up an abundance of personal data on a variety of websites and social networking platforms.  Lee McCabe, Facebook’s global head of travel, articulated that his company’s executives have recognized the potential and are working feverishly to make that information readily available to the company’s marketing needs.

“What we’re working towards is a very efficient marketing platform, a marketing platform built around people.  You’re not marketing to cookies, but visible faces.  You’re marketing to people,” he said.

Although hotel companies are getting better at this, the challenge is packaging relevant data to associates on property, most likely via property management systems.

To read more about this panel discussion, and how companies are paying for personalization, click here.

Examining Metasearch Online Travel Agencies

booking-travel-online-agents

Online travel agencies (OTAs) are a vital part of the supply chain in the travel industry. They are widely considered one of the main factors behind rapid growth in online travel bookings across both mature and emerging markets.

New online channels have been created in recent years with the intention of lowering hotel distribution costs without decreasing occupancy levels.  Of these options, the metasearch channel has separated itself from the pack as a highly successful venture.

In a recent interview with HotelMarketing.com, Siteminder’s CEO Mike Ford illustrated the opportunities that metasearch channels present for hoteliers.

Ford begins the discussion by explaining that metasearch OTAs collect room rates from multiple online channels and displays them to the consumer in a single list.  This allows potential travelers an expedited process to find and compare hotels and pricing options.  Some of the most popular sites include Google Hotel Finder, Trivago and Kayak.

Those hoteliers that are taking advantage and becoming early adopters of new sales and distribution technologies stand out, but ultimately the name of the game is converting clicks to bookings.  No matter the type of property, the number of rooms, geographical location, star rating or amenities offered, the companies that are the most profitable will be those with a high click conversion.

Ford also discusses his feelings about TripAdvisor’s TripConnect in comparison to the other major metasearch OTAs as well as tips for hoteliers on how best to implement metasearch channels into their online visibility.

To read this entire interview, and to learn more about the importance of metasearch OTAs going forward, click here.

Emerging Travel Trends: The Silent Traveler

AirTravelTech_m_0724

The rise of digital technology and marketing in the hospitality industry has created a new kind of traveler who is adept at all available online and mobile tools.  They use these tools to jump across all industry-defined silos.  These new travelers do not require a lot of handholding, they shun human interaction and know their way around everywhere they go.

These travelers were documented in a Skift report titled, “14 Global Trends That Will Define Travel in 2014.”  How can you reach these travelers and keep them satisfied during their stay at your property?  Let’s take a look at some options that are geared towards the newly emerging “Silent Traveler”.

Mobile Check-in Opportunities

No traveler really enjoys the tedious process of a front desk check-in.  Waiting in line can be a hassle, and Silent Travelers do not always feel comfortable with extended amounts of face-to-face interaction.  One of our recent blog posts, “Hotels Expand Mobile Check-In Options” discusses steps hotels are taking to make the check-in process simpler and mobile-driven.

Third Space Creativity

Silent Travelers still need a place to be able to operate the technology they travel with, putting a premium on creating a usable third space on your property.  All travelers are looking for Wi-Fi connectivity, and most of them believe this should be a complimentary service.  Click here to learn more about third spaces.

Response to Feedback

If the hospitality — the actual human to human interaction — part of the travel industry becomes less and less important, how does the industry define itself? How does it understand the needs of its customers and fulfill them?

Although these Silent Travelers may not be talking to people face-to-face, they are often jumping on review sites, or a property’s own website, to leave feedback about their stay.  It is important to manage these channels and respond to this feedback as soon as possible.  This ensures that the voice of the Silent Travelers is being heard, and their concerns are addressed like those of any other guest.

Top Weekly Travel Ads: A Family-Friendly Summer

slide2

As companies begin to gear up for family-friendly summer in 2014, travel ads use children and parents to capture a large and profitable portion of the traveling public.  Skift.com put together a list of the five top travel ads from the past week, which you can view here.

You may not have advertising budgets that allow you to create and distribute commercials like this, but capturing the family message is important because it is such a key travel demographic.

Priceline’s latest ad features William Shatner reprising his role as the Negotiator.  He plays the role of a protective parent after his daughter’s date books a room using Priceline’s no-bid Express Deals hotel booking tool.  Negotiator Rises

Disney Theme Parks is not marketing to protective parents, but they do encourage them to create unforgettable memories with a child’s first trip to this vacation wonderland.  Disney’s message is simple: Take your children to a Disney theme park if you want to make them happy.  Magical “Firsts” at Disney Theme Parks

Expedia’s new ad tugs at a parent’s heartstrings, following a young boy whose bedtime storybook seems to come to life when on vacation with his mom.  The ad encourages would-be travelers to discover their real-life fairy tales via travel.  Create Your Storybook

Survey: Luxury Travel Trends in 2014

bigstock_Tropical_pool_in_luxury_hotel_14769413.jpg luxury vaca

Social media has become a dynamic way to attract guests in recent years with Facebook, Twitter, Pinterest and many other platforms exploding onto the scene.  Popular among Generation Y travelers, these forums are used as an online guest feedback tool, a place to share pictures while on a trip or even find recommendations for things to do on vacation.

However, when looking at Luxury Travel Trends in 2014, social media does not quite stack up to a review site or the traditional word of mouth endorsement from friends, family or an acquaintance.

Luxury Link, a leading luxury travel website, conducted a survey of 1,600 discerning and high-income (household income over $100,000) travelers to garner some insight about how these individuals will travel in 2014.  Here are some of those numbers, statistics and trends:

-Among global respondents, 29.7% stated they are most interested in visiting Europe, while 27.3% are Caribbean-bound.  Of those individuals traveling to Europe, 60.5% listed major cities like London, Paris and Rome as a primary area of interest.  Caribbean travelers will head to Turks and Caicos, the British Virgin Islands and Saint Lucia.

-Two countries, Croatia and Portugal, where tabbed as up-and-coming travel destinations in 2014.

-Staying active is important to high-end travelers with 46.3% of respondents planning to incorporate adventures such as hiking, sailing or SCUBA diving into their trips.

-Foodie-focused travelers make up 40.7% of the survey, and try to center their trips on fine dining and/or cooking classes.

-Travelers were asked to rank the relative importance of five travel resources in the vacation-planning process.  The results are as follows:

1) Review Sites (TripAdvisor, Yelp, etc.)

2) Booking Sites (Luxury Link, Kayak, Orbitz, etc.)

3) Word of mouth/personal recommendations

4) Media Content (TV shows, online videos, blogs, newspapers)

5) Social Media (Facebook, Twitter, Pinterest)

 

-Must have hotel amenities in 2014 include:

1) Free WiFi (75.7% of respondents)

2) Early Check-In/Late Check Out (53.6%)

3) Free Breakfast (47.1%)

If you consider your property to be a luxury destination, you do not want to disregard social media as an advertising tool completely.  However, it is also important to dedicate your advertising dollars to mediums that will attract high-end guests.   A presence in a variety of mediums will keep your property visible, and hopefully keep travelers coming through your doors.

 

Understanding the Third Space and Your Property

P1110153

The third space describes the place where people meet outside of the home (first space) and office (second space).  Engineering parts of your hotel as flourishing third spaces will play to your advantage for higher occupancy levels and hotel cache.

Whether you have heard the term “third space” before or not, it is something that should be given some thought going forward.  Recent shifts in consumer behavior dictate that you fully understand this concept and its potential to enhance your property’s atmosphere.

The term third space was originally coined by the sociologist Ray Oldenburg in his book “The Great Good Place” to describe a public or neutral center for community building, civic engagement, intellectual discourse, peer encouragement and group validation.

Some examples of third spaces in your community may include cafes, markets, bazaars, pubs, bars, clubs shopping malls, barber shops, recreation halls and even post offices as long as they are designed correctly.  Third spaces, in essence, are places where people can unleash their inner social animals by exchanging opinions, stories and theories to the benefit of everyone present.

Starbucks provides an excellent example of a third space.  Over the past two decades, the franchise has experienced exponential growth thanks to superb products, but also because of the atmosphere the store exudes.

The vibe surrounding this java haven is not one of “grab and get out as quickly as possible.”  Instead, Starbucks uses warmly colored furnishings and humble décor to encourage customers to sit and enjoy their beverages and snacks.

Why Care?

You may be asking yourself, why should I care about promoting a part of my property as a third space?  Third spaces are almost as important as the home and the offices because they are the places that individuals frequent to enrich their lifestyles.

Working in the hospitality industry has to mean more than just looking at the numbers.  Property owners and hoteliers should aim to nurture guests and offer them a common area to develop their own identities.  This quality is not captured in accounting ledgers, but will certainly have an emotional impact on your guests.  You will see this impact with increased loyalty and positive word of mouth.

Because more people are working from home – thus combining the first and second places – there is a developing desire to offset the monotony of a single space.  Visiting a local hotspot, for example, can service the need for the external, novel stimulation.  People want to be where the action is.

Why Now?

In addition to this tech-dependent trend (as digital communications have accelerated the merger of first and second spaces), neutral third spaces such as cafes, bars and restaurants  are now much more likely to double as hosts for casual business meetings and interviews.

You have probably already seen some sort of shift in consumer behavior that corresponds to the rise in buying power of the Gen X and millennial generations.  More surplus cash equals increased spending and more time allotted for public gathering, and both of these outcomes make these two demographics key proponents of the third space, especially as they continue to mature.

These groups are also most associated with Internet fluency, electronic communications and social media usage.  All of these digital interactions are forms of social discourse and provide numerous platforms to speak out in this ever-increasing social world.

Smartphones and other mobile devices play a significant role in our collective culture.  Any individual who is accessing the Internet for social discourse in a neutral setting is, in today’s standards, a third-space participant.  They could be on their device anywhere, but they choose to be in, and contribute to, a social ambiance.  With greater smartphone proliferation comes a greater need for third spaces.

Third-Space Criteria

It is your job to ensure that different parts of your property are optimized for a third space.  It is not necessary to meet all of these standards, but the more you can check off, the better your chances will be or creating a hotspot in your hotel.

  • Accessibility – Consumers must be able to find your neutral space, and that means making your restaurant, bar or lounge convenient for everyone.  A spot in the lobby, within sight of the front desk and elevators provides maximum visibility, and appropriate signage helps consumers identify your space.  Extended hours and a reduction of barriers (cover charges, membership requirements, dress codes, etc.) help promote belonging and equality of conversation.
  • Ambiance – It is important to strive for an informal, unassuming manner in your overall décor.  Excessively dim lighting and loud music do not allow guests to gather for work or casual purposes.  Try to aim for a playlist that inspires a lighthearted spirit.  Additionally, you can consult an interior designer to learn some more clever ways to induce a steady flow of conversation.
  • Stylish yet Ergonomic Seating – Try to give your patrons comfortable, upright chairs positioned around tables large enough to spread out a few papers or laptops.  An abundance of these set-ups allows a large group to congregate.  It is also important to allow for a reasonable amount of people watching.
  • Quality Food and Beverage – Good dialogue and a great experience can be enhanced by quality food, coffee, craft beers and mixology.  The third-space lubricants of yesteryear were pints of ale.  Today, you must weigh the positives and negatives or libations in your third space.  Alcohol and food are not mandatory, but it can certainly help set the tone for a great atmosphere.  Fascinating cuisine and cocktail choices can also make great conversation starters.
  • Tech Support – People are not hanging out “alone” in the 21st century.  Everyone has a device they are traveling with whether it is a smartphone, tablet or laptop.  Power outlets should not be sparse or hidden, even if that means running a few extra wires around the place.  If you are really looking to create a bustling area, make Wi-Fi free!
  • Savvy Staff – The final main characteristic of a modern third space is the presence of regular patrons.  Just like the hit TV show “Cheers” pointed out, sometime you just want to go “where everybody knows your name.”  The wait staff at your third space provides the connective glue to nurture stead guests and convert first-timers into long-standing “regulars”.  You cannot just hire anyone for this role.  Staff members need to be socially smart, remember who regulars are, be thoroughly knowledgeable on all menu items and receptive to inducting newcomers by opening conversation.