Category Archives: Marketing to Gen Y

Emerging Travel Trends: The Silent Traveler

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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

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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

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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

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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.

Top 10 Hospitality Industry Trends for 2014

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With the calendar changing to 2014 in the next week, many industry experts are attempting to project what will happen, what changes will be made and how they will affect your business over the next 12 months.  HospitalityNet’s Robert Rauch created a list of the Top 10 Hospitality Industry Trends in 2014 that focuses on the emergence of a key demographic in the travel industry:  Millennials.  Let’s take a look at a few of Rauch’s insights.

1) Millennials will become the core customer within the travel and hospitality industries over the next five to ten years.  Most travel companies, hotels and airlines will benefit as this group enters their peak earning, spending and traveling years.  Exploration, interaction and experience are the major focus of Millennials, as well as within the subsets of this generation.

Many travelers are willing to pay more for a greater experience.  “Foodies” are prevalent in this subset of the market and are looking for an overall gourmet experience for a reasonable price.  This will likely cause the industry to revamp lobby bars, restaurants and food service in general.  Other groups including Internet bloggers, culture buffs, LGBT and Multi-generational travelers are looking for that unique experience that will command change within the market.

2) Speed and precision will be a requirement when accommodating Millennials in upcoming years.  This group is looking for fast booking, fast check-in, fast WiFi and fast responses to customer service needs.  If these are not implemented within hotels and other properties, Millennials will have no problem speaking out over a variety of channels like Twitter, Facebook, Yelp or online travel reviews sites to voice their complaints.

3) WOW customer service will become even more influential in 2014.  Service today can be broken down into four levels:  basic, expected, desired and WOW.  Basic service can be found at a post office, whereas expected service can be found at most fast food restaurants and many standard businesses.  Good hotels will find a way to provide desired experience, but WOW service is really the only way to take that next step and ensure repeat business.

Creating an impressive, unique guest experience that exceeds all expectations will allow you to capture the customer.  It may also earn additional business when this guest announces their WOW experience on various social media platforms.

4) Leadership is showing your management team that there are more important things than just “talking the talk”; it is important to “walk the talk”.  Each and every employee has something that they can work on.  It is of extreme importance to form a connection with guests in a time where Millennials are looking for interaction and a unique experience.

Rauch states that it is his goal as a leader to instill the value of building relationships by sharing the knowledge he has while learning from both his employees and guests.  He runs with guests staying at one of his hotels, and offers personal training sessions for others.

5) Expectation of more international visitors.  Average rates and occupancy levels in the United States are likely to increase over the next few years, influenced by a very new market.  According to Arne Sorenson, President and CEO of Marriott Hotels and Resorts, leisure demand from abroad, fueled in part by the new Discover America campaign, will stimulate a new demand.

China is at the center of this international travel boom, preparing to send about 100 million leisure travelers abroad every year.  If the U.S. gets its typical share of this population, that will mean an additional 10 million visitors annually from China alone.  With the average Chinese travelers spending at least a week in the U.S., demand is created for an additional 70 million room nights in a market where prices are steadily rising.  Globalization in the travel industry will likely prove to be a massive force.

To read the remaining trends on this list, or to find our more information about Robert Rauch, click here.

“Don’t build a brand for Gen Y; build your brand WITH them.”

Last week I attended a webinar with the topic of Marketing to Gen Y hosted by TIG Global. Being a ‘Gen Y-er’, I recognize the importance of understanding Generation Y (1977-1995). As a whole they are one of the largest demographics (approximately 80 million people) and spend more than any other generation. This post provides a brief recap and you can also download the Mp3 here.

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