Marketing Review - Spring 2008 - (Page 53)

HSMAI/DKSA Traveler Acceptance/Indexsm Chart 1: The three segments 300 High End TRAVELER ACCEPTANCE/IndexSM (Base: YE2000, Total) 250 Mid-Level 200 150 Economy reducing staff, which can backfire with a clientele who is accustomed to high levels of service.” Room rate increases are the most difficult to swallow in the economy segment, making this category the most vulnerable in the overall TAI index. The economy segment showed a post-2000 increase in TAI scores as they also improved their products, but that increase is now receding as their room rates increase, with the 2007 TAI for the economy hotel segment back down to levels last seen in 2002-03 (Chart 2-C). 100 50 2000 2001 2002 2003 2004 2005 2006 2007* * 12-month rolled up to HSMAI/DKSA Traveler Acceptance/Indexsm Chart 2A: High-end segment Note this crossover point showing the relationship where the rate continues to increase, driving occupancy down. 350 150 TRAVELER ACCEPTANCE/IndexSM (Base: YE2000, High End Segment) 300 History Predicts the Future Looking at historic patterns in consumer acceptance of the hotel experience is an important exercise in anticipating how rate changes and overall capital improvements will alter where travelers will stay, according to Shifflet. The Shifflet “Acceptance-Curves” reflect the guests’ reaction to their experiences as hotel properties improve and room rates increase (Chart 3). Over the past decade, five distinct phases have emerged in overall guest acceptance of their hotel experience: “Bad Experience Reduction” Phase, 2000-2002: As hotel occupancies fell in the wake of 9/11, hotels improved their responsiveness to guests, including removal of substandard product from available inventory and dropping room rates. This “wake up call” to hoteliers eventually resulted in increased hotel use overall, particularly with leisure travelers. With pent-up demand and low room-rates, a segment of consumers “traded up” to the next rate level. “Enhanced Experience” Phase, 2002-2004: The post 9/11 phase up until 2004 was an enlightenment period for both hotels and travelers. Online hotel information and booking capabilities accelerated—and 53 250 100 200 High End Segment 150 50 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007* 0 * 12-month rolled up to date SPRING 2008 • HSMAI MARKETING REVIEW Room Rate and Room Night Volume (Base: YE2000, High End Segment)

Table of Contents Feed for the Digital Edition of Marketing Review - Spring 2008

HSMAI Marketing Review - Spring 2008 Contents COLUMN: The Online Marketer COLUMN: Success Stories COLUMN: Guest Column Ten Trends Now Shaping the Future of Hospitality Turning the 2008 Consumer Tax Rebates into Hospitality and Travel Sales 25 Extraordinary Minds in Hospitality and Travel Sales and Marketing The Lure of Lore: Connecting with Customers Through a Unique Brand Story A Careful Balancing Act A Meaningful Relationship: How Technology Affects the Connection Between Hospitality Marketers and Meeting Planners SPECIAL SECTION: The 2007 HSMAI Adrian Awards Building Five Star Imagery

Marketing Review - Spring 2008

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