Marketing Review - Spring 2008 - (Page 54)

NEW CUSTOMER REPORT BROUGHT TO YOU BY THE HSMAI FOUNDATION AND HSMAI’S HOTEL DIRECTOR OF SALES & MARKETING SIG HSMAI/DKSA Traveler Acceptance/Indexsm Chart 2B: Mid-level segment 250 Mid-Level Segment 100 200 150 50 100 “Moderating Guest Experience” Phase, 2004-2006: The mid-decade jump in room rates saw a leveling effect on guest acceptance. Travelers began to expect, not be wowed by, room upgrades, resulting in an overall commoditization within the segments across the lodging industry. Guests who had traded-up, primarily into the highend segment with the reduced roomrates, began to find the shift too expensive and started trading back down. The result? A decreasing domestic room-night volume in the high-end as the mid-level gained volume. “Value Reduction Experience” Phase, 2006-2007+? The economy was softening in 2006, but room rates continued to increase against the background of increasing consumer debt, resulting in a flattening of domestic occupancies and a decline from the bottom segment up. Not surprisingly, the guest acceptance index leveled as product improvements trailed off. The lowest income travelers began to drop out of the economy segment, while the TAI at the high-end and mid-level hotel segments did not decline further at this point. Those travelers stressed by cost traded down in their hotel stays, while those remaining in the high and mid-level segments found the balance between product quality and rate acceptable. 54 50 0 2000 2001 2002 2003 2004 2005 2006 2007* 0 * 12-month rolled up to date HSMAI/DKSA Traveler Acceptance/Indexsm Chart 2C: Economy segment 350 150 TRAVELER ACCEPTANCE/IndexSM (Base: YE2000, Economy Segment) 300 Room Rate and Room Night Volume (Base: YE2000, Economy Segment) Economy Segment 250 100 200 150 50 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007* 0 * 12-month rolled up to date HSMAI MARKETING REVIEW • SPRING 2008 Room Rate and Room Night Volume (Base: YE2000, Mid-Level Segment) TRAVELER ACCEPTANCE/IndexSM (Base: YE2000, Mid-Level Segment) hotels began implementing widespread product improvements, primarily in the guest room. “At this point guests were pleasantly surprised by improving guest rooms, which led to a steady increase in guest acceptance levels as they experienced fewer ‘bad’ hotel stays and offered excellent ratings at the top of the satisfaction range,” says Shifflet. During this phase, moderate room-rates—combined with an improving economy and salary increases—re-energized leisure travel and motivated travelers to “trade-up” into higher segments. 350 150 300

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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