Marketing Review - Spring 2008 - (Page 56)

NEW CUSTOMER REPORT BROUGHT TO YOU BY THE HSMAI FOUNDATION AND HSMAI’S HOTEL DIRECTOR OF SALES & MARKETING SIG and service improvement, be aggressive on rates. Shifflet says people expect some rate of increase in line with inflation, but hotels must be careful not to increase them faster than the perceived value, or consumers will look elsewhere, including to other hotel segments—and other formats altogether, such as staying with friends and family or in condos, timeshares and fractional ownerships. • Weigh rate increases with economic trends When you are maintaining a good product, and the economy is steadily growing, increase rates moderately above inflation. “Hotels can get away with this level of increase without losing the consumer because price sensitivity at this point is not too severe,” says Shifflet. “If you stay under the psychological ‘just noticeable difference’ you’re likely to be in good shape.” Likewise, if the economy is slowing but you are still maintaining a good product, raise rates in line with inflation. Finally, when the economy is in recession and your hotel’s quality is declining, don’t expect to get room rate increases even at inflation levels. • High-end hotels: look internationally for growth opportunities Hotels in the high-end segment should watch the price/value sensitivity among their domestic guests, but do a better job of attracting international travelers who will perceive a better value given the leverage of their currency. Shifflet says international guests comprise 10-20% of total high-end segment volume in major cities. While the U.S. economy may take its time turning around, savvy hoteliers can ride the inevitable bumps in the road by taking a holistic look at occupancy levels, historic rate increases and the TAI over time. “From our perspective, it is financially optimal to maintain a modest but significant TAI edge over your competition so that loyalty and repeat business are maximized without giving too much away,” says 56 How to Make Your Numbers Ten Sales & Marketing Tips from HSMAI’s Americas Board of Directors 1) Always know your business ROI and be prepared to defend it! 2) Take care of your best customers – continue to grow their business mix. 3) Adopt a “customer first philosophy” business wide – ensure full business commitment to this thinking. 4) Create a tight communicative team across all your sales outlets. 5) Utilize technology to increase length of stay and drive ancillary revenues (database marketing, Web-based turn key CRM solutions). 6) Select your tradeshows wisely, set pre-show objectives, agree success metrics, and be sure your post-tradeshow follow-up gets done. 7) Better leverage the Internet … for everything! 8) Increase your partnerships to improve your business results. 9) Invest in training your people – no matter how hard times get, keep your team motivated by immersing them in various educational programs. 10) Research, research, research. Shifflet. “Doing so typically requires hotels make small but steady product and service improvements during a flat economy, which can then allow for slight slippage in economic downturns.” I Lisa Allen specializes in business writing and marketing communications for corporate and association clients and currently leads Vantage Strategy Consulting’s communications initiatives. Allen launched her business, ALLEN Communications, Inc., in 2002 and has more than 15 years experience in communications, media relations and business marketing. Before founding her company, Allen served as director of communications for the Grocery Manufacturers Association, where she led the daily operations of GMA’s communications group, implemented marketing campaigns, handled media relations on key business issues and oversaw all communications deliverables. Prior to joining GMA, Allen served as the director of communications for the International Fresh-cut Produce Association, where she created and oversaw production of all marketing materials and handled the organization’s media relations. She also worked as an account executive for BC Communications, Inc., and as a public affairs coordinator for the United Fresh Fruit & Vegetable Association. Allen graduated from the University of Delaware with a B.A. in Mass Communications with a concentration in Journalism and in 1993 earned the university’s E.A. Nickerson Award for Outstanding Achievement in Journalism. Established in 1983 to serve as the research and educational arm of HSMAI, the HSMAI Foundation’s mission is to expand and enhance the educational opportunities available to hospitality sales and marketing executives and to increase the amount of in-depth research conducted on behalf of the profession. Visit www.hsmaifoundation.org for more information. HSMAI MARKETING REVIEW • SPRING 2008 http://www.hsmaifoundation.org

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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