Marketing Review — Fall 2008 - (Page 33)

sB10063346aw-001/thomas Barwick/gEtty imagEs ings of the report was that gift cards were “wildly successful.” Some of the most creative and even over-the-top vehicles for generating ancillary revenue that the report revealed are hotels like the Peabody Orlando that offer water menus or water sommeliers. Another emerging source of ancillary income for some properties is offering merchandise online—and everyone points to Starwood, which markets the “heavenly bed” and other items that help guests recreate the Westin experience, as being the leader in merchandising. “Not everyone can do this,” says Estis-Green, “but at many of the nicer resorts such as the Broadmoor and the Greenbrier, guests want merchandise with the hotel’s logo on it. They think it’s cool to have a golf shirt or an umbrella embossed with a famous name hotel’s logo.” Hershey Resorts, says Kulina, is in the infant stages of e-commerce and did sell FALL 2008 • HSMAI MARKETING REVIEW two mattresses last year, although she notes with a chuckle that the company has not nearly been as successful as Starwood. Selling chocolate and chocolate-related items seems to be far more profitable: Hershey has its own line of chocolate spa products that guests can buy online. Jack Schmidt says that Suncadia may take a look at selling some of its accessories and artwork as they finish development. “What people are willing to pay for,” says Estis-Green, “is the thing that’s unusual, special, memorable, or upgraded.” In summary, she declares, “ancillary revenue is becoming more and more crucial. Getting it booked ahead of time, making special courtesy calls to get it booked, or making guest aware of what’s available through confirmations are the best ways to get a good percentage of your guests taking you up on your ancillary offers. The more interesting and experiential and/or service oriented, the more people are receptive to spending extra money.” Guests will pay extra for convenience or things that are unique, claims Estis Green, “and many will be willing to buy, if your offerings are presented in an attractive and compelling way. She suggests that hotels create “signature items” around a theme such as a logo or something else unique to the property. As Streeter notes, “Travel is about making a profit. As expenses go up we have to find ways to generate revenue. The hotel industry has been the most profitable it has been in a number of years, but we may not be that profitable for some time to come. We’re in a severe economic downturn and that’s going to have an impact on what hotels can charge in rates, so they must go after additional items that provide value that guests are willing to pay for. It does us no good to put something out there that nobody will ever buy.” n 33

Table of Contents Feed for the Digital Edition of Marketing Review — Fall 2008

Marketing Review – Fall 2008 Contents The Online Marketer Success Stories Forecasting Trends Ian Schrager: The Revolutionary Man Leaving No Stone Unturned: The Quest for Ancillary Revenue Gaga Gadgets for Execs on the Go: Functional New Portable Technology to Make Life and Work on the Road More Hospitable Effectively Weathering the Ups and Downs of the Economic Cycle Experiments in Podcasting Higher Transportation Costs and a Slowing Economy Shift Hotel Room Demand

Marketing Review — Fall 2008

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