Marketing Review — Fall 2008 - (Page 44)

NEW CUSTOMER REPORT BROUGHT TO YOU BY THE HSMAI FOUNDATION AND HSMAI’S HOTEL DIRECTOR OF SALES & MARKETING SIG bly related to rental car fleets loaded with vans and SUVs when smaller, fuel efficient autos are desired. Projected challenges with fuel costs, compounded by increased expenses from taxes and fees, will continue to challenge the rental car sector through 2008, but with a projected leveling in overall acceptance scores as those who continue to rent will accept the situation even as newer and more efficient cars ramp up in the car fleets. HSMAI/DKSA Traveler Acceptance/Indexsm Chart 2: Business Travel sector HOTELS—Hotels continue to hold steady TAI levels during this time period, with no appreciable “drain” as compared to other sectors. In fact, hotels are positioned with the highest overall sector TAI score in 2007 and into 2008. Shifflet states that “The improving hotel products appear to continue to balance the rate increases more effectively than the other sectors with the particularly interesting result that they are annoying relatively few guests in these difficult times. This is more important to loyalty development than some hoteliers realize.” HSMAI/DKSA Traveler Acceptance/Indexsm Using historical TAI data, the outlook for travel acceptability among consumers is more predictable. Note the clear declines in the TAI from mid 2007 as a leading indicator for the year ahead. “If the economy weakens further, we can certainly expect this key integrated measure of satisfaction and value to decline a little more, but not tremendously because those who are unhappy will just stop traveling, while those continuing to travel will have the income to sustain travel and have adapted to dealing with the remaining hassles” says Shifflet. “The TAI Index is truly an indicator of things to come with practical implications for product development and price optimization. Travel sectors, segments and brands need to maintain a careful satisfaction and value balance in order to maximize the Traveler Acceptance Index as a key indicator of their competitive brand strength, especially through difficult times and in 44 Chart 3: Leisure Travel sector HSMAI MARKETING REVIEW • FALL 2008

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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