Carol Verret Consulting and Training Consulting Training Seminars |
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. . The Challenges and Opportunities for Independent and Boutique Hotels in a Difficult Economy . |
August 2008 - Independent and boutique properties have a several advantages over their branded counterparts. The first is the trend in experience travel and the second is the use of the internet in making travel decisions. The internet is the great level playing field with equal opportunity for both brands and independents. �Fully 72.2% of Internet users in the US named the Web as their primary source for travel research in June 2008,� (EMarketer quoting a Prospectiv study, July, 08) In a research article in July 08, USA Today reported that the Luxury sector of the market was holding up well and that ��households earning $100,000 and more now account for about one-third of hotel stays.� The �sort of� good news appeared in another report by eMarketer where a survey indicated that �The focus on value matters because price trumps brand in an economic downturn, according to a survey of consumers.� These two would appear relatively contradictory but the key word here is value and not just in terms of price. Robert Mandlebaum with PKF recently published a study of boutique hotels that indicated they prosper more in good economic times than their branded counterparts but also are also more highly impacted in poor economic times. (PKF, 4/22/08) In terms of independent conference facilities, a PKF report by Dave Arnold on Trends in the �Conference Center industry is relatively upbeat (July 08). The study goes on to say however, that the industry is currently battered by ��meetings being postponed or cancelled due to corporate fear of deeper economic problems. In addition, the problem of attrition is surfacing for the meetings that are being held�; he believes that the downturn may have �bottomed out�. �(T)he historically low value of the dollar is making our industry more desirable for foreign visitation, while international meetings for US firms are economically unviable. New supply of conference centers is being greatly restricted due to the tight financial markets. This only serves to make existing centers more valuable�� Four things that independent hotels and resorts can do now to enhance their revenues in this economy: Define the uniqueness of the experience. What makes you special? How can you add special experiences to enhance the �unique� quotient? One unique, historic hotel has added �wine tasting� dinners in partnership with a regional vineyard. They promote these periodically in the off season and they have been highly successful. These enhance F&B revenues as well as room revenue as they are marketed to a regional market. What venues of local interest such as museums or festivals can you partner with to package an enhanced experience?The good news is that independent hotels and resorts can move forward on new strategies very quickly and shift their focus just as quickly if something isn�t working. This flexibility is not as easy for branded hotels that are corporately owned and/or operated by large management companies. Remember, in this economy, if you keep on doing what you�ve always done, you will get less than you did before! Watch for the I Hate Cold Calls revenue generation seminar coming to
Portland in September and Minneapolis and Phoenix this fall! Email
us for further details at [email protected].
Carol Verret And Associates Consulting and Training offers training services and consulting in the areas of sales, revenue management and customer service primarily but not exclusively to the hospitality industry. To find out more about the company click on www.carolverret.com. To contact Carol send her an email at [email protected] or she can be reached by cell phone (303) 618-4065. Visit www.hotelsalesblog.com. copyright © Carol Verret, 2002-2003 -2004 -2005 - 2006 - 2007 - 2008 |
Carol Verret 5910 S. University #C-18, PMB 374 Greenwood Village, CO 80121 Telephone: (303) 618-4065 [email protected] Web Site: http://www.carolverret.com/ Email: [email protected] |