Carol Verret Consulting
- a Game of Skill, Art and Most of All Nerves
Carol Verret / May 2004
Recent studies by several respected research firms indicate both good news and reasons to be cautious about the 2004 summer travel season. Both the TIA and Yesawich, Pepperdine, Brown forecast an increase in leisure travel for 2004. TIA forecasts an increase of 3.2% over 2003, which is an improvement although certainly not stunning given last year's lackluster performance.
Yesawhich and partners indicate that 33% of leisure travelers anticipate more trips this year compared to last year while 38% intend to take about the same. Twenty-nine percent expect to take fewer trips. Both of these surveys are good news for hoteliers.
Two other surveys, while not conflicting with the above, offer a few cautionary tales for hoteliers. The Myvesta Summer Vacation survey of 1000 adult Americans conducted May 14-16 indicates that the average American is planning to spend 5.3% less this year than last year on summer vacations. With the rising cost of gasoline, guess where they will attempt to trim their spending.
In addition, Yeaswhich and partners research on the use of the Internet in travel planning by leisure travelers indicates that 63% use the internet to plan travel and 45%, up from 32% in 2002, will book travel services online. This indicates that the leisure traveler will compare price and product to make their decisions.
Many hoteliers, flushed by this surge of good news and an opportunity to recoup some of their profitability from a lackluster 2003, are rushing to push rates. There is an inherent danger of pushing rates too far and too fast, especially on the part of those hoteliers whose market share penetration is languishing at or below 100%.
It is imperative to remember that REVPAR is a combination of both occupancy and rate. An ADR index often rises in inverse relation to market share penetration when rate is driven too radically thus leaving the REVPAR needle unmoved. In addition, it is important to retain positioning in the market, especially as it is presented on the electronic distribution channels.
If memory serves, we were seeing some of the same trends in the forecasts
for 2003 -- more leisure travel and more price sensitivity. The trend
was derailed by the war in Iraq and a stagnant economy. While the
economy is showing bright spots, the stock market is waffling, the war
continues and the price of gas is escalating.
The Memorial Weekend will give us an indication of what lies in store for the rest of summer season. Enjoy it and may it be the beginning of a positive trend!
copyright © Carol Verret, 2002-2003-2004
Carol Verret is President of Carol Verret Consulting and Training, a company offering consulting and training seminars to the hospitality industry in the areas of sales and marketing and customer service. If you missed attending our live webcasts in the Training Byte Series in 2003, you will be glad to know that we are now offering each "Training Byte" in PDF format on our web site. We will not be repeating these webcasts in 2004. To order your copy, please visit http://www.carolverret.com/webcast_training.htm
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Web Site: http://www.carolverret.biz
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|Also See:||What Do Meeting Planners Want? Hotel Sales Managers Want to Know! / Carol Verret / May 2004|
|Revenue Management -- The Integration of Revenue Drivers / Carol Verret / March 2004|
|CYBER SALES -- Hotel Sales in an Internet World is the New Reality / Carol Verret / February 2004|
|The New Realities of Hotel Sales - Focus on Revenue Generation / Carol Verret / January 2004|
|Hotel Sales -- Innovation in the Face of Limitations / Carol Verret / November 2003|
|The Good News & the Bad News; Improving Economy = New Hotel Development / Carol Verret / October 2003|
|Leadership - General Managers Managing the Sales Process / Carol Verret / October 2003|
|When the Crystal Ball is Cloudy; Marketing Plans for 2004 / Carol Verret / July 2003|
|Partnership of Sales and Technology; Using Tech Tools to "Sell" the Hotels / Carol Verret / July 2003|
|Back to the Basics? The Basics of Hotel Sales Have Changed! / May 2003|
|Creating Sales "HUNTERS": The Skill Sets Required in the New Hotel Sales Environment / April 2003|
|Heightened Security Requires New Strategies in Hotels Sales / Carol Verret Consulting and Training / Mar 2003|
|Revenue Recovery - Building The ‘A’ Team in Sales / Carol Verret / January 2003|
|Contingency Marketing Plan – War In Iraq! / Carol Verret / November 2002|
|Playing the Rate Game - Positioning -- Positioning -- Positioning! / Carol Verret / October 2002|
|The Rate Game - Playing to Win / Carol Verret / October 2002|
|The Challenge of Marketing Independent Boutique Hotels / Carol Verett / August 2002|
|Hotel Sales in a Limited Service Environment - The Rules Have Changed / Carol Verett / August 2002|
|The General Manager’s Role in Sales -Chief Marketing Officer of the Hotel / Carol Verret / April 2002|
|100% Market Share Penetration is Not Good Enough / Carol Verett / January 2002|
|The Key to REVPAR Recovery – New Business Development / Carol Verett / December 2001|
|Trash the 2002 Marketing Plan - And Just Start Over / Carol Verett / September 2001|
|How to Use Consultants Effectively – A View From the Other Side / Carol Verret / August 2001|
|How Soft Is Your Hotel's Economic Landing? / Carol Verret / Aprl 2001|
|The ‘Value Proposition’: Marketing Yourself to Prospective Employees / Carol Verret / January 2001|
|Generation Y: Motivating and Training a New Generation of Employees / Carol Verret / November 2000|
|Why Customer Service Seminars Don't Work / Carol Verret / October 2000|
|Creating a Culture of Customer Service / Carol Verret Consulting and Training / Sept 2000|
|FAT, DUMB AND HAPPY – The Seasonal Boom and Bust Cycle / Carol Verret / August 2000|
|Surf's Up - Ride the Wave or Miss the Boat -The Effective Use of Technology in Hotel Sales / Carol Verret / July 2000|
|Measuring Effectiveness of Hotel Sales Departments / Carol Verret / June 2000|
|Hotel Sales Training - The Need for Immediate Results / Carol Verret/ May 2000|