By Steve Truckenmiller,
January 2005
The quality and variety of in-room entertainment
can significantly impact guests� perceptions of a hotel�s overall value.
With lodging occupancies on the rebound, hoteliers have the best chance
in years to capture more in-room entertainment revenue and deliver greater
guest satisfaction to build repeat business. LodgeNet has just completed
guest entertainment-preference studies that are shedding light on what
kinds of entertainment travelers want in their rooms. We uncovered some
surprises � and also some opportunities for hotel owners and operators.
Blending Of Work And Leisure Expands �Traditional�
Audience
Property
operators have noticed that more guests are bringing partners or families
on their business travel and are creating mini-vacations by extending their
business stay over the weekend. This has caused many urban hoteliers to
re-think their entertainment offerings, since guests in a �leisure� mindset
expect more than business travelers in the way of children�s programming
and services like Nintendo® video games. With the blurring of travel
segments, hoteliers are recognizing the value of entertainment technology
that is flexible enough to dynamically respond to these subtleties.
To encourage in-room entertainment purchases,
LodgeNet has increased the size of its on-property digital content servers.
More content means more variety � which for hoteliers means a greater likelihood
of having entertainment options that will appeal to their demographics
no matter how they may shift due to weekly or seasonal variation.
Branded Entertainment Overcomes Guest Hesitancy
LodgeNet studied why some guests buy entertainment
and others do not. Our research confirmed other studies pinpointing �anticipated
regret� as one of the key barriers to purchasing pay-per-view entertainment.
In other words, guests feared that the entertainment they paid for would
not live up to their expectations. The solution for overcoming this obstacle
is to eliminate the risk factor by offering brand name entertainment that
guests instantly recognize and feel confident ordering. Movie titles are
brands; so are names like Disney, NASCAR and Nintendo. Our studies showed
that guests in all segments are more willing to spend money on brand names
they recognize. LodgeNet also provides free trailers for its on-demand
movies to lessen anticipated regret and generate more program purchases.
�Guest-Targeting� = Aligning Programming And
Promotion With Population
Branded entertainment is just part of the equation;
how that entertainment is offered is equally influential on buying behavior.
We have repeatedly seen a direct relationship between guests� consumption
of various types of in-room entertainment and variables like time of day
and day of week. For example, family programming is very popular during
weekends and holiday periods, while other content sells better on weeknights.
That is one reason LodgeNet is testing new software and hardware that enables
in-room content to be adjusted frequently to meet changing viewer demand.
Entertainment consumption is also affected by
promotional efforts in the room. Take NASCAR auto racing, which has become
the top spectator sport in the U.S. and which guests have shown they enjoy
watching. LodgeNet research revealed that displaying a NASCAR promotion
on a guest�s welcome screen boosted programming consumption. In another
test we added a �View NASCAR� button to the welcome screen; this again
drove guest demand higher. Advances in content management and satellite
delivery also enable us to reconfigure the on-screen menus according to
a pre-set schedule � so for example, family-friendly movies can be �pushed�
to the front of the lineup from Friday night through Sunday afternoon,
then give way to other titles during the work week.
Assessment And Adaptation Are Key
Using software that is part of LodgeNet�s proprietary
media management system, we are monitoring entertainment consumption patterns
in test properties. By tracking which movies and programs are (and aren�t)
being ordered at a particular hotel, we can remove titles that aren�t selling
and replace them with different ones. Since even the most advanced digital
entertainment systems have a finite amount of �shelf space� (and guests
have limited time to search for content of interest), this capability has
proven invaluable in helping maximize revenue yield on a per-property basis.
Entertainment affects the quality of a person�s
life, not only at home but on the road. Hoteliers whose in-room entertainment
lineups are best aligned to their guests� specific interests � and whose
programming and promotions can adapt as those interests change � will have
the inside track on maximizing revenue by providing their guests with more
of the entertainment they recognize, trust and enjoy.
--
Steve Truckenmiller is Senior Vice President
Content & Programming Management for LodgeNet Entertainment Corporation,
one of the world�s largest providers of interactive television systems
and broadband services to the lodging industry. |
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