What a follow-up article about the Four Seasons yesterday in the New York Times! A luxury hotel brand with international prestige and instant recognition is going through probably its toughest crisis ever: they can’t adjust themselves to the downturn. They aren’t the only ones, either.
The economic crisis is far from over, and even when it bounces back hotels will have to evaluate the new guest pattern: the time for greed is up. Most guests will no longer pay $500 for a room for one night, regardless of Frette linens, pillow menus, and marble bathrooms. I believe the majority of travelers won’t spend that kind of money any time soon, even when they are able to afford it. A reactive hotel approach so far has been: What can we do to get heads in beds and not lower our rack rate? So, we all saw the posts calling for free breakfast, wi-fi, free movie tickets, use of the sauna, and so on.
Travelers have learned their lesson, and I don’t think they will go back to their old greedy ways after the economy picks up. In turn, hotels need to learn their lesson, too.
In fact, the question hotels should be answering now is: who is traveling and what are they willing to spend to stay at my hotel? Analyze why. Use market research, study the trends. Learn from the past and move forward without getting stuck in the old way of thinking, because it won’t work. Make changes as needed to adjust in the new travel market. Invest in PR to boost your brand messaging. Use social media to collect feedback.
Communicate with your potential audience, and you’ll find it again.
Tags: adjusting to economy, four seasons, hospitality pr, hotels and PR, rack rate, social media in hotels
The New York Times article about the Four Seasons was a classic example of good media relations for the hotel. Despite the tough economy and contentious lawsuit from a hotel owner, the Four Seasons brand and its leader were portrayed as elegantly as ever. He talked through a difficult topic and still gave a favorable impression of the hotel.