We’re already noticing the prominent holiday decorations in department stores, the soft Christmas music playing in the background, all signaling the beginning of another anemic holiday season in terms of consumer spending.
With regards to travel, air fares keep hiking, so holding your breath in hopes to grab a last minute deal is not the way to go. Holiday surcharges on airfares have increased to $20, and fare costs keep going up. Let’s not forget the ever so annoying baggage fee that adds to the overall cost of travel. Already, 2009 taught us many lessons that will carry forward to next year.
Where do hotels fit in? Unfortunately, the hotel industry has yet to show signs of recovery - forget growth. Is 2010 the year of the deal? Will luxury hotels slash their rates to put heads in beds? Here are some of my own predictions for the boutique/luxury hotel industry:
- I think hotels have learned valuable lessons from this year, and will no longer cut rates to temporarily increase occupancy. This strategy may seem a good idea in the short term, but in fact it decreased revenue and potential profit. Especially the luxury hotels that will survive 2010 are not likely to drop rates. Creating value should be the goal next year.
- PR and marketing budgets are no longer optional. I’ve been saying this all year! Invest in your hotel’s brand and start building a new client base. Those who instinctively cut out PR, sales and marketing budgets may have survived the year, but now what? They have no plan in place, so as the industry slowly recovers next year, those hotels will be way behind in communicating their brand and building new business.
- Business travel will continue to trim down to only necessary trips. The 2009 downturn produced a huge opportunity for videoconferencing, and as much as face to face meetings are better, the truth is that we are learning to embrace an online community. Business boutique hotels in particular will have to find a way to redefine themselves to include new market segments, and enhance the existing business travel segment.
- Innovation. For goodness sake, think outside the box. If you can’t, hire someone who will. Spend the money to innovate and stand out. I believe 2010 will be a great year for quirky boutique hotels, or properties who develop a certain niche for their guests. The word “experience” is no longer enough. It’s about what stands out and makes sense to the cutting edge traveler who is looking for something new - not necessarily expensive or over the top.
- Twitter/Facebook. The hotels who came on board with a social media presence were so smart. Hopefully, more will join the social media club. Social networking is becoming a must-have, just like a website is no longer optional. Using social media to communicate with guests and collecting feedback will be the challenge this year. How social media are used by hotels will help determine how these networks will evolve and function in the industry.
- Fix your website. In an SEO era, there’s just no excuse to have dysfunctional site. Sadly, so many hoteliers have problematic websites and are not aware of it. Copy is poorly written, the right messages aren’t in place, bad quality photos, reservation system isn’t working well, and the site isn’t optimized. Terrific hotels, including great boutique hotels will start spending the money to make their sites golden this coming year.
- Outsource specialized marketing and PR people. If your P&L can’t absorb the cost of a full-time employee to handle marketing and public relations programs, hire a specialized contractor. They’re out there, and they can work from anywhere, which is great. Agencies are another option, but often times, they are much more costly than freelancers, and most times don’t have much time for small hotels. If your budget is limited, then prioritize the areas that are worthwhile promoting.
- Amenities, enough is enough. 2010 will not be the year to have refreshing linen spray available in every room. It’s important not to compromise on service, but the extras are not necessarily expected by guests at a time like this. Prioritizing expenses is important. Now is the time to focus on re-branding your message, figuring out next steps for your hotel in terms of business.
Recovery is still months away. If you set a plan now, and invest in effective and innovative marketing and public relations programs the further ahead your hotel will be come 2011. The takeaway from this blog post is that marketing and PR budgets are not fluff or optional- they are essential to raising awareness and building business. Period.