The Hotel Marketing Blog from HotelSphere - Hotel Trends and News

The Economy - Signs of the second dip

nospam@example.com (HotelBlogger) — Thu, 26 Nov 2009 13:58:34 +0000

Recent apparaisals of the likelihood of a recovery for the hotel industry have started to predict that things will get better in 2011.

You'll notice that the pundits have stopped short of suggesting things might get better in 2010.

That's because they won't be getting better. Indeed, there is evidence to suggest we're going to see things getting worse...
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Ryanair - I like it

nospam@example.com (HotelBlogger) — Mon, 26 Oct 2009 13:40:52 +0000

I never thought I'd ever say this - at least not out loud - but I like Ryanair.

I've flown with them three times now. The first trip several years ago - out to Germany which was fair enough. There should have been a return trip of course, but it resulted in such a mess that I was left stranded and I vowed never to darken their door again.

I was wrong of course, the lure of "cheap" is a powerful one. I'm just back from a holiday in Portugal - Ryanair flights out and back, blighted only by a technical failure on the homeward trip which could happen to anyone.

With Ryanair, you need to be aware of what you're buying and WHY you're buying it...
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"He who predicts the future lies, even when he tells the truth"

nospam@example.com (HotelBlogger) — Tue, 11 Aug 2009 22:17:53 +0000

Several years ago I was lucky enough to study for a Masters degree at a brilliant business school in Scotland. Even more fortunate - they let me have one...

One of the techniques we learned was how to develop things called scenarios. These are best described as "stories of the future". They're based on a mixture of fact, calculation, insight and understanding. The best ones are tied back in to present day events so you can see your "stories" unfold (if your research has uncovered the right things).

The thing about scenario planning or development is that you create a range of stories covering a number of "possible" futures (typically four of them) - you make no judgement on what the future will be, you can only craft a range of stories that describe the rough directions in which it could go.

"He who predicts the future lies, even when he tells the truth" is an ancient proverb (I can't remember who said it and I apologise now to my old lecturers) which tells us that people who try to tell us what's going to happen are a shower of *******s. At least, that's my interpretation.

Some organisations have tried to use scenarios. In my part of the world, a notable example was VisitScotland, where the chief scenarist described himself as a "crystal ball gazer" - a term which had those of us who have been regularly involved in developing scenarios recoil in horror. His description makes us sound like fortune tellers, which we are emphatically not.

Hotel revenue managers use some scenario derived techniques to help them understand trends and how they might play out. But I don't think the craft is practised quite as effectively as it could be.

Here's a wee look at one "possible future" for 2010: The double dip recession.
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Big Brother is watching you...

nospam@example.com (HotelBlogger) — Wed, 15 Jul 2009 10:55:31 +0000

It's interesting what can happen when you place a business name or a brand name in an online article.

One of yesterday's blogs mentioned Laterooms. Sure enough, this morning there was somebody from Laterooms having a look around the HotelSphere website. If you're still there - "Hi!".

...and thanks for making me look at my own site and making me find at least one page which wasn't working quite as it should.

Do you know who's looking at your website?
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The beginning of the end for late booking discounts?

nospam@example.com (HotelBlogger) — Wed, 06 May 2009 11:07:03 +0000

One major OTA - Orbitz - has announced that it is using a "revolutionary" new pricing model.

Essentially, they're offering customers yet more peace of mind that they have booked at the best possible rate. Note, not the best available rate, the best POSSIBLE rate.. If you make a booking at £90 and somebody later books the same offer in the same hotel at a lower price, say £80. Orbitz will send you a cheque for £10. Although I must admit, it is not clear at time of writing, just where that £10 comes from...

So what effect might this have on the way you promote your hotel online?
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PKF and PWC forecast doom and gloom for 2009

nospam@example.com (HotelBlogger) — Wed, 10 Dec 2008 10:15:20 +0000

At last! Somebody who tells it like it is.
You can say what you like about accountants, but at least some of them are getting people used to the idea that the current economic malaise might not be as much of a "short dip" as a "deep trough".
PKF in the USA are forecasting 60% occupancy for Florida hotels in 2009. PWC are talking about 70% occupancy for London hotels.
The first step in preparing yourself for what may be about to hit in 2009, is to recognise it for what it is.
Serious.
However, it is not the end of the world.

People will still go on holiday.
People will still stay in hotels.
* people will still go out to eat.

How will you make sure they choose to do these things at your hotel?
Continue reading "PKF and PWC forecast doom and gloom for 2009"

"We're all doomed!"

nospam@example.com (HotelBlogger) — Thu, 28 Aug 2008 14:28:54 +0000

The challenges posed by the economic downturn always seperate good marketers from the rest.

It's a question of waking up, realising what's going on and understanding how your market segments will respond.

There is certainly going to be a recession. It's probably already here.

My information is that house prices will "reset" by at least 30%. I have no reason to believe this won't happen - this insight comes from a man who predicted the Northern Rock debacle as well as the Fannie Mae and Freddie Mac problems. When he speaks - I pay attention.

Energy prices will not stabilise.

Governments will continue to tinker with the economy in the mistaken belief that they can fix it.

But it's not all bad news. You are not all doomed.

There are market segments out there who will be doing very nicely. They still have money to spend. They might be more discerning and they might not be willing to pay full price - but they're out there.

Good marketers will find them, attract them, embrace them and sell them stuff.

Bad marketers will blame the economy.

...they're all doomed.

On the brink of recession

nospam@example.com (HotelBlogger) — Tue, 08 Jul 2008 07:52:37 +0000

The British Chambers of Commerce has today announced the results of a survey indicating that we are about to drop into a recession.

Some of us thought we were already in one...

It is time to get real. What is the best way to tackle a recession from an individual business point of view? What do you cut? Why do you cut?

What do you want your business to be during the recession and what shape do you want it to be in at the end of the recession?

How long will the recession last for?

...answers on a postcard please...

Migrant workers migrate

nospam@example.com (HotelBlogger) — Tue, 08 Jul 2008 07:42:18 +0000

If people come to live and work in our lovely country because the economic conditions here are better than their own country - they will leave just as soon as those economic conditions become unfavourable.

It's a fact of life. According to the BBC news this morning, it has come to pass. The eastern Europeans are going home. Not all of them, but enough of them for our industry to start wondering where the next employees are going to come from.

As usual, it is everybody else's fault. "The government needs to do this", "somebody else needs to do that...". The familiar cries of an industry which generally made hay while the sun shone and failed (again) to keep any of it back for the lean times.

Recruiting into the hotel industry is difficult. Incoming migrant workers made it easy for hoteliers throughout Scotland over the past few years.

Where will the next batch of cannon... pardon me, "employees" come from? And will the industry learn how to train, motivate and develop them this time?