HotelsMag June 2019 | Page 22

WHAT ’ S HOT
S A L E S & M A R K E T I N G
WHAT ’ S HOT
S A L E S & M A R K E T I N G

RATE PARITY is DEAD ! WHAT ’ S NEXT ?

TREVOR STUART-HILL IS PRESIDENT OF REVENUE MATTERS

O

K , if rate parity isn ’ t completely dead , it is certainly on life support . So , what would the world look like for hoteliers if and when rate parity completely disappears ?
Win : Ability to offer lower
rates on less costly channels in order to shift channel mix and improve profit . But … will guests be willing to do extra research to book a particular property directly , and will independent properties be at a disadvantage compared to a large chain ? Does investing in meta-search exposure become paramount ?
Win : Receive more information about guests prior to arrival , enhancing their experience . But … would this require properties to increase advertising and technology
budgets to attract guests and subsequently keep track of their preferences and behaviors for remarketing purposes ?
Win : Become selective about what inventory types are sold through which channels and when . But … would this require tech investment for properties to know when and where their most profitable guests are shopping , and would this require a property to have the know-how to make compelling offers ?
Win : Turn off more expensive channels when demand
is high and turn them back on when demand is low . But … this assumes distributors would agree to this . And competitors that play ball with distributors year-round will likely be featured above your property during slower times .
Win : Have more control over merchandising and guest messaging . But … great property descriptions don ’ t count for a lot if your property doesn ’ t rank high in search results , so increased expenses and attention to e-commerce efforts would be required .

TAKE IT

HOME

What better way to buy a mattress or home products than to give them a few nights ’ trial run in a Marriott or a Hilton ?
That neat logic is at the core of growing retail businesses at the major brands . From bedding ( starting with Westin nearly 20 years ago encouraging guests to bring the hotel ’ s Heavenly Bed home with them ), Marriott International and Hilton began selling branded mattresses and pillows in the early 2000s . Since then , brands have branched out into fragrances , cosmetics and high-end room furnishings . Marriot sells a US $ 498 barstool that resembles a Champagne cork from the Wellington ’ s Bar & Lounge in the Albany , New York Renaissance ; a US $ 320 painted bowling ball art is for sale at the Miami Beach Edition hotel .
“ We ’ re looking to engage customers in ways we haven ’ t done so before ,” says Michael Weiss , Marriott ’ s senior director of online retail-global operations . Promotional flyers in hotel rooms direct guests to the company ’ s 13 brand websites from Courtyard to W . Some guests learn about the retail opportunity in an email after their stay , he says .
Bedding items are the biggest sellers for Marriott but room fragrances are growing fast , at a 30 % annual clip . Customers asked to purchase some of the distinctive scents in the hotel public areas , so the brand developed products for home use such as Westin ’ s White Tea and Marriott ’ s citrusy Attune .
On the HiltonToHome website , top sellers are pillow , linens and beds . There are also shower curtains , bath products and Hilton ’ s coffee blend . The retail business , run by Hilton Supply Management , is considering additional products for the site .
Beyond home wares , Singapore luxury resort group Aman launched a skincare collection last year of 30 products including face creams and serums , face masks , body oils and other products . Chairman and CEO Vladislav Doronin said in the announcement that the retail line is a natural extension of the chain ' s expertise in spas and wellness . The products are sold online and at the resort boutiques and are used in spa treatments .— J . C .
20 hotelsmag . com June 2019