HOw LEvEL is the playing field ?
Provenance Hotels ’
Hotel Max does business in a thriving indie market , Seattle .
Anybody can have a website and do social media , but does that mean any independent hotel can go it alone against the brands ?
“ It still takes a lot of resources to compete ,” says David McCaslin , president of Northwood Hospitality , New York City . “ With no name recognition or points programs , you have to offer something of value , or you will get crushed .”
“ There is less room for error when you ’ re independent ,” says Antoine Chevanne , CEO of VOI Hotels in Italy .
Sometimes it ’ s the ability to be flexible that can work against independents . “ An independent might be able to divert capex dollars to marketing or another current priority ,” says Bjorn Hanson . divisional dean of NYU ’ s Tisch Center for tourism , hospitality and sports management , “ but this can work against independents because the industry for now is in relatively good physical condition . Things can ’ t be neglected .”
Others believe independents are not always as resilient in downturns . “ The branded hotels will drop rates and start selling through other channels to stay competitive ,” says Suzanne Mellen , managing director of HVS , San Francisco . “ Independents were really hurt during the last two recessions .”
Plus , it remains tougher in most cases to finance an independent hotel . “ You can project all you want and you still end up getting US $ 20 less a night than you expected ,” Mellen says . “ There is a huge execution risk , especially as brands have tried to get ‘ cooler .’ When the line between brands and independents becomes blurred , how do independents differentiate themselves ?”
It ’ s not always easy being independent , but those within the category see problems with their counterparts . Bashar Wali , president of Provenance Hotels , Portland , Oregon , says many brands are now focusing more on “ noise ” rather than basics . “ We are in the business of selling beds , showers and Wi-Fi ,” he says . “ If guests don ’ t get a good night ’ s sleep , they won ’ t come back .” consumer landscape , and that means a seismic shift in marketing — to a point . “ Arguably ,” says Bjorn Hanson , divisional dean of NYU ’ s Tisch Center for tourism hospitality and sports management , “ every traveler is now his or her own segment .”
For independents , it all leads to the word “ differentiation ,” says Peter Shaindlin , COO of the Halekulani Corp ., owner and operator of two luxury resorts in Honolulu . “ A big brand is like a cruise ship that takes a while to turn ; we are a luxury yacht that can change quickly ,” Shaindlin explains . “ We decided recently and very quickly to open a bar called L ’ Aperitif ; if I had 50 Halekulani hotels I couldn ’ t do 50 L ’ Aperitifs — it ’ s what differentiates us .“
At Timbers Resorts , Carbondale , Colorado , COO Greg Spencer says successful promotions during award ceremonies such as the Oscars and Emmys included certificates for stays placed in gift baskets . “ We recently did one for a pre-Oscar event with nominees for best director , best actor and actress in attendance ,” Spencer adds . “ We soon had our first award nominee staying with us in Italy .”
Digital strategies like social media are becoming the backbone of the marketing plan for Venice , Italy ’ s Bauers Hotel Group , says CEO Francesca Bortolotto Possati . For example , she says , many websites are now incorporating video content . “ As people ’ s attention span consistently decreases and audiences are to be captured in just a matter of seconds , imagery is becoming increasingly important ,” she says . “ Images must tell a story better and more effectively than words .”
Sales — still personal Even with all the new technology available , most operators agree there is no substitute for old-fashioned , face-to-face relationships — especially at the top end of the market . “ We ’ re out there beating the streets and establishing relationships ,” says Foiz Ahmed , vice president of the Independent Collection , operated by Hersha Hospitality Management , Philadelphia . McCaslin adds that a one-on-one sales call is both the most expensive way to market and the most effective way to communicate with a potential producer .
Andrea Kracht , proprietor of Baur au Lac in Zurich , says he travels three or four times a year specifically to meet with agents . “ I want to have a personal relationship with them ,” he says . “ We believe agents are , and will remain , a key channel for us .”
A contrarian point of view comes from Possati , who says traditional means of reaching out to the trade are losing importance and effectiveness . “ Not only are they getting to be too costly for hotels , but it seems both companies and the trade are shifting towards other means of communication ,”
26 HOTELS May 2014 www . hotelsmag . com