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many choices there are for consumers when booking travel accommodations , the questions then become :
• How does customer perception , brand awareness and potential consolidation impact their choices ?
• How does the brand stand out and rise to the top within the crowded arena of booking choices ?
There are three key partners that need to work in concert to drive more bookings to the brand or hotel-specific
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channels and increase the profitability of those bookings : brands , operators , owners / asset managers .
Hotel brands are focused on maximizing brand loyalty with the target of driving buying decisions through differentiation and customer awareness . This goes beyond just signing up new loyalty card members to fostering an environment in which customers develop a strong bond with the brand , resulting in increased direct bookings .
Westin , for example , launched the Westin Store 24 years ago . It offers its signature Heavenly Bed mattress set , bedding and pillows ; tea selections ; bath accessories ; fitness products ; and more . Hotel brands are also integrating themselves into other aspects of tourism and the guest experience , particularly in core urban or leisure markets , including yachts and cruises , branded residences and private clubs both within and outside the hotels themselves .
Brands are also increasingly partnering with credit card companies and other pointsharing entities to increase customer loyalty and the perceived value of “ points .”
Katie Krieger
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Marriott partnered with Uber and IHG has a partnership with Hertz .
Conversely , independent hotels are more heavily reliant on third-party channels . Therefore , it ’ s critical for owners to choose the right operating partner that understands cost of capture and can deploy a meaningful marketing plan . Even shifting 5 % to 10 % of the hotel ’ s base of business from higher-cost booking channels can lead to meaningful profitability improvement and associated increases in asset value .
As the lodging industry continues to recover , sources of demand continue to evolve . Benchmarking to 2019 , the competitive landscape and booking patterns differ between leisure , group and corporate travel . According to JLL research , sourced by STR , U . S . leisure production continues to outperform 2019 levels , while group and corporate travel remain short of stabilized levels .
Though corporate travelers tend to be brand loyal , driven by either personal preferences or corporate mandates , leisure travelers have the most flexibility in booking choices . As such , operators need to be thoughtful on how they are leveraging marketing dollars , who they are targeting and the best way in which to reach that target audience . Seasonality is also a critical consideration , as the profile and booking habits of a leisure customer vary during peak and off-peak periods . For instance , the loyalty to a brand , booking window and budget
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Susie Park
of a leisure traveler can differ significantly when visiting Chicago from January to July . Operators must carefully consider how they allocate marketing funds and set prices during these periods of varying demand .
Asset managers serve as a resource for operators and owners , alike . It ’ s the role of asset managers to partner with operators on behalf of owners , to analyze real time data , make recommendations for strategy changes in the unique submarket and understand the evolution and continued recovery of the business . Looking at property performance holistically and reacting quickly to the changing competitive landscape is imperative for all stakeholders .
As the lodging industry continues to recover , so does the competitive landscape . Having the right team in place and strong communication is imperative for both preserving and maximizing market position and asset value . In today ’ s environment , it ’ s all about being thoughtful , forward-looking and hyper-focused on your own backyard to maximize property performance and asset value .
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May / June 2024 hotelsmag . com 61 |