Five Fresh Hospitality Reads for the Week

This week, as many begin to focus on budget planning and creating strategic plans, I'm reading more about how the hospitality industry continues to evolve in the social media era. Here are five fresh hospitality reads:

The Future of Travel: Eight Things You Need to Know | Marketing Magazine
Great piece on the critical importance of innovation in the hospitality industry.

STUDY: 44% of Luxury Guests Choose Hotels through Word of Mouth
You know it. I know it. And yet… it continues to be overlooked. For all that you are doing through sales, marketing and PR, the most critical component of hospitality remains guest service.

How Luxury Hotels Mine Social Data in the name of Comfort
Great reminder that (a) there is so much information available online about each of us and (b) some hoteliers are using that public data about their guests. I think there's a lesson in this piece about the importance of balancing hospitality/privacy.

Airlines testing new ways to Board Planes
All aboard (faster!) Also… 100 times YES!

How TripAdvisor wants to own the Travel Cycle
TripAdvisor has evolved from a review site to an efficient booking engine. Now the TripAdvisor teams wants to be the provider of choice for local area information and concierge service. I will be interested to see if crowdsourced hospitality data can ever truly scale.

Another clear indicator of how important it is to know your audience and to continue to refine your message to each guest.

For more hospitality trendspotting, follow me on Twitter.

24. October 2013 by Kevin Donahue
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Three Luxury Hospitality Reads for the Week

Here are three short, compelling reads regarding luxury sales and marketing in the hospitality segment. I found each of these very poignant for guest service and hotel sales in our industry:

 

Twenty percent of Virtuoso's customers drive 71% percent of sales
This statistic speaks to the old adage of how important it is to take care of your best customers, especially in the luxury hospitality segment.

Biggest risk to luxury brand dilution? Partner Offers
A new study finds that luxury brand cross-marketing is a dangerous tightrope, bringing in new customers when done well but risking market share for both brands when poorly executed.

Four Seasons Hotels are active on 393 social media channels
Is there an effective limit to the "be where your customers are" mantra that has driven CMO and social marketing? Also, is there a limit to the effectiveness of "be where your customers are" in the luxury segment?

 

Interested in seeing more about luxury hospitality sales and marketing? Follow me on Twitter

30. September 2013 by Kevin Donahue
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Quotes: Wisdom

25. September 2013 by Kevin Donahue
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The Answer: How TripAdvisor Rankings Are Calculated

Given the popularity of TripAdvisor and the impact of hotel reviews on ADR and RevPar, hoteliers and guests want to know the answer to one pressing question: How are TripAdvisor Rankings calculated?

TripAdvisor RankingsTake New York City, for example. A recent ranking of hotels by TripAdvisor found the Best Western Herald Square to be among the top hotels in Manhattan.

No disrespect to the Best Western, but many travelers may be asking just how this limited service property is ranked higher in New York City than the Trump International, Four Seasons New York, and – of course – The Ritz-Carlton, New York Central Park. (There's also a pretty good chance that hotel owners and managers are asking the same thing!)

The answer, according to TripAdvisor, is that hotel rankings are determined by the following:

TripAdvisory Hotel Ranking Criteria

  • Number of Reviews per Hotel
  • Recency of TripAdvisor Reviews
  • Rating given to Hotel by Reviewers

TripAdvisor takes these three core elements – quantity, quality, and recency – and runs them through their proprietary algorithm to determine the rankings for hotels in each city.

The more highly rated reviews a hotel receives in a short-period, the higher their ranking will be on TripAdvisor.

It's worth noting that TripAdvisor rankings are updated for each city are updated approximately once per week, to incorporate new reviews and ratings.

So, there you have it… the "secret" to how TripAdvisor calculates rankings for every city.

Source: TripAdvsor Help Center

12. August 2013 by Kevin Donahue
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Leadership Lesson: Recognition

10. August 2013 by Kevin Donahue
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Want to Connect with more Customers? Stop being a Morning Person!

I can't believe how many emails I receive every weekday morning that ask this key question:

"Do you want to connect with more customers?"

And the answer, of course, is "Well, yeah! Don't we all?!"

A study by GetResponse.com suggests that the timestamp on emails might be as important as your message.

GetResonse analyzed more than 21 million customer emails and found that while almost 50% of all emails arrived in customers inboxes before noon, customers opened a much higher percentage of mails sent between noon and 6pm.

Additionally, the study found that 23.63% of emails are opened within one hour of when they are received. The number falls by half in the second hour and more than 90% after five hours. Clearly getting your email into your customers hands during the business day is key.

So, does this mean I have to stop being a morning person? Well, maybe not. But, if you are connecting to customers via email, you may have increased success if you time your message for receipt between 12 noon and 6pm.

Though highly, highly unscientific, my own study finds that the best time to send a handwritten card is… ALWAYS Click to Tweet.

05. August 2013 by Kevin Donahue
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The One Problem that Costs Hotels the Most Customers

If you consider the number of problems that can befall hotel customers during a stay, it can be a bit overwhelming.

Angry Hotel CustomersBroken remote controls. Plumbing problems. Noise from adjoining guestrooms. Incorrect orders from room service. Room key issues. HVAC issues. Kids running in the halls. Not enough chairs at the pool. Slow service in restaurants. Incorrect room type at check-in.

And the list goes on and on.

Studies show that product problems account for nearly sixty percent of all guest complaints.

But there is one problem – over and above all others – that causes not only dissatisfaction, but a complete break in a hotel customer's trust.

What could negatively impact hotel customer loyalty so greatly? According to data-analysis firm Market Metrix, staff-related problems in hotels can lead to a whopping 26.2% drop in guest loyalty Click to Tweet.

Service problems, on the other hand, make up a much smaller portion of reported problems, but have a much more dramatic impact on guest loyalty. Just look at staff-related problems in the table below. They are only 4.7% of reported problems. But staff problems punch way above their weight causing loyalty to plummet by over 26 points when they do occur.

On the other hand, the nearly 60% of hotel customer complaints COMBINED only account for a 12% drop in hotel customer loyalty.

This study begs the question: With such a large number of guest product complaints, how much time is your hotel spending to fix staff problems?

Television remotes can be replaced, but a disengaged hotel customer may be lost forever.

 

17. December 2012 by Kevin Donahue
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3 Great Sales & Customer Service Reads for the Week

Here are three short, compelling reads regarding customer service and sales. I found each of these very poignant for guest service and hotel sales in our industry:

For more customer service and hospitality sales insights, please follow me on Twitter: @mrkevindonahue.

04. December 2012 by Kevin Donahue
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New Study Shows Hotel Reviews Drive Rate & RevPar

A new study from the Cornell School of Hotel Administration details that hotel reviews posted on social travel websites, such as TripAdvisor and Travelocity, positively impact a guest's willingness to book reservations at a premium rate for a reviewed hotel.

"The Impact of Social Media on Lodging Performance," by Chris K. Anderson found that the number of reviews as well as the willingness of consumers to assign credibility to hotel reviews has increased over time. Anderson also found that a 1-point increase on Travelocity's review scale – such as increasing a hotel's review from 3.3 stars to 4.3 stars – drives an 11.2 percent premium in a hotel's rate, while still maintaining occupancy and market share.

Given these results, it's increasingly clear that hoteliers must dedicate resources to monitoring their social reputation, actively review online hotel reviews and invest further in guest experiences on-property to create engaged guests. (Read more on who writes hotel reviews)

Beyond Travelocity, Anderson determined through regression analysis that a 1-percent gain in a hotel's social media reputation is worth 0.89% in average rate lift and a 1.42 percent increase in RevPar. Click to Tweet

The full social media impact study is available online from the Cornell School of Hotel Administration.

29. November 2012 by Kevin Donahue
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How to Convert Social Media Followers to Buyers

Since the rocket-like launches of Twitter, Facebook, and Pinterest years ago, organizations have been asking the million dollar question in regards to social media, "How can we convert fans into buyers?"

Social MediaCountless books, seminars, blogs have been devoted to the topic of social media ROI, but (sadly) most seem to miss the most obvious point.

While I don't proclaim to have all of the answers, the answer to the question of converting social media followers to customers seems a rather obvious one:  The same way you converted your existing customers.  

From my perspective, there's too much status placed on 'fans' and 'fan counts' by most social media "experts". The people who "like" your brand are essentially giving your company a virtual high five. Click to Tweet They appreciate something you've done or a perception you've created about your products. They may or may not be your current customers. And – unless you work to convert your followers into buyer – they may or may not be your future customers.

In a traditional sense, your Facebook fans and Twitter followers are the digital equivalent of window shoppers. Click to Tweet Some of them know your brand well, they enjoy your products  and actively share their experiences with their friends.

But some  of your fans – a large majority – are standing on the sidewalk.  They like your window display, but it hasn't compelled them to open the door and try your brand. And this is where your business acumen and experience - more so than your social networking skills – come into play.

Social media is a tool for increasing your sales, not the solution. Click to Tweet

So ask yourself and your team: What do you do as a brand that brings potential customers in off the sidewalk?

If you can answer that question, then you can convert social media followers into buyers.

12. November 2012 by Kevin Donahue
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