With the majority of reservations being made online, a hotel’s look-to-book ratio has some mighty slim margins for making a lasting impression. Within seconds guests form an opinion about a property and how it fits into their lifestyle or the one to which they aspire. It’s essential that a hotel brand’s core DNA can be quickly perceived and is consistent throughout its marketing.

The nexus of a hotel’s identity lies within the messages conveyed by its logo. Strong symbols and fonts evoke instantaneous, emotional responses from their viewers. As hotel brands evolve in response to social, environmental and technological guest preferences, so must their logo in order to ensure it speaks to their target market.

Take a look at the following multi-industry examples that show how revisiting a logo as well as an entire product or webpage can breathe new life into a brand. Holiday Inn’s former insignia conveyed an old-fashioned family environment and really hadn’t changed since today’s parents were children themselves – planting the notion that perhaps the hotel’s facilities hadn’t either. The updated logo is designed to attract modern, casual families and implies a relaxed, welcoming spirit.

An updated visual identity that retains elements of its former logo will reposition a property in the guest’s mind. In such a competitive economy, this shift in focus can be a strategic tool for capturing additional revenue.

What do your hotel’s marketing materials say about your brand image– and is it the message that draws in your target market? Will refreshing your brand’s identity give you an added edge?

During tough economic times, it’s understandable that a hotelier’s initial inclination would be to adopt practices that generate the quickest increase in RevPAR and occupancy rates. The growing trend towards outsourcing appears beneficial as it introduces competitive bidding among suppliers while alleviating some of the hotel owner’s risk.

Nearly every aspect of running a hotel can be parceled out, from the property management and reservations system to front desk and housekeeping staff to conference, gift shop, spa and restaurant administration. As The Economist recently reported, flags such as InterContinental are moving towards an “asset-light” business model where only 16 of its 4,186 hotels are actually owned by the brand, with the remaining operated as licensed franchises. Will this strategy weaken the longevity and quality of InterContinental’s brand value?

We’ll be taking a three-part look at when outsourcing makes sense – and when it jeopardizes a hotel’s service delivery promise. While the immediate financial benefits are well-known, making an informed choice that addresses the potential pitfalls might allow outsourcing to be a robust solution.

Critics argue that outsourcing is short-sighted as it sacrifices long-term success for short-term growth. Following are some red flags to consider as to how uninformed outsourcing might reduce a hotel’s overall strength:

A. Lessens a hotel’s flexibility to respond to unique tasks & surges in workloads

B. Lessens consistency in the property’s message and customer service quality control

C. Reduces creativity in management decisions, as the key players must stick to their defined roles

D. Reduces personal pride and ownership among staff

E. As noncore services become noncritical they tend to be neglected or left behind

Clearly it is essential that a hotel selects outsourcing partners that share similar brand values while promoting open channels of communication. In Part II of our look at outsourcing we’ll explore the potential conflicts in priorities between owners and outsourced providers, as well as provide some strategies for avoiding these risks before they have the chance to occur.

Despite the tumbling economy, consumer desire continues to grow for services that in past days were considered a luxury – those that are highly customized to individual preferences while offering out-of-the ordinary experiences.

In recent times, hotel groups have rose to the challenge by creating more segmented brands – earlier examples being Starwood’s Aloft and Element. But as funding sources have become scarce the introduction of new microbrands is a riskier investment. The brakes have been put on some brands, either slowing them down or putting them on hold completely, such as with Baccarat, Crillon and 1Hote1. Perhaps once Starwood Capital’s newly announced SH Group finds it feet, financial lending will have loosened up a bit and these brands can move forward. But as travelers are tighter than ever with their disposable income, is it a smart time to introduce the over-the-top luxury of Baccarat and Crillon? Or will there always be a market for super premium lodging?

Hilton’s announcement of their new microbrand Home2Suites seems to take a more practical response to guest requests by targeting tech-savvy extended-stay travelers who also would like “sensuous retreat services.” This concept has a theme also seen in our earlier post about women-only hotel floors: the desire of travelers to be pampered during off-work hours.

Is now the time to increase the promotion of spa services to your extended-stay business guests for added revenue? How can your hotel capitalize on this trend?

One of the earlier forays into lifestyle automobile and hotel cross-branding came with Volkswagen’s venture into the hospitality business.  Each of the 21 rooms of the Hotel Fox in Copenhagen was designed by a different international artist in commemoration of Volkswagen’s release of the Fox automobile.  Great idea that photographs well when it’s new, but here’s some food for thought – what happens when the inevitable carpet stains set in or housekeeping slips below par?  Would a disgruntled guest’s experience (and subsequent word-of-mouse) lead to a negative impression of the Volkswagen brand?

Hotel loyalty programs that offer rental car discounts to its members are nothing new; but the concept of giving prestige car owners perks at lifestyle hotels provides an interesting reversal of marketing roles to this profitable relationship.   Mercedes’ launch of its Destinations program not only provides room upgrades and gifts, but also allows members to drive different models while staying at select luxury resorts.  It’s the perfect opportunity for a genteel up-sell, baiting guests with short-term use of the latest models while creating desire for its associated prestige.

Reversing the dynamics of the hotel and auto industry cross-branding relationship looks to be a smart move.  What other marketing relationships could be reexamined from new angles to strengthen your brand’s identity?

Ahh social media, a hotelier’s best friend or worst nightmare!  Positive “word-of-mouse” publicity attracts guests and builds reputations, but when a hotel’s missteps are documented – either deservedly or unjustly – the repercussions can be long-lasting.

Most readers will overlook the occasional critique if enough positive reviews exist, but when sites such as TripAdvisor list multiple complaints and photos of dirty bathubs and leaky ceilings, the majority of would-be guests stay as far away as possible. The transparency that results from openly-shared opinions forces hoteliers to deliver upon their marketing promises, and can leads hoteliers with negative reviews to see the internet like an elephant that never forgets.

So the question is, what’s a hotel to do that wants to attract positive attention and/or recover from poor publicity?  The beauty of social media is that it also has the power to change the tides since it is a reflection of truth – but as such the opinions must be warranted.  Here are some ideas for the initial steps on the road to recovery:

1. Proactively monitor social media sites to check what your guests are saying about you. Their opinions are actually a goldmine, as they can alert you to unforeseen issues that, if caught early, can be remedied before causing further damage. Make sure your physical site matches your web site by addressing the issues raised and following-up to see that they don’t reoccur.
2. Ask guests who have had an enjoyable stay to leave feedback either on a social media site or provide an option for doing so on the main hotel site.  Offer an incentive for guests who leave feedback.
3. Strike preemptively.  Establish goals for WSO and SEO.  Make sure your website uses accurate, articulate and well-researched content that reflects your target market’s aspirations without misleading them. Consider building a microsite for better promotion of your spa or restaurant.
4. Monitor your competition. Where are they winning and what could be improved?  Be a fast-follower but provide your own twist. Find their weakness and offer something that fills the void.
5. Try unconventional pricing. The Hoxton Hotel in London offers a seasonal 1GBP/night online promotion for a limited number of rooms.  After repeating this sale over the course of a year, the buzz it generated helped turn it into one of the hippest places in town.
6. Look at business successes outside of the hotel industry. Establish cross-promotions with unconventional partners that are relevant to your target market. Use Google Trends to see what’s hot with your guests and integrate these ideas into your strategies.  Remember, “You are who you’re linked to.”

These are just a few ideas for bettering a hotel’s image while tailoring it to a more specific set of customers. Every hotel has room for innovation in order to remain competitive.

Let me ask you this: How could you improve your hotel’s image?

Does a hotel’s architecture and interior design influence its marketing strategies, or does a hotel’s target market dictate the decor? Well, that depends…

If the hotel is a historic property, respecting its architectural heritage is often not only desirable but required by law. Capitalizing on its individual story, as well as the guests and events which have occurred there, contributes to the brand’s prestige. (See a good example of how the Algonquin in New York did this.) Maintaining authentic period-styles within the design will help support the hotel’s USP.

On the other hand, a property that has been built (or renovated) with specific clientele in mind often develops the design brief based around a customer profile.

Take a look at The Five Hotel in Paris’ Latin Quarter for an example of design dictated by guest preferences.  Long known as being the district for avant-garde artists and student-life, each room features a different decor designed to integrate all five senses. While certainly a far stretch from the Haussmannian style of its classic exterior, its interior design reflects the French revolutionary spirit that is well-alive in the quarter today.

In this case, it is the market’s expectations that have shaped the design and reinterpreted the essence of a property’s history – not the actual architectural details.

Using typical guest personas is very helpful for anyone trying to promote a hotel.

David Meerman Scott‘s writing on the topic has been very influential in shaping the way I view marketing.  In his excellent book, The New Rules of Marketing & PR, he explains:

“It can be daunting for many of us to consider who, exactly, is visiting our site.  But if we break the buyers into distinct groups and then catalog everything we know about each one, it makes it easier to create content targeted to each important demographic.”

Think about all the people that visit your hotel for a moment.  How many distinct groups can you create from your regular guests?

If your hotel is like most, there are several categories.

Business travelers.  Leisure travelers. Conference attendees. International visitors. Families. And the list could go on and on.

Each group has different needs, and uses a different set of criteria to select hotels. The business traveler might want a staffed business center and would be attracted by your city center location. Leisure travelers may appreciate a guide to local attractions. Visitors from abroad may need staff that speak their language. Conference attendees may be looking for a hotel with a great fitness center.

Everyone is looking for something different from your hotel. For this reason, you need different messages for each major category of visitors. Doing this helps you communicate your value offering, and improves the effectiveness of your overall campaign.

The “one size fits all” approach doesn’t work anymore.

Seth reminds us how changing your pricing model can build buzz and attract a whole new group of customers.

• Law firms charging by project
• Ski lifts charging a small entry fee, then a per-lift charge (more during peak hours)
• Airlines auctioning off seats “baseball card style” – with resell rights

Could your hotel implement a new pricing model?

It’s not something this blog typically covers, but still an interesting thought to consider.

With an expected slowdown in US travel, some hotel managers are making the most of it by catering to international guests attracted by a weaker US dollar.  Leon Stafford from the Atlanta Journal-Constitution shares one example:

When [Atlanta] W Hotel general manager Marylouise Fitzgibbon played host this month to a French meeting planner, she could have settled for learning a few quick French phrases or sought help from Atlanta’s French Consulate.

Instead, Fitzgibbon assigned four members of her leadership team to conduct the entire pitch in French. From running down the hotel’s features to explaining the prevalence of Peachtree in the city’s street names, W Buckhead went Gallic in an attempt to land the business.

“It goes beyond making them feel like home,” Fitzgibbon said. “It’s about services and experiences.”

Intentionally hiring multilingual and multicultural staff is a great way to ensure positive experiences for your foreign guests.

“For guests, if you can speak their language, it puts you heads above the rest,” said Ronen Nissenbaum, regional vice president of operations for InterContinental Hotels and Resorts. Languages spoken at the company’s flagship InterContinental Hotel in Atlanta’s Buckhead district include Hebrew, Cantonese, Vietnamese, Polish, Arabic, Mandarin, Swiss-German, Malay, Turkish and Russian.

Having a diverse staff with international experience also raises cultural awareness and sensitivity. “The reason I worked in so many countries is that I wanted to be more culturally aware,” said John Reilly, who has worked around the world – from Aruba to Tunisia. As general manager of Twelve Centennial in Atlanta, he notices that German guests appreciate precision and efficiency, while Americans prefer lots of communication.

A new study by J.D. Power revealed air conditioning as the top “must-have” amenity for the more than 13,000 European hotel guests it surveyed. In North America, that’s usually standard so you’re probably off to a good start there. Other top amenities included free breakfast, wireless internet availability, soundproof windows and free parking. The study also showed a trend toward smoke-free room preferences, and lower hotel brand loyalty compared to North American travelers.

Let me ask you this: What are you doing to attract international guests?

For some hoteliers, the first reaction they have when facing an economic slowdown is to slash prices.

But is this really a good strategy?

If you look at historical data, the answer is clear: you should never, ever reduce prices as a quick-fix remedy.

All studies carried out in the wake of the 9/11 attacks in New York City showed that price cuts damage the long-term health of your business.  One report by Cornell University, titled “Hotel Pricing in a Networked World,” shares this insight:

“It should come as no surprise that discounting has a chilling effect on revenues. The discounting concept is based on the core micro-economic principle that reducing your price means that additional consumers will enter the market and you will sell more rooms.  The hotel industry has never been able to apply this principle successfully, and the CHR study demonstrates why this is so.

New consumers do not enter the market in response to hotel discounting.  Instead, current customers simply get more for less and revenues fall.“

So what should be your pricing strategy?

Try this: Leave your prices where they are, but increase your perceived value.

Instead of discounting, focus on building your overall value package.  Sell the experience – work to position your hotel as a destination.

Explore social media networks, and look for recurring themes of what guests like about your hotel.  Improve and showcase your specialties.  Put them at the core of your marketing efforts.

But never fall for the price cutting trap.