I.G.H.R.M.

Back

Coping In Fluid Times: TIPS FOR HOTELIERS

Despite the uncertainty brought on by the September 11 crisis, hoteliers should not underestimate the technology revolution of the past 10 years that will continue to alter the landscape of the hospitality business, says a report in HVS International.

How can hoteliers handle the uncertainty of the market as business travel remains flat this year? The key, says the author of the report Chris Hartmann, is to leverage on technology and incorporate market changes into their overall business plans.

“Don’t let the tech bubble burst, the fallout of in-room Internet access providers, and telecom stock crashes convince you that we’re headed backwards,” he says in the report on Technology and the Hospitality Marketplace after September 11.

Hartmann says technological progress will continue to increase the amount of leisure travel and decrease the amount of business travel. Why? Because corporate travellers would be taking more leisure time and still want to remain connected.

“This means that as hotel executives, we must provide the means for those who want to stay connected to do so, including personal mobile communications (mobile phones, wireless PDAs, etc.), and convenient, high-speed Internet access.

“For the business traveller, this ubiquitous connectivity, already available to most people at home and at work, means less travel,” he said. Hartmann recommends four strategies for hoteliers to cash in an uncertain marketplace.

• Focus on flexibility

When there’s a big trade show coming up in your city, be prepared with hospitality suites, meeting space, special group dinners, and videoconferencing facilities to die for. Then, a month later, when there’s a big sporting event, be ready with family suites, on-site supervised activities for kids, a restaurant with family specials and a separate romantic area for couples, and evening “teen rooms” with movies and music during school closings.

• Focus on the family

As the economy improves, you will see more businesspeople combining required travel with family vacation time.

Smart companies who realise that some meetings must be face-to-face will encourage their employees to bring along family members and will incorporate activities of interest to the entire family as well.

Family and leisure travellers are much more sensitive to price and much more likely to shop around until they feel they have a special deal (think strong web presence, loyalty programmes and frequent e-mail and promotional offers).

• Focus on local business

Companies still need to get employees together outside of the day-to-day work setting. They’re going to continue to have that need. They don’t need to do it 5,000 miles away from home though; 5,000 feet will do, as long as the facilities and amenities are in place. And all the airfare that’s saved can be used by businesses to improve the experience without being away from home.

• Focus on guest technology

Virtually every employee is now very technologically empowered at work, and many are also “well connected” at home. Mobile phones and PDAs keep them in touch and available.

High-speed Internet access and e-mail gives users instant access to information. While providing these services won’t necessarily draw guests to your property, not providing them will certainly keep them away.

“It’s important for hoteliers to incorporate technology and market changes into their overall business strategies, to be ready to move in new directions when necessary and to continue to stay one step ahead of their guests’ needs and their competitors’ offerings,” says Hartmann.

He says 2002 will probably continue to favour leisure and moderately-priced market segments. By 2003, “both the business and luxury segments are likely to pick up.” 

Top