Smartbrief 4

October 26, 2009
“Boutiques Point to Silver Lining”

At the September 2009, Lifestyle/Boutique Hotel Conference in Miami, speakers spoke that the silver lining in the economic downturn in the hospitality industry will be boutique and luxury hotels. The speakers noted that when properly made, marketed, and managed boutique and luxury hotels can be great investments, though the initial costs are usually much more than that of other hotels the benefits can outweigh the risks. In order to have a large return you must take on some risk. The conference speakers also discussed that preferences are changing, as people who would ordinarily opt to stay in a Ritz or a Four Seasons Property are now seeking new experiences. The conference contained attendees with boutique/luxury hotels and those interested in getting into the business. The conference recognized that contrary to what many people believe, those people willing to take the risk and create a new luxury or boutique brand will bring the economy out of its dismal state. Smart people who position themselves properly is what the hospitality industry needs for new boutique and luxury hotel owners. Raul Leal, president of Desires Hotels, closed making an excellent point in his speech that “We’re selling experiences, not rooms.”

Raymond’s mission for Chateau Ramone is to draw guests in by “embracing the fantasy”. The experience driving up to a Chateau in the middle of West Grove, Pennsylvania will give guests the feeling of opulence. From the covered carport, buttered service, gorgeous restaurant, and polished landscapes Chateau Ramone will be an event, where guests not only come to see the area but also come to see the hotel itself. Chateau Ramone, as said at the conference in Miami, if run properly boutique hotels can make a great return and help bring the economy back. Raymond is taking great risk building a boutique hotel in an area with little in its surrounding, but with the right staff he can create a landmark establishment where people will come to experience the life of luxury. As tastes have shifted from more commonly known franchised luxury hotels, such as the Ritz, W hotel, and Four Seasons, it is an amazing opportunity to build for Raymond and the area of West Grove. The money spent at Chateau Ramone’s banquet facility, restaurant, and hotel will help stimulate the economy and as said at the 2009 conference will become the silver lining to the economic downturn.

LH Lodging Hospitality Magazine

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Smartbrief 3

February 24, 2010
Marketing: “The Allure of Loyalty“

Some say the idea of enticing customers to join loyalty programs is an idea of the past as most customers are looking for the cheapest deal. Bust according Don Berg, vice president of loyalty programs for IHG, trends have shown an increase enrollment in loyalty programs. The point programs have been enticing guests as they can be used for rooms, air travel, or purchasing merchandise. Berg noticed that nearing the Holidays they have a 26 % increase in gift card redemptions. The VP of brand management for Hilton, Jeff Diskin, said it is vital to the hotels and members that these loyalty programs continue to flourish. Not everyone is so keen on loyalty programs, a dean at NYU tourism and hospitality school claims that loyalty programs create a loyalty to freebies and not the brand, they need to find customers who are truly loyal and not just seeking a way to gain freebies. Some companies for their loyalty programs have targeted leisure travelers; by offering discounts for booking early companies are hoping to draw in more leisure guests. IHG is not targeting their leisure guests, but rather the business sector in hopes that if they gain their loyalty and trust they will continue to stay with them even on their vacations. Studies are showing that loyalty lies in abroad markets, as loyalty studies show they are strongest abroad. Hotels are using social mediums to strengthen their relationship with members. Hilton and Starwood have added new iPhone and iTouch applications in hopes of new media attracting customers.

It was surprising to me that loyalty programs are still on the rise despite the economic downturn, but it is in our nature to be drawn to freebies; for instance, at Costco I know I will wait in any line in order to try Kirkland’s mini quiches. I personally have never been enticed to join a loyalty program, as my main goal is always to find the cheapest hotel that I will not get robbed at, but I understand the concept and I especially appreciate IHG’s approach to marketing. IHG has recognized that leisure travelers are not where they gain most of their money, but rather in the business sector. It is conducive to IHG to draw the business travelers in as “loyalty” members so that when they travel regardless of whether it is work or travel they will stay at their establishment. The real issue is finding customers who want to be loyal and are not just after the perks that may come along with being a loyalty member, the perks may be there to draw a new member in, but they need substance to get people to stay. That issue can be solved by extensive training sessions, so that when a guest stays at any establishment they receive the same, in this case hopefully exceptional, treatment. Lastly, Hilton and Starwood are smart to align themselves with technology, iPhone applications are another excellent marketing tactic to gain guest loyalty.

Lodging Magazine


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Smartbrief 2

March 4, 2010
“Spring break travelers face higher airfares, lower hotel rates“

Travelocity and Bing travel have been using their resources to determine how much airfares have been increasing, while conversely hotel rates haven been decreasing. Travelocity found that airfares are up 9%, and hotels are down 3% from last year, making the new average domestic roundtrip flight about $351, and the average hotel nightly rate about $156. Bing found that March 22nd was the most popular day for travel, and to reduce airfares customers should look for Tuesday-to-Tuesday, or Wednesday-to-Wednesday flights, rather than the ever popular Friday or weekend travel days. This years research shows the top ten places to travel and 9 out of the 10 are in the United states, the other being Cancun, MX. Data showed that Cancun prices for a week stay have increased slightly from $2,243 versus $2,231 last year, but for customers choosing to stay domestic Florida costs have decreased by 12%.

19 days till Spring Break! Just the words Spring break had me hooked, it made me picture jet skiing in Florida freshman year, partying in Cancun my junior year, and me gambling in Vegas this year! With so many fond memories it was as if this article called to me. What I am exuberant about is going on exceptional vacations for exceptionally low costs. I was shocked at how expensive the Cancun trip is, though it’s change in price has not been drastic, it drastically differed from what I spent last year. On my Cancun honeymoon with Diana, we spent $900 on an all-inclusive; though it was not the nicest hotel in the world this also included our food and endless beverage fee(Came in quite handy during our stay). Though airfare has been increasing the decreasing price in hotel rooms has made the difference from last year almost unnoticed. What I have noticed recently is the absurd number of carry on baggage! Since most airlines are now charging an additional fee for bags air travelers are trying to stuff everything possible into the planes overhead compartments, which can be quite frustrating! Even with airfare increasing it cannot stop the beast that is Spring Break, it may just cause a few more carry on bags!


USA Today

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Smartbrief 1

February 24, 2010

“Wynn to Assume Control of Philadelphia Casino Project “

Wynn, stationed in Las Vegas, has decided to take control over a casino project in Philadelphia. The casino should be developed in premier location at the waterfront in Pennsylvania’s city scene. T he project previously had the name Foxwoods Casino Philadelphia and has been tangled in financial distress since the project was erected in 2006. In January, the casino was forced to present new plans or prepare to receive a penalty of $2,00 a day and had till March 3 or lose their casino license completely. The Foxwoods were unable to pay the high bill so Wynn has stepped forward as the new owner of the property. Though Wynn has not released their plans for the space it is believed that they will not be following the Foxwoods’ plan, but rather creating a casino that reflects the Wynn brand. More importantly it is showcasing the shift in the casino market and that revenues in Atlantic City have been prospering, in addition more casinos are to be built in Pennsylvania this year.

I took a personal interest in this article for two reasons: one I am going to Las Vegas for spring break (to do some field research of course) and Wynn was a top contender for hotels, secondly the proximity from UD to Philadelphia sparked my interest. The gambling and casino atmosphere draws in people from numerous backgrounds, it is especially common in the Mid-Atlantic region as Las Vegas has been developed and become a destination in itself, hence why I am traveling there. It makes fiscal sense to start developing more casinos on the East coast, as it can promote tourism to our area, and the money that I am spending in Vegas could be spent closer to home, benefitting our local economy. It will be interesting to see how large the draw of consumers will be to Philadelphia, but with Atlantic City’s recent success I assume the shift of casinos may be beneficial to Wynn.

Wall Street Journal

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