BIG PLANS For Small Hotels

Marketing/reservation services such as Small Luxury Hotels of the World are ramping up sales appeal with new Web initiatives, new partners and new yield-driving services.

By Staff -- HOTELS Magazine, 7/1/2007

WORLDWIDE Small Luxury Hotels of the

World (SLH) is thinking big about small

hotels. The Leatherhead, UK-based

luxury marketing/reservation service is

riding a wave of change that is growing

“soft” brands at record rates. Raising the

bar on delivery with initiatives that range

from more sophisticated online business

tools to more “face time” from expanding

sales and development teams worldwide

has SLH on track to add 50 properties to

its 400-member roster by year’s end.

Wider Reach

SLH’s six regionally based development

directors are focusing on emerging

markets where the brand is underrepresented.

China, Japan, Singapore, the

Middle East, South America and Eastern

Europe are key growth targets. “Travel

patterns definitely are changing. Luxury

travelers have become much more

adventurous,” says Paul Kerr, SLH’s

joint managing director. “They are keen

to take advantage of the fact that, a

international borders have opened up,

some countries are becoming even more

accessible.” Not all new markets are

fertile ground, however. “There are

some markets unable to support the

standards our brand demands,” Kerr

says. “That can be an obstacle to

expansion. But, we see changes,

especially in Eastern Europe, which now

has a number of excellent small hotels.”

While European grande dames looking

to increase “return and recognition”

should drive membership rolls in the UK and on the continent,

an expanded presence in Asia, the United States, the Middle

East and South America more likely will come from new

builds. Branding pre-construction has been a point of debate

for quite some time, according to Kerr—not only for SLH but

for the entire upper tier of the consortia. But, demand requires

a new paradigm. “It is important to hotel owners and developers

to align themselves with brands because of their pre-marketing

and sales abilities,” Kerr says. To cut the downside risk, SLH

conducts a “thorough investigation” of new builds and, for

those that pass, confers probationary acceptance. Full membership

is available only after the standard post-opening inspection.

Online To Bottom Line

At the end of the day, the branding decision “all comes

down to money and return on investment,” Kerr says. That has

soft brands taking a close look at their costs and service menus.

SLH still incurs a 6.5% fee for reservations booked through its

main channels, such as GDS, voice and Slh.com. But it bucked

the trend online. SLH applies a fl at fee of US$9.89 (£5) to

reservations booked through its Internet booking engine that

sits within hotels’ own Web sites. “Percentages result in higher

fees for members,” Kerr says. A new online application process

in different languages will streamline the fl ow of information

in both directions and “save a lot of man hours for development

teams who formerly had to send out applications,” Kerr adds.

With competition for customers hotter than ever, soft brands

such as SLH are stretching their marketing/advertising budgets

with an increasing network of high-profile partners. Partnering

is all about compatible customer databases and alignment. For

SLH, that means Eos Airlines (with only 48 seats on a plane

built for 220), aspirational car maker Aston Martin, fragrance

superstar Jo Malone and premium leather goods company

Ettinger. It also is structuring internal and external promotions

reach alongside partners such as HSBC and Morgan Stanley

that have major market appeal around the globe.

“Brand association is important in building awareness,”

Kerr says. “If people know Aston Martin but are unfamiliar

with SLH, they can draw a parallel with regard to quality and

positioning. SLH is a small company, and optimizing our

visibility through partnerships is essential.”

The Internet will continue to be another brand-building tool.

A new SLH Web site will debut later this year with a shopping

cart that allows guests to book multiple rooms and multiple

properties in the same session.