With strong demand and consumers eager to get away, rates have made a healthy rebound. But along with that higher price tag come high expectations for that delayed vacation, said Peter Bates, CEO of Strategic Vision, Tarrytown, New York.
Contributed by Megan Rowe
“Because rates are high, the customer wants to know what to expect once they arrive,” Bates argued. “Are all the restaurants and bars open? Am I going to get turndown service? Is my room going to be cleaned every day?” Not every hotel can answer those questions affirmatively, but those that are fully open and fully staffed have an advantage, he said. “They have to be able to communicate that well on their website.”
This feature marks the second part of a three-part story about rejuvenating sales. On Tuesday, we published the first part on unique promotions and new selling tactics.
Swire Hotels, Hong Kong, took time during the pandemic to redesign its websites and other e-platforms to make them more user friendly and provide more engaging content. Michael Faulkner, Swire’s head of sales and distribution, said transparency and engagement are essential in the current environment. “Clients will be looking for caring, personalized service more than ever,” he argues. “We focus on replying to clients as quickly as we can and offer as much detail up front as possible to reassure guests and instill a level of confidence.”
The rise of the digital nomad has also upended traditional booking patterns. The hybrid workcation has transformed Thursday into the new Friday and Monday into the new Sunday, with remote workers logging in at the beginning or end of the stay, then enjoying leisure time, often with significant others, the rest of the time.
“We think this will increase over the next 18 months,” said Clayton Reid, CEO of MMGY Global. “We think it will be leisure trips with business tacked on. It’s a dynamic the hotel community has to think about—how it affects forecasts and yield.” Because they are so connected, reaching that audience through digital channels is the most logical route; Reid says targeting amenities and packages to these travelers are a way to break through.
Marriott’s Bonvoy Escapes appear to be tapping into the demand for extended weekends or work/leisure trips: the promotions, refreshed once a week, offer five-night stays at a 25% discount for Bonvoy members and 20% for nonmembers.
Another must for leisure-oriented properties: cancellation flexibility. “There is definitely a preference toward flexible rate plans, so we are making sure to keep those on the shelf,” observes Jenna Fishel, vice president of revenue management at First Hospitality, headquartered outside Chicago, Illinois.