Tag Archives: Hotel News Now

by | October 2, 2015 · 6:48 pm

Hospitality Industry Tech Update: “Two Digital Disruptors Hurting Hotels”

Airbnb’s price positioning play—accommodations often are less expensive than similar hotel rooms—is not sustainable, he said.20150730_distributioin_RSSDisrupter Once the platform is forced onto a level playing field and starts collecting taxes, it will costs hosts more to do business.

In an industry with so many variables, one thing is certain: Hoteliers are woefully inadequate when it comes to technological innovation. And that makes the impact felt by the so-called disruptors all the more disruptive.

Thus concluded a panel of owners and operators titled “Disruption 2020: The digital marketplace” at the Revenue Strategy Summit.

“We’re still stuck in the Stone Age,” said Shai Zelering, managing director of operations and asset management for Thayer Lodging, Brookfield Hotel Properties. Instead of investing in new technologies, hoteliers are more obsessed with new guestrooms amenities that ultimately don’t matter, he said.

“It’s about priorities,” he added.

To that end, panelists identified the two major disruptors that require the industry’s immediate attention.

For more: http://bit.ly/1MOx3yS

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by | October 1, 2015 · 4:54 pm

Hospitality Industry Management Update: “How to Combat Last-Minute Cancellations”

“If it’s one call from a regular guest who has to cancel at the last minute because of extenuating circumstances, that’s not a problem,” Rauch said. “Our goal is to protect and grow our revenue.Cancellations-feature But at the same time, we have no desire to have guests hate us. The last thing we want is for someone to badmouth us on social media because of how we handled their cancellation.”

With last-minute cancellations having the potential to wreak havoc in the revenue management arena, hoteliers from Los Angeles to London are opting for a range of solutions that include tightening the rules on refundable bookings and turning to more sophisticated algorithms to forecast.

Last-minute cancellations have been on the rise in recent years amid an emergence of online tools and platforms that make it easier for consumers to shop and compare hotels, explained Bjorn Hanson, a hospital industry expert and professor with the New York University Preston Robert Tisch Center for Hospitality and Tourism.

“It’s an increasing problem that needs to be addressed,” he said.

“People are always looking for a better deal, and most cancellations happen when they see another hotel lowering their rate,” said Jamie Pena, VP of global distribution and revenue strategy for Omni Hotels & Resorts.

She and many of her fellow industry colleagues are taking action.

For more: http://bit.ly/1WA7So6

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by | September 25, 2015 · 5:03 pm

Hospitality Industry Technology Update: “The Present and Future of In-Room Tech”

“Hotels should focus on making room technology easy to understand, accessible and relevant. Do not focus the efforts only on creating ‘fun’technology such as mood lighting and such.Roundtable-Feature It’s important to pay attention to the devices used by guests and add tech features, which can assist in an improved hotel experience.”

From cathode-ray tubes to flat-screen televisions to smart screens. From dial-up Web access to Wi-Fi.

In-room technology in hotels has evolved over the years, and it will only continue to do so. But what are the changes hoteliers can expect next? And in an industry often accused of being behind the curve when it comes to technology, what do hoteliers need to keep top of mind to add to the guestroom experience?

Five leaders responded to these questions in this Hotel News Now virtual roundtable. This is what they had to say.

From where it stands today, where do you see in-room technology headed in the next few years?

Mehul Patel, chairman and CEO of NewcrestImage
“Technology, notably Bluetooth, will increasingly make rooms more ‘open’—both literally and virtually. For example, mobile technology will allow guests to unlock and enter their rooms. And after they are in their room, guests will open their room to the virtual world with customized entertainment content and room management. Because today’s travelers have their own mobile devices, it enables us as hoteliers to provide them with technology that makes their stay with us smarter and simpler—‘smarter’ thanks to Bluetooth and ‘simpler’ by facilitating their use of personalized content in movies, television and music.”
 
Joachim Högefjord, managing director, and Gül Heper, commercial manager at HTL Hotels
“We believe it’s most important to stay relevant to the guests and their needs. In-room technology is not about filling a hotel room with all possible gadgets; it is about enhancing the guest experience and especially simplifying the stay at the hotel.“We need to continue looking at existing behaviors and identify the right needs, what devices are the guests bringing with them and review how to incorporate this in the room in order to provide a better guest experience. One given area, where we already supply device independent solutions is in terms of in-room entertainment. Why equip the hotels with expensive hotel TV systems with on-demand movies when most guests today can and will be using their own devices to stream and mirror everything from movies to HBO and Netflix for free with their existing subscriptions?“Mobile access to the room is of course also an area that will continue to develop and be more and more standardized. Today there are few hotels and chains that are fully offering this to all guests independent of distribution channel. From the start we decided that this should be one of our standard features, and already in spring of 2014 we launched our own app with mobile key.“Of course there is a lot of talk about in-room control systems for lighting, heating, shades, entertainment controls, etc. They might grow in the future, but at the same time it is generally a learning curve to handle them, and with guests staying in general 1.5 days in a room, it might add more complexity to your stay than added value.”
 
Bashar Wali, president of Provenance Hotels
“In-room technology will focus on connectivity for the traveler’s personal phone, tablets and computer. Guest-provided media will stream to TVs, USB outlets will be within an arm’s length away from the bed and desk in every guestroom. Personal technology has surpassed in-room hotel technology to the point of no return. With annual upgrade cycles for consumer technology devices, hotels can no longer spend enough to catch up. Hoteliers, stop implementing technology of the day and just let travelers have power outlets, free, fast Wi-Fi and access to their own media.”
 
Anna Blount, market research manager of MMGY Global
“When asked which device they are most likely to watch television or cable movies on during a hotel stay, 86% of travelers chose the in-room television, while 13% chose their personal laptop, 6% their tablet and 4% their smartphone.“Similarly, 84% of travelers said they were most likely to watch pay-per-view movies on the in-room television during a hotel room stay, while 9% chose their personal laptop, 9% their tablet and 3% their smartphone. Although in-room television is still dominate, we expect usage of personal laptops and tablets to consume in-room entertainment to increase considerably over the next five years.”
 
Euan McGlashan, co-founder and managing partner of Valor Hospitality Partners
“Technology will soon control the entire guestroom, and that’s a good thing. A guest will be connected to every element of the in-room experience—for example, entry locks, television, music, lighting, temperature, roomservice and in-room deliveries or services—through simple switches, remote controls and hand-held devices, which are either theirs or provided by the hotel.”

For more: http://bit.ly/1YzEVea

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by | September 14, 2015 · 9:16 am

Hospitality Industry Risk Update: “5 Ways to Pummel Pests at Your Hotel”

“(Hoteliers) really should have an independent inspection of their vendors,” Rivard said. “The prime food producers throughout the country already do that. They’re checking them out,20150911_pest control whether they’re buying some ingredient or working with a pallet manufacturer.”

A hidden danger of record high demand is more guests walking through the door means a higher chance anything from bed bugs to cockroaches to rats and ants are following right behind.

One of the few things more disconcerting than the pests themselves is the effect they can have on your bottom line.

A recent survey conducted by researchers at the University of Kentucky showed a single online review mentioning a bed bug sighting caused many to immediately write off a hotel. The first reaction of 56% of potential guests will be to no longer consider staying at that property, 7% will shorten their stay and 12% will seek to avoid that hotel’s brand in the future.

The same survey, results of which have not yet been published, showed 60% of guests who spot a bed bug would immediately leave the hotel, which is almost three times as many as those who would leave after finding someone else’s blood somewhere in a guest room.

“It’s a maddeningly difficult problem to deal with,” said Michael Potter, an entomologist at the University of Kentucky and one of the authors of the study. “Everybody is dealing with bed bugs … but hospitality is especially vulnerable because people rely so much on social media when making decisions.”

The potential damage to your hotel’s reputation is only worsened when considering the fact that less than a third of those surveyed could identify successfully a bed bug, with many confusing other pests like lice, ants, termites and ticks for bed bugs.

The harsh reality is there are no 100% infallible methods to keep pests from darkening your doorways, but there are some things to make sure they’re less welcome after arrival.

Here are five ways experts seek to prevent pests.

For more: http://bit.ly/1gmpxiM

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by | August 26, 2015 · 8:35 am

Hospitality Industry Management Update: “Airbnb Casts a Long-Term Shadow”

“We need to embrace the technology,” he said. “We can choose to work with them, which we didn’t want to do with (online travel agencies) at one point20150818_hdc_altaccom.Let’s learn from that lesson.” Cox said there are obvious lessons that can be learned by how Airbnb does business.

These are happy days for the hotel industry, so why does it seem like the only thing anyone wants to talk about is the shadow cast by the black cloud of the sharing economy?

Airbnb represents a significant threat in the eyes of many hoteliers, including those who spoke at the “Alternate accommodations: The demand bandits” panel of the 2015 Hotel Data Conference.

“We definitely see Airbnb as a big threat,” said Kurien Jacob, chief revenue officer of Highgate Hotels. “We come across that in every single meeting we have.”

Jacob said the preponderance of Airbnb hosts in New York City, coupled with that market’s well-publicized supply issues, has worked to drive down rates.

“Airbnb is so well known internationally, so it’s not just a problem domestically,” Jacob said. “So we’re seeing (international travelers) coming into the city and staying with Airbnb.”

For more: http://bit.ly/1EWeZNz

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by | August 12, 2015 · 11:03 am

Hospitality Industry Technology Update: “Are You Ready For EMV Card Adoption?”

Current standard-issue American credit cards store personal information in a magnetic stripe on the back of the card. EMV cards, however, store information on a secure computer emv cardschip,which generates a one-time-use security code for every transaction, making counterfeiting virtually impossible, according to the EMV Migration Forum, a consortium of industry players that support EMV chip implementation across the United States. 

Credit card security is a topic top of mind for any business that processes consumer payment data, and this October the stakes for U.S. businesses—including hotels—to comply with the latest wave of payment security will get higher.

It’s all part of a continuing wave for the United States to widely adopt EMV chip credit cards, which reduce counterfeiting and card fraud, but which require hardware and software upgrades on the part of the party processing the payment.

Beginning in October, new compliance language will shift the burden of liability for some types of fraudulent credit card transactions away from banks and ultimately on to merchants. Hoteliers who know these new liability burdens and are actively implementing technology upgrades to read these new cards will come out ahead, legal and technology sources said.

Knowing the reasons behind the change and the implications of noncompliance will help hoteliers make a seamless transition, sources said.

For more: http://bit.ly/1NavP2i

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by | July 20, 2015 · 11:10 am

Hospitality Industry Management Update: “6 Ways to Prepare For the Next Downturn”

“Providing an exceptional guest experience is the best investment any hotelier can make.20150714_downturn_feature This is why we as a brand have rolled out a membership-wide training program all about the importance of unlocking the personalities of the staff and the story of the hotel when guests stay,” she said.

Good times continue to roll for the global hospitality sector with growth in the travel and tourism industry expected to increase by 3.9% this year, according to Ernst & Young’s “Global hospitality insights” report for 2015.

But in the cyclical fashion of the industry, the upswing can’t last forever.

So what should hoteliers be doing now to prepare for the inevitable down cycle, and how much can investing in their products and services now set them up for not so good times in the future?

For Eric Danziger, president and CEO of Debut Hotel Group and Hampshire Hotels Management, preparation now is absolutely key to success in a future downturn.

“Hoteliers should be pragmatic, preparing for when it is a bit more difficult to get those much-needed guests through a property’s doors,” he said. “Hoteliers that are prepared with a product and with services that guests value, appreciate and are willing to pay for will be ahead of the game.”

For more: http://bit.ly/1IflBgM

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by | July 13, 2015 · 11:51 am

Hospitality Industry Legal Update: “Are You Breaking the Law by Recording Calls?”

“Regardless of the content of the call, hoteliers should be ensuring that they are using automatic disclosures—in order to obtain consumer consenthotel-phone—if using an automatic recording system. If an operator becomes the target of one of these consumer privacy class actions, taking an aggressive approach and attacking these claims as incongruent with the legislative purpose and intent behind the respective statute is a recommended.”

In the past few years, class action plaintiffs have recovered billions of dollars in punitive damages by exploiting strict liability laws that punish businesses for failing to properly notify customers when a phone call is being recorded.

Under the Federal Telephone Consumer Protection Act and similar state statutes, businesses including hotels are prohibited from using certain tactics when telemarketing or making calls to solicit potential guests or customers. Hotels and other businesses are precluded from making calls or using any kind of prerecorded message, unless the caller has obtained a recipient’s prior express consent in writing or electronically.

Additionally, hoteliers are prohibited from making calls to residences before 8 a.m. and after 9 p.m., and a future hotel guest calling to confirm a reservation also must be notified if the call is recorded. Hence, under these laws, if a hotel receptionist in Montana receives a call from a California resident to confirm a reservation but never notifies the recipient that the call is being recorded, it could result in damages ranging from $500 to $5,000 per call under federal and state laws.

This seemingly innocuous business practice of recording customer service calls without providing some variation of the oft-heard disclosure, “This call may be monitored or recorded for quality assurance purposes” has the potential to financially cripple a business.

For more: http://bit.ly/1CBRlu6

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by | June 11, 2015 · 9:14 am

Hospitality Industry Management Update: “3 Ways the Hotel Industry is Changing”

“We’re under attack right now,” he said. “We’re under direct attack. We’ve got Expedia and Orbitz planning a merger. They have 75% of the online marketplace. This is like the Klingons and Romulans teaming up together.”3 ways hotel industry changing…David Kong, president and CEO of Best Western International, said he is not surprised to see consolidation among online travel agencies considering that some hotel companies are consolidating, too.

J. Allen Smith has a problem.

“I keep feeling: ‘What should I be worried about?’” the president and CEO of Four Seasons Hotels and Resorts said Tuesday during a general session “The leaders forum” panel at the 37th annual NYU International Hospitality Industry Investment Conference.

“You’re mindful of a plethora of risks. None of them seems to be materializing in a way that seems to be disrupting anything, but you have to be mindful of them,” he said

Smith’s comment succinctly summed up the sentiment on Day Two of the NYU Conference. With the industry hitting on all cylinders, it can be difficult to find things to be concerned about.

Difficult, but not impossible it turns out, as top leaders from around the industry discussed their biggest concerns in this part of the cycle. One of the recurring themes throughout the three-hour long series of morning general sessions had to do with how the hotel industry itself is in transition.

For more: http://bit.ly/1MsNG1s

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by | May 26, 2015 · 9:51 am

Hospitality Industry Management Update: “5 Ways to Improve Responses on TripAdvisor”

Leisman cited data form a Phocuswright poll of the TripAdvisor community of travelers that found 84% of U.S. users agreed that an appropriate managementonline engagement response to a bad review “improves my impression of the hotel.” Six of 10 users (62%) said seeing hotel management responses to reviews generally “makes me more likely to book it (versus a comparable hotel that didn’t respond to travelers).”

It’s funny observing the disparate number of policies hoteliers employ regarding reviews on TripAdvisor. Company A insists on responding to every comment, while Company B tells its managers to reply only to the bad. Company C takes a different tact entirely: It doesn’t respond to any.

Those are the broad buckets. Nuances and further variation exist at each stage along the spectrum. And each company that employs them insists theirs is the only and obvious approach.

Some variety might be warranted. One hotel is often not like the other, so I understand a degree of unique plans that appeal to unique bases of demand, product offerings and location types.

But clearly there are some hoteliers who, despite their best intentions, are engaging with guests on TripAdvisor in a manner that could prove potentially harmful to further review rankings and thus future bookings.

In cases such as these, I find it’s best to go straight to the source for the prescribed best practices. In this case, that would be TripAdvisor—or more specifically, Heather Leisman, business VP of industry marketing.

This topic was top of mind for her. TripAdvisor recently released a report which examined why travelers write reviews. The top reason? “To share useful information with others” and because “they find reviews helpful, so they want to give back.” (Who knew the TripAdvisor online community was so altruistic?)

For more: http://bit.ly/1cgseQT

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