BITAC brings together industry friends – old and new
Earlier this week, we had a chance to attend the always fantastic BITAC Purchasing & Design East Conference in Aventura, Florida. The tropical climate played host to record breaking attendance for the conference, and we were thrilled to be a part of the event.
As always, BITAC was filled with an abundance of useful information, and food for thought. Existing relationships were renewed and new ones were forged as its attendees were given the chance to discuss some of the hotel industry's hot topics.
In the current economic climate, it's no wonder that industry executives were discussing the ever prevalent topic of hotel lending and had the event buzzing with a common interest in renovation and solutions to create opportunities for hotels in distress.
In the wake of a tremendously successful event, we look forward to the next BITAC conference to once again bring together friends, both old and new.
Happy Fourth of July: Celebrate with some cut-price luxury
It is no surprise to hear that luxury hotels are feeling the impact of the economic downturn. But as we've said before, the hospitality industry is a robust one and when the going gets tough, we see from our customers – from boutique hotels through to international chains, they're ready to respond.
This Fourth of July, 37.1 million Americans are expected to travel more than 50 miles from home. In the wake of hard financial times, even luxury hotels are putting their best foot forward with a mixture of extraordinary discounts and some really innovative online campaigns to broaden communications with potential customers.
With the typical U.S. hotel's net operating income expected to fall 37.8% in 2009 and a predicted further decline of 9.2% in 2010, it's no surprise that hotels are turning to online marketing, social media and new web initiatives to boost awareness of their deals. Competition is rife. Services are becoming more tailored at the point of booking from what will be stocked in the mini-bar, through to delivery time of breakfast.
Hotels are still being built, although at a sporadic rate. An estimated 48,000 fewer hotel rooms will be built this year, a 23% drop from last year, according to Smith Travel Research.
In the interim – it's a time of opportunity: for hotels to innovate at every level – from room design, services and how they market, and for consumers to support the industry and our own economy by trying out some of the best hotels in the world.
From all of us here at The Refinishing Touch, we would like to wish everyone a happy Fourth of July weekend!
Cost drives consumer choice of hotels: NYC and LA survey reflects downturn
Last week we announced our findings of the major influences over travelers' hotel bookings. As our business and client base covers the entire continental United States (and beyond), we wanted to get a feel for how the current economic climate is influencing buying habits across more than one state, and so polled hotel visitors on both sides of the country, namely LA and NYC.
What did we find? Well, on each coast cost was the single largest influence. Respondents in NYC and in LA agreed that room rate was the largest single factor that they took into consideration - for both vacation visitors and those on business. It's no surprise to hear that hotels need to lower costs to attract visitors, and easy to sympathize with the challenge of lowering prices in a downturn.
Here at The Refinishing Touch we know cost is a driving factor, because we see it from the other side. The breadth of hospitality businesses we deal with from boutique hotels, global chains and casinos, to luxury resorts, each face the challenge of cost-conscious consumers, and seek solutions to protect their bottom line.
In our research, cost was followed by location- something that can't be changed by any owner or General Manager. But other factors, such as amenities and initiatives in place, just like cost, are barriers that need to be overcome. The bottom line is that consumers need to be given a good price to stay in accommodation that gives them a great experience.
This is a subject that has crept up in conversation several times this week alone from owners and managers we know in the industry: How do you compete to provide the best guest rooms, reception areas, customer service and overall customer experience in a downturn?
The need to succeed in order to survive, and to compete on price to succeed.
The two seem diametrically opposed. But they're not. In the next week, we're going to be blogging, talking to the press, and explaining our thoughts on this key subject: there are trends to be bucked, and we have a wealth of ideas and experience to share.
Last week, The US House of Representatives voted for an official extension to the analog switch off from the original date of February 17, 2009 to June 12, 2009.
Though almost all stations are already broadcasting in digital, the Washington Post reported that an estimated 14 million households across America still depend on analog broadcasts.The delayed date comes as a response from the government after many speculated whether the government was following all necessary steps to provide assistance for Americans through the transition.
Consumers who elect to keep their analog televisions will need a converter box to receive digital broadcasts.
A Neilsen research note from January of 2009 found that more than 6.5 million households were not ready for the switch and more that 3.7 million consumers are still on a waiting list to receive vouchers from the Department of Commerce that promises a discount on converter boxes.
At TRT, we are continuing in our initiatives to work with key players in the hospitality industry to ensure that they are ready for the digital transition.Hoteliers purchasing new digital flat screen TVs are faced with needing to house the new TVs in armoires that cannot accommodate the size and shape of the new TVs.By working with existing assets, we have been able to provide an economically sound solution to our customers with our armoire modification process.
The digital switch has its affect on consumers, business owners and industry players alike.How have you been affected by the switch?
How Can Hotels Sustain During Current Economic Times
During this tough economic climate, the hotel industry along with others are re-evaluating business practices and devising plans to sustain. It's important to focus on sustaining current hotel properties by looking at existing assets for the short term in order to thrive in the long run.
In a recent article entitled 'Hotels Try to Adapt to Hard Times,' the focus was on the hotel industry's resolve to attract travelers during this slump. Last year, the Sheraton had 54 new hotels financed which are scheduled to open this year, at a rate of one every three weeks. These new hotels are opening during a challenging time when existing hotels are currently struggling to sell existing rooms.
To save, hotels are exploring closing on-site gyms, decreasing room service hours of operation, reducing operating hours of business centers and closing floors. While these are options, they are not the only solutions.
It's time to focus on asset management. It's time to take funds for outfitting new properties and look at ways to enhance existing hotels with the assets they have on site. We, at The Refinishing Touch, believe in the three R's - refurbish, refinish and reupholster, to make existing assets as good as new, as a solution to help. Furniture may look worn or outdated, but this is no reason to opt to buy new - no matter the state of the economic climate. It is cost efficient and more effective to utilize and update existing assets to save on the bottom line.
It is safe to say that in every industry, executives are planning and strategizing how to maintain success and survive during this this economic downturn. Contrary to what many may believe, in this tough economic climate, there are hotels in the industry that are actually thriving and profiting as they were during this same time last year. How are they able to do this?
In a recent article in Hotel News Resource focused on how sales departments can thrive during this economic climate, we thought the insight was beneficial on how to do things differently. During a time when most companies are preparing to scale back on sales and marketing departments this is not the time to do it, the best thing for companies to do is actually the opposite. Strategies should be developed to reflect current economic realities in the market.
What are some strategies that these successful hotels are implementing during these times?
First, increase sales efforts, in the past sales may have not been as necessary due to business and leisure travellers aggressively pursuing the property, however now sales is essential to reach out to potential customers.
Think of ways to 'sell into the recession.' Properties can do this by actively targeting new prospects that seem to be prospering in this environment. Hotels can also go through their existing database to choose current/past accounts that are sustaining during this tough time.
Finally, the internet. Attack the internet as a means to reach out to current and future business prospects. Pay per click advertising is one of the best ways to position your hotel at the top of a search. However, monitor the online efforts to determine where the benefits are coming from.
We, at The Refinishing Touch, believe during this economic climate businesses must truly ramp up efforts and do things non-traditionally to succeed in 2009. Executing targeted campaigns to generate awareness while also looking at areas to save is critical.
