Thursday, November 3, 2011

You can Auction Hotel Rooms



RateGain's online channel management solution – ChannelGain integrates with Cultbay, a solution used by thousands of hotel and travel suppliers to sell their products on eBay. CultBay, Cultuzz's most globally respected solution for selling on eBay, is used by thousands of hotel and travel suppliers to sell their products on an 'Auction' or a 'Buy-it-now' basis.
Using its advanced features, hoteliers can place their rooms on auctions, assign a start price and sell it to the highest bidder. This enables hoteliers to leverage local events; festivals, celebrity shows etc. and offer their rooms on auctions, and optimise the opportunity of increasing their Revenue Per Available Room through higher yields.

I have noticed Marriott and Hilton Brands using this technique to generate higher revenue. Seems like market managers from all the other franchise brands need to stay on top of the news and inform General Managers working for their respective franchises. Overall, good to see innovative ways of selling hotel rooms!

Direct Hotel Bookings to go up?



FastBooking Direct Link debuts with long-time travel and price comparison site partners Google (Google Maps, Google Hotel Finder), TripAdvisor and Trivago. The service is scheduled to extend to Kayak and Wego in Q1 2012 and continue to build momentum over the course of the coming year.
"Direct Link is completely in line with our key promise: increasing hotel direct bookings," says Jean Louis Boss, FastBooking Vice President, Marketing. "Direct Link gives independent hotels and groups critical visibility on travel and price comparison sites when Internet users are searching for accommodations. The hotel benefits from increased traffic on its official website, greater potential for bookings and profit, and the very real advantage of 'owning the relationship' with the customer."
The Direct Link program extends the hotel's brand visibility to a global customer base with high purchasing power.



Hopefully, we see more and more initiative by hotel companies to direct traffic to their own website. The trendsetter has definitely arrived.

Sabre develops first global reservation system

Sabre Travel Network, a global technology leader serving travel agencies and corporations, and Polycom, Inc. (Nasdaq: PLCM), the global leader in standards-based unified communications (UC), announced today the two companies are developing the first global reservation system for booking and scheduling public and corporate-owned HD video conferencing and telepresence rooms. Sabre Virtual Meetings will allow users to locate, reserve, and connect public and corporate-owned video conferencing rooms and set up "face-to-face" HD video conferences with colleagues, partners, and customers anywhere around the world. When integrated into travel applications such as online booking tools or travel agency systems, employees, agents, travel arrangers, and other travel buyers will be able to reserve and schedule video conferencing rooms at the same time they book flights and hotels.
"The need for a centralized reservation system to facilitate business-to-business video meetings has grown tremendously in recent years. Incorporating a global reservation system into existing travel distribution channels is an innovative approach"
An industry-wide solution, the Sabre meeting room system will be open to multiple telecom and video conferencing providers, and be accessible through several travel and third-party distribution channels including global distribution systems, travel management companies, online booking tools, and directly on the Internet. Sabre Virtual Meetings will increase the adoption and use of corporate-owned video conferencing solutions, delivering a faster ROI on those assets. Additionally, the platform will increase use of public video conferencing rooms, such as those Polycom is helping to establish at Regus locations worldwide.
"Advances in technology have changed the way we live our lives and run our businesses," said Greg Webb, president of Sabre Travel Network. "Sabre Virtual Meetings will create a step change in the way corporate employees communicate and collaborate with each other and their customers. By making telepresence scheduling as simple as booking airline travel, Sabre and Polycom will help companies and employees form closer relationships with customers, enhance internal collaboration and increase productivity."

HVS wins Management Consultant of the Year Award



HVS has been announced as Management Consultant of the Year at the International Hotel Investment Forum (IHIF) Awards, held at a dinner at London's Hilton Metropole Hotel on Tuesday evening, 1 November 2011.The awards celebrate the achievers in the European hotel investment community and were voted for by several thousand senior figures in the European hotel industry following a shortlist drawn up by two judging committees."The HVS team was delighted to receive this award. It has been an exceptional year for us with a number of high-profile transactions and assignments, and it is a real team effort by all our European offices and divisions," said HVS London managing director Russell Kett.Chairman of the judging panel Andrew Sangster, editorial director of Hotel Analyst, commented: "HVS is hugely active in the market and has gained a lot of market share. It wasn't just HVS's professional knowledge that the judges were impressed with, but the company's integrity when dealing in high pressure situations."The Management Consultancy of the Year Award is given to the consulting firm that demonstrates the best value-added work around hotel investment such as merger and acquisition advice, feasibility work and market assessment. Factors taken into consideration were the ability to overcome unique challenges, creative solutions to problems, and value enhancement to clients as well as work that contributes to the wider hotel investment community.

Franchise vs Independent



My answer would be based on my financial capability. If everything else constant, and I have the financial luxury to choose between an independent or franchise, I would buy a franchised business. The risk is a lot lower than with going with an independent business. The money you pay to an franchise is worth the strong branding you get in return. I have met many franchisees, who end up owning multiple units, for example - subway, dunkin donuts, hotel chains, etc. On the flip side, I rarely have met people create their own branding on a large scale. The other positive is visibility and marketing - an franchise is nationally recognized - and you do not have to rely on word of mouth locally to attract customers, like you would if you are running an independent business. I would definitely become a franchisee.

Wednesday, November 2, 2011

Comparing Hotel Brands and their Consistency



Comparing hotel brands are not only limited to the pricing structure and size of the hotels. Cleaniliness is something all hotels (small, big, full service, limited service) should have distilled in place. There is no excuse for operating a hotel with bad housekeeping or trash comnmon area maintenance. Here is a summary of Brands that I would recommend travelers stay in depending on their individual needs:

1. Marriott International - Marriott is the model of consistency. They offer extensive 2 week training to all their employees so that they live and breath the Marriott Way. They stress that everything starts with good attitude. I have never been to a Marriott property with bad service. Their loyalty program is the strongest in the industry. Last but not least, they do not franchise to just about anyone who has money! They require extensive hotel experience along with strong financials to apply for a franchise. After they which, they place their own management in the hotel. My first job in the hotel industry was at Marriott- and I still go by the Marriott Way while having managed hotels in almost all the major Hotel Companies. They have good market segmentation starting from their economy brand Fairfield Inn all the way on top with the Ritz Carlton. Definitely recommended!

2. Hilton Hotel Group- They sit right behind Marriott in most major categories. However, their Hampton Inn product is giving the Courtyard a run for their money. Hilton is a constant innovator in the Customer Service Department. They were the first hotels that gave undisputed refunds to unsatisfied guests. That gave them the initial exposure they needed with the Hampton Inn brand. Since then, their policies are modified, and rightfully so. Hilton is definitely recommended.

3. Intercontinental Hotels Group - 15 years ago, I would not have recommended IHG hotels. Half the inventory was filled with old outdated properties that were not up to standard. Franchisees simply were not renovating to keep up with standards, while IHG did not place pressure on their poorly rated properties. However, things started to change with the emergence of the Holiday Inn Express Brand. It came as a breath of fresh air, and changed the dynamics of the company. With its success, IHG started getting rid of old Holiday Inns from their portfolio. They eliminated exterior corridor properties, which was passe at that point in time. They now pressured Franchisees into capital improvements - and the result shows. today, they are considered a good product, and the Priority Club membership can be said to only trail the Marriott Rewards. With reasonable pricing - it definitely is worth a stay!

4. Choice International and Wyndham Hotel Group - Too many properties located in clusters . Franchisees competing against each is the norm. The thought of staying at a Quality Inn, Howard Johnson, Days Inn, Travelodge, Super 8, Rodeway Inn, etc, without reading an online review would be the biggest mistake of their life. Too many properties associated with these companies are on the verge of collapse, with no secured future with their franchises. Wyndham Hotel Group had to change their name from Cendant, to move its focus on their namesake Wyndham hotels. However, most of their economy brands are still poorly reviewed. Choice is a better choice than Wyndham Hotel Group, however, franchisees have been crying foul because of same brands being placed around the corner from each other. Choice should receive a reality check when all franchisees come together and fight a legal battle! (Im getting of the subject, this post is supposed to be from the guest view)

Honorable mention as good brands (Hyatt and Starwood Properties)

Feel free to post and question or concern in this highly debatable post.

Online Hotel Booking Tax (Hotel Occupancy tax)



Proposed federal legislation called the "Internet Travel Tax Fairness Act" (ITTFA) would prevent state and local governments from collecting room taxes from online third party intermediaries (TPI) when hotel rooms are booked through such companies. If enacted, such legislation would place hotel companies at a competitive disadvantage with respect to marketing their own rooms. There is a good article about recent legal actions against OTAs

Contact your Senators and Representatives about this issue and let them know you oppose this unfair legislation