Take a look at this IHG video, with their Chief Financial Officer Tom Singer commenting on the key highlights of the latest financial results, published this week.
Highlights:
I really admire the inventiveness shown at The May Fair hotel in London. Clearly the hotel is one of the Capital’s most famous and has been featured on this blog on a few occasions, but they keep out-doing themselves with more out of the box ideas to promote their unique identity.
This time the glamorous hotel have been creating romantic gestures for valentine’s day, to treat that special person to the ultimate treat using their aptly named ‘Cupid Concierge’. Here’s a taste of what’s on offer:
A visit to the London Aquarium where you will have you own guide to take around the Aquarium, when you arrive at the big tank just give the signal and a diver in the tank will present a card with your marriage proposal on. From £200
Popping the question – one bottle of Moet et Chandon rose and a single red rose @ £110
Private car service to the London Eye including private Champagne Capsule London eye. From £328
Horse Drawn Carriage through London, stopping at your favourite romantic spots for 3 hours. From £800
Phantom rolls Royce for 4 hours around London with a bottle of Champagne £700
Private car service to Westminster Embankment where you will meet you own private boat for a four hour trip along the Thames. From £3,000
Unless you’ve been on another planet, you will not have failed to see the hype around the announcement of Room Key. Founded by a group of leading hotel companies, Room Key’s mission is to offer travellers direct access to a broad network of hotels, provide accurate and comprehensive information and make it easy for travellers to discover what’s right for them. Currently in beta mode, Room Key is made up of six hotel brands, Hyatt, Marriott, Hilton Worldwide, InterContinental Hotels Group, Choice Hotels International and Wyndham Hotel Group and headed by some impressive names from the world of hospitality.
But why has Room Key been created? Reading between the lines and overlooking the fluffy marketing tale, it’s for one simple reason. Hotel chains are of course challenged by the pressure and dominance of Online Travel Agencies (OTA’s) who traditionally sell rooms cheaper and of course, take a commission. This goes against hotel chains primary objective of capturing a booking direct – controlling their rates and ensuring that guests book direct (and keep booking direct) which is of course the most profitable route to success. Room Key was the birth of these hotel chains coming together and thinking by creating a channel of their own, where they can guarantee the best available rate would start to claw back some of the power of the big OTA’s, such as Expedia and Priceline.
So, what’s the problem? Well, there isn’t really. Unless you look into how this will work and of course ask yourself, will the real aim of Room Key be achieved. It’s a complex question for many reasons.
The online marketplace is dominated by big and powerful OTA’s – the likes of Expedia, Last Minute, Booking.com etc. They are far ahead on the game, so entering this arena is always tough. There has to be a clear benefit to change a shopping habit, and this is what Room Key needs to find and focus on. Really, it should be price. If the providers are pushing their best available rates to Room Key, you’d expect to find the best deal there. Wrong. I checked some hotels this morning and found the same offering on Expedia cheaper 7 times out of 10, so something is clearly going wrong.
Of course, Room Key is in beta mode right now, but the functionality of the site so far is really nothing special and often clunky. Hotel shopping should be easy and an enjoyable experience. Look at the way the newest players are doing things – the way a company like Room77 have totally changed the way you search for a hotel on their website. Room Key offers nothing unique to date. It also doesn’t help that once you’ve found your rate, you are re-directed back to the hotel providers website (on too searches I made, I ended up at a landing page, not the booking page).
It will be extremely interesting to see how the industry responds to Room Key. What will the GDS’ make of it? How will the dominant OTA’s counter attack for business? And of course, how will Room Key improve their offering and make it the place everyone has to check in their shopping process. Time will tell.
Some hotel chains are only just waking up to the fact that social media channels equal booking channels. Some are only just realising it could be an idea not to just have a presence on Facebook, but to let clients book on Facebook. Accor have been ahead in the game for a while now, and this week announced that they had the first location-based application to reward a hotel group’s loyalty program members.
Accor launched A-Club Places, an innovative and unique Facebook application, available to A-Club loyalty members. The launch of this application is part of Accor’s strategy to develop its presence on the Internet, on mobile phones and social networks. Sales through these direct distribution channels represent close to 29% of the Group’s total sales.
The new service allows members to check in on the application on Facebook and rewards customers with a badge depending on the regularity of their stay and on the type hotels the stay at which convert into A-Club points.
This just shows how hotels are having to develop their online presence in social circles even more carefully. Its important to offer as much of your baseline service on as many channels as possible, and Accor have plugged the gap with their loyalty program.
On Tuesday, I attended the launch of TTIcodes, an initiative being rolled out by Travel Technology Initiative (TTI) to try to solve one of the most frustrating, and in reality, fundamental problems in the hospitality and travel industry – hotel codes.
Without getting too geeky about this, a clear problem exists (and has done since hotel distribution began) – knowing where a hotel is precisely located – and how to keep that data current. If you think about the hotel distribution landscape, we are in a fragmented world bad up of hotel chains, hotel representation companies, wholesalers, bedbanks, online travel agencies, GDS’ and technology providers – all need a key piece of information to distribute and even share their content – the hotel location, referenced to a hotel code/property number. Put another way, it’s the kind of questions we hear every day: “What is a property called on channel ABC?” or “Is this the same property being offered on channelXYZ?”. And remember, this isn’t as easy as it sounds. Properties close, chain ownership, chain, representation company all the time.
Simple? Well, actually no. Every company in the business has their own code. Therefore, as soon as you share data between multiple parties, or you take a data feed from another provider, extracting data to match to your own hotel database and being able to present third part data accurately is a logistical nightmare.
Of course, all types of providers work to geo-code their content – but as everyone does it differently, often stores too much information, and the process is almost entirely manual you see where firstly mistakes are made, and how often this information can change and cause you trouble. Imagine sitting trying to map a location for a hotel – not every country has a sophisticated postal system, or has been accurately mapped by Google Maps, making the task near impossible.
So, with the problem explained (to a very high level!) you can understand the need for such an initiative. Put simply, TTI have created TTIcodes with the help of a third-party company called GIATA, who are already geo-coding and creating a master database, to create a unique hotel identifier.
Why has it taken so long? Ask yourself this question, and you get a simple answer. The hospitality industry is vast and fragmented – add to that the fact that everyone is sharing content – and getting all invested partied to agree on a set standard is difficult. Of course, people have tried this before – it’s been on the HEDNA agenda in the past for example. But to be honest, it’s never got quite as far as the TTI initiative.
So what exactly are TTIcodes? TTIcodes are unique hotel identifiers aimed at revolutionising the way travel companies handle accommodation by simplifying de-duplication of accommodation feeds from wholesalers, bedbanks and other accommodation providers. TTIcodes aims to become the widespread standard in this respect for the travel and hospitality industry and be the single most important global identifier for hotels and other accommodations.
Is there a cost? Of course. But before you judge, TTI are not for profit and it’s cheaper to buy this information from TTIcodes that GIATA directly. I’ll let you investigate the pricing on the TTI website yourself. The process is simple – GIATA upload your hotel database and map the properties against their database, adding any new ones and applying a new code to them. You then get a range of access to the entire database.
The key is also involving hotel properties themselves – and I was pleased to hear TTI will encourage hotels participate in TTIcodes has devised a simple low cost pricing structure for both individual properties and hotel chains that wish to participate in the services.
Will it succeed? I don’t know. Although the power behind this, GIATA have a large customer base and have coded some 215,000 properties, its day one for TTIcodes. It’s certainly worth a look if you find yourself struggling in this area, and one to watch carefully.
Outside of Hotel Insight, my role in the hospitality industry allows me to get really involved in the Irish market, and for that reason, I was speaking with my friend Christina, the owner of CG Online Marketing based in Ireland, about her thoughts on hotels using social media in her primary market. We had such a good conversation, that Christina offered to provide her insights into this area – so this post is courtesy of Christina!
Christina: “According to Failte Ireland’s visitor survey, everybody loves the Irish hospitality. In my mind, this means that the Irish charm and warm nature is perfect for social media – so here I’ve compiled a list of the top Irish hotel social media pages and campaigns and together we can you can judge if the Irish brand of hospitality translates as well online.
1) First up is the Cliff House Hotel, Ardmore, Co Waterford
A stunning location on the south-east coast and close to Ardmore Bay, the Cliffhouse Hotel are lucky to have the ocean as a backdrop.
Twitter: @cliffhousehotel
Facebook: http://www.facebook.com/TheCliffHouseHotel
These guys were born to tweet and never miss a chance to respond (great customer service).
Practically 4000 Twitter followers and high engagement levels. They have been known to tweet and serve simultaneously.
Their Facebook page is just as busy – plenty of pictures, updates and they even shared a few mentions on third party blogs – nice!
Not one question was left unanswered and the tone was consistently upbeat.
An encouraging start!
2) Next we have, The Clanard Court Hotel, Athy, Co Kildare
Set on the outskirts of Dublin city, the Clanard Court is a popular local for those living in Athy.
Twitter: @ClanardCourt
Facebook: http://www.facebook.com/ClanardCourtHotel
Let’s look at their social media
This hotel set hearts aflutter with their ‘Love Match’ Facebook campaign to win a wedding
(the one of your dreams, of course).
The competition stages:
What I loved about this campaign was the innovation and personalisation of it. Interactive, multimedia-driven (upload images and video interviews), personality (some cool questions like ‘What celebrity does your partner look most like?’) and the amount of time and commitment a campaign of this magnitude must have taken. This is more of a free-fall into social media, as opposed to a side-step and it is a testament to what social media can do for a hotel.
3) In at 3 is The Maryborough Hotel, Douglas, Co. Cork
The Maryborough hotel (a client of mine, incidentally) is well-known for a warm and friendly service. They are constantly adding to the hotel (Pet Farm, Team Building and Dome) and are dedicated to their guests.
Twitter: @TheMaryborough
Facebook: http://www.facebook.com/maryborough.cork
Let’s look at their social media
The Facebook page has personality! Sales carries this function and it’s updated almost daily – sometimes with offers, something with links, and sometimes a just a feel-good shout out.
You may not note the strategy at play, in fact you might be forgiven for thinking there isn’t one at all…but, there is! The updates are all goal-driven – Talking about Santa’s visit, buying Christmas vouchers, Spa offers, etc. Mostly, there’s a sales message at play, but it’s packaged behind an energetic and happy voice, so fans respond.
‘#leaders11 Have to say the Energy is just Electric here in the Sherrard Suite Tonight!!!’
Plus – they use #tags for tweets and create a nice buzz for their offerings.
There are countless hotels in Ireland worth a mention, like The Cork Airport Hotel – winner of a number of marketing awards and promoters of an edgy, creative vibe (vibrating seats – need we say more?) http://www.facebook.com/corkinternationalairporthotel, plus The Burlington Hotel in Dublin http://www.facebook.com/pages/The-Burlington-Hotel-Dublin/102643726883 where every status update gets a picture (for those not in the know – this increases your chances of being seen by your fans).
Bio
Christina is owner of CG Online Marketing (www.cgonlinemarketing.com) and has ten years experience in online marketing communications from working with Premier Recruitment Group, LA Fitness, Monarch Airlines, Thomson Travel and a host of other companies. Christina is dedicated in providing unique online marketing solutions tailored to individual client needs, and ensuring that all online activities run smoothly and obtain the best ROI possible. Specialties:Online marketing Online media Social Media/Social Marketing SEO / PPC Google analytics (qualified in GA IQ) Web trends + insights, Data segmentation and targeting, Customer Behavior analysis, Digital design, Writing, Ethical marketing Green marketing / Sustainable tourism and Hotel + travel online marketing.
The video says it all – but think about this in terms of blogging. It could mean that a blog, someones own views and opinions, can be censored and closed down – the internet is the only place you can speak your mind and give your opinion – don’t let that be destroyed – show your support.
Some great support shown online today too:
