MEDIA PARTNER TO HOSPITALITY TECHNOLOGY EXPO
ACTIONABLE INTELLIGENCE FOR HOTELIERS
WWW.HOTEL-INDUSTRY.CO.UK
WINTER 2013
Just Landed. Meeting Cancelled. Where’s the best burger in town? @HiltonSuggests Landing at 3am – 4hr delay! Need some proper British food – anything open? @HiltonSuggests
Need to seriously impress some new clients over dinner. Help me @HiltonSuggests @hotel_industry is in London and hungry! Can @HiltonSuggests help?
LEADING VIEW:
VISITENGLAND’S JAMES BERRESFORD
MD INTERVIEW:
JONATHAN RAGGETT OF RED CARNATION HOTELS
HOTEL TECH: ONLINE BOOKING TRENDS
iTesso_Ad_133x184OL:Opmaak 1 11-01-13 12:48 Pagina 1
2 HOTEL INDUSTRY MAGAZINE | WINTER 2013
HOTEL INDUSTRY MAGAZINE
CONTENTS QUARTERLY REVIEW 9
SHORT VIEW
Business as usual?
10 LONG VIEW
Rebuilding UK tourism BRIC by BRIC.
SUPPLIERS 16 ON THE MARKET
Revolutionary in-room tech.
5 QUARTERLY REVIEW
LEADING VIEW:
VISITENGLAND’S JAMES BERRESFORD
13 SUPPLIERS
SUPPLIER FOCUS: NEWS AND ANNOUNCEMENTS
IN-DEPTH 18 ROUNDTABLE
Social climbing!
20 IN-DEPTH
BIG DATA:
THE NEW RULES OF REVENUE MANAGEMENT
EXPERT VIEWS 24 ARE YOU ON AUTOPILOT?
Caroline Cooper urges you to set your team free.
25 WATCH YOUR LANGUAGE Conor Kenny on why we need criticism.
26 EXPERT VIEWS
MD INTERVIEW: JONATHAN RAGGETT OF RED CARNATION HOTELS
INNOVATION 28 HOTELIER 3.0
Commercialising SoLoMo.
30 TECHNOLOGY TRENDS
Online booking in 2013.
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 3
HOTEL INDUSTRY MAGAZINE
HOTEL INDUSTRY MAGAZINE Hotel Industry Magazine Winter 2013 – ISSN 2051-0632 Front cover image Hilton London Metropole © 2013 Hilton Hotels & Resorts Editorial Editor: Lee Jamieson -Email: editor@hotel-industry.co.uk Editorial Contributors: James Berresford, Franziska Brandenburger, Caroline Cooper, Lee Jamieson, Victoria Jamieson, Conor Kenny, Ioannis S Pantelidis Hotel Data Partners: Euromonitor International Commercial Advertising Sales: Andrew Schofield Telephone: 0161 408 3912 Email: andrew@spotonmedia.co.uk Production Graphic Design: Matthew Chilton (I Made This Design) Digital Web: www.hotel-industry.co.uk Supplier Directory: www.hotel-industry.co.uk/directory Twitter: @hotel_industry Facebook: www.facebook.com/hotel.industry Jamieson Media Hotel Industry Magazine and hotel-industry.co.uk are published by Jamieson Media, a UK Registered Partnership Website: www.jamiesonmedia.co.uk Email: contact@jamiesonmedia.co.uk VAT Registration No: 127 7969 65 The opinions and views contained in this publication are not necessarily those of the publisher. The publishers regret that they cannot accept liability for error or omissions in this publication, however caused. All information in this publication is provided for general use. The publishers advise all readers to seek specialist advice before acting on any information contained in this publication. Readers are also advised to directly contact advertisers and companies mentioned in this publication in order to qualify the claims made, adherence to regulation and financial security. No material in this publication may be reproduced in any form without the prior written permission of the publisher. © Copyright 2013, Jamieson Media
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WELCOME
2013: YEAR OF INNOVATION If 2012 was the year for partying, 2013 could well be the hangover! Don’t get me wrong, it was an exciting year with new hotel builds flooding the market and a pipeline still swollen with new rooms … but what happens when demand wanes in 2013? Somehow we have returned to mature market conditions – and a quick glance abroad at other markets reveals the way forward for the UK hotel industry. Hoteliers in the Middle East, for example, have long been battling against supply outstripping demand, and they have innovated to remain competitive. And that’s where hotel technology comes in. Hotel technology will be medicinal in 2013: a potent hangover cure! In this respect, the Hotel Tech Special Issue you hold in your hands is a veritable owner’s manual for hoteliers looking to innovate their way through a difficult year. We explore the power of revenue management technology with leading hoteliers and solution providers, we ask hotel operators to share their innovations in social media, and we reveal the online booking trends that will drive revenue into your business.
We have also invited James Berresford (Chief Executive, VisitEngland) to guest write this issue’s “Leading View” and share his priorities for the year ahead. Aligning your business with developments in UK tourism in 2013 could be the difference between success and failure. Finally, Dr Ioannis S. Pantelidis returns with a follow up on his popular article on SoLoMo with an in-depth consideration of its commercial value. In short, this special issue is your 2013 survival kit … I am sure you will find it useful to you and your business. Lee Jamieson Editor, Hotel Industry Magazine editor@hotel-industry.co.uk
“HOTEL TECHNOLOGY WILL BE MEDICINAL IN 2013: A POTENT HANGOVER CURE!”
LEADING VIEW QUARTERLY REVIEW
VISITENGLAND’S JAMES BERRESFORD: “QUALITY TOURISM IN 2013” WITH THE RISK OF 2013 BEING OVERSHADOWED BY THE EVENTS OF LAST YEAR, UK TOURISM STRATEGY HAS NEVER BEEN SO IMPORTANT. WE INVITE VISITENGLAND CHIEF EXECUTIVE, JAMES BERRESFORD, TO GUEST WRITE THIS ISSUE’S “LEADING VIEW”. Image: James Berresford Next page image: VisitEngland four star rosette
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 5
QUARTERLY REVIEW LEADING VIEW
ACTIONABLE INTELLIGENCE
JAMES BERRESFORD’S FIVE KEY ACTIONS FOR 2013 1. Launch new VisitEngland Hospitality Award for hotels and accommodation providers to emphasise the importance of customer service. 2. Authenticate star rating classifications by working more closely with Trading Standards. 3. Create Breakfast Clubs around the country for hotels to share “best brekkie” practice and promote VisitEngland’s Breakfast Award. 4. Launch a number of marketing campaigns throughout the year focussing on countryside, heritage, culture and coastal themes. 5. Run English Tourism Week 2013 to promote the value of tourism to the economy.
slightly down on the previous year, we should remember that volume and value remained above pre-recession levels. The Tourism Business Monitor reveals that confidence was mixed for the end of 2012, and in 2013 over half of businesses expect to perform better than in 2012. So despite a slight downward turn, I am confident that the trend to holiday in England is here to stay and offers very real opportunities for growth. Focusing on Quality Experiences Last year, we made some important changes to the VisitEngland star rating scheme, shifting the emphasis to quality rather than facilities. The assessors are now looking for consistency in all the important areas, so if a hotel does not achieve four-star quality for its service and welcome then it will be capped at three stars, regardless of how luxurious the bedrooms are.
“ENGLISH TOURISM WEEK PROVIDES ANYONE INVOLVED IN THE INDUSTRY WITH A NATIONAL CAMPAIGN BANNER ON WHICH TO HANG THEIR OWN ACTIVITY”
The events of 2012 were the best advert this country has ever had. They generated a feel-good factor and a genuine buzz. We know from VisitEngland research that 20% of the population say they will take more breaks at home as a result. Great news indeed, however, despite a remarkable year, we have all had significant challenges to face. A Challenging Market Many operators report a mixed summer, thanks to fears of a potential “Olympic sag” and the wettest June on record. Visitor figures for the summer period (June to August) remained flat compared to the previous year with the total number of holiday trips taken in England the same as 2011 (17.8 million), with holiday spend up 7% (£4.5 billion). August was particularly buoyant for England with domestic overnight holiday trips up by 13%, and spend up 2% compared to the same period in 2011 – perhaps, in part, as a result of the improved weather. Whilst 2012 ended
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I recognise that it is incredibly important that the star ratings remain authentic and customers understand the difference between an “official” star rating and a “self-classified” one. We have recently started working with LateRooms to set up an automatic data feed, so that LateRooms can update the official ratings on a weekly basis and remove all self-classified ratings if the accommodation has an official star rating. Equally frustrating for hoteliers is the number of B&Bs that position themselves on online booking sites as self-classified hotels, when in fact, some have official B&B star ratings and others are awarding themselves hotel stars. This only confuses the customer and damages the credibility of genuine hotel operations. In 2013 we will be strengthening our relationship with Trading Standards to follow up on individual customer complaints received and ensure that only genuine hotels can call themselves hotels.
To take this even further, we will be launching a new VisitEngland Hospitality Award in 2013 that recognises and rewards those hotels which go above and beyond the call of duty to exceed their guests’ expectations and welcome all visitors with outstanding customer service. The new award will be open to all 30,000 VisitEngland quality scheme members as well as all tourism businesses that put customer service up there as king of the hospitality world.
Growing Tourism Locally Last year, we secured £19.8 million from the Government’s Regional Growth Fund to support a three-year campaign: Growing Tourism Locally. This investment project is designed to grow tourism across England and stimulate much needed jobs. We will be working with destinations around the country on a number of campaigns as well as running thematic campaigns highlighting our countryside, heritage, culture and coastal offering. We are also boosting our work to support the business tourism sector working in both the domestic and international arena. There are lots of
Minimum price of ÂŁ100 per premises per month ex VAT. Price dependent on size of hotel. You must take a channel package in each of your hotel rooms (this can include SMATV channel options). Available to customers who take Sky TV on a Hotel UK Sky In-Room Agreement. Minimum 12 month subscription. HD channels included are dependent on your underlying package. Visit www.sky.com/business for full list of channels within each channel pack. SkyHD box required for each room taking the Sky In-Room service and costs extra (currently ÂŁ55 ex VAT per box). HD ready TV, connected by HDMI, required for HD viewing. Installation, site survey and equipment not included and cost extra. You must get any consents required. Channels & prices subject to change. Further terms apply. Calls to Sky cost 5.1p per minute (plus 13.87p connection fee) for BT customers. Calls from other providers may vary. Correct at 9 January 2013.
QUARTERLY REVIEW LEADING VIEW
opportunities for hotels around the country to get involved with this project and I would urge hoteliers who are interested to get in touch with our office. English Tourism Week In Spring, we will be running the second English Tourism Week (16-24 March). Dedicated to raising the profile of the value of tourism to the UK economy, English Tourism Week provides anyone involved in the industry with a national campaign banner on which to hang their own activity. In 2012 we had over 500 attractions, hotels, restaurants, and pubs, running special events, competitions, and promotions during English Tourism Week generating awareness with the consumer, MPs, the Prime Minister and HRH The Prince of Wales who became Patron of the week. English Tourism Week provides
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a great vehicle for promoting the varied career opportunities available in hospitality – especially to school leavers. We want to make English Tourism Week 2013 bigger and better so please get involved and help us communicate that the hospitality industry stimulates the economy, creates jobs and improves communities. Hotels play a vital role in destination management by working with attractions and transport operators to create and develop packages. This spirit of partnership is crucial to the future of tourism in this country and I am personally looking forward to working together with more hoteliers across the country in 2013 to grow tourism in England. 2013 and Beyond Can we beat 2012? Well, I actually think here in England, we couldn’t be luckier!
Such is the depth of our heritage, the breadth and reach of our culture, and the calibre of our sporting traditions, that we actually have plenty of historical anniversaries, cultural happenings, and world class sporting events to keep us all extremely busy over the coming years. In 2013 we play host to the Rugby League World Cup, the European Athletics Team Championships in Gateshead, the Rowing World Cup Series at Eton Dorney, and the Men’s World Cup Squash Championships in Manchester! If that’s not enough, 2013 also marks the anniversary of 200 years of Pride and Prejudice, the centenary of Benjamin Britten’s birth, 50 years of the National Theatre and dozens of new attractions, hotel openings and festivals. Let’s use the momentum of 2012 to make 2013 an equally unforgettable year for tourism in this country.
HOTEL PERFORMANCE - SHORT VIEW QUARTERLY REVIEW
QUARTERLY REVIEW: BUSINESS AS USUAL? Source: PKF Hotel Consultancy Services
The transition from the “Olympic summer” to “business as usual” has been a difficult one for hoteliers, as a review of Q4 data from PKF Hotel Consultancy Services reveals. Data from October offers the first glimpse into “business as usual” performance without the unique trading conditions of the Olympic Games. Strong results were experienced in both London and the regions, with a 3.8% growth in rooms yield in London, and 2.4% in the regions, driven by rises in rate and occupancy. In the regions specifically, hoteliers saw a 0.3% increase in occupancy to 75.1% and a 2.1% improvement in room rate. However, the picture deteriorated by end of November with the industry experiencing year-on-year falls, leading TRI Hospitality Consulting to characterise November as 2012’s worst year-on-year drop in profit.
Key:
November: A Stalling Industry Hotels in London saw room yield fall by 4.6% to £112.96, compared with £118.46 in November 2011. This was the result of a 3.4% drop in room rate to £136.20 combined with a 1.3% reduction in occupancy to 82.9%. What is particularly disappointing about this set of results is that the London business and tourism calendar was busy in November. For example, November saw trade visitors to WTM grow by 3%, the number of visits to the UK from overseas grow by 9% and earnings from these visits was up for the year as a whole by 3% in absolute terms. Yet, the industry failed to translate this into growth. The regions were a little less gloomy
Regional Hotels 2012 Regional Hotels 2011
London Hotels 2012 London Hotels 2011
with a modest 0.5% rise on the back of a 0.1% improvement in occupancy to 70.0% and a 0.4% increase in room rate to £59.62. Upon the closing of 2012’s final quarter, hoteliers are looking back on a rocky year of peaks and troughs. Reflecting on 2012 performance as a whole demonstrates the resilience of the industry against the backdrop of economic turbulence. Yet, despite this, steady management and clear strategy has delivered modest growth for hotels throughout 2012. Without the powerful demand drivers of 2012, this year offers a more challenging trading environment. The fight to return to business as usual is far from over – in fact, it will likely be the key theme throughout 2013.
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 9
QUARTERLY REVIEW HOTEL PERFORMANCE - LONG VIEW
REBUILDING UK TOURISM BRIC BY BRIC EUROMONITOR INTERNATIONAL’S FRANZISKA BRANDENBURGER EXPLAINS WHY THE FUTURE OF THE UK HOTEL INDUSTRY LIES WITH THE BRIC NATIONS 2012 put the UK on the map – and many expect the events of last year to positively influence incoming tourism over the next two years. As business and leisure travel from Europe and the US to the UK is on the decline due to the economic climate and turmoil in the Eurozone, companies operating in the travel and tourism industry are paying more attention to travellers from the BRIC nations. The first half of 2012 saw sharp increases in incoming travel to the UK, especially from Thailand, South Korea, Brazil, South Africa and India, which is proof that the travel and tourism industry needs to start focusing on travellers from emerging markets. Industry experts believe that Chinese travellers are the most important inbound tourists to business from the BRICs, followed by Brazil, Russia and India. Chinese Middle Class Fuel Spending Discretionary spending is rising across all income levels in the BRIC markets, but it is the feted middle classes, and their
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HOTEL PERFORMANCE - LONG VIEW QUARTERLY REVIEW
RITZ LONDON: A CASE STUDY growing propensity to travel, that have opened up opportunities for hotels in particular. In particular, China’s rising levels of disposable income have spurred the growth of the Chinese middle class. According to recent analysis by the Carlyle Group: “By some estimates, the country’s persistent growth will bring nearly 100 million households into the middle and affluent classes. [This trend highlights] strong growth in aggregate consumption, as millions experience rising incomes and consumption shifts from the bare essentials to more discretionary items.” Per capita annual disposable income currently sits at £2,151, with 7.1% projected annual growth between 2012 and 2020, amongst the highest growth rates in the world. Russia Russia is one of Europe’s largest consumer markets with rapidly rising consumer expenditure and annual disposable income levels. Russia is also one of the world’s largest and most rapidly expanding luxury markets, driven by an increasing number of super wealthy. This dynamic market is set to continue its solid growth. In 2012, Russian per capita annual disposable income stood at £4,833, with it predicted to grow by 3.1% annually from 2012 to 2020. The country was hit hard during the economic and financial crisis in 2009, which means that regular Russians will search for greater bargains, while the very rich will continue their high-spending lifestyles.
Brazil Against the backdrop of economic slowdown, Brazil’s disposable income and consumer expenditure levels have remained robust on the back of high employment and a burgeoning middle class. Brazilians now enjoy strong purchasing power and more room for discretionary spending, with a large section of the population having moved out of poverty and low-paid labour over the 2005-2012 period. Brazil’s annual disposable income per capita stood at £5,212 in 2012 and is set to grow by 3.7% annually over the next eight years. Visas Hinder Travel One hurdle constraining growth in inbound flows from the BRICs is a need for travellers from Russia, India and China to obtain a visa to enter the UK. This really limits the UK’s ability to compete head-tohead with other European destinations. Further planned increases in Air Passenger Duty (APD) in 2013 pose another threat and will particularly affect passengers on long-haul flights. Industry experts believe that Brazil and India will be the BRIC countries most affected by the APD hike as these countries’ tourists will most likely avoid travelling to the UK. The UK has the highest rate of air tax in the world, almost 400% more than the majority of EU countries. The strength of sterling against the euro is also an important factor taken into account by foreign travellers when
The Ritz London’s decision to accept China’s largest payments card scheme, China UnionPay, and the hiring of Mandarin-speaking receptionists, led to a 17% increase in the number of Chinese guests, accompanied by a 25% increase in their spending in 2011.
deciding whether to visit the UK. While the Chinese Yuan strengthened against the euro in 2012, the exchange rate with the pound sterling stayed relatively stable, boosting inbound flows to Europe from China. Rising competition from other European destinations like Italy and France adds further pressure. For example, arrivals from Brazil dropped from 179,000 in 2008 to 117,000 in 2010 and, while expected to grow again, inbound tourism from Brazil is not likely to fully recover over the next five years.
“HOTEL CHAINS SHOULD BE LOOKING TO ADAPT TO THE SPECIFIC NEEDS OF TOURISTS FROM BRIC NATIONS” UK Strategy Implementing appropriate strategies to court these visitors will have a significant impact on arrivals and consequently the performance of well-prepared businesses. Leading hotel chains should be looking
ARRIVALS FROM BRIC TO UK 2010
2012
2014
2016
Brazil
117.0
121.4
125.1
130.2
China
136.8
164.0
203.3
238.5
India
371.0
429.1
486.5
547.1
Russia
170.0
186.8
199.8
213.7
Number of trips (‘000 trips) Source: Euromonitor International
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 11
QUARTERLY REVIEW HOTEL PERFORMANCE - LONG VIEW
ACTIONABLE INTELLIGENCE
APPEALING TO BRIC TOURISTS: There are lots of practical steps you can take to more effectively appeal to BRIC tourists: •
Hire staff fluent in key BRIC languages.
•
Offer BRIC language programmes and films on TV.
•
Introduce BRIC-themed menus.
•
Work towards accepting BRIC payment card schemes.
to adapt to the specific needs and tastes of tourists from BRIC nations to benefit from this potential. Visitors from Russia
and China in particular are often fascinated by the British monarchy, its traditions and etiquette, so attractions and tours related to the royal family are also expected to do well. And while London will be the key beneficiary, it is believed that, given the long-haul nature of visits, the opportunity extends beyond the capital. Consequently, other areas of the UK that gear up appropriately will benefit, as BRIC travellers, taking longer holidays than many from closer geographies, take the time to tour around the country and make the most of their trips. VisitBritain is specifically targeting Chinese tourists to increase visitor spending in UK hotels by £500 million and create 14,000 new jobs by 2015. In order to achieve these targets, the UK government has increased its GREAT marketing campaign, focusing on attracting visitors from China, by
£8 million. Clearly, the future of the UK hotel industry lies with BRICs, and many of leading hotel groups like Hilton and Starwood are introducing Chinese-friendly services to capitalise on the opportunity. These include Chinese restaurants, staff fluent in Mandarin and Chinese, as well as Chinese programmes available on TV. Beyond BRIC UK hoteliers should also pay attention to the second tier of emerging tourism economies, also called SLIMMA nations, which include Sri Lanka, Indonesia, Malaysia, Mexico and Argentina. In particular, visitors from Mexico, Argentina and Indonesia with growing disposable income levels could become the next powerhouses of the travel and tourism industry. How prepared are you?
13th & 14th May 2013 Radisson Blu Hotel London Stansted The Hotel Summit, now in its 14th year, is organised specifically for hoteliers, Procurement professionals and suppliers within the industry to source, sell, network and understand the trends that will determine the future of the hospitality industry.
Delegates are invited as our VIP guests to meet leading solution providers of their choice, network with fellow professionals and attend seminars in a comfortable, relaxed atmosphere. Overnight accommodation, all meals and refreshments, seminar and workshop attendance plus gala dinner are all complimentary. For suppliers, your all inclusive cost package for 2 representatives covers your personalised itinerary of a minimum of 15 meetings, overnight accommodation, your meeting booth, all meals, refreshments, gala dinner and a plethora of networking opportunities. Supplier attendance is limited within each sector to ensure minimum competition. For further information or to book your place please contact Kieran Tompsett on 01992 37408, k.tompsett@forumevents.co.uk Media Partners
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SUPPLIER FOCUS SUPPLIERS
SUPPLIER FOCUS
NEWS AND ANNOUNCEMENTS FROM HOTEL SUPPLIERS IMPROVE OTA DISTRIBUTION WITH RATETIGER It’s important to select the right Online Travel Agents (OTAs) to manage exposure, bookings and cost of reservations. Therefore to help hotels make informed decisions, RateTiger has launched RTSuite 3.0 - the ultimate channel manager that provides live market information and direct connectivity to OTAs to maintain the online sales position and help increase revenue and bookings. RateTiger has developed greater safeguards into RTSuite 3.0 to prevent overbooking. RTSuite 3.0 provides email alerts and notifications of OTA channel performance and availability for the property. Through the direct (XML) connectivity with OTAs plus integrations with RMS and PMS, RTSuite 3.0 can provide a two-way rate and availability data transfer so hotels can respond to market conditions faster than ever before.
SUPPLIERS YOU SHOULD KNOW eRevMax International 020 7422 7528 www.erevmax.com
INDUSTRY PREPARES FOR HOTEL SUMMIT 2013
INNOVATION = GREENER GUEST ROOMS
Bookings are up and attendee calibre is higher than ever for the 2013 Hotel Summit. Now in its 14th year, the Hotel Summit, being held on the 13-14 May at the Radisson Blu Hotel, London Stansted, puts its continuing success down to the attention paid to matching the requirements of delegates and suppliers alike, condensing months of work into less than two days. Throughout the event, delegates have the opportunity to attend industry related seminars presented by leading professionals. These inspirational, motivating and educational 45 minute sessions will cover issues pertinent to the hotel industry. Delegate registration for the 2013 Hotel Summit is complimentary and includes meals, refreshments, a gala dinner and overnight accommodation.
Hotelstar is an innovative energy management solution that cuts hotel energy costs by up to 65%. It uses intelligent control sensors to monitor guest room occupation discreetly and switch power accordingly to avoid energy waste. Designed for new build and retrofit applications, each unit can control the appliances in up to four rooms and, once installed, guests are unable to tell that the system is in place as there are no negative effects on appliances and the switch between the hotel’s default settings and guests’ preferred settings is seamless – guest comfort is never compromised! Hotelstar benefits include substantial energy savings, reduced maintenance costs, simple installation, and a typical payback period of 12-15 months in electricity bill savings alone.
SUPPLIERS YOU SHOULD KNOW Forum Events www.forumevents.co.uk 01992 374097
SUPPLIERS YOU SHOULD KNOW EMSc (UK) Ltd 01142 576 200 www.ems-uk.org www.hotelstar-ems.co.uk
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 13
SUPPLIERS SUPPLIER FOCUS
CARDIAID: STARTING HEARTS, SAVING LIVES In the UK, around 270,000 people suffer a heart attack each year, about a third of whom die before reaching hospital due to cardiac arrest. Effective CPR by a bystander, provided immediately after sudden cardiac arrest, can double a victim’s chance of survival, whilst early defibrillation can triple a victim’s chances. CardiAid automated external defibrillators (AEDs) are designed specifically for public access use to provide essential electroshock treatment and first aid in the event of an emergency. In situations such as sudden cardiac arrest, acting within minutes is critical
EVAC+CHAIR: SPECIALISTS IN EMERGENCY EVACUATION Evac+Chair International is the world’s leading supplier and original manufacturer of evacuation chairs. The chairs are designed to allow people who are disabled or mobility impaired to safely descend staircases in the event of an emergency, without the need for lifting or great physical strength. Our latest 300H MK4 edition Evac+Chair has a payload of 182kg, an increase of over 30kg on the earlier model. The 440 model has the capacity to hold an individual weighing 200kg and includes a foot rest, which doubles up as a support handle when the chair is used in the two-person operation mode. Evac+Chair provides comprehensive training and education to ensure effective use of its products, ensuring the safety of mobility-impaired users and those assisting at all times. A one-
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to improve chances of recovery, until emergency medical services can reach the patient. The life-saving device, manufactured in the Netherlands and supplied by Evac+Chair International in the UK, provides comprehensive assistance by talking the user through the life-saving actions needed in an easy, step-by-step manner, helping to improve the overall chances of survival and recovery. The CardiAid AED lends itself to many business environments, such as hotels, leisure and sports centres, restaurants and cafes. It is also used by emergency response medical services, physicians and dentists, and occupational health and safety practices, ensuring that businesses of all kinds are prepared for this kind of emergency.
SUPPLIERS YOU SHOULD KNOW Evac+Chair International www.evac-chair.co.uk 0845 230 2253
size-fits-all approach is not enough – we tailor each session to the specific range of risks presented by each customer. An employee who receives Evac+Chair’s Key Trainer Masterclass training can competently train other employees – a cost-effective method of training staff on large or multi-site operations. With over 20 years experience, we have also become a leading specialist in emergency evacuation, ensuring our customers fully comply with health and safety regulations, whether it be in providing products, advising on the legal framework that surrounds evacuation planning and deployment, or specific training and regular maintenance.
SUPPLIERS YOU SHOULD KNOW Evac+Chair International www.evac-chair.co.uk 0845 230 2253
Top image: CardAid AED Above image: Evac+Chair
SUPPLIER FOCUS SUPPLIERS
SKY LAUNCHES NEW HOTEL ROOM PRICING AND PACKAGING Sky has launched new in-room entertainment pricing and packaging to give hotels greater choice and flexibility over the TV entertainment experience they offer. With Sky In-Room, a Sky box is fitted into the hotel room, giving the guest full control over what they watch, similar to the way in which they watch Sky at home. Whether you’re an independent B&B or a national hotel chain, the new service offers four channel packages, all in stunning HD, at prices to suit. Whether it’s the drama of the Barclays Premier League on Sky Sports, or boxoffice hits like The Avengers on Sky Movies, the new packaging structure allows individual hotels to choose the type of content they want to make available in-room.
ITESSO ENTERPRISE LODGING SYSTEM The iTesso Enterprise Lodging System is a revolutionary new concept in hospitality software. As the world’s first true Cloudnative solution operating on the Microsoft Windows Azure platform, iTesso helps hotels improve operational efficiency and significantly reduce the total cost of IT. There is no hardware or software to purchase or install, allowing hoteliers to quickly and easily replace legacy PMS and CRS systems. Designed to provide unprecedented functionality and scalability, the iTesso Enterprise Lodging System leverages the power of the Cloud to work equally well for independent properties as it does for hotel chains with multiple properties.
The four channel packages are: • Pack 1: The Entertainment Mix will keep guests entertained with top channels including Sky News, Sky One, Sky Atlantic, Nickelodeon plus many more. (£7.00) • Pack 2: The Entertainment and Sports Mix will ensure sports fans don’t miss out on a second of the sporting action. The package includes all of the entertainment channels plus Sky Sports 1, 2, 3, 4 and ESPN. (£10.00) • Pack 3: The Entertainment and Movie Mix includes all of the entertainment channels plus a variety of Sky Movie channels with a mix of genres to suit everyone. (£13.50) • Pack 4: The Entertainment, Sports and Movie Mix includes all of the entertainment channels, sports channels, plus all of our great movie content. As a bonus and to really exceed guests expectations, Sky 3D is included free of charge with this package, offering 3D movies, sports and more. (£20.00) Note: All prices are per room, per month ex VAT. Minimum monthly cost applies.
In addition to its comprehensive functionality, iTesso delivers many additional benefits, including: • Multiple data sources: Retrieve data from third party systems and retain the systems you are happy with. • Cloud-native: Provides scalability and excellent availability. There is no investment in servers, no downtime and no local backups. • Browser-based: The system can be managed from any current PC or Mac with Internet access, including mobile devices. • All-inclusive Pricing: The affordable monthly fee includes the software license, support and maintenance fees, a webreservations module for the hotel website, a number of standard interfaces and eLearning. • eLearning: We have created eLearning courses, which hotel staff can take in preparation of the switch
Image: Z Hotels, London
SUPPLIERS YOU SHOULD KNOW Sky 08442 411 450 www.sky.com/business
over to iTesso. • Proactive helpdesk: The design of the iTesso system allows us to carefully monitor each installation, so we may identify an issue before you do and contact you with a solution. • Channel Management: iTesso also includes channel management functionality. • GDS Representation: iTesso can represent your property on the GDS using our own chain code “TS”.
SUPPLIERS YOU SHOULD KNOW iTesso 0207 0965920 www.itesso.com
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 15
SUPPLIERS ON THE MARKET
REVOLUTIONARY IN-ROOM TECH
BY THE END OF 2013, THERE WILL BE MORE SMARTPHONES THAN HUMAN BEINGS IN THE WORLD. IT IS UNSURPRISING, THEREFORE, THAT IN-ROOM TECHNOLOGY IS GOING MOBILE! Hotel guests today expect unprecedented levels of connectivity with hotel services – both on-site and off-site. With strong demand feeding the market, a new generation of technology solution providers have emerged. We review some of the latest mobile platforms providing new levels of connectivity to the guest experience.
ICE ICE (Interactive Customer Experience) is a multi-platform system from Intelity that can be installed on everything from mobile phones to guestroom TVs. Integrating with the hotel’s PMS and POS systems, ICE puts the full range of hotel services at the touch of a button. The real-time back-end management tool streamlines request management, monitors response times and measures ROI. The system is also able to send direct marketing messages and videos to guests, segmented by criteria like rate code, market segment and lengthof-stay. (+1) 888 738 7271 www.intelitycorp.com
VirtualHotel VirtualHotel from Cardola is a downloadable app for guests. Guests using the app can familiarise themselves with the hotel’s facilities and the local area before arrival and make advance bookings for many of the hotel’s services. The app enables guests to access services like reserving dinner tables, booking spa treatments and requesting concierge services – either in advance or directly from their room using their own mobile device. 0207 491 2171 www.cardola.com
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ON THE MARKET SUPPLIERS
CONNECT FOR IPHONE Monscierge has launched Connect, a mobile app that enables guest access to hotel services like room service and concierge. More importantly, the system combines a content management system for hotels to share targeted information with guests and a local recommendation system powered by RCloud. Guests can choose the filters for their desired experience and find honest recommendations for dining, events, and attractions. Hoteliers can manage their preferred recommendations and tailor the guests’ local experience. 0845 004 6661 www.monscierge.com
Fingi Distributed by Airwave in the UK, Fingi fronts a revolutionary new generation of mobile applications designed to connect the guest with hotel services through their own device. Fingi utilises NFC technology to replace the room key and allows free telephone calls and internet messaging between guests and the hotel both onsite and off-site. Guests also have control over lighting, air-conditioning, TV and entertainment services. 0845 555 1212 www.airwave.tv
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 17
IN-DEPTH ROUNDTABLE
SOCIAL CLIMBING! WITH THE SOCIAL MEDIA REVOLUTION NOW IN FULL SWING, VICTORIA JAMIESON ASKS WHAT HOTELIERS CAN DO TO DEVELOP A WINNING STRATEGY
Virginia Suliman - Hilton Worldwide, vice president, digital design and development
Penny Holland - Moddershall Oaks, director
Joel Davis - agency:2, director
Social media sites like Twitter, Facebook, LinkedIn and TripAdvisor have become an essential part of modern day consumer behaviour. How important is it for hoteliers to have a social media strategy in place, and how can social channels be monetised? Victoria Jamieson asks three experts to share their advice.
Penny Holland: Social media is certainly the best relationship marketing tool out there at the moment because it offers a way to interact with guests without constantly pressuring them with special offers. At Moddershall Oaks, I am responsible for social media and I feel that personal responses from me convey the fact that we are a small, family business.
How has social media helped you to innovate?
How have you approached social media? Virginia Suliman: Hilton’s social media strategy is focussed on cultivating relationships and using these tools to better serve our guests and become their preferred hotel choice. Our strategy is heavily focussed on listening to what guests are saying about us and servicing those requests to ensure a positive guest experience.
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Joel Davis: Evidently, strategy will vary from hotel to hotel, depending on what is trying to be achieved. Are you talking about recruitment, launching a new product, increasing hotel bookings, or is this campaign more about internal communications? At the end of the day, a good social media strategy comes down to the specific objectives of the campaign.
Virginia Suliman: A great example is our Twitter handle – @HiltonSuggests – which proactively helps guests in various cities throughout the world with recommendations. For example, a traveller in London may tweet asking where to grab dinner and one of our London team members will tweet back with a trusted, local recommendation. We have seen great success with this handle and travellers are really impressed that we are listening and willing to help. Penny Holland: One of our best innovations has been ecommerce – we now sell our products through an online store on Facebook. Also, we have had success with photo sharing. For example
ROUNDTABLE IN-DEPTH
we can upload a real-time photo of a bride and groom getting married or a picture of the outdoor hot tub; customer interaction is key!
communication and dialogue – something TripAdvisor doesn’t offer.
What risks does growth in social media pose to hoteliers? Which social media channels should hoteliers invest in? Joel Davis: It really depends on the campaign. When we look at channels, we examine the factors surrounding the customer’s decision making process and how the hotel wants to position their brand. A brand aimed at the family market would make different channel decisions to a brand aimed at business travellers. I think the key thing is not to separate your objectives from the channel and the content … these things are all bound together. Virginia Suliman: Furthermore, every region has different dynamics. For example, social media activity in Asia varies greatly from the UK and hoteliers have to be ready to deal with that. Generally speaking, we know guests are turning to online reviews for advice, so ensuring you are listening to what your guests are saying there is critical. Facebook and Twitter allow a hotel to deepen the relationship through
Joel Davis: The biggest risk is to take no action! This conversation is going to happen regardless, and if it goes wrong and you have no influence over it, then it can be really damaging to your brand. For this reason, it’s important to be proactive, but also have a zero-tolerance policy. Whoever is carrying out the social media work in your organisation, they must treat it seriously because you can’t just press delete. It’s important to mitigate this risk through training, policy, process and planning.
So, social media is continuing to develop at a fast pace? Penny Holland: Certainly! In three years, we’ve gone from zero to daily enquiries through social media channels! It is developing at such a high speed that companies need to make sure they embrace the transparency and changes to the way we all interact.
MAGAZINE MEDIA KIT
Described as “The Economist for hoteliers”, Hotel Industry Magazine provides actionable sector intelligence to its readers every quarter.
ACTIONABLE INTELLIGENCE
TOP 5 TIPS FOR SOCIAL MEDIA : •
Digital influencers: identify users with large active social media networks and have digital influence over your hotel. Connect and engage with them.
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Channels: survey the channels your clientele are most active on and place these at the heart of your strategy.
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Clear objectives: be clear on the objectives for each campaign and develop your strategy to achieve these.
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Training: staff development in social media and digital strategy is essential as this field becomes more specialist.
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Policy: have clear policies and processes in place to ensure employees are interacting appropriately and consistently.
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WINTER 2013 | HOTEL INDUSTRY MAGAZINE 19
IN-DEPTH REVENUE MANAGEMENT
THE NEW RULES OF REVENUE MANAGEMENT LEE JAMIESON EXPLORES HOW REVENUE MANAGEMENT HAS FOUND ITSELF AT THE EYE OF THE “BIG DATA” STORM
Special Event: Group Booking
Occupancy Forecast: 95.24%
In recent years, hotel technology has undergone a period of convergence: PMS, reservation systems, guest preference databases, social media platforms and e-marketing systems are finally sharing data in a meaningful and actionable way. The coming together of these once distinct disciplines has heightened the importance of revenue management because revenue teams are analysing the essential data needed by other departments to streamline their own operations. In short, in this age of technological convergence, revenue management has become the lifeblood of the hotel organisation. “Over the past decade, revenue management has arguably grown into
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one of the most developed and evolved departments in the hotel industry,” explained IHG vice president for revenue management, Brian Hicks. “Some of this development is due to an increase in the availability of data and the quality of the analytics. Marketing, sales and distribution departments are now looking to revenue management to inform and advise on demand and pricing decisions.” Culture Shift Many of the larger hotel groups have realised that a cross-departmental approach is essential if they wish to drive their revenue management strategy throughout the organisation. There are already signs that the cultural shifts and organisational
changes required to deliver a groupwide focus on revenue management are already underway with some senior leaders responsible for revenue management beginning to take on wider responsibilities under their remit. “In today’s fast-changing market, a good revenue management strategy is crucial to increase market penetration in both occupancy and ADR,” said Kempinski Hotels, vice president for digital sales and distribution, Riko van Santen. “But creating a company culture that understands and is hungry to optimise their revenue dynamics takes time and commitment. So, the strategy should focus not only on what results need to be achieved, but also on how results can be achieved sustainably.
REVENUE MANAGEMENT IN-DEPTH
RevPAR: +11.36%
Best Available Rate ADR: +2.1%
“Rather than simply using revenue management as a tactic to achieve higher yield, hoteliers should adopt it as a ‘strategic focus’ – it can therefore positively influence the company’s balance sheet and shareholder value.” Poles Apart With some hotel groups really pushing revenue management up the agenda and into other parts of the organisation, a chasm is opening up between those that have embraced revenue management and those that have not. “Revenue management has evolved quite significantly over the past five years,” explained Apex Hotels group revenue manager, Clinton Campbell. “So too has the role of the revenue manager. “Where the strategy was previously
centred entirely around the basic revenue management decisions, today there is a need to expand this and consider the ever changing business mix and the channels which support them.” But Campbell is concerned that not all hotels are keeping pace with the strategic changes that need to be made. “I’m not sure that all hoteliers have a solid strategy in place. I hear all too often of hotels that are still reactive revenue managers – making pricing adjustments based on what their competitors are doing.” Big Data, Big Profits But why are some hotel groups positioning themselves around a technology-driven revenue management strategy?
One argument is that the convergence revolution is only in its early stages. Hoteliers that can position themselves ahead of the curve and be ready to capitalise upon emerging technology will prosper over the next five years. Convergence will usher in the age of so-called “big data”. Essentially, the term “big data” simply relates to the potential treasure trove of customer and market information that exists beyond the hotel’s guest history and transactional data: social media, blogs, emails, photographs, guest reviews and so on. Technology is moving towards being able to sort and analyse this unstructured data and identify profitable new insights.
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IN-DEPTH REVENUE MANAGEMENT
ACTIONABLE INTELLIGENCE
RE-POSITION YOUR REVENUE MANAGEMENT STRATEGY FOR 2013 •
Alignment: set clear goals around what you want to achieve through revenue management – whether that be driving rate, occupancy, or a mixture of the two – and align this with the wider business needs.
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Combined strategy: more than ever, your revenue management strategy needs to take a holistic approach with a combined strategy for all departments.
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Useful data: with “big data” on the horizon, review your current capabilities. Are you able to turn this data into useful actions?
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Constantly review: keep your strategy alive by constantly reviewing it with the revenue team and keep pace in this fast-moving arena.
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Understand your systems: conduct an on-going review of your systems and tweak accordingly. Spending time looking at the configuration will help you understand why your revenue management system gives you specific decisions.
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Future proof: ask if your system is future proofed? Is it ready for big data? Can you integrate with other hotel technology systems?
One solution provider, JDA, claims to be ahead of the curve with big data, as vice president Anand Medepalli explains: “The next stage is to absorb all of this unstructured information from sites like Facebook and Tripadvisor, so revenue managers can begin to explore this data – even if the algorithms have to catch up. “We talk about new technology finally
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being able to bring together all of these unstructured data streams – but here’s the irony: technology has been doing this for customers for years! Hoteliers are just playing catch up!” With the ability to harvest this information already in place, van Santen believes that we are entering a phase where guest and brand loyalty can be forecast by market segment or lead time, for example. “Total Revenue Management will study guest behaviour at all points of contact – before, during and after the stay – through various channels of engagement, not only the hotel or chain’s own channels,” he said. “Hotels already have means of measuring the influence levels of each guest, and this will add a new dimension in the revenue management algorithm to optimise yield per available room. “Interestingly, email and social media interaction is already being tracked, but not yet fully enough to play a role in optimising revenues.” Too Much, Too Fast! Concerns remain over the manageability of big data for revenue teams in making clear business decisions. The sheer amount of data coming in could potentially be overwhelming, which means that revenue managers become much more reliant on automated solutions. “I think that the revenue tools will become more sophisticated over the next five years and possibly reduce the need for as much human interaction,” said Park Inn by Radisson director of revenue optimisation, Gail Peters. “The need for analytical tools will continue to grow, with management data being available on demand, but the key is to ensure you spend the time and have the skills within the business to fully use such data in setting strategies and reviewing results.” Human Touch Behind any revenue management system is a good, well-trained operator providing a human context to the raw data. In this sense, revenue management technology is
a decision making aid. “A revenue manager’s intuition can sometimes be more insightful than a data point,” said IHG’s Hicks. “Revenue management is both an art and a science – and all art requires the human element.” The balance between levels of automation and human intervention vary from hotel to hotel, but all agree that the role of technology is growing. “IT for revenue management is continuously growing,” remarked Macdonald Hotels and Resorts revenue director, Stephen Dodman. “In fact, I’ve seen it grow faster in the past two years than ever before! “You will always need human knowledge in revenue management – the system has no way of knowing about a big forthcoming event, but, that said, you do have to accept that your system is booking 365 days per year. You have to have confidence and trust in that system. “At the end of the day, the software is performing complex calculations on multiple streams of data – something that goes far beyond the abilities of the human brain.” New Markets Whilst talk of big data and evolving algorithms is exciting for larger groups, many smaller hoteliers are disengaging from the debate. There is a perception from small, independent hotels that they simply don’t have the time, need or experience to think about revenue management. In many respects, this is an understandable point of view: a system designed for tens-of-thousands of rooms is probably far too complex for a small 20key operation. Many of the major solution providers have identified this market opening and are developing new platforms to suit. IDeaS Revenue Solutions is one such company that has recently launched a product tailored to this market. “No hotel is too small to practice smart pricing, and we have created the IDeaS Pricing System (PS) to meet this demand,” explained managing director, Fabian Specht.
REVENUE MANAGEMENT IN-DEPTH
“Simply put, IDeaS PS enables busy hotel managers to set the best available rates, easily push them into distribution channels and then provide dependable forecasts and reports. “Smaller hotels often do not have the resources to dedicate a staff member solely to revenue management so the IDeaS PS has a simplified approach and intuitive design to minimize the amount of training and interaction needed to learn and operate the system.” Perhaps part of the problem is that this market segment holds onto a very outdated view of revenue management – as a specific tool for pricing rooms. But as we have seen, revenue management has evolved far beyond this. Today, it reaches into the company’s many revenue streams and has proven itself to be the key solution to increasing profitability. It is only a matter of time until smaller hoteliers realise this, as Niels Mekenkamp
from Infor EasyRMS concludes: “Many smaller chains and independent hotels don’t yet fully grasp the wider revenue management picture and rather than embracing the philosophy within their organisation, they believe it is something that is done by one person in a back office.” “Once hoteliers realise that revenue management is about more than just room revenue and what rate the hotel is selling and they understand it needs the backing of the entire organisation, they will fully embrace it.”
Main image: The Stafford London by Kempinski Main image above: IDeaS PS in action Top to bottom: JDA vice president, Anand Medepalli Kempinski Hotels, vice president for digital sales and distribution, Riko van Santen IdeaS managing director, Fabian Specht Left to right: Infor EasyRMS vice president Ez+PLUS services, Niels Mekenkamp Macdonald Hotels and Resorts revenue director, Stephen Dodman Apex Hotels group revenue manager, Clinton Campbell IHG vice president for revenue management, Brian Hicks
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 23
EXPERT VIEWS COLUMNIST
ARE YOU ON AUTOPILOT?
CAROLINE COOPER URGES YOU TO SET YOUR TEAM FREE
As a customer, do you ever get the feeling that you are being treated as a number, not an individual? It’s all very well your staff knowing what to do and what to say, but all too often this can seem robotic, impersonal and devoid of customer empathy. However good your systems, processes and technology, you must never forget that you are in the hospitality business! Your personality and the personality of your team are part of the business – so encourage everyone to be themselves. Rather than working to a false sounding script, let your team choose their own way of doing and saying things; as long as it delivers the desired result. Customers value authenticity, so give your team the authority to engage with guests by asking questions, listening and showing empathy. Building rapport with your guests makes it easier to identify and meet specific needs, get feedback, and deal with the occasional problem should it arise. The important thing is to remain flexible. Don’t let your team be so bound by the rules that any request is met with a hostile “jobsworth” attitude! Encourage your
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CAROLINE COOPER Caroline Cooper specialises in helping hospitality businesses retain their existing customers by focusing on the customer experience and long term engagement. She is founder of Zeal Coaching and author of the Hotel Success Handbook. Discover more: www.zealcoaching.com
team to get into the mindset of looking for an alternative solution. Even if the initial question has to be answered with a “no”, could it be followed by “but I can do x for you” or “I know someone who could do this for you”. Allow your team to use their common sense; they’ll normally rise to the occasion. But what happens when things go wrong? Every business has things go wrong from time to time, but it’s the way problems are dealt with that make the difference.
“BUILDING RAPPORT WITH YOUR GUESTS MAKES IT EASIER TO IDENTIFY AND MEET SPECIFIC NEEDS” Keep your guest informed of unexpected delays or currently available services, and offer something by way of compensation with an apology. Everyone accepts that things go wrong; it is when they are not kept informed that tempers fray. Be open to and encourage feedback. I’m sure any one of us would rather hear about issues first-hand and deal with them immediately rather than leaving it for your guests to resort to the all-tooaccessible technology of review sites. I’m all for technology, but let’s face it, it can never replace the personal touch.
COLUMNIST EXPERT VIEWS
WATCH YOUR LANGUAGE
CONOR KENNY ON WHY WE NEED CRITICISM The single biggest threat to your business is your reputation. At its simplest, this is what people think of you - whether true or false, it is their reality. How you manage all of this will impact your people, growth, confidence and business. Often, we hear the loudest voices begin many a statement with “I think”. Worse still, with an errant leader, this can call followers into action. It’s a fool’s paradise: you need to “know” before you act. Many a good idea conceived in the boardroom was not such a good idea once it was exposed to the market. Think of how many people thought it was a good idea to create false reviews on TripAdvisor? The illconceived “we think” has shattered many a reputation. Their business is marked and, contrary to popular opinion, competitors have long memories. Businesses need criticism, but unfortunately, many of us would rather be damned by praise than saved by criticism. In my book, if there are no complaints, something is wrong. Inevitably, this translates into your business being beyond repair. How you handle negative feedback defines you. Think back to TripAdvisor and the pirates who rode the waves. Where is their reputation today? Did we find out? Did we believe them? Do we trust them? Feedback, however negative, is the opinion of someone we engage with. Of course it’s subjective but so is the world we inhabit. You must do the following to turn the negative into an opportunity: read, reflect,
CONOR KENNY Conor Kenny and Associates are experts in sales, marketing, sales training and people development. They help you to get the most out of your people and your business. Companies don’t innovate; people do. Discover more: www.conorkenny.com
see it from their point of view, be objective and respond honestly and with humility. A simple and effective strategy is to always contact the author. That allows you represent your view but make sure you use a feather, not a hammer.
“HOW YOU HANDLE NEGATIVE FEEDBACK DEFINES YOU” The thing is, we are emotional creatures and, especially in our early years, we do care about what people think. Look back at those insecure teenage years and consider how many hours were spent trying to be popular. Wisdom teaches us that being popular is irrelevant, but being respected is precious. Emotions can drive business decisions – and that is both good and bad. It is especially bad when our fear of criticism makes us default to the sand. You can’t avoid complaints, criticism and critics. Worse still, avoiding will destroy trust. Good leaders confront problems head on, take an objective view and respond appropriately. No, the customer is not always right but they sure are entitled to their view. A successful business will listen, reflect and engage. A bad business will ignore, deflect, abdicate and deny. The market will see both, but the internet does not forget.
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 25
EXPERT VIEWS LEADING LIGHT
JONATHAN RAGGETT OF RED CARNATION HOTELS COLLECTION
FOLLOWING A PERIOD OF AMBITIOUS GROWTH, RED CARNATION HOTELS COLLECTION HAS EMERGED AS ONE OF THE UK’S MOST EMINENT LUXURY HOTEL GROUPS. MD JONATHAN RAGGETT SPEAKS EXCLUSIVELY TO HOTEL INDUSTRY MAGAZINE ABOUT LEADING THE COMPANY THROUGH EXPANSION AND INVESTING IN ITS PEOPLE BUSINESS MANTRA!
JONATHAN RAGGETT’S BUSINESS MANTRA: No request is too large; no detail is too small.
Managing director, Jonathan Raggett, embodies many of the values that have built Red Carnation Hotels. Personable, warm, supportive and committed to the quality of the guest experience are all qualities that derive from his hotelier background. “From the very outset, I’ve been a hotelier at heart,” said Raggett. “After completing my HND in Hotel Management, I worked from the bottom upwards. And I think that having performed all the tasks in a hotel myself at one time or another has really benefited my style. I’m able to get into all the nooks and crannies of the business.” During his twelve-year tenure, Raggett’s quiet determination and forensic attention to detail has seen the collection blossom from just three properties to fourteen award-winning hotels.
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“We’re not done yet,” added Raggett. “Our ambition is to grow to 25 hotels, so we are always actively looking for the right deal. “We look for hotels in the right location to which we can add something – perhaps invest in the facilities, provide training or extra manpower. “We tend to do better in city locations; but the issue at the moment is that in the locations we are most interested in, everyone wants to be a hotelier!” People, People, People Raggett is at his most passionate when talking about people – a passion that has filtered down through the organisation. It is no coincidence that Red Carnation was the first company to achieve the Investors in People Gold Standard across its entire worldwide operation, and last year appeared in The Sunday Times Top 100 Companies to Work For list (71st place). “One thing that I’m really proud of is what we do for our people. Training and development is at the core of what we do and, as a result, our employees know their responsibilities and choose to work hard for us – and it’s that working spirit that keeps us competitive. “You see, as a relatively small company, I don’t have the loyalty programmes or the same marketing budgets that my larger competitors have
access to, but I do have brilliant, welltrained employees.” Raggett makes a strong business case for his heavy investment in training. Recruiting and meeting the training needs of new employees is expensive, so investment in this area simultaneously improves quality and reduces staff turnover – which at Red Carnation runs at a refreshingly low 28%. “Guest feedback shows that the most important things are how our guests are greeted, remembered and treated upon arrival. So it makes good business sense if our returning guests can recognise faces at the hotel property – equally, we want our key customer-facing employees to remember our guests and welcome them back.” The Next Generation Raggett’s investment in people extends beyond Red Carnation Hotels with his involvement in the youth charity, Springboard. “I’m involved because the hospitality industry has served me well. It’s the sort of industry in which people with the right attitude can quickly rise. And I have to say that the young people I meet are brighteyed and bushy-tailed – they understand that you can’t simply work nine-to-five and get on in any industry today. That culture doesn’t really exist anymore. “So, we have young people from
LEADING LIGHT EXPERT VIEWS
Springboard join us here at Red Carnation on a work experience programme and we have the option to take them on if they perform well.” The Ultimate Question Raggett holds high expectations around the quality of the guest experience, and introduced a simple initiative called the Net Promoter Score in which guests are asked to rate their stay between one and ten. One question – what Raggett calls the “ultimate question!” Raggett is aiming for scores of nine and ten because these guests will return and promote the collection amongst friends and family. Guests that score between six and eight will happily go elsewhere if the right deal exists, so a focus on exceeding their expectations and promoting them into the top bracket is vital.
It is for this reason that Raggett decided to partner with Tripadvisor and include ratings and reviews on Red Carnation’s own website. “I decided to embrace Tripadvisor simply because it’s foolish not to. Certainly, some will write unfair reviews, but the majority of guests write it as they see it – and that’s why it’s so important to take care of the guest. “It is estimated that 70% of firsttime guests to a hotel check online reviews before making a decision, so it is important to be active in that space. Also, the top three rated London hotels on Tripadvisor are all Red Carnation Hotels: Hotel 41, Egerton House Hotel and The Milestone Hotel only ever seem to change position amongst themselves! “If you’re in the top three, then you are starting out with a commercial advantage.”
ACTIONABLE INTELLIGENCE
JONATHAN RAGGETT’S ADVICE TO HOTEL GROUP LEADERS IN 2013: 1. Be “brilliant” – a term we use to describe excellence and positivity around every aspect of a guest’s stay. 2. Have a strategy in place to steal market share. 3. Have fun and enjoy everything you do – it is an important part of what we do.
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 27
INNOVATION HOTELIER 3.0
COMMERCIALISING SoLoMo IOANNIS S. PANTELIDIS ASKS IF THERE IS COMMERCIAL VALUE IN THE SoLoMo HYPE?
media activity of the two hotel brands as well as the integration of mobile to social. The two hotel brands selected were Best Western and Marriott International. Best Western had been shortlisted for EyeforTravel.com’s best hotel mobile app in 2012 and Marriott featured in Fortunes 2012 top list as a Social Media Star. The focus groups spent approximately 90 minutes downloading and using the hotel apps for both companies using both Android and Apple iOS. They also visited the Facebook, Twitter, FourSquare and LinkedIn pages for each company. If ensuring that your hotel brand is well established in the Social, Local and Mobile (SoLoMo) arena was the big trend for 2012, then 2013 will see hoteliers building systems to closely monitor their SoLoMo ROI. In order to get some understanding on how some of the big hotel brands are dealing with SoLoMo, I enlisted the help of 12 University of Brighton hospitality management students, aged 19 to 28. This age demographic is so smartphonesavvy that their views on the integration of mobile to social and local platforms could provide insights into how best to develop and measure key performance indicators for SoLoMo. A SoLoMo Experiment Three focus groups were formed, each downloading two hotel mobile applications. They discussed the usefulness and ease-of-use of the social
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IOANNIS S. PANTELIDIS Ioannis S. Pantelidis is a senior lecturer in Hospitality and Culinary Arts at the University of Brighton. He is co-author of the best-selling book, Food and Beverage Management, and has published and presented papers in numerous international conferences and academic journals including the Cornell Hospitality Quarterly.
winner. All focus groups agreed that the evidence of integration of mobile to social (and vice versa) were deemed very limited for both companies.
“HOTEL GROUPS TEND TO FOCUS MORE ON THE MOBILE OR SOCIAL SIDE OF THE BUSINESS WITHOUT CREATING A STRATEGY TO LINK THEM” The findings from this exercise suggested that, overall, the three focus groups favoured the Best Western mobile app for its ease-of-use even though the app seemed to crash at least once for the android platform. Similarly, the Best Western mobile web pages seemed to be favoured for their ease-of-navigation, speed and content. However, in terms of social media activity quality and quantity, Marriott emerged the clear winner. So it all rested in the integration of mobile and social in order to find a clear
Integrating Mobile and Social This preliminary study had its limitations – but nevertheless suggested that even large hotel groups tend to focus more on the mobile or social side of the business without creating a strategy to link them in a way that leaves a lasting impression on the consumer. One may argue that smaller hotel operators have the upper hand here as they can adapt their strategies faster. Furthermore, their simplified organisational
HOTELIER 3.0 INNOVATION
ACTIONABLE INTELLIGENCE structures should allow easier and faster implementation of such strategies – and in the world of SoLoMo, response speed, innovation and proactivity are key ingredients to ensuring audiences are won over and captivated. Measuring ROI Still the question remains: how does one measure the commercialisation of SoLoMo activity for a hotel? The obvious Key Performance Indicators (KPIs) that will help us monitor the commercial value of SoLoMo activity for a hotel have to do with the mobile part of the activity. How many reservations have occurred through the app or how much traffic has been generated on a mobile website, for example. However, this could be a superficial approach that may dictate that a SoLoMo investment is simply not worth the returns.
To be more accurate in your assessment of SoLoMo, you need to go beyond the superficial. For example, you need to consider how your SoLoMo strategy has affected Search Engine Optimization (SEO), how the traffic patterns to your website may have altered and how to use locationbased activity to your advantage. You can measure how rewards and discounts through the social element of your strategy feed into your mobile and vice versa. You can measure how your online and mobile communities grow and respond to varying content and you can quantify new market segments that would not be available to you without SoLoMo. No matter what KPIs you choose to monitor the success of your hotel SoLoMo activity, you need to ensure that the strategy was designed with those KPIs in mind.
ARE YOU ACHIEVING THE FULL COMMERCIAL VALUE OF SoLoMo? Here are five key questions to get you thinking: •
Are you reaching new market segments through SoLoMo?
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Has SoLoMo increased the growth rate of your online and mobile communities?
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Are you using location-based activity to your full advantage?
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Has SoLoMo changed your online traffic patterns?
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Are your mobile and social strategies fully integrated?
From this day forward... Transform your hotel into a renowned wedding venue The UK wedding market is thriving, so promoting your hotel as a wedding venue is an ideal way to optimise revenue and enhance your brand.
Our RFiD Hotel Locking Systems give contactless access control to your guests and staff for a cost equivalent to or cheaper than older technology systems.
Hotels that become part of the Tabor Group franchise will be likely to host at least 200 weddings a year (in common with all existing established “Tabor” venues) – and each wedding party is provided with exclusive use of the hotel, for that true “home for the day” experience.
New builds and upgrades can benefit from this technology and reap the rewards of wireless access; Non contact means no cleaning of read heads, no misreads of cards and no panic when a card or key gets misplaced. Increase your guest confidence and reduce your maintenance at the same time.
MORE INFORMATION Laura Furnell, Business Development Manager Tel: 07540 666 104 Email: laura@taborfranchise.co.uk Website: www.taborfranchise.co.uk
0844 99 33 253 www.tillsecure.com info@tillsecure.co.uk WINTER 2013 | HOTEL INDUSTRY MAGAZINE 29
INNOVATION TECHNOLOGY TRENDS
ONLINE BOOKING IN 2013
THE ONLINE BOOKING SPACE IS CHANGING FAST, BUT ARE HOTELIERS KEEPING PACE? WE REVIEW THE EMERGING ONLINE BOOKING TRENDS FOR THE YEAR AHEAD TECH TREND #1: COMBATING OTA DOMINANCE With a handful of powerful OTAs dominating the market, hoteliers are identifying ways to sidestep the highcommission they command. OTAs can be useful to engage a new guest, but many hoteliers are now aiming to drive repeat bookings to their own direct booking engines. Hoteliers are waking up to the fact that their reliance on OTAs is making it difficult to deliver on their customer loyalty strategies. Currently, customers that book through an OTA are loyal to the third party – not the hotel brand. The digital landscape is evolving and booking engines are becoming more of a commodity. “Many hoteliers can get subscriptionbased booking engines if they commit to other services,” explained evolution, director of e-distribution, Yunna Takeuchi. “Because hotel booking engines are now such inexpensive channels, hoteliers do not wish to pay such high commissions. “OTAs are beginning to realise that hoteliers are aiming to attract more direct bookings and they have become more flexible. Hoteliers should have been aiming to do this years ago. But, the timing is imperative now, due to the fact that hotels now have more tools, better systems and improved knowledge of digital marketing.”
30 HOTEL INDUSTRY MAGAZINE | WINTER 2013
To attract direct bookings, hoteliers need to start thinking like an OTA. They need to develop optimised, mobile-ready websites with streamlined merchandising capabilities. They need to invest aggressively in e-marketing and perhaps even consider working in partnership with competing hotels to share inventory when full – the innovative feature behind the launch of RoomKey.
SUPPLIERS YOU SHOULD KNOW evolution 020 7380 8555 www.evolutiondistribution.com
TECHNOLOGY TRENDS INNOVATION
website in the list of distribution channels when a user searches for availability on TripAdvisor and on price comparison sites. “Hoteliers don’t need to take sides when it comes to choosing an online sales channel,” explained Guestline group sales and marketing director, Rupert Gutteridge. “Integrating social media and direct booking channels helps build a community within a brand. “By utilising both direct and indirect distribution channels, hoteliers can be confident they are capturing all forms of online traffic, and are creating the perfect balance in their hotel’s web presence.”
TECH TREND #2: GOING SOCIAL The explosion in social media has created the perfect commission-free platform on which to convert sales. Industry figures reveal that more than 80% of hotel guests prefer to book directly online – so hoteliers are going where their customers are: social media
sites like Facebook and Twitter. From a business perspective, social media is fast evolving from a simple customer relations tool into a fullyfledged sales channel. Products like Availpro’s booking engine for Facebook allows users already engaged by the hotel’s social media strategy to book rooms directly from Facebook. Furthermore, this time last year, Availpro launched its Direct Click Manager service that features a hotel’s official
TECH TREND #3: ENTICING PROMOTIONS In the age of price parity, hoteliers need to capitalise on the aspects over which OTAs have no control. It is therefore essential to differentiate direct booking promotions from the generic information listed with the OTAs. In this respect, it is “back to basics marketing” – by creating enticing content around the quality of the guest experience and developing unique promotions to exploit this, it is possible to drive traffic to the hotel’s direct booking engine. “We’re seeing hotels increase direct booking and create more relevant packages and promotions for their
SUPPLIERS YOU SHOULD KNOW Guestline 0800 413557 www.guestline.com Availpro 020 7031 8206 www.availpro.com
customers that are unique to their own direct booking channel,” explained RateTiger’s Ryan Haynes. “Hotels need to look at how they can save time through technology and not just see additional tasks as an uphill struggle. They need to get the balance right and ensure the conversation is flowing between revenue, sales and marketing managers.”
SUPPLIERS YOU SHOULD KNOW eRevMax International 020 7422 7528 www.erevmax.com
WINTER 2013 | HOTEL INDUSTRY MAGAZINE 31
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