
August 1, 2007
Hotels Pump Up The Volume With Meeting Themes
Hotels are no longer selling corporate meeting clients just a room, a sound system, a projector and some pitchers of water. Some full-service chains are in the vanguard of a growing trend in which the hotels are creating a customized environment that uses sound, food, scent, decor, toys and gadgets to create moods that match the meetings' objectives.
Kimpton Hotels began its Signature Meetings initiative last year reports USA Today. Omni launched a similar campaign – dubbed Sensational Meetings – earlier this year. The W and Westin also customize meetings.
Kimpton executive Christine Lawson says meeting organizers can't expect good results when participants are thrown into a drab room with bad air and eat nothing but sugar and carbohydrates. "We're telling customers not to be afraid to infuse creativity."
For example, a client wishing to hammer out a financial deal might opt for an environment that eases tension. That could call for low lighting, green tea, worry stones on tables and a relaxed mix of instrumental music. Those wishing to generate team-building and brainstorm for new projects might consider a joint cooking session, bowls of almonds (reputed to be brain food) and even board games.
Barbara Scofidio, editor of trade publication Corporate Meetings & Incentives, says meeting planners are increasingly willing to pay extra for anything that will keep participants awake, set a mood, stir creativity and generate more "return on investment" for what companies spend on meetings.
She says the younger generation of meeting-goers tends to have shorter attention spans and are used to image-conscious retailers such as Hollister, which offer store displays with style and flair. "They're used to stimulation."
Marketers Take A Fresh Look At The Language Barrier
Few things fire up marketers as much as the desire to present a consistent image for the brands they oversee. Consumers, they assume, equate consistency with quality.
There used to be one exception, contends the International Herald Tribune. Many leading brands in the past were managed differently across national boundaries, because every country had its own marketing staff with separate ideas about how best to connect with local consumers.
But globalization and the rise of the Internet have dealt serious blows to the idea of local brand management. Companies that used to swear by it, like Unilever, have backed away. And companies are adopting global advertising themes, even if many of them are tailored for local markets – an approach called "global-local." HSBC, the London-based bank, epitomizes this approach, billing itself as "the world's local bank."
But, according to SDL International, a company that provides translation services to corporate clients and others, there is still one big barrier to international consistency in marketing: language. According to a recent survey of corporate marketing managers that was commissioned by SDL, "language" and "translation issues" were cited as the biggest obstacles to "managing your brand effectively in global markets."
In addition to advertising slogans, marketing managers have to deal with reams of other material, from Web sites to direct mailings to instruction manuals, all of which can hurt a brand if the content is inconsistent with its values. The apparent difficulty in achieving consistency in these materials is particularly pronounced for American companies, according to the survey, which was conducted by Forrester Consulting, an arm of Forrester Research.
Only 24% of American survey respondents, for instance, said customers were getting a consistent experience online in all languages in which they operated Web sites. By contrast, 54% of European marketing executives said they had achieved such consistency.
Surveys like this one have to be taken with a dose of skepticism, as they are often used as marketing vehicles by the companies that commission them - in this case, by SDL - to try to sell systems that employ software to help humans speed up their translations of corporate material.
Still, this one raises an interesting question. Are American companies, in the Internet era, really less adept at global brand management than their European counterparts?
"Broadly speaking, American organizations are very, very slow in terms of their understanding of language," said Chris Boorman, chief marketing officer at SDL. "They often take an old-fashioned, arrogant, and I would go so far as to say a colonial approach."
Because European companies have relatively small domestic markets, they have long realized that they have to master foreign languages if they are to grow, he said. American marketers are only now waking up to this notion, and scrambling to adapt their Web presence to local markets, he added.
There are signs that the brand world is less U.S.-dominated than it used to be. A ranking of the top-100 global brands by Interbrand, a marketing consultancy, included 51 American names last year, down from 64 in 2003.
Boeing's Dreamliner Story Spotlights Power Of B2B2C
Boeing's recent premiere of its energy-efficient 787 Dreamliner was not only a media extravaganza; it was a culmination of years of outreach to consumers, as well as business constituencies says Marketing Daily.
The aerospace giant's strategy marks a notable extension of the growing trend to B2B2C marketing, wherein companies seek to help influence their customers' customers, points out Michael Megalli, partner in Group 1066, a marketing and branding consultancy.
"We're already surrounded by instances of B2B2C marketing in consumer electronics, financial services and health care, but Boeing is the first major manufacturer to enter this arena," Megalli says.
"In an era of branding by association, the 'ingredient' brand is becoming king. The model used to be that the reseller -- in this case, the airline -- added value via its services. Now, increasingly, it's the product originator that's adding the value, with the reseller reaping the benefits of enhanced appeal to the consumer."
The July 8 Dreamliner event (scheduled on that date to play off the 787 brand) had more in common with a Hollywood premiere than with the largely B2B-focused marketing efforts normally associated with engineering-driven product launches.
Held at Boeing's Everett, Wash. final assembly factory, it was hosted by Tom Brokaw, attended by 15,000 cheering employees and customers, and broadcast around the globe. More than 30,000 business-related viewers participated from locations in the U.S., Japan and Italy via two-way satellite TV, and customers, employees and partners at 90 other locations worldwide downloaded the event live on the Internet or watched a recording during their own viewing events.
However, consumers made up the bulk of the audience. Final numbers are not available yet, but Boeing projected potential reach of 100 million, which would certainly make this one of the largest corporate broadcasts in history.
Labor Woes, Strong Dollar Challenge Canadian Hoteliers
Canadian hoteliers may be about to post their second straight year of record profits, but storm clouds in the shape of labor shortages and fewer foreign travelers are gathering, a new report suggests.
According to the Financial Post, strong travel spending by Canadians and healthy price increases in such things as room rates will see hoteliers post their second consecutive year of record profits this year, according to the Conference Board's Canadian Industrial Outlook: Canada's Accommodation Industry Summer 2007, released Thursday.
The Hotel Association of Canada reported earlier this year that 11% more Canadians intend to travel in their own country this year over 2006. Almost 80% said they would travel in Canada in 2007, up from 67% in 2006 and 57% in 2005.
"After three years of improvement, accommodation profits are expected to rise slightly to $982 million in 2007," said Michael Burt, senior economist with the Conference Board. "However, with labour shortages and the resulting increases in wage costs limiting profits, the industry can expect weaker profits next year."
Travel Industry 'Blueprint' Gains Traction On Capitol Hill
Six months after rolling out an ambitious plan to bolster inbound tourism to the U.S., the travel industry said it is moving towards achieving most of its goals reports Travel Weekly.
"During the past six months, we've been able to accomplish more than in the past six years," said Geoff Freeman, executive director of the Discover America Partnership, the travel industry group spearheading the plan.
Freeman and other executives from the partnership including Stevan Porter, president of InterContinental Hotels, the Partnership's chairman; Jay Rasulo, chairman of Walt Disney Parks and Resorts and chairman of the Travel Industry Association; and Tom Ridge, the first head of Homeland Security, met with reporters here Wednesday to provide an update on the plan, referred to as the "Blueprint to Discover America."
Since the Blueprint was unveiled during the Travel Industry Association's annual State of the Industry luncheon last February, Freeman said the Partnership has been able to move several of their initiatives forward on Capitol Hill with at least six bills introduced and now pending in both the House and the Senate.
For instance, the Travel Promotion Act of 2007 (S. 1661) would create a global campaign to encourage visits to the U.S., a key travel industry objective. A similar bill will be soon introduced in the House.
Meanwhile, a bill introduced in the Senate (S. 4) that would put into law several of security recommendations proposed by the 9/11 Commission, includes an industry-supported provision that would make it possible for more countries to participate in the Visa Waiver Program. The VWP permits visitors from certain countries to enter the U.S. without a visa and visit for up to 90 days; the countries reciprocate by extending the same privilege to U.S. visitors.
Another bill in the House (H.R. 2764) would permit the use of video conferencing technology for interviewing individuals applying for visas. That provision would aid many potential visitors who sometimes have to travel hundreds of miles for in-person interviews for visas at U.S. consulate offices overseas.
Hilton To Bring Doubletree Brand To Europe
Hilton Hotels Corp. is expanding its Doubletree brand into Europe after signing a franchise agreement to open a property in Milan, Italy.
The new hotel will be the first Doubletree in Europe and will complement the 319-room Hilton Milan in the city. According to HotelBusiness the newly built Doubletree Milan will offer 240 guestrooms as well as a 225-seat restaurant and covered terrace that can accommodate 250 people. The property will also include extensive meeting facilities. The hotel is currently slated for an October 2008 opening.
Report: 57% Of Internet Users Watch Videos Online; Most Share With Others
The growing adoption of broadband combined with a dramatic push by content providers to promote online video has helped to pave the way for mainstream audiences to embrace online video viewing. Fifty-seven percent of online adults have used the internet to watch or download video, and 19% do so on a typical day. Three-quarters of broadband users (74%) who enjoy high-speed connections at both home and work watch or download video online.
The Pew Internet & American Life Project's first major report on online video also shows how many video viewers have contributed to the viral and social nature of online video. More than half of online video viewers (57%) share links to the video they find with others, and three in four (75%) say they receive links to watch video that others have sent to them.
Survey: Some Marketers Still Pay For Press Coverage
Almost 17% of US senior marketers say their organizations have bought advertising in return for a news story, according to PRWeek and Manning Selvage & Lee's "Marketing Management Survey." The study was conducted in April and May 2007 by PRWeek and Millward Brown, says eMarketer.
Another 7% of marketers said their firms have had an implicit/non-verbal agreement with a reporter or editor that they expected to see favorable coverage of their company or products in exchange for advertising.
One in 20 marketers said their companies had paid or given something of value to an editor or producer in exchange for a news story about their company or its products.
A Hotel That Fits On An 18-Wheeler
If you can't find a hotel you like where you're going, how about bringing one with you? HotelChatter reports the current issue of Business 2.0 (not online yet) features a Spanish company making the HotelMovil, a portable hotel that can be transported on the back of an 18-wheeler truck. This is no micro hotel though, thanks to its Transformer-style action.
"A Hotelmovil arrives at the site – campground, beach, woods, etc – looking very much like a standard semi. You simply detach the cab and press 'Play' on a handheld remote to start the 30-minute hydraulic unfolding process. When all is finished you have 11 bedrooms with private bathrooms and a second-floor outdoor terrace."
The contraption sells for half a million dollars, or you can rent one for about $8,000 a weekend. From the looks of the photo though, there's one thing that's surely lacking: a room with a view.
Singapore Air To Auction Seats On Inaugural A380 Flight Through Ebay
Singapore Airlines, the first carrier in the world to fly the new superjumbo Airbus A380, will auction all seats on its inaugural flight on eBay, and donate the proceeds to charities, the airline said Wednesday.
The history-making return flight to Sydney on the double-decker airliner – the world's biggest passenger jet – will take place in October, Singapore Airlines said in a statement. The date of the flight will be fixed soon, says Associated Press, after final notification from Airbus about the delivery date, the statement said.
"In response to requests from people all over the world to be passengers on the first flight, Singapore Airlines will auction the seats on global online marketplace, eBay," the statement said. The auction will begin some weeks before the flight, it said without elaborating.
Plush Amenities Forcing More Hotels To Add Condos
Just north of downtown Dallas, Crescent Real Estate Equities Co. is building a 218-room Ritz-Carlton hotel designed by star architect Robert A.M. Stern. When it opens next month, guests will be able to get a facial or a massage at the spa, or get room service from celebrity chef Dean Fearing's new spot downstairs.
But the new property isn't just for tourists or businesspeople reports The Wall Street Journal. It will come with 166 Ritz-Carlton-brand condos and four lavishly appointed homes the developers call "freestanding manors." Condo residents will be able to enjoy the hotel's spa, room service and other amenities. Crescent is including the condos because the amount the Ritz-Carlton will charge for visitors –about $450 a room – isn't enough for the company
to make money.
"To build a luxury hotel today, you really have to look at some component that helps underwrite the cost," says Bill Mabus, vice president of development for Crescent, based in Fort Worth, Texas.
Had it not been for the condos, it is unlikely that this hotel – or, for that matter, most luxury hotels under construction across the U.S. – would ever have gotten the green light to be built. That is because the cost of land and construction, along with the expense of plush amenities and services needed to be a luxury hotel (such as twice-a-day maid service), have risen faster than the price much of the public is willing to pay for a room. As a result, the only way most developers can afford to build luxury hotels is if they are part of broader development projects that typically include a residential component.
"It makes projects viable that weren't viable," says Laurence Geller, chief executive of Chicago-based Strategic Hotels and Resorts Inc., which is planning a Four Seasons near Mexico City with a condominium component and which has hotel-condominium developments in San Diego and Chicago.
Noise The # 1 Hotel Guest Complaint
That's the finding of the 11th "North America Hotel Guest Satisfaction Survey" from J.D. Power and Associates. In the survey of 47,634 travelers queried about a recent hotel stay, noise was the most significant problem reported, followed by room cleanliness, hotel/room maintenance, room smell and staff attitude. That's surprising to me, but apparently thin walls, partiers and construction sounds really tick off guests.
Other interesting survey findings according to USA Today:
- *Staff service was the No. 1 complaint of those staying at luxury hotels. Apparently luxe lodgings have their act together on room maintenance and cleanliness, so service is becoming "a key differentiator" in the luxury segment, says J.D. Power exec Linda Hirneise.
- *Top chains in overall satisfaction were Ritz-Carlton (luxury), Embassy Suites (upscale), Hilton Garden Inn (mid-scale full service), Drury Inn & Suites (mid-scale limited service), Microtel Inns & Suites (economy/budget), Homewood Suites (extended stay). Hilton Garden Inn and Microtel topped their segments for the sixth year in a row, Hirneise says.
Study: Marketing And ROI – Measurement Easier For Direct Marketers
eMarketer reports that direct mail and e-mail had the highest return on investment of any target marketing method in 2006, according to Harte-Hanks' "Target Marketing Priorities Analysis: 2007 Key Trends" study.
The survey, conducted by CSO Insights, questioned marketers about their tactics. More than 70% of B2C marketers said direct mail brought them a high ROI, while more than 45% said e-mail did (respondents were allowed multiple responses).
Do direct mail and e-mail truly bring the best ROI? Was direct mail judged as having a high ROI only because it's relatively easy to track?
Bill Goldberg of Harte-Hanks pointed out, "As companies invest more in multiple channels in a bid to acquire customers, and to retain their loyalty, it appears businesses continue to grapple with data management and data insight – and just what the metrics are saying." With other methods, such as consumer-generated media, ROI is openly questioned.
Australia's Virgin Blue Launches Long-Haul Airline
Australian airline Virgin Blue Holdings Ltd said on Wednesday it planned to invest A$70 million ($62 million) in a new long-haul carrier it hopes will be flying on lucrative United States routes by late 2008, according to Reuters.
The new airline, called V Australia, still needs U.S. regulatory approval for its plan to operate 10 weekly services between Australia and the United States, which requires changes to existing bilateral air service agreements. Virgin is spending more than A$2 billion on six Boeing 777-300ER widebody aircraft for the new airline, which it said would be profitable in the second year of operation.
Virgin Blue, which has about one-third of the Australian domestic market, expects V Australia to initially take about 12% of market share on Australia-U.S. routes, where it could compete on some routes with United Airlines and Qantas Airways Ltd.
Heartbreak Hotels: In UK Many Independents Struggling To Compete With Chains
The rise of brand hotel chains in the UK is threatening the existence of hundreds of independent hotels. According to a new survey from Hotel Reservation Service, almost half of the 300 owners surveyed are in direct competition with a chain and more than a quarter report a drop in bookings as a result.
According to The Independent in the UK, chains are criticized for their failure to invest in local communities or to engage with them. A total of 62% of independent owners believe brand hotels in their area make an insignificant contribution as an employer or trainer of local people, with a similar figure claiming they fail to buy local produce or services.
"We used to have an active hotels association in Leicester," said James Bowie, owner of the Belmont House Hotel in the city. "We would put on citywide promotions and share information. But in recent years the chains have become much more reluctant to share any information – they've become much more insular. "Consequently, the association no longer exists."
Mr Bowie said that the vast marketing budgets of the chains can make a big difference, while custom flowing through websites can be a mixed blessing. The sites may ask for a cut of up to 25% and insist on the lowest possible room rates being quoted.
"The big boys can absorb these kind of costs better than the smaller operators," he explained.
Luxury Flights For Smokers
At the international airport in Dusseldorf, Germany, smokers are shunned. If you want to light up, you're restricted to a handful of bars in the terminal, or else stuck puffing on the dingy street outside.
Soon, however, tobacco lovers from around the world could be beating a path to Duesseldorf says the Washington Post. A start-up airline based here plans to offer long-haul luxury flights – to Asia, at first – that cater to smokers, countering a decades-long global trend that has made it impossible to enjoy a cigarette on most passenger flights.
The new airline is called, naturally, Smoker's International Airways, or Smintair for short. The founder is a local entrepreneur who promises a return to the days when air travel was considered glamorous, when stewardesses were happy to bring you a glass of scotch, and when smoking in the lavatory didn't risk criminal prosecution.
"Other airlines have lost every kind of sympathy for their passengers by leaps and bounds. They treat them like cattle," said Alexander W. Schoppmann, a former stockbroker who started Smintair. "What all of those carriers want these days is for you to stay in the seat, and you better bloody well stay there, and don't even ask for anything to eat or drink. You can't do anything."
On Smintair, according to Schoppmann, there will be plenty of room for passengers to indulge their vices, whether it's smoking, drinking or even small-stakes gambling. Fliers will be able to mingle at bars on the upper or lower deck of a Boeing 747, which will be reconfigured to be so roomy that there will be space for just 138 passengers, instead of the 400 or so typically seated by most carriers.
Demand Grows For All-Business-Class Flights
So it seems as Virgin Atlantic Airways and British Airways are indicating that they may compete with four start-up carriers for a market that no one knew existed just a few years ago: all-business-class flights. The new carriers offer fares far below those for regular business and first-class seats, along with private departure and arrival lounges and a path through the airport past the usual crowds at the gate.
For now, the four start-ups – Eos and MAXjet, which began flying in late 2005, and Silverjet and l’Avion, which started flights this year – are offering only trans-Atlantic service. They chose those routes first because they are the most lucrative in the industry and flying them successfully proves they can compete with the big carriers.
All four say the demand has exceeded their expectations, says The New York Times. In June, for instance, the four reported that they filled 70% or more of their seats. And the more established airlines are taking notice.
“There clearly is a demand for a niche for an all-business-class offering,” said Richard Branson, the president and founder of Virgin Atlantic, whose Upper Class Suite business class is typically rated among the industry’s best.
Virgin announced last month that, within 18 months, it planned to start flying some international routes using planes configured with all-business-class seating, after the Open Skies international agreement that takes effect in March significantly deregulates trans-Atlantic air travel.
Mr. Branson said that Virgin’s research showed a “mood change in the last five years” among business travelers, who “want to sit in an airplane with people who are also working.”
“It’s a status thing,” he added, “and a psychological thing.”
Banyan Tree Set To Expand In China
Ho Kwon Ping, founder and executive chairman of the Banyan Tree chain of luxury hotels and resorts states that since its foundation in 1996, Banyan Tree has made a profit every year except 2005. Last year, Banyan Tree Holdings – which owns the 21 resorts, 58 spas and 68 ‘retail galleries’ – was floated in Singapore.
Ho Kwon Ping worked as a journalist on the Far Eastern Economic Review until 1981, when he joined to the family business, which he describes as a ‘typical mini overseas Chinese conglomerate’. He started Banyan Tree in 1996.
More than a decade on, reports the China Economic Review, Ho believes that the business is secure because the brand is strong, not just in Asia but across the world. He says a third of customers come from north Asia – Japan, Korea and China – a third from Europe and the US and a third from the rest of the world. The next big geographical push will be to expand its presence in China.
Ho says: ‘We are in the process of starting our own private equity fund. We are raising $500-700m from institutional investors that we would use to add to our existing hotels in China. The fund will be used to develop properties in China. Eventually the properties would have full management agreements with Banyan Tree.’
International Hotel, Exchange Rates Are Rising
Many travel buyers will start crunching numbers for the 2008 hotel request-for-proposals season over the next few weeks, and what they are likely to find are some hard figures. Demand continues to outpace supply in cities worldwide, says BusinessTravelNews, with the problem exacerbated outside the United States by the declining value of the dollar, now below the symbolic figure of £0.50.
Even without the currency depreciation, rates have grown by double-digit percentages in many cities in Europe, the Middle East and India this year, covering locations as diverse as London, Madrid, Dubai and New Delhi. "We have seen the same rate increases as last year in 2007, and 2008 is likely to be similar," said Maria Chevalier, vice president for global intelligence with the BCD Travel-owned consultancy Advito. "It is going to be another challenging year."
Paul Wardlow, director of global transient sales for Starwood Hotels & Resorts, offered a little more comfort than that, though not much. "Rate rises will not be as strong as in 2007, but certain markets continue to thrive," he said.
Another complicating factor for U.S. buyers, according to Chevalier, is that 60% of U.S. hotels now offer transparent, detailed folio data, but it is available from only a handful of hotels in the rest of the world.
Although conditions are tough, both Chevalier and Wardlow urged buyers not to despair, insisting there still is room to negotiate despite the shortage of bed capacity in so many locations. According to Wardlow, buyers can secure discounts as long as they do not attach too many conditions and deliver the commitments they promise. "Corporate clients are being a lot more realistic in what they are asking for," he said, citing room allocations, last-room availability and deals of two years or more as unrealistic.
Loews To Offer Wireless Electrical Power
Guests using computers and other electronic devices at the Loews Regency Hotel business center in New York City will experience a new level of wireless freedom, reports ModernAgent, as the hotel becomes the first location to install Powermat technology, a new method for transmitting wireless electrical power.
Powermat provides cordless electrical power to electronic devices of nearly every type – laptops, cell phones, PDAs, etc. – without the need to access multiple electrical outlets or docking stations. As part of the deal, Powermat will design and construct a complete wire-free solution for the Loews Regency Business Center based on its technology.
The project will include the installation of portable computers and other electronic devices, which will be operated freely using Powermat solutions. Utilizing principles of magnetic induction, Powermat's integrated solution transmits electrical power via an ultra thin mat embedded in, or overlaid on, a work surface or wall to electronic devices placed randomly on the power mat.
Powermat enables an individual to travel without a charger and draw power to operate electronic devices so that batteries are never exhausted and wires are obsolete.
Another Internet Hotel-Booking Suit Thrown Out
Orange County in Florida became the latest to be thwarted from collecting higher hotel taxes from online travel companies after a judge threw out a lawsuit brought by county officials says TravelMole. The county contended the Internet hotel-booking agencies were not fully paying local taxes.
The dispute focused on the way online companies like Expedia and Orbitz calculate their tax payments. The companies generally negotiate lower rates with hotels for a large number of rooms then offer those rooms to customers at a higher price.
But the companies pay taxes to the county on the lower rate, saying the higher price the consumer pays is the charge of the service not the cost of the room.
Auditors have calculated that Orange County misses out on at least $5.5 million a year in hotel taxes because of online bookings. The issue has been appearing all over the country with tourism officials usually on the losing end of the battle.
Orange County lawyers told the Orlando Sentinel they expected to appeal.
Gaylord Project Sets Industry Record For Pre-Sales
The Nashville Business Journalreports Nashville-based hotel operator Gaylord Entertainment Co. has sold 1 million room nights at the Gaylord National Resort & Convention Center. The 2,000-room hotel near Washington, D.C. is under construction and will open next April.
The sales set an industry record, previously held by another Gaylord property, the Gaylord Palms Resort & Convention Center in Kissimmee, Fla., where one million rooms were sold approximately one month prior to its February 2002 opening.
Hotel Investors Seeing Opportunity In Boston
Real estate investment firms and hospitality companies flush with cash are sharpening their focus on Boston's lucrative hotel industry. The trend was highlighted this week when a Connecticut hedge fund challenged Sonesta International Hotels Corp. to capitalize on the market's froth by seeking out a buyer for some or all of its properties. The fund in question, Mercury Real Estate Advisors, has pegged Sonesta's per-share value in the range of $110 to $125, or more than double what it has traded for on the Nasdaq Stock Market in recent weeks reports the Boston Business Journal.
The Sonesta saga comes on the heels of several major hotel sales in Boston, and more potential deals appear to be taking shape. Industry experts say the growing interest in existing hotel properties is being driven by high construction and labor costs, as well as Boston's attractiveness as an international and domestic travel destination.
Last year the 273-room Ritz-Carlton Boston was swiftly sold to Indian Hotels Company Ltd. for $170 million. Earlier this year Boston Marriott Long Wharf was sold to Sunstone Hotel Investors Inc. for $228.2 million, a high fetch with many bidders.
"There are several hotels that are for sale right now in the city, and there'll be more," said Richard M. Kelleher, chief officer of Pyramid Hotel Group LLC, a hotel management and ownership company.
Upwards of $52.5 billion worth of hotel company acquisitions have occurred this year, compared with $3.4 billion worth of transactions for 2006, according to research and publication firm SNL Financial. "I know there's a lot of international money that's looking for a home," said Timothy P. Kirwan, general manager of InterContinental Boston.
The True Colors Of Nation Branding
"Nation branding is not simply coming up with a cute logo and tag line," states Thomas Cromwell in his article "Why Nation Branding Is Important For Tourism."
Whether based on individual national objectives of trade, investment, and travel/tourism, or vying for specific organization memberships such as inclusion in the EU, positioning a country's brand is more important than ever for the largest to the smallest of countries. In the last five years says BrandChannel, Poland, Croatia, South Africa, Australia, and India are just a few examples of countries that have launched branding campaigns via the web, print, and television.
While the notion of nation branding is relatively new compared to the history of nations, the practice has always existed through public policies and economic development. In 1998, a British marketing consultant named Simon Anholt wrote an article arguing that places and nations can be equated as brands and was surprised by both the outrage and interest he received from academics and government officials alike at the notion of a nation brand. Since then a boutique field has not only emerged but is flourishing.
But, Anholt points out, like branding for the commercial sector, branding nations is a mixed bag with often mixed results. "The problem is there's no widely accepted theory of branding…about what it is and what it hopes to achieve. The consequence is that there are a lot of countries who are confused…and have a lot of different ideas of what branding is all about. And most of them, to tell you the truth, are achieving very little."
Anholt points out that a number of countries have spent quite large sums to create an expensive corporate identity with ad time on television channels such as CNN to essentially create a tourism campaign, when really what the countries were hoping for was much broader than just creating tourism awareness.
Holiday Inn Chain Gives Itself A Face-Lift
The roadside Holiday Inns that became fixtures in towns across the USA beginning in the 1950s are disappearing. London-based InterContinental Hotels Group (IHG), current owner of the brand that pioneered franchised motor hotels, is in the process of shedding roughly half the nearly 1,100 properties that it had in 2004, mainly by ending franchise agreements with operators of substandard properties.
Among the first to go: those two-story low-rises with exterior corridors that defined the early years of Holiday Inn. In their place: multistory, contemporary-style hotels with fewer rooms and smaller restaurants.
The multiyear campaign to remove the brand from outdated hotels – the largest cutback of its kind ever undertaken by a single chain – is expected to be complete in 2009 says USA Today. By the time the campaign ends, Holiday Inn will have removed about 100,000 rooms and opened about 35,000 new ones in the USA.
Survey: 'Girl Getaway' Trips Growing In Popularity
Hotels and resorts around the country are tuning in to one of the fastest-growing segments of the leisure-travel business: the so-called "girl getaway."
A new survey has found that the female-centric bonding trips now represent 4% of all U.S. travel spending, or almost $200 million a year says The Arizona Republic. The study, conducted by the American Automobile Association in conjunction with Aspire, a Phoenix-headquartered global training and consulting company, also found that 24% of American women have taken a girl getaway in the past three years, and 39% plan to take one in the next three years.
"This is a real segment of business that is going to be significant," said Renie Cavallari, Aspire founder and CEO.
Marybeth Bond, a nationally known talk-show guest and author of nine travel books, agreed. "There's been a major shift in attitude," said Bond, who specializes in women's travel. "More women are traveling with the full support from the men in their lives.They are standing up and saying, 'It's important to spend time with my girlfriends.' "
According to the survey, the No. 1 destination for a girl getaway is the beach, followed by going to the spa, shopping and taking a cruise.
‘eventbritain' Launches In Search Of More International Events
In the middle of a summer filled with world class events, VisitBritain, the national tourism agency, has launched a new strategy to help British destinations capture the attention of the world's event organizers. It will help bring hundreds more major business, cultural and sporting events - worth up to £1 billion - to Britain says a release carried by ehotelier.
A new unit, eventBritain, will provide a comprehensive support service for any British city, region or nation aiming to win new events for Britain complementing the excellent work being done by, for example, UK Sport, UKTI, EventScotland and the local, regional and national events organizations. Winning the 2012 London Olympic and Paralympic Games has put Britain firmly on the agenda of major corporations and international associations, as well as the organizers of sporting, cultural and business events, looking to place their meetings.
Supporting bids for cultural events, such as European Capital of Culture, is also a key element, as are trade shows and exhibitions. The unit will help destinations bid for the maximum number of Olympic Games training camps.
Waves Of Canadian Tourists Pouring Into US This Summer
Soaring Canadian dollars are luring Canadians in apparently record numbers to take a summer vacation in the US. "They say there are more Canadians than ever before. It's good for everyone," said Claire Beaulieu, an owner of the Motel Kebec 2, which is just across the American border in the state of Maine.
Last summer, the loonie, the Canadian dollar named after the loon on the back of the coin, reached a 28-year high against the greenback. That meant Canadians could trade in their loonies for 90 US cents says TravelMole.
Since then, the Canadian dollar has grown even stronger. Today, the loonie and greenback are nearly equal, with a loonie being worth about 95 cents, according to the AP. It's a dramatic change from five years earlier, when the loonie was worth 62 cents in the United States.
Canadian travel to the US has grown 23% since then, according to data published by the Commerce Department. "These are some of the best days for Canadian tourists who wish to travel south of the border for their summer vacation since bellbottom jeans and disco balls were all the rage," Michael Woolfolk of the Bank of New York Mellon Corp. told the AP.
The trend is expected to continue for several years, said Mr Woolfolk, a senior currency strategist.
Survey: Destination Loyalty Drives Vacation Decisions
Destination loyalty drives the majority of decisions about where to go on vacation according to a new 2007 telephone survey conducted for the U.S. Tour Operators Association. A full two-thirds (66%) of 1,000 consumers polled said that place is the most important factor when planning a vacation says TravelDailyNews.
Price and value are also important elements, but for this majority group, they tend to be considered after the destination decision has been made.
The largest group of respondents, 35%, said they choose a destination first and then shop for the best value. Another 19% reported that they travel to the destination they want, regardless of price and value; and 12% said that they shop for the best value among several preferred destinations. Only 16% of respondents said that they shopped for the lowest price before choosing a destination.
When it comes to where to go on vacation, people tend to prefer returning to destinations they like. Nearly a third of Americans polled (31%) said they typically repeat favorite vacation spots, but sometimes try new destinations. Another quarter (22%) said they stick to a few tried and true places.
The numbers are slightly lower for those who continually seek new experiences. About a quarter (24%) of those polled reported that they typically explore new places, but occasionally return to a favorite destination. Far fewer, 16%, indicated that they usually seek a new destination with each vacation. Survey findings also revealed that increased income correlates strongly with the desire to repeat favorite destinations.
More Hotels Cater To People Traveling With Pets
While bringing a pet to a hotel was almost unheard of five years ago, some hotels have found an edge over the competition by adding "pet-friendly" to their list of amenities. And some are bending over backward to make the experience a posh retreat for your canine companion, offering gourmet treats served in a dog dish. "It's sort of the rage," said Robert Mandelbaum, director of research information services for PKF Consulting in Atlanta.
But the cost can sometimes be an obstacle. Finding a hotel to accommodate her puggle, Dixie, over the July 4 holiday was a challenge for Carol Decker of Valencia. She eventually found the Ventura Beach Marriott, reports California’s Ventura County Star. "It was really hard," she said. "Most were really expensive."
She had her doubts about trying after taking Dixie to a hotel last year in Arizona. Decker was restricted to a smoking room that was "so awful." She found the $75 pet fee for three days charged by the Ventura Beach Marriott to be reasonable, and she was happy to be given her choice of rooms.
People with dogs spend too.
The Ventura Beach Marriott offers a new "Lucky Dog Pet Package" that provides a plush sheepskin pad, dog bowl, welcome gift including a treat, a towel and a choice of tennis ball or Frisbee. Pet owners also receive a map of nearby pet-friendly parks and beaches.
"We kept hearing over and over again, We want to travel with our pets,' so we created a way that they could," said Lisa Stephens, director of sales and marketing at the Ventura Beach Marriott.
The summer package starts at $259 a night and includes a pet fee, which typically costs $75, a deluxe room and breakfast for two adults. Some might consider it a deal, considering the deluxe accommodations typically runs $159 to $259, depending on the time of year.
The Marriott has been accepting cats and dogs at its hotels for the past few years, though the "Lucky Dog" package started June 1 and is set to expire Aug. 31. Given the package's popularity, it is likely the hotel will extend the offer, Stephens said.
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