
October 1, 2007
Luxury Brands Should Consider How Consumers Perceive Them
In recent years the term luxury brand has meant a lot more than just Christian Louboutin's red-soled pumps or Versace's gowns says the International Herald Tribune. Think chocolates, flowers and tropical resort hotels.
There is Bulgari's Bali resort and Roberto Cavalli's handmade vodka. Versace offers décor for private jets. And in November, Giorgio Armani plans to open his fourth multiconcept store, the Armani/Ginza Tower in Tokyo. Spread over 12 floors, it will include a spa, a nightclub and a flower shop.
Now that the major houses are dipping into so many areas, where do they go next for growth?
Luxury brands should consider how consumers perceive them, not how they want to be perceived, said Milton Pedraza, chief executive of the Luxury Institute, a ratings and research firm based in New York. And capitalizing on existing products and design skill are the best outlets, he added, like creating auto interiors, jets, or yachts.
Developing an aesthetic is a key consideration for luxury brand operators who want to avoid diluting the brands' public appeal. "Are they about promoting a logo or a brand aesthetic?" asked Dana Thomas, Newsweek's European fashion writer and author of a new book "Deluxe: How Luxury Lost Its Luster."
"Are you getting your jet done in Versace because you like their neo-classic look or because you want those seven letters?" she asked. "When you start having Cavalli vodka and Prada phones, you just don't want to see these names anymore. I think there will be a time when the market is saturated and they'll do themselves in."
Regional Airlines Making Changes To Spur Growth
The Wall Street Journal reports that regional airlines are undergoing a transformation that could provide investors with new opportunities down the road.
Following several years of strong growth, the U.S. airlines that fly regional jets - seating between 35 and 100 passengers - last year experienced a slowdown. So, these airlines, which account for half of all commercial flying in the U.S., are taking different routes to find new sources of income.
More than 40 airlines belong to the Regional Airline Association, the industry's trade group. They range from seat-of-the-pants operations to publicly traded names such as ExpressJet Holdings, Inc., Mesa Air Group, Inc., Pinnacle Airlines Corp., Republic Airways Holdings and Skywest Inc.
Traditionally, small regional airlines have had predictable streams of revenue through fee-based contracts with major carriers. The regionals offer connecting flights to smaller airports where big airlines don't fly. Those contracts, with locked-in fees, put regional carriers in the driver's seat when the airline industry downturn hit in 2001.
But in the past couple of years, the big airlines signed new contracts with the regionals, cutting the fees they paid. That pinched profits, causing regional carriers to seek new sources of revenue.
Some regional carriers now have begun expanding by flying under their own names. In the past, even the larger regionals kept a low profile, flying mainly under the flags of other airlines. Passengers might not know, for example, that a plane sporting Continental Express livery in fact is part of ExpressJet's fleet.
ExpressJet now has an ambitious plan to take its own brand to 24 cities while it continues to fly for other airlines. "What ExpressJet is doing is a bellwether for the industry," said Roger Cohen, head of the Regional Airline Association.
Posh or Not? The Real Story On Hotel Club Floors
Hotels have long coddled patrons who want VIP service in premium "club floors." Now, they are engaging in a pampering arms race.
Club floors typically have given guests access to a private lounge and some free food and drinks. They also often offer a bit more security, restricting access to the floors to club guests only. And now, facing increased competition and rising demand from travelers, major chains are adding more perks to the hotel-industry equivalent of that exclusive space behind the velvet rope.
Hotel-industry executives say that club floors and their free food have become more popular lately as airline travel has become more unpredictable – and miserable. "It isn't uncommon for some of our guests to show up at an odd hour and they haven't eaten all day," says Vivian Deuschl, a spokeswoman for Ritz-Carlton. Sheraton's internal research shows that 50% of its guests say having a club level is important to them, up from 37% two years ago, says Hoyt H. Harper, senior vice president, brand management at Starwood.
But staying on a club floor can be expensive – about $100 beyond the cost of a regular room in some cases. (Hotels also use upgrades to club floors to reward their most-loyal customers.) To find out if the VIP pampering is worth the extra cash, The Wall Street Journal checked into club rooms at hotels in New York, Chicago, Atlanta, Los Angeles and Austin, Texas. While we certainly appreciated the gratis goodies (especially the breakfast champagne in Atlanta), in some cases, the fee seemed a bit
steep for what we got.
Poor Content Makes Viral Marketing Fizzle
Only 15% of viral campaigns get passed along, according to JupiterResearch's “Viral Marketing: Bringing the Message to the Masses” report, says eMarketer.
JupiterResearch found that as a result of so few viral campaigns catching on, viral marketers plan to decrease their “influential” targeting by 55% over the coming year.
Emily Riley, a JupiterResearch analyst and co-author of the report, said in a BtoBMagazine article that viral marketing can still be effective at reaching new prospects. She said the problem is often poor content.
“Are you giving people a reason to be viral?" Ms. Riley asked."The biggest reason [readers pass your e-mail along] is giving readers something that their friends will get something out of. Is there value? Is there a discount? These are things that matter.”
JupiterResearch detailed other checkpoints for viral marketers, including making content easy to pass along, using the right mailing list and attaching messages to blogs or microsites.
Study: Marketers Bank On Google Competitors To Increase Search Share
New data from MarketingSherpa's annual Search Marketing Benchmark Guide found that while most search marketers think they get the most bang for their buck with Google, ROI expectations for their investments with Yahoo, MSN and Ask's search offerings are on the rise.
Online Media Daily reports that this June and July, the Rhode Island-based research firm surveyed more than 3,000 marketers online, and followed up with a select few for more in-depth analysis of their responses. MarketingSherpa split the respondents into groups according to their search ad spending, with average spenders (between $5,000 and $10,000 annually) making up the majority at 60% – and big spenders (over $25,000) coming in at 19%.
Average spenders were most likely to view Google's search dominance as well-deserved, as 84% said that the search giant delivered "the best ROI for search dollars," compared to 76% of big spenders.
A majority of both large and smaller advertisers seemed to have faith in Yahoo's ability to innovate, and believed the Web giant would snag more of their budgets within the year. Some 60% of big spenders believed that Yahoo's Panama advancements would "pay off with a higher share of SEM budgets in the next 12 months," with average spenders following closely behind at 55%.
In terms of marketing tactics that produced the best ROI, 25% of all respondents ranked email campaigns using an in-house list as the strongest tool, followed by SEO with 18%, and paid search with 16%. In contrast, print and display ads came in at 4% and 3%, respectively.
In Las Vegas and Beyond, Suite Dreams Made For The Elite
What does $40,000 buy?
If you're an average American, it's nearly your household income for a year says the Los Angeles Times.
If you're a well-heeled traveler, it's one night at the Hugh Hefner Sky Villa, a two-story, 10,000-square-foot hideaway with a $700,000 cantilevered Jacuzzi that juts over the Las Vegas Strip, a rotating bed beneath a mirrored ceiling and around-the-clock butler service.
The Playboy-themed digs, which opened last fall at the Palms Casino Resort is the most expensive of 101 hotel suites featured in a just-released annual survey by Elite Traveler, a 6-year-old magazine distributed aboard private jets and mega-yachts to readers with average household incomes over $5 million.
Priced from $1,500 per night and up, the 101 suites come with various perks, such as a private indoor lap pool, personal chef and use of a six-figure Maserati Quattroporte sedan, said Doug Gollan, editor in chief of the New York-based magazine.
For the supersuites' guests, of course, price is no object. "An amazingly huge concentration of wealth" is driving demand for everything from fancy rooms to private jets, Gollan said.
U.S. Weekly Hotel Room Revenue Rises 7.2%
U.S. hotels posted a 7.2% increase in room revenue for the week ended Sept. 22 from a year earlier, Reuters reports Smith Travel Research said on Wednesday.
Occupancy rose 0.1 percentage points to 67.3%, while room rates rose 7.1% to an average of $105.89 a night, according to Smith Travel, which tracks lodging industry data.
That boosted revenue per available room – a combination of room rates and occupancy that is a benchmark of the industry's health – by 7.2% to $71.26.
Warner Bros. To Develop Theme Park, Hotel In United Arab Emirates
The San Diego Union-Tribune reports that Warner Bros. Entertainment will develop a theme park and hotel in the Persian Gulf emirate of Abu Dhabi as part of a multibillion-dollar alliance announced Wednesday.
The deal with real estate developer Aldar and the newly formed Abu Dhabi Media Co. also involves jointly owned movie theaters in the United Arab Emirates and a separate deal to produce Arabic-language movies.
The $500 million film fund will produce broad appeal films, with Warner Bros. retaining worldwide distribution rights, the company said. Each side will contribute half of the investment.
Washington Taking A Look At Air-Traffic Problems
President Bush has summoned his secretary of transportation and the acting head of the Federal Aviation Administration to a meeting on Thursday to discuss air traffic delays in New York and around the country says The New York Times.
The F.A.A. will also meet with airline executives to consider options, including the possibility of reimposing slot controls or other tools to reduce congestion. After a frustrating summer of delays, the Transportation Department has been sending signals in the last few days that it is determined to take some action.
Last week, the department reclassified Kennedy International Airport and Newark Liberty International Airport as being sufficiently congested to require that the airlines provide the government with schedule information five months in advance.
The notice said that from October to July, average daily operations at Kennedy were up 23% and arrival delays greater than one hour were up 114%. Arrivals within 15 minutes of the scheduled time dropped to 61.2% from 69.7%. It also cited dismal numbers for Newark.
According to government and airline officials, among the ideas under consideration is congestion pricing, in which airlines would be charged more for landing at busy periods. Some airports have long sought time-of-day pricing to manage traffic, and the Transportation Department recently gave that power to Logan International Airport in Boston, contingent on traffic rising above a certain level.
Study: Most Americans Say Green Advertising "Just A Marketing Tactic"
According to an Ipsos Reid study conducted this spring on behalf of Icynene, seven in ten Americans either ‘strongly' or ‘somewhat' agree that when companies call a product "green" (meaning better for the environment), it is usually just a "marketing tactic". According to the Center for Media Research consumers appear to be wary of companies who label their products as being green, or environmentally friendly, acknowledges the report. On the other hand, 4% of Americans
completely disagree and 26% somewhat disagree that "green" is a marketing tactic.
- In the US, 75% of the men believe that labeling a product green is just a marketing tactic, compared to 65% of the women.
- 72% of Americans living in the south are the most likely in all US regions to believe that labeling a product green is just a marketing tactic, while 58% of North-easterners are the least likely to believe this.
- 44% Americans either completely or somewhat agree that they are not willing to pay more for upfront for green building products even though they know them to be better for the environment, and that they have the potential to save money in the long run.
Seabourn Eying Latest Luxury Cruise Market: Canada
Seabourn Cruise Line is taking aim at the ultra luxury Canadian cruise market says TravelMole.
"We view Canada as a market that is clearly primed for expansion," said Seabourn President Pamela C. Conover. Seabourn plans to debut the two newest ultra luxury ships in the cruise industry in 2009 and 2010, she added.
The cruise line has also signed an agreement with Cruise Strategies, a company that helps build brand presence, to help it connect with the Canadian market as well as travel agencies there.
"Cruise Strategies will be our sales and marketing presence in Canada," said Seabourn vice president of sales Doug Seagle.
"There continues to be great potential for the luxury market within Canada," said Cruise Strategies' president Vanessa Lee.
Boeing To Conduct Biofuel Flight Demo
Boeing Co said on Thursday that it, Air New Zealand and Rolls-Royce announced a memorandum of understanding to conduct a biofuel demonstration flight.
According to Reuters, Boeing said the demonstration flight is planned for the second half of 2008 using an Air New Zealand Boeing 747-400 equipped with Rolls-Royce engines. Additional details will be announced closer to the actual demonstration flight date.
Study: Student Travel Market Growing
A new survey shows the average spent by young people on a trip abroad is now $2,600, a 39% rise since 2002.
That's a rate of 8%, which is more than inflation and slightly higher than the growth in travel expenditures across the population, says the World Youth Student & Educational Travel Confederation (WYSE). "Overall, the global youth travel market will be worth US$154 billion this year," the group says.
The report, says TravelMole, which updates a WYSE study conducted five years ago, also shows young travelers are early adopters of new travel technology, with more than 80% now using the internet to search for information before departing on their trip, up from 70% in 2002.
When asked what were the most valuable features of travel Web sites, respondents said the ability to compare prices and the availability of information about destinations, both of which were cited by over 80%. Less than 60% identified the ability to book their entire trip on the same website or the ability to save their enquiry on the site as valuable.
Spirit Airlines' New Look Takes Off
Marketing Daily reports that Spirit Airlines is repainting its planes with a new logo and color scheme, which will eventually be carried over to uniforms, airport signage, the web site and other branded items. Most should be completed by next fall.
The airline's new livery has a stylized 'S' on the wing, in red, green, yellow and blue. The brighter colors reflect the Miramar, Fla.-based budget airline's expansion, which includes offering flights to Latin America and the Caribbean.
Spirit last changed its branding in May 2002, with a checkerboard blue airplane paint design, logo and signage. The idea then was to distinguish the airline as more businesslike and included offering an upgraded service, Spirit Plus, with larger seats and more legroom, to appeal to business travelers. Spirit Plus went by the wayside this year, when Spirit "unbundled" its product, allowing passengers to pay more for a larger seat.
More Hotels Merge Onto Wi-Fi Highway
Even by the warp-speed standards of the Internet age, says USA Today, demand for Web access at hotels is growing rapidly, and hotel owners are attempting to respond.
"Demand and utilization have skyrocketed in the past 18 months," says Omni Hotels executive Paul Dietzler. About 40% of guests use in-room Internet, he says, a rate much higher than he previously would have thought possible.
"If you had asked a couple of years ago, we'd have said it would take about seven years to see 50% to 60% of guests using the in-room Internet."
IPass (IPAS), a West Coast company that provides remote Web access worldwide, said connections to the Internet from hotels grew 255% in the first half of 2007 from a year earlier. That growth rate far outpaces those for airports, cafes or retail stores. For the period, the number of connections from hotels were nearly two-thirds of those from airports, iPass said.
The rapid increase in Internet use, coupled with guests' downloading of heavier files, has the hotel industry scrambling to find the best, most economical way to roll out the service that, for many guests, is a must-have amenity.
As a result, more hotels are plugging in the wires and equipment to make the Internet connection work better and faster, particularly the Wi-Fi networks that let guests use the laptop in the comfort of their bed.
Berlin Hotels Promote Budget Vacations With Style
Berlin's Mayor Klaus Wowereit once famously described his eternally broke city as "poor, but sexy." A new crop of sleek budget hotels are betting that economy minded tourists and business travelers like it that way.
On a cloudy autumn morning, the breakfast buffet is buzzing at Motel One, which has been booked solid since it opened near the city's tourist hub Alexanderplatz in June – the newest addition to a growing number of design-oriented budget hotels. The breakfast of German bread, cold cuts and cheese before Marilyn Stotts seems rustic in contrast to the hotel's minimalist gray interior accented by flashes of color in the turquoise seating and silver globe light fixtures.
"It certainly has the Berlin sense of what's sexy now," said Stotts, a 27-year-old New Yorker on a business trip for a non-profit organization, who said price was a key factor in choosing Motel One. She paid $82 for her room, and $9 for breakfast.
Rooms in other aesthetically savvy hotels across Berlin cost as little as $53, like a single at Ostel, a no-frills hotel that specializes in retro communist-era East German furnishings says Associated Press.
With the euro reaching an all-time high against the dollar this past summer, it's becoming harder than ever to fashion affordable vacations in European capitals such as Paris and Rome.
Among the major capitals, Berlin remains an exception. According to Deloitte's Hotel Benchmark Survey, Berlin has the lowest average nightly hotel rate of all the major European cities, at just $122, while Moscow averages a steep $364, and London a cringe-worthy $256.
Berlin's affordability is one of the main factors drawing the hip, young crowd of thrifty tourists who don't want to sacrifice on style, according to Berlin Marketing Tourism GmbH spokesman Christian Taenzler. He said significant investments in this niche market have been developing "dynamically" for the past three years. Some 13,000 of the city's 90,000 hotel beds belong to budget hotels, he says, and a growing number can be found in smartly decorated, design-conscious hotels.
Berlin Tourism Marketing research shows that between January and July of 2007, the number of overnight stays in Berlin increased by 11.4% compared with the year before. Forty percent of these visitors are younger than 35 years old, a group particularly sensitive to budget and trends.
Hilton, Marriott Expand Pipeline In Emerging Economies
According to Business Travel News Hilton Hotels Corp. has announced a development deal to bring 25 hotels to Russia and Central and Eastern Europe, while Marriott International detailed plans to open about as many hotels in China in the next three years.
Hilton struck its development deal with the United Kingdom-based Belgravia Asset Management Limited, through which Hilton will open and manage 25 midprice hotels, comprising 3,000 rooms, in the region under the Hampton by Hilton and Hilton Garden Inn brands. The first will be a Hampton by Hilton in St. Petersburg, scheduled to open in the second quarter of next year.
In June, Hilton announced a similar deal with London & Regional Properties Limited to develop 25 hotels – including the two midprice brands and upscale Hilton, Conrad and Doubletree hotels – in the region. Hilton aims to have 70 of its hotels open in Russia over the next 10 years.
Marriott, meanwhile, said today that it would have 11 hotels operating in Beijing by the summer of 2008, prior to the kickoff of the Olympics. In addition, it plans to have another 20 company-branded hotels in China by the end of 2010.
Western Canada Hotel Market Booming
The surging Western Canadian economy has created the country's hottest hotel market – with occupancy, room rates and investment activity in the West leading the way for all of Canada says The Vancouver Sun.
"There's no question which part of the country drives the market now," PKF Consulting Toronto director David Larone told an industry outlook forum in Vancouver.
PKF Consulting's 2008 accommodation industry outlook predicts Western Canada will post a hotel occupancy rate of 69% next year, with an average room rate of $133, while Central Canadian hotels average 64-per-cent occupancy and room rates of $132.
Larone said Central Canada (Ontario and Quebec) attracted 20 hotel sales during the first half of 2007, for a combined value of $123 million. That's far below the 42 sales worth a total of $587 million in Western Canada.
Projected income levels across Canada also reveal respective market strengths – with Atlantic Canadian hotels expected to make $8,500 per available room next year, compared with $9,700 in Central Canada and $17,000 in Western Canada.
PKF Vancouver representative David Ferguson said the strong Canadian dollar has curtailed U.S. tourist traffic to Canada but that has been offset by increased visits from other sources.
Doggy Divas Given Red Carpet Welcome By U.S. Hotels
At the Beverly Hills Hotel, dogs are greeted by name, served food prepared by world-class chefs and walked in the hotel's luxurious gardens.
Yes, it's a dog life, and it's not so bad, says Reuters.
From hotels to airlines, the travel industry is opening its doors to four-legged guests, said Kim Salerno, founder of TripswithPets.com, one of a growing number of Web sites that cater to people that travel with their animals.
"Pets really are, now more than ever, considered part of the family and when they go on trips, people don't want to leave their family members behind," said Salerno. Her Web site lists more than 20,000 pet-friendly accommodations in the United States and provides links to different airlines' pet travel policies.
Another Web site, www.bringyourpet.com, lists pet-friendly accommodations from beach houses to hotels and penthouses, and estimates that up to 36 million U.S. households travel with their pets a year.
Alberto Robles, the head bell captain at the Beverly Hills Hotel, said he is responsible for greeting guests' "little designer dogs" by name. "They have to be treated the same as children. We take care of our guests and we take care of their pets," said Robles, adding many dogs travel with their own luggage, clothes and jewelry.
Art Seller Helps Hotels Put On The Ritz
In the winter of 2003, two globetrotters met on a flight from New York to Los Angeles and started chatting about their travels. One of the fliers, a fine-art dealer, wondered why the art selection at many top-notch hotels was so poor.
"The 'poster art' on the walls degraded the entire experience of staying in a five-star hotel," says the art dealer, Vincent Vallarino.
The other traveler, a hotel-management veteran, agreed – and the seeds of a small business were planted. The following year, they set up shop as Metropolitan Art Group LLC and approached upscale hotels with an original pitch. Metropolitan, or MAG as it calls itself, supplies the hotels with fine-art prints to gussy up their rooms and common areas. The hotels can then sell copies of the prints to guests who want a memento of their stay.
So far, reports The Wall Street Journal, MAG has teamed up with hotels such as the Plaza in New York and the Savoy in London, providing them with a range of artwork – from household names like Monet to hot contemporary artists like Peter Brown and Guy A. Wiggins. Guests can get their hands on prints for $150 to $1,500.
MAG says the arrangement offers the hotels two main benefits. For one, the hotels get a cut of the print sales. Then there's prestige. Each print comes with a museum-style plaque identifying the piece as part of the hotel's signature art collection – which makes travelers associate the hotel with the high-toned artwork.
Pam Carter, director of public relations at the Savoy, says the hotel liked MAG's pitch because it presented the hotel "with a steady revenue stream while enabling [us] to bridge [our] cultural past to [our] present." Claude Monet spent the winters of 1899 to 1901 as an artist-in-residence at the Savoy, where he began work on more than 70 canvases.
Survey: Business Travelers Welcome Work Trips
TripAdvisor has announced the results of its annual business travel survey of more than 1,500 travelers worldwide, revealing that most enjoy it. Sixty-two percent of respondents said they "often" enjoy business travel and 18% said they "always" enjoy it. The best part about traveling for work is "seeing new places," according to 34%. Business travelers' favorite luxuries are deluxe bedding and high-end bath products. Among its other findings:
- Almost half of respondents (49%) said they often tie leisure time to business trips to take advantage of the company-expensed travel. This is particularly popular among Americans, as 53% often tie leisure time into business travel, compared to 28% from the U.K.
- Twenty-two percent of business travelers plan to take fewer business trips this year than last, while 18% intend to take more.
- With 88% flying for business, flight delays and cancellations are, for the second year in a row, the biggest irritant, according to 53%, up from 48% last year. Thirty-one percent said the recent airline delays and cancellations will affect their business travel plans. Of those, 15% will consider driving more for business travel this year, 9% will consider taking a train, and 7% will consider more video conferencing. Thirty-nine percent said they have no option but to fly and 30% said they choose to fly regardless of the delays and cancellations.
Kronos Eyes 43 More Hotels In The USA
Kronos Hotels, a Malaysian majority-owned hotel group operating in the United States, plans to acquire another 43 properties by the end of this year, says Sarwir Hansa, one of its partners. With the latest acquisitions, says the New Sabah Times of Malaysia, the Atlanta-headquartered group will increase its portfolio to 73, having 57 hotels under its wings at present.
Hansa, speaking at the official opening of the Crowne Plaza Hotel New York-JFK Airport under its new owners by Foreign Minister Datuk Seri Hamid Albar here today, said the group started with one acquisition in 1999.
Hansa, who started Kronos with Ipoh-born Charles Morais, said the Crowne Plaza Hotel New York-JFK Airport was the group’s first acquisition in the Big Apple. The 183-room Crowne Plaza New York had undergone a major refurbishment since it was bought by Kronos in April last year. Hansa said the next major acquisitions would comprise several JW Marriott properties.
Some of the hotels under the Kronos chain include Holiday Inn, Sleep Inn, Wyndham Hotels and Resorts, Ramada and Choice Hotels International.
Company Will Monitor Phone Calls To Tailor Ads
Companies like Google scan their e-mail users’ in-boxes to deliver ads related to those messages. Will people be as willing to let a company listen in on their phone conversations to do the same?
Pudding Media, a start-up based in San Jose, Calif., is introducing an Internet phone service today that will be supported by advertising related to what people are talking about in their calls reports The New York Times. The Web-based phone service is similar to Skype’s online service – consumers plug a headset and a microphone into their computers,
dial any phone number and chat away. But unlike Internet phone services that charge by the length of the calls, Pudding Media offers calling without any toll charges.
The trade-off is that Pudding Media is eavesdropping on phone calls in order to display ads on the screen that are related to the conversation. Voice recognition software monitors the calls, selects ads based on what it hears and pushes the ads to the subscriber’s computer screen while he or she is still talking.
A conversation about movies, for example, will elicit movie reviews and ads for new films that the caller will see during the conversation. Pudding Media is working on a way to e-mail the ads and other content to the person on the other end of the call, or to show it on that person’s cellphone screen.
Study: Hotel Supply And Demand Shrinks Amid Credit Crunch
The roiling credit market will shake the lodging industry in 2008 by reducing hotel supply and demand, PricewaterhouseCoopers research shows says The Wall Street Journal.
In a forecast set for release Monday, the research shows 3,000 fewer hotel rooms will be built in 2008 than previously projected, a 2.4% reduction in the construction pipeline that is traced directly to lenders' postponing or canceling financing for new lodging projects, researchers said.
Researchers found new projects for this year aren't likely to be affected, because financing is already secure for those now under construction. The consulting firm originally projected 123,400 new rooms for 2008. The new forecast is for 120,400.
"Based on our research, the number of lodging projects canceled because of higher interest and reduced availability of construction and permanent financing is limited," the forecast notes say. "There are a larger number of projects delayed because lenders are re-evaluating risks and pricing."
While only a slight decrease in supply is expected, a more significant shift was detected in demand, which could decline by nearly 1%, or about 24,000 rooms per night in 2008. The original forecast for 2008 was 2,891,000 occupied rooms on an average night in the U.S.
One percentage point may sound small, yet researchers call it statistically noteworthy. "There's a high correlation between the economy and growth in lodging demand," said Bjorn Hanson, a consultant at PricewaterhouseCoopers' hospitality and leisure division. "When something happens in the economy that reduces the entire country's demand by 1%, that's significant."
Accor Launches Budget Hotel Brand All Seasons
French hotel group Accor said it has launched its budget hotel brand, All Seasons, in France and Europe and aims to expand the chain to 10,000 rooms in Europe by 2010, including 7,000 in France.
Speaking at a press conference, Accor's hotel marketing director Eric Lepleux said the group 'aims to become world leader in budget and medium-range hotels.'
According to Julien Mulliez, managing director of All Seasons France, the first All Seasons hotel will be opened in Evry, France this month, followed by seven others throughout the country before the year-end.
The first European hotels will be opened in 2008, reports Forbes. Under the development plan, All Seasons aims to operate 130 hotels or 7,000 in France by 2010, and a total of 10,000 rooms overall in Europe.
Bulgarian Tourism Hurt By Emigration Of Workers To Western Europe
Companies in Bulgaria's tourism industry are finding it more and more difficult to recruit labor force and warned they will be short of 30,000 workers next year, says ReporterNet.
"Thousands of Bulgarians, often those with the best qualifications in the sector, have emigrated to western Europe, lured mainly by higher wages," Blagoy Ragin, head of the Bulgarian hotel and restaurant association, said.
Ragin cited official data, according to which the number of foreign tourists to Bulgaria for the first seven months after its accession to the European Union has increase by 10 % to 30%.
"Bulgaria has the capacity to welcome between 10-12 million visitors with an annual turnout of EUR 8-10 B," Ragin said. This year's figures stood at 6 million tourists and EUR 1.35 B of revenues.
Empty beds are only one of the Bulgarian tourism industry's problems, experts at the seminar pointed out. Businesses have invested millions of euros to build beautiful hotel grounds, bars and other amenities. But the corresponding infrastructure, transportation and communication networks are too little or completely lacking.
Study: Gen Y Shoppers Drawn To Greener Marketers
It's not news that retailers are knocking themselves out to appear as green as possible to shoppers: Wal-Mart just announced, for example, that it is introducing private-label CFL bulbs, intensifying its promise to reduce greenhouse emissions. And Tesco, still closely guarding the details about its soon-to-open Fresh & Easy Neighborhood Markets, recently let it slip that all its stores would be built with Leadership in Energy and Environmental Design (LEED) certification.
But Marketing Daily reports that a recent poll from Maritz Research indicates that retailers will have to keep that environmental buzz going if they hope to woo Generation Y shoppers. Poll findings indicate that environmental messaging has a major impact on customer loyalty in this key demographic, with 50% of respondents saying it influences their shopping behavior. About 46% of respondents say they'd shop at a retailer more if it were environmentally friendly.
And 47% say they're willing to pay more for environmentally friendly services, products or brands.
The Maritz survey, which polled shoppers ages 18 to 30, focused on clothing brands and included those who had shopped at Abercrombie & Fitch, Aeropostale, American Eagle Outfitters, Express or The Gap within the last 30 days. But the results "lend credibility to environmental messaging, which is only likely to gain more momentum with consumers in the future," the company says.
Cornell Study Finds Technology Readiness Differentiates Hotel Guests
The answers to ten questions about a person's use and acceptance of technology can tell hotel operators about their guests' travel habits and preferences reports Hotel News Resource.
In a new study issued by Cornell's Center for Hospitality Research, a research team led by Professor Rohit Verma tested a tool known as the Technology Readiness Index (TRI). The report, 'Segmenting Hotel Customers Based on the Technology Readiness Index,' by Rohit Verma, Liana Victorino, Kate Karniouchina, and Julie Feickert, is available at no charge from the center's website (http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-14563.html).
"The developers of the Technology Readiness Index applied it to other industries," noted Verma. "In our test, we found that it is an extremely effective tool for creating hotel guest segments. As they consider what services to offer, hotel operators can use this index to find out more about their guests."
Based on a sample of 865 hotel guests from across the United States, the study found that those who scored high on the TRI were relatively well educated and affluent. These technology-ready hotel guests were relatively frequent travelers, usually on business, who were willing to pay higher room rates.
The Technology Readiness Index gauges participants' optimism, innovativeness, discomfort (with technology), and insecurity (regarding technology). The report includes the ten-question Technology Readiness Index, and explains its application.
Alaska Air To Test Wireless Web On Its Flights
Alaska Airlines said Tuesday it will be the first U.S. carrier to test a satellite-based in-flight wireless Internet service next year and may equip its entire fleet. There have been several moves across the industry to offer passengers Internet access while they're traveling says USA Today.
Seattle-based Alaska plans to install Westlake Village, Calif.-based Row 44's broadband service on one Boeing 737 jet next spring. Row 44's system is designed to work over water and across international borders. Alaska Airlines said the service is intended to work on all its routes, which include flights within the lower 48 states and to Alaska, Hawaii, Canada and Mexico.
If it works, Alaska may add the service to all 114 of its aircraft.
Wine Regions That Toast The Most From Coast-to-Coast
With great wine producers located throughout the country, there is no shortage of vineyards for a fall grape getaway - and food and wine enthusiasts appear to be growing in number along with the prime destinations.
Focusing on the fastest-growing wine regions in the U.S., the 2007 Orbitz Food & Wine Index shows that while California's Napa Valley is still king, almost doubling its overall growth in Orbitz bookings since 2005, other regions of the country are coming on strong.
"No matter where you live in the U.S., you're probably not more than a few hours away from a great vacation that pairs a nice hotel with a local vineyard," said Heather Leisman, senior director of merchandising for Orbitz. "Fall is a great time for food and wine lovers to enjoy the many harvest festivals and winery tours, which often combine fine cuisine with the best in local wines."
Distinctive wines combined with southern hospitality have vaulted the Texas Hill and Arkansas Wine Countries to the #2 and #3 spots respectively on the Orbitz Insider Index fastest-growing list. And the Pacific Northwest is gaining on California as the place to be when it comes to wine excursions. Three of the top ten fastest-growing regions in the U.S. hail from points of interest in Washington and Oregon. And before snow starts to fall in the Midwest, there are a number of growing wine regions that have given destinations in Ohio, Indiana, Tennessee and Michigan four of the top 10 spots.
The top 10 fastest-growing wine regions in the U.S., based on hotel and package (flight + hotel) bookings on Orbitz.com from 2005-2007 are:
1. Napa Valley, California
2. Texas Hill Country
3. Arkansas Wine Country
4. Puget Sound, Washington
5. Columbia Cascades and North Central Washington
6. Grand River Valley, Ohio
7. Nashville, Tennessee/Bloomington Area, Indiana
8. Applegate/Rogue Valley, Oregon
9. Lake Erie Region, Ohio
10. Kalamazoo, Michigan
Will Fly For Food
Airline food has been the stuff of jokes since almost the dawn of aviation. But after many years of dulling passengers' appetites, a number of carriers insist they've gotten serious about upgrading the air fare, even in economy says BusinessWeek.
Following recent menu improvements in business and first class, Delta Air Lines is getting set to roll out cold entrées created for coach by chef Todd English, owner of six Olives restaurants. The initial selections – at $7 to $10, on a par with airport shops – include a roast beef Cobb salad sandwich, grilled shrimp salad, and black olive spaghetti salad. "We are trying to do a range of things that are familiar but push the envelope a bit," says English (right, with olive spaghetti salad). "You can't get too esoteric on a plane."
English, who took part in an ambitious catering venture for Northwest Airlines (NWA ) in the 1990s, says he and Delta thought long and hard about what foods would hold up well in the air. They'll soon see if customers approve.
New Hotel Targeting Bikers And Business Execs
Starting next summer, Milwaukee visitors can hang their hats - and their motorcycle helmets - at a new hotel that seeks to meld hot chrome with cool class.
Developer Tim Dixon is converting the former warehouse at 500 W. Florida St., a short distance from the new Harley-Davidson Museum and businesses such as Rockwell Automation Inc.
The 102-room hotel will be about three blocks south of the future Harley-Davidson Museum, which is scheduled to open next summer says the Milwaukee Journal Sentinel.
The $22 million Iron Horse will not be a motorcycle-themed hotel, said developer Tim Dixon. The Harley logo isn't stamped on the bed sheets, Peter Fonda isn't manning the front desk, and the throaty growl of a V-Twin engine isn't piped into the lobby.
Instead, the hotel, which Dixon is creating within a former warehouse at 500 W. Florida St., will offer a mix of high-end amenities, along with biker-friendly features. The idea is to draw both affluent bikers and business travelers who want to stay at a cool, edgy - yet luxurious - hotel.
A Russian Superjet Superstar?
When you set off on your summer vacation in coming years, could the plane you travel on be made in Russia?
The Kremlin is hoping so suggests Forbes. It has added commercial aviation to the growing portfolio of global industries that it is hoping to become a major player in, and it is pinning its hopes on the Superjet 100, which was officially launched Wednesday.
The 110-seat plane was developed by the state-owned company Sukhoi, which has said that it has already received 73 orders for the plane, priced at $28 million. The company hopes to sell 800 jets by 2024, including 500 abroad.
By building a medium-capacity plane, Sukhoi has certainly chosen the right part of the airplane commercial market, said Doug McVitie, managing director of Arran Aerospace, a France-based aerospace consultancy.
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