The Asian American Hotel Owners Association can expect an uphill climb when it takes on the online travel agencies at their own game.
C.K. Patel, AAHOA’s chairman, mentioned during a panel at this week’s International Hotel/Motel & Restaurant Show in New York the association will launch an OTA of its own to compete with the likes of Expedia, Travelocity, Priceline and others. Patel said the platform would be up and running by June but didn’t want to give any of the other details. Details will be announced during AAHOA’s annual conference June 15-18 in Las Vegas. Calls and emails to a few other AAHOA members that I use as contacts were fruitless as they declined to provide any details.
Regardless of the details, it’s a gutsy move by AAHOA. Because the association’s members control about one quarter of the 4.8 million hotel rooms in the United States, there is some credibility to the AAHOA OTA idea.
But it’s not going to be easy to make an impact for several reasons:
• Start with the billions of dollars of marketing funds mainstream OTAs pump into branding each year. AAHOA doesn’t have deep enough pockets to be anything more than a blip on the radar of online hotel marketing.
• Many of AAHOA’s member properties are branded. That means the hotels must live up to corporate level agreements for providing room inventory to the current OTAs. If AAHOA’s trying to simply get a piece of the pie rather than put current OTAs out of business, it will work fine.
• Like any organization, AAHOA has different factions and there are power struggles. My sources tell me the idea of an AAHOA OTA is not dividing the association, but there are some members who aren’t fond of the idea.
All in all, it’s good to see an entity from within the hotel industry try to regain some control over room inventory. The OTAs are not all bad—their purpose of selling more hotel rooms is a good one. However, a lot of their advertising portrays hotel owners and operators as untrustworthy souls who are out to screw everyone. In the 15 years I’ve been covering the industry, I haven’t seen more than a handful of those types of owners.
The OTAs only sell inventory that has been approved by hotels. And yes, despite adamant pleas from the third-party providers, they do twist arms to ensure owners provide inventory at a certain price point.
The hotel brands have yet to stand up and grab control of room inventory on their licensees’ behalves, so it’s up to associations such as AAHOA to make an attempt. I’m not entirely optimistic they will succeed, but I’m rooting for them to help bring balance back to room distribution.
Friday, November 19, 2010
Thursday, November 11, 2010
Women, Facebook and your hotel
I didn’t find it particularly odd when my wife checked her Facebook account every day while on our honeymoon last year. To begin with, I was just as guilty, perusing my e-mail for news from family and friends while relaying some of our own sun-soaked adventures. But more importantly, her Facebook habits, I thought, were nothing more than a habitual practice that a 700-mile flight couldn’t disentangle.
My wife is not alone, it turns out. According to new survey findings from Wyndham’s Women on Their Way program, almost half (46%) of women access social media through smartphones while traveling.
Now, before you run into your manager’s office screaming about the need to allocate five full-time employees to monitor Facebook, let’s dissect those findings for a minute.
First, the respondents don’t represent all female travelers; the group is skewed noticeably in favor of social-media users. The survey polled 500 women between the ages of 18-50 who had social media accounts and who had taken an overnight trip during the past 12 months.
Second, just because they used social media during doesn’t mean others will be influenced by their updates and tweets and photos and blogs and reviews and litany of other avenues for expression. Remember, findings from Ypartnership suggest social networking sites have a limited influence on travelers’ purchasing habits.
“When we asked those travelers to tell us the extent to which they consult content on the social sites when it comes to getting recommendations about destinations and travel suppliers, the numbers are in low single digits (6%),” the firm’s chairman and CEO Peter Yesawich said during an interview earlier this summer.
However, that’s not to say social networks aren’t growing in use and influence. To say otherwise would be akin to saying the Internet in its entirety is a passing fad.
So perhaps we should focus on the biggest reason WHY women are using social media while traveling: to stay in touch with friends and family and share their experience with others.
That second part deserves particular attention. If travelers are communicating something about their experiences at your hotel, it had better be a very good something—a statement which not only underscores the continued need for exemplary customer service but also continued tracking to make sure all comments and updates are framed within this positive context.
This goes for women and men. Thank God for the impersonal gender neutrality of the Web.
My wife is not alone, it turns out. According to new survey findings from Wyndham’s Women on Their Way program, almost half (46%) of women access social media through smartphones while traveling.
Now, before you run into your manager’s office screaming about the need to allocate five full-time employees to monitor Facebook, let’s dissect those findings for a minute.
First, the respondents don’t represent all female travelers; the group is skewed noticeably in favor of social-media users. The survey polled 500 women between the ages of 18-50 who had social media accounts and who had taken an overnight trip during the past 12 months.
Second, just because they used social media during doesn’t mean others will be influenced by their updates and tweets and photos and blogs and reviews and litany of other avenues for expression. Remember, findings from Ypartnership suggest social networking sites have a limited influence on travelers’ purchasing habits.
“When we asked those travelers to tell us the extent to which they consult content on the social sites when it comes to getting recommendations about destinations and travel suppliers, the numbers are in low single digits (6%),” the firm’s chairman and CEO Peter Yesawich said during an interview earlier this summer.
However, that’s not to say social networks aren’t growing in use and influence. To say otherwise would be akin to saying the Internet in its entirety is a passing fad.
So perhaps we should focus on the biggest reason WHY women are using social media while traveling: to stay in touch with friends and family and share their experience with others.
That second part deserves particular attention. If travelers are communicating something about their experiences at your hotel, it had better be a very good something—a statement which not only underscores the continued need for exemplary customer service but also continued tracking to make sure all comments and updates are framed within this positive context.
This goes for women and men. Thank God for the impersonal gender neutrality of the Web.
Thursday, November 4, 2010
TripAdvisor Under Siege
TripAdvisor is under siege in the United Kingdom for posting what many angry hoteliers are calling fake hotel reviews. The news comes after KwikChex, an online reputation management company, announced plans to publish a list of thousands of reviewers’ fraudulent and defamatory posts.
“Once the list is published, websites that feature user-generated content—such as TripAdvisor—will have to notify any reviewers on the list. They will be given two weeks to remove their comments. They could face legal action if they cannot prove that they visited the hotels or restaurants concerned,” reports the Mail Online.
In another punch to the gut, editors of the Good Hotel Guide 2011, which rates the best hotels in the U.K., Ireland and continental Europe, slammed TripAdvisor “for being ‘brazen and shameless’ in printing malicious and collusive reviews without checking their authenticity,” according to caterersearch.com.
Far be it from me to step between a victim and the firing squad, but there are a few issues that should be addressed …
1. How can you possibly know what user-generated content is real and what is fake?
Now, I didn’t just fall off the proverbial turnip truck. I’m fully aware that not every review of every hotel comes from an actual guest. Some come from PR firms, others from jealous competitors, and others still from the hotels themselves.
But just because a reviewer says your service was garbage, your bed sheets smelled like Swiss cheese and your bathroom looked like something in a New York City subway doesn’t mean those comments are fake. Guests are allowed to post brutally honest comments as a means to relay their experience at your hotel.
KwikChex says it offers services to help hoteliers remove or respond to malicious and unfair reviews. But who judges them malicious or unfair? I’m sure the hotel’s perspective varies greatly from that of the guest.
Of greater concern is how they determine fake reviews. Honestly, I haven’t the faintest. I sent KwikChex a query and have yet to hear back as of press time. I’ll keep you posted …
2. Do negative, malicious or fake reviews a libel suit make?
KwikChex’s Chris Emmins told Mail Online: ‘‘People who leave these anonymous reviews, which can damage the reputation of both businesses and individuals, need to realize that not only can they be sued for libel but they can also face criminal prosecution.”
Full disclosure: I’m not familiar with U.K. libel law, so I can’t hypothesize as to whether hoteliers would have a legitimate case here.
If this trend spreads to the United States, however, hoteliers would be hard-pressed to argue this case effectively in court. To win a libel case in the States, it’s not enough to prove fault; U.S. jurisprudence requires plaintiffs prove “actual malice”—a legal term that means the reviewer either knew their review was false or acted with a reckless disregard for the truth when submitting the review. It’s an incredibly difficult legal hurdle to overcome. Certain jurisdictions within the U.S. do prohibit review fraud, however.
One other legal note: Notice that KwikChex’s threat of litigation does not specifically name TripAdvisor as a target, but rather the posters of content on the site. In the U.S., a website like TripAdvisor has certain immunities from content submitted from third-parties (in this case reviewers).
3. Is it even possible to authenticate every piece of user-generated content on a given website?
Theoretically, yes. TripAdvisor could devote limitless resources to authenticate and follow-up on every review posted to its site, and then cross-reference those reviews with hotel data to determine if the person posting stayed at the particular hotel during the particular time, and whether there was a shortage of staffing or other hiccups in service that might have resulted in a poor review.
I suppose the site also could require every reviewer to submit detailed personal information and sign legal documents to waive their rights in the event that some element of a review was fictitious or unfair.
But then, TripAdvisor doesn’t want to hemorrhage every cent of revenue on a fruitless, Quixotean witch hunt, nor does it want to drive away the valuable reviewers who made the website what it is today.
In other words, the editors of the Good Hotel Guide may have been a little harsh when they called TripAdvisor “brazen and shameless.” Easy on the caffeine, guys. If you know a lick about sites that subsist off user-generated content, you’d understand such verification is next to impossible.
Besides, TripAdvisor does have a pretty straightforward disclaimer users are required to check before they submit a review. It says, in part:
“TripAdvisor wishes to ensure that reviewers are not affiliated in any way with the establishment they are reviewing. By checking this box, you certify that you are not employed by the establishment, are not related to anyone employed there, and do not otherwise have a business or personal relationship with the owners or managers of this establishment that might bias your review.”
It’s going to be really interesting to see how TripAdvisor responds to KwikChex’s threats. As always, we’ll be here to report on any developments
“Once the list is published, websites that feature user-generated content—such as TripAdvisor—will have to notify any reviewers on the list. They will be given two weeks to remove their comments. They could face legal action if they cannot prove that they visited the hotels or restaurants concerned,” reports the Mail Online.
In another punch to the gut, editors of the Good Hotel Guide 2011, which rates the best hotels in the U.K., Ireland and continental Europe, slammed TripAdvisor “for being ‘brazen and shameless’ in printing malicious and collusive reviews without checking their authenticity,” according to caterersearch.com.
Far be it from me to step between a victim and the firing squad, but there are a few issues that should be addressed …
1. How can you possibly know what user-generated content is real and what is fake?
Now, I didn’t just fall off the proverbial turnip truck. I’m fully aware that not every review of every hotel comes from an actual guest. Some come from PR firms, others from jealous competitors, and others still from the hotels themselves.
But just because a reviewer says your service was garbage, your bed sheets smelled like Swiss cheese and your bathroom looked like something in a New York City subway doesn’t mean those comments are fake. Guests are allowed to post brutally honest comments as a means to relay their experience at your hotel.
KwikChex says it offers services to help hoteliers remove or respond to malicious and unfair reviews. But who judges them malicious or unfair? I’m sure the hotel’s perspective varies greatly from that of the guest.
Of greater concern is how they determine fake reviews. Honestly, I haven’t the faintest. I sent KwikChex a query and have yet to hear back as of press time. I’ll keep you posted …
2. Do negative, malicious or fake reviews a libel suit make?
KwikChex’s Chris Emmins told Mail Online: ‘‘People who leave these anonymous reviews, which can damage the reputation of both businesses and individuals, need to realize that not only can they be sued for libel but they can also face criminal prosecution.”
Full disclosure: I’m not familiar with U.K. libel law, so I can’t hypothesize as to whether hoteliers would have a legitimate case here.
If this trend spreads to the United States, however, hoteliers would be hard-pressed to argue this case effectively in court. To win a libel case in the States, it’s not enough to prove fault; U.S. jurisprudence requires plaintiffs prove “actual malice”—a legal term that means the reviewer either knew their review was false or acted with a reckless disregard for the truth when submitting the review. It’s an incredibly difficult legal hurdle to overcome. Certain jurisdictions within the U.S. do prohibit review fraud, however.
One other legal note: Notice that KwikChex’s threat of litigation does not specifically name TripAdvisor as a target, but rather the posters of content on the site. In the U.S., a website like TripAdvisor has certain immunities from content submitted from third-parties (in this case reviewers).
3. Is it even possible to authenticate every piece of user-generated content on a given website?
Theoretically, yes. TripAdvisor could devote limitless resources to authenticate and follow-up on every review posted to its site, and then cross-reference those reviews with hotel data to determine if the person posting stayed at the particular hotel during the particular time, and whether there was a shortage of staffing or other hiccups in service that might have resulted in a poor review.
I suppose the site also could require every reviewer to submit detailed personal information and sign legal documents to waive their rights in the event that some element of a review was fictitious or unfair.
But then, TripAdvisor doesn’t want to hemorrhage every cent of revenue on a fruitless, Quixotean witch hunt, nor does it want to drive away the valuable reviewers who made the website what it is today.
In other words, the editors of the Good Hotel Guide may have been a little harsh when they called TripAdvisor “brazen and shameless.” Easy on the caffeine, guys. If you know a lick about sites that subsist off user-generated content, you’d understand such verification is next to impossible.
Besides, TripAdvisor does have a pretty straightforward disclaimer users are required to check before they submit a review. It says, in part:
“TripAdvisor wishes to ensure that reviewers are not affiliated in any way with the establishment they are reviewing. By checking this box, you certify that you are not employed by the establishment, are not related to anyone employed there, and do not otherwise have a business or personal relationship with the owners or managers of this establishment that might bias your review.”
It’s going to be really interesting to see how TripAdvisor responds to KwikChex’s threats. As always, we’ll be here to report on any developments
Understanding OTA sort
Expedia executive Brian Ferguson lifted the veil surrounding his company’s hotel sorting process during the most interesting panel of the Cornell Hospitality Research Summit last week.
If you were wondering why sort, or order of appearance, is so important, Ferguson, VP of supply strategy and analysis at Expedia, said 95% of all transactions on the site occur with Page 1 hotels. And further, 47% of transactions occur with hotels in the top five positions on the page.
So that brings us to the question of how Expedia decides who goes where. Ferguson said factors the OTA takes into account include:
Long-term rate competitiveness;
participation in Expedia packages;
peak season inventory levels;
distance from a user’s desired location; and
negative user reviews.
Of course, rate is important, though Ferguson made a point of saying that OTAs do not set rate, but instead use the rate provided by hotels. “It’s not this notion of OTAs running down rates,” he said. “What the Internet has done is created a lot more transparency in rate. It’s easier to see who is the cheapest hotel.”
Surprisingly, no audience members threw anything at Ferguson.
He then added: “The Internet is not going to be uninvented. That genie is out of the bottle.”
Reviews are a particularly important factor in what hotels will be able to charge through a third-party site, Ferguson said. A 1-point increase in a review score equates to a 9% increase in average daily rate.
“By definition, the people on online travel sites are not looking for a specific brand,” he said. “They’re here to shop around, and they do shop.”
Another reason why this session was the most intriguing to me? Sitting in the audience was STR co-founder and CEO Randy Smith, who just minutes earlier during his keynote listed OTAs as being one factor behind the pricing crisis in the industry during the downturn.
I’m happy to report no one left the session with any black eyes.
If you were wondering why sort, or order of appearance, is so important, Ferguson, VP of supply strategy and analysis at Expedia, said 95% of all transactions on the site occur with Page 1 hotels. And further, 47% of transactions occur with hotels in the top five positions on the page.
So that brings us to the question of how Expedia decides who goes where. Ferguson said factors the OTA takes into account include:
Long-term rate competitiveness;
participation in Expedia packages;
peak season inventory levels;
distance from a user’s desired location; and
negative user reviews.
Of course, rate is important, though Ferguson made a point of saying that OTAs do not set rate, but instead use the rate provided by hotels. “It’s not this notion of OTAs running down rates,” he said. “What the Internet has done is created a lot more transparency in rate. It’s easier to see who is the cheapest hotel.”
Surprisingly, no audience members threw anything at Ferguson.
He then added: “The Internet is not going to be uninvented. That genie is out of the bottle.”
Reviews are a particularly important factor in what hotels will be able to charge through a third-party site, Ferguson said. A 1-point increase in a review score equates to a 9% increase in average daily rate.
“By definition, the people on online travel sites are not looking for a specific brand,” he said. “They’re here to shop around, and they do shop.”
Another reason why this session was the most intriguing to me? Sitting in the audience was STR co-founder and CEO Randy Smith, who just minutes earlier during his keynote listed OTAs as being one factor behind the pricing crisis in the industry during the downturn.
I’m happy to report no one left the session with any black eyes.
Tuesday, November 2, 2010
10 Revenue Management Tips
“Think Jerry would like this?” the man said to his wife, picking up an item.
“I guess so,” she said quizzically. “But what for?”
“His birthday,” the man replied.
“His birthday? Wasn’t that months ago?” she asked.
“Well yeah—in May.” He paused. “Better late than never, I guess.”
In a similar vein, I just found an e-mail incubating in my inbox that I’ve been meaning to cover for more than a month. For an online journalist, a month might as well be an eternity. (I can hear my managing editor grinding her teeth as she reads this.) But hey, better late than never, right?
The e-mail outlines the top 10 revenue management tips for independent hoteliers—though I would argue it’s something every revenue manager should consider. Full disclosure: The info comes from Evolution, a revenue manager service provider. But like I’ve already mentioned, the content bares mentioning.
1. Everyone’s listening. Facebook and Twitter are important, but don’t forget that Internet itself can be social media. There are infinite channels to track your brand or distribute to potential guests. Revenue managers often don’t have the time to monitor every one, but that’s no excuse to neglect them all. Implement an effective social media strategy to monitor what your resources allow.
2. Choose the right distribution channels. The idea is a no-brainer, but effective implementation is a bit trickier. Consider: channel distribution potential, distribution spread and cost, ease of channel management, marketing exposures, technology used.
3. Invest in your own website. Your most important distribution channel is your own website. Is your site optimized for SEO or pay-per-click campaigns? Identify what keywords your audience is searching for based on demand, season or market influences, and make sure your webmaster is following through in implementation.
4. Value is king. In a price-sensitive market, value is the most important factor for guests. That doesn’t mean you have to sacrifice rates, however. Develop value-add packages and length-of-stay discounts.
5. Better relationships mean better profits. Don’t try to do everything on your own. Invest time in building strong relationships with all of your distribution partners including online travel agents, consortia programs and corporate accounts.
6. Know thy audience. As the economy emerges from recession, the booking and travel habits of your target market might evolve. Are you targeting the right clientele? Could you attract higher spenders? Once you’ve identified your target market, look at how they book their holidays: Are they booking last minute or are they looking for early bird deals?
7. Look to the future. It’s important to look ahead and understand how economic and seasonal changes will affect the way people book your hotel. Respond to changes with targeted and differentiated rates and packages such as attractive last-minute offers.
8. Make sure you’re in the loop. The world of revenue management is constantly evolving and is more competitive than ever. Stay ahead of the fast-paced nature of the industry by attending conferences, events, seminars and trainings.
9. Dare to take risks. Revenue management is all about selling the right room, to the right customer, at the right time and for the right price. Getting this all right involves taking a few risks. Just make sure you’ve thought about the consequences, and, if it goes wrong, learn from your mistakes.
10. Set your targets and budgets early. Now is the time to set your revenue management targets and budgets for next year. Don’t do all the work yourself, though. Collaborate with other departments and always communicate your revenue management objectives to your colleagues—in particular the sales department to ensure you are all working towards the same goals.
“I guess so,” she said quizzically. “But what for?”
“His birthday,” the man replied.
“His birthday? Wasn’t that months ago?” she asked.
“Well yeah—in May.” He paused. “Better late than never, I guess.”
In a similar vein, I just found an e-mail incubating in my inbox that I’ve been meaning to cover for more than a month. For an online journalist, a month might as well be an eternity. (I can hear my managing editor grinding her teeth as she reads this.) But hey, better late than never, right?
The e-mail outlines the top 10 revenue management tips for independent hoteliers—though I would argue it’s something every revenue manager should consider. Full disclosure: The info comes from Evolution, a revenue manager service provider. But like I’ve already mentioned, the content bares mentioning.
1. Everyone’s listening. Facebook and Twitter are important, but don’t forget that Internet itself can be social media. There are infinite channels to track your brand or distribute to potential guests. Revenue managers often don’t have the time to monitor every one, but that’s no excuse to neglect them all. Implement an effective social media strategy to monitor what your resources allow.
2. Choose the right distribution channels. The idea is a no-brainer, but effective implementation is a bit trickier. Consider: channel distribution potential, distribution spread and cost, ease of channel management, marketing exposures, technology used.
3. Invest in your own website. Your most important distribution channel is your own website. Is your site optimized for SEO or pay-per-click campaigns? Identify what keywords your audience is searching for based on demand, season or market influences, and make sure your webmaster is following through in implementation.
4. Value is king. In a price-sensitive market, value is the most important factor for guests. That doesn’t mean you have to sacrifice rates, however. Develop value-add packages and length-of-stay discounts.
5. Better relationships mean better profits. Don’t try to do everything on your own. Invest time in building strong relationships with all of your distribution partners including online travel agents, consortia programs and corporate accounts.
6. Know thy audience. As the economy emerges from recession, the booking and travel habits of your target market might evolve. Are you targeting the right clientele? Could you attract higher spenders? Once you’ve identified your target market, look at how they book their holidays: Are they booking last minute or are they looking for early bird deals?
7. Look to the future. It’s important to look ahead and understand how economic and seasonal changes will affect the way people book your hotel. Respond to changes with targeted and differentiated rates and packages such as attractive last-minute offers.
8. Make sure you’re in the loop. The world of revenue management is constantly evolving and is more competitive than ever. Stay ahead of the fast-paced nature of the industry by attending conferences, events, seminars and trainings.
9. Dare to take risks. Revenue management is all about selling the right room, to the right customer, at the right time and for the right price. Getting this all right involves taking a few risks. Just make sure you’ve thought about the consequences, and, if it goes wrong, learn from your mistakes.
10. Set your targets and budgets early. Now is the time to set your revenue management targets and budgets for next year. Don’t do all the work yourself, though. Collaborate with other departments and always communicate your revenue management objectives to your colleagues—in particular the sales department to ensure you are all working towards the same goals.
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