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BY DAVID EISEN
@DAVIDEISEN3
Know it or not, your digital
footprint is wide and far, and
companies are taking advantage
of that data to predict your next
move. It’s enough to make the
most implacable unsettled, but
companies are mining this valu-
able information just the same.
Marriott International, for one.
The Bethesda, Md.-based
hotel operator and franchisor is
a powerhouse. With its acquisi-
tion of Starwood Hotels &
Resorts Worldwide, it now com-
mands 30 brands and has more
than 6,000 properties in 122
countries and territories, encom-
passing more than 1.2 million
rooms. According to Lodging
Econometrics, Marriott is fore-
casted to open 351 hotels with
43,587 rooms in 2018, 31 per-
cent of all U.S. hotels expected
to open. Lodging Econometrics
also reports that Marriott has
the largest franchise pipeline in
the U.S. with 1,410 projects and
180,647 rooms.
And it wants to keep it that
way. In order to do so, Marriott
is in a constant race to cultivate
new customers, retain legacy
ones and sign and open new
hotels in new markets. Part of
that job falls to Eric Jacobs, who
is the chief development officer
for Marriott International – U.S.
and Canada. Jacobs is respon-
sible for franchise and managed
growth for Marriott’s select
brands, which are Courtyard,
Sheraton, Four Points, Sprin-
gHill Suites, Fairfield Inn and
Suites, AC by Marriott, Aloft,
Moxy, Residence Inn, Element
by Westin and TownePlace
Suites.
That’s a lot of brands and
there is only so much dirt. “We
have to be smarter about how we
place our brands,” Jacobs said
during the Americas Lodging In-
vestment Summit. “What is the
business case? Part of branding is
making sure we deliver the right
product [for our guests] that is
best for our investor.”
DATA DIVE
To help make that happen, Mar-
riott enlisted Buxton, a customer
analytics company based in Fort
Worth, Texas. There is no lack of
available data: household profile,
including number of kids; type
of jobs held by family members;
their salaries; where and how
they spend their money and
even the type of jeans they buy:
“Levi’s or Gap,” Jacobs said.
Buxton manages more than
300 unique data sets and has ac-
cess to data from an astonishing-
ly high 116 million households,
said Jack Hall, Buxton’s VP of
strategic accounts. The company
helps brands identify who their
customer is, where they live and
work and what’s their overall
value to the brand.
“By looking at the number
of times someone travels—for
business or leisure—where they
live and what they travel for,
we can understand, by brand,
where the unmet demand is
for additional hotels and help
identify where that demand
is nationally, by market and
region,” Hall said.
The level and granularity of
data is what makes consumer
analytics a veritable gold mine
of information. Companies like
Buxton monitor and collect
data patterns, but it’s up to their
clients to turn the data into ac-
tion because, as Buxton SVP Bill
Stinneford pointed out, “Data in
and of itself is worthless; it’s what
you do with it.”
It’s the nitty-gritty data that
makes the data collection all
that more impressive. Consider
your smartphone. As Stinneford
explained, “Every phone emits
a unique ping every couple of
seconds, so we can see trip origi-
nation—where the pings came
from.”
That opens up a range of pos-
sibilities. “When a guest leaves
an urban hotel, we can track how
far away they go,” Stinneford
said.
Buxton’s data also can be
used to track competitor brands
and hotels. “We can geofence a
specific hotel’s parking lot and
see where those pings go after a
stay,” Stinneford said.
How, then, does the data
become actionable? As Jacobs
described it, if they identify a
yogi or someone into health, “we
know they will resonate with an
Element or Westin, so we target
them,” he said. Westin and Ele-
ment are positioned as health-
and wellness-conscious brands.
TRIBAL TRAVELERS
To further predict development
trends, Jacobs refers to six types
of travelers or tribes: simplicity
searchers, those who value ease
and transparency travel over
everything else; cultural purists,
those who use travel to immerse
themselves in an unfamiliar cul-
ture; social capital seekers, those
whose travel choices are shaped
by social reward; reward hunt-
ers, those who seek indulgent
or luxurious must-have experi-
ences; obligation meeters, those
who travel by the need to meet
a bounded objective; and ethical
travelers, those who allow their
conscience to be their guide
when organizing travel.
Jacobs said Marriott aligns
its brands to those “traveling
tribes,” which enables “us to see
where they are traveling, where
they shop, where they eat, how
far they live from an airport.”
“Any hotel brand out there
wants to maximize its footprint,”
Hall said. “What are the total
markets of opportunities?”
With 30 brands, Jacobs said
that one of his biggest tasks now
is dealing with impact issues and
territorial disputes, so-called
AOPs, or areas of protection.
Before the Starwood acquisition,
there was no issue with, say, a
Westin next to a Marriott, a
Courtyard next to a Four Points.
“We have to drive thoughtful
development,” Jacobs said.
Hotels have the potential to
market to and cultivate consum-
ers beyond those staying with
them; those who live in the local
community, or what Stinneford
refers to as “people in the trade
area.” “How do I use consumer
analytics to understand who
the best potential patrons are?”
he said. “How do I market to
them and create concepts that
are pleasing both to guests and
people in that area?”
Marriott is all ears. HM
DATA DRIVEN
Marriott bets on predictive
analytics for brand growth
March 2018 | HOTELMANAGEMENT.NET10 NEWS
1 Best Western’s new SureStay Hotel
Group brand opened
a new property in
Lexington, Ky. The 104-
room hotel has one suite,
and the property includes
an outdoor pool and
hot tub and a business
center. It’s located near
the Kentucky Horse Park.
2 Pod Hotels opened its flagship property,
the Pod Times Square, in
New York City. BD Hotels
owns the hotel, which is
the fifth asset in the Pod
Hotels Collection and the
brand’s third in New York
City. The hotel is located
on the corner of 42nd
Street and 9th Avenue,
and offers 655 rooms,
each roughly 115 square
feet in size.
3 RLH Corporation’s Signature hotel
brand signed its first
hotel since the concept
was unveiled in 2017.
The Signature San
Francisco will be located
in San Francisco’s SOMA
district, and is being
repositioned as a 34-
room boutique hotel.
4 The 96-room Tryp by Wyndham Miami Bay
Harbor officially opened.
Wyndham Hotel Group
Management operates
the hotel, which is the
fifth Tryp to open in North
America.
5 HRI Lodging and Hyatt Hotels
Corporation teamed
up to add the Holston
House in downtown
Nashville to Hyatt’s
Unbound Collection.
The 1920s-era, 191-
room James Robertson
Hotel was converted to
the Unbound Collection
following a redesign
from New York designers
Stonehill Taylor.
NEWS
BRIEFS5
Marriott International uses consumer data to predict where to
add new hotels geographically.
Copyright of Hotel Management (21582122) is the property of
Questex Media Group and its
content may not be copied or emailed to multiple sites or posted
to a listserv without the
copyright holder's express written permission. However, users
may print, download, or email
articles for individual use.
BY WARREN MARR
HM COLUMNIST
T he U.S. lodging industry ended 2017 on a strong note,
supported by improving macroeconomic fundamentals and
strengthening consumer
and business sentiment. Further driving industry
performance were dramatic regional increases in
demand in Houston and South Florida following
hurricanes Harvey and Irma. While revenue-per-
available-room growth continued to decelerate in 2017,
our revised lodging outlook anticipates that in Q4
2018 the lodging industry will have recorded its 35th
consecutive quarter of growth in RevPAR (Figure 1).
As we started 2017, several headwinds, including
economic weakness abroad and domestic political
uncertainty, placed moderate pressure on initial
forecasts for industry performance. However, demand
proved resilient, fueled largely by the leisure transient
segment (which, in turn, was buoyed by strengthening
consumer spending). While corporate transient demand
continues to grow at a sluggish pace, business activity
in the overall economy remains relatively strong, as
evidenced by a strong fourth-quarter performance in
equipment and construction spending, in addition to an
optimistic forecast for nonresidential fixed investment.
Supply growth has been relatively tame during this
cycle and is expected to reach the long-term average
of 2.0 percent this year. Despite continued growth in
supply, our outlook anticipates a ninth consecutive year
where occupancy does not decline, reaching 66.1 percent
in 2018 (Table 1). As we look ahead, several key factors
are expected to drive industry performance in 2018.
Improving consumer and business sentiment: Marking
the end of a tumultuous first year, the Tax Cuts and
Jobs Act was a significant political win for the Trump
administration. The Act is anticipated to have the
most positive impact for consumers in the short term
(three to five years), reinforcing consumer spending
and supporting roomnight demand for hotels. While
businesses will certainly benefit from the lowered
corporate tax rate, economists at IHS-Markit expect that
the economic impact from other elements (such as the
offshore earnings repatriation tax holiday) will be muted,
as public companies elect to fund share buybacks and
dividends as opposed to increases in hiring, investment
or production.
Return of favorable supply-demand balance: While we
previously anticipated supply growth to exceed demand
in 2017, the favorable relationship continued to hum
along and is now expected to remain through 2018
(Figure 2), due in no small part to the displacement and
construction demand for hotel rooms resulting from
hurricanes Harvey and Irma. Overall, demand growth
is expected to decelerate from 2.7 percent in 2017 to 2.2
percent in 2018, while an anticipated increase in supply
is expected to meet the long-term average of 2.0 percent,
resulting in record occupancy levels.
International travel in flux: The U.S. dollar, which can
act as a proxy indicator for inbound international travel,
steadily weakened in 2017 (Figure 3). A weaker U.S.
dollar typically benefits the domestic travel industry,
as international visitors find that their local currency
is able to purchase more goods and services. However,
according to the U.S. Travel Association, inbound
international travel actually declined in the first and
second quarters of 2017 (latest data available at the
time of this writing), even as the U.S. dollar weakened.
Political uncertainty and travel restrictions likely played
a large role in this decline. However, its November 2017
Travel Trends Index indicates that international travel
to the U.S. is expected to moderately increase over the
next six months, a key aspect considered in our revised
lodging outlook.
Relatively strong macroeconomic and industry
fundamentals support our positive outlook for 2018.
However, as we are now in our 32nd consecutive quarter
of RevPAR growth, our outlook reflects cautious
optimism. HM
Warren Marr is a managing director at PwC, specializing in the
lodging sector. He can be reached at [email protected]
Economic fundamentals paint
compelling picture for 2018
March 2018 | HOTELMANAGEMENT.NET24 TRENDS &
STATS
2016 2017 2018
Occupancy 0.0 0.9 0.2
Average Daily Rate 3.2 2.1 2.4
RevPAR 3.2 3.0 2.7
Real GDP 1.8 2.5 2.8
Average Demand 1.5 2.7 2.2
Average Supply 1.5 1.8 2.0
Note: GDP growth is shown on a fourth-quarter-over-fourth-
quarter basis.
All figures are rounded.
Sources: Bureau of Economic Analysis; IHS Markit (January
2018 forecast); STR;
PwC (forecast released January 22, 2018).
Note: Figure shows the value of the U.S. dollar relative to the
value of the preset, weighted basket of currencies from the
United States’ major trading partners
(European Union, Japan, Canada, Great Britain, Sweden and
Switzerland.) Source: Federal Reserve Bank of St. Louis and
IHS Markit (January 2018 forecast)
125
120
115
110
105
100
95
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: STR (1987 to 2017); PwC (1968-1986; 2018F)
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
-25.0%
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
2013 2015 2017
57 Quarters of Positive Growth 37 Quarters of Positive Growth
35 Quarters of Positive Growth
Note: Data represents difference between annual demand and
annual average supply growth. Negative values reflect supply
growth exceeding demand growth in
the respective years. Source: STR (1987 to 2017); PwC (1968-
1986; 2018F)
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
2013 2015 2017
Compared to the two other lodging
cycles shown in Figure 1, demand
growth in the current cycle has
consistently outpaced supply growth.
▼
Forecast
Copyright of Hotel Management (21582122) is the property of
Questex Media Group and its
content may not be copied or emailed to multiple sites or posted
to a listserv without the
copyright holder's express written permission. However, users
may print, download, or email
articles for individual use.
HTM 300- Business Communications for Hospitality
Assignment: Individual – Industry Trend article Turned in-
beginning of class
Assignment Description
The purpose of this assignment is to locate a credible article
regarding current trends or changes in your industry of study.
Articles can be found in newspapers, journals, industry
magazines, etc.
For this assignment:
1. Create an article summary that summarizes the entire piece.
2. Consider all information when writing the summary
1. Overall sense
2. Who, What, Where, Why, How?
3. Main points
4. Supporting points
5. Overall summary
Trend articles will also be discussed orally in class.
Grading Rubric
Professionalism
The summary appears to be neat and professional.
Writing Proficiency
Writing is easy to understand and gets to the point quickly.
Word choice is professional and explains the section.
Content
The article that was chosen is credible and in the chosen
industry of study. Summary is clear and concise and covers all
main points of the article. Summary is easy to follow and
clearly summarizes the article. Actual article is attached to the
summary
Guidelines & Specification
Writing will be clear and professional. The summary should be
double spaced (2), in 12-point Times New Roman font, and have
1 inch margins. The actual article should be stapled to the
summary.
Assignment: Individual – Trend persuasive Presentation
Turned in- beginning of class
The purpose of this assignment is to identify an up-and coming
trend in the hospitality industry. Students will collect credible
sources regarding the trend and be able to find facts/evidence in
support or in disagreement with the industry trend. Students
will then present orally regarding their research and
recommendations. Oral presentations will be given in 5 minutes
via Power Point. The power point presentation will include facts
and data from credible sources. Students will also turn in a brief
proposal summarizing their findings including proper APA
citation.
For this assignment:
1. Select a trend in the hospitality industry based on an
academic journal article.
2. Identify specific companies who are implementing this trend.
3. Why was this trend developed?
4. What other articles or literature mention the trend?
a. Need at least 3 articles.
5. What are the pros of this trend?
6. What are the cons of this trend?
7. Who benefits from this trend?
8. Who could be harmed by this trend?
9. Would you recommend implementing this trend in San
Francisco? Why or Why not? Where?
Oral Presentation should have
1. A clear and concise introduction
2. A clear and concise conclusion.
3. A reference slide including citations in APA
Grading Rubric
Oral Presentation
Used proper presentations skills as learned in class (voice
annunciation, eye contact, visuals, graphics, and engaging
presentation techniques).
Compliance
Presentation was 5-7 minutes in length. Answering all
questions. Includes the components of an oral presentation
Summary
Writing will be clear and professional. The summary should be
double spaced (2), in 12-point Times New Roman font, and have
1 inch margins. The summary should include all information
required in presentation. Summary should be no more than 2
pages long.
Trend Topic:
_____________________________________________________
__________________
Article 1:
Title:
_____________________________________________________
_________________________
Author:
_____________________________________________________
_______________________
Source:
_____________________________________________________
_______________________
Support of Trend #1
_____________________________________________________
____________
Implication of Trend #1
_____________________________________________________
___________
Support/Implication #2
_____________________________________________________
___________
APA Citation:
Article 2:
Title:
_____________________________________________________
_________________________
Author:
_____________________________________________________
_______________________
Source:
_____________________________________________________
_______________________
Support of Trend #1
_____________________________________________________
____________
Implication of Trend #1
_____________________________________________________
___________
Support/Implication #2
_____________________________________________________
___________
APA Citation:
Article 3:
Title:
_____________________________________________________
_________________________
Author:
_____________________________________________________
_______________________
Source:
_____________________________________________________
_______________________
Support of Trend #1
_____________________________________________________
____________
Implication of Trend #1
_____________________________________________________
___________
Support/Implication #2
_____________________________________________________
___________
APA Citation:
Recommendations in support of the trend or against:
Page 2 of 4
BY DAVID EISEN
@DAVIDEISEN3
LOS ANGELES – It’s lodging’s age-old question: What will the
hotel
of the future look like? Mobile check-in? Smartphones that
unlock
guestroom doors? Rooms that adjust and react to guests when
they
are in and out of the room? It all sounds pretty futuristic, and—
well—much of it already exists. The question really is: What’s
next?
The future of lodging, many agree, is focused on the guest expe-
rience, particularly as millennials commit to more travel. “It’s
the
notion of experience over possessions, and travel is such a part
of
that,” said Lauren Chewning, VP of consumer insights at
Marriott
International.
The experience, Chewning alluded to, is not just specific to the
physical hotel anymore. “Consumers view travel broadly; it’s
not just
the hotel experience, but beyond it. They are looking for
authentic
travel experiences—internally or beyond.”
Chewning pointed to Marriott Moments, which allows custom-
ers to book “unique experiences” the world over using Marriott
Rewards points. Not unlike eBay, rewards members can bid on
experiences, of which some 100,000 exist.
A COMMUNITY EXPERIENCE
Ron Swidler, a principal at Chicago-based design firm The
Gettys
Group, is also on the experience train, and sees it continuing to
define the hotel of the future. Design, he said, will help fuel it.
“We
used to think that our role was to just take care of basic guest
needs,
but now design is a differentiator, creating memorable
experiences,”
Swidler said.”
Hotels, Swidler added, are an opportunity for transformation.
He sees hotels serving the community as much as their paying
guests. The idea is that hotels should be fulcrums of a
neighborhood,
to transform neighborhoods, what he called “the responsibility
to
contribute to the overall betterment.”
Elizabeth Keating, partner and president at creative consultancy
Revolver New York, took it a step further, remarking that hotels
should have a sense of service toward the local community. She
thinks hotels have a duty to staff the hotel with those in the im-
mediate location, which not only promotes job growth, but also
gives
the hotel a level of authenticity. “It brings a local flavor,” she
said.
Labor is a salient issue for the hotel industry; finding and re-
taining talent is no easy task when the country is essentially at
full
employment. Scarcity of labor, said James Biggar, EVP of hotel
management company HHM, has to be factored into the hotel of
the future. “As the cost of labor goes up, hoteliers have to look
for
ways to be more efficient with labor, while also upping the
guest
experience,” he said. Biggar said technology can help,
particularly
in the prearrival experience and with the advent of mobile
check-in.
“If that mundane stuff can be done in advance, then labor can be
focused more on the guest experience,” he said.
Future hotels, many have suggested, won’t need humans to run
them, but will rely on robots or other nonsentient beings. If this
is
the future, Chewning wants no part of it. “A hotel without
anyone
working in it would be creepy,” she said. “You have to deliver
the
human element.”
A NEW PERSPECTIVE
This seeps down into the design of the hotel. Swidler expects
the
traditional front desk to go away, in favor of what he referred to
as “stations, needed for guest arrival.” He also thinks that as
more
technology and automation trickle into hospitality, employees
will
be tasked with doing more than just one singular job, such as a
traditional front-desk employee also pitching in in retail or
F&B.
Swidler cited the citizenM brand for the way it staffs and oper-
ates hotels, hiring actors and employees with theater
backgrounds.
Building on that is the idea of hotels cultivating an environment
that promotes interaction between guests and between guests
and
employees, such as staging TED Talk-style seminars, for
example, a
hallmark of RLH Corporation’s Hotel RL brand and Marriott,
too.
Interactive public spaces, like these, are the wave of the future,
Chewning said. “Academics and actors engaging with guests,”
she
said.
Still, not everyone is sold on the future. If it’s up to Keating, a
nod
to the past is what the hotel industry needs; what she called a
“return
to classics with a twist—a blending of the old and new.”
Keating said the industry has gone too far in the other direction.
“You don’t always want to be public,” she said. “Some guests
want
more private moments.” She pointed to the NoMad Hotel, with
outposts in New York and Los Angeles, as a brand that has been
able to strike the right balance.
New technology, from virtual reality to artificial intelligence,
has
and will continue to be intertwined in the future of hotels. Mar-
riott, for one, has been at the forefront of the movement,
creating
what it calls “additional points of engagement for guests,
powered
by artificial intelligence.” Last September, its Aloft brand
launched
ChatBotlr, a chatbot available via text message that gives guests
an
additional way to make service requests.
The future hotel, Swidler said, will allow prospective customers
to
experience the hotel virtually before physically through VR.
Hilton
now uses VR technology to experience its Canopy and Tru
brands.
“This will progress,” Swidler said. HM
ALIS COVERAGE
What’s next for the hotel of the future
H OT E L M A N AG E M E N T. N E T | M a r c h 2018
Stay Curious
Make a statement with a
franchise that caters to the
creative and inquisitive.
We are a new kind of
hotel experience.
Most properties are independently owned and operated.
© 2018 Red Lion Hotels Franchising, Inc.
franchise.RLHCo.com
We don’t wait for the future. We create it.
NEWS 9
Looking into the crystal ball. [From left] Ron Swidler,
principal, The Gettys Group; Lauren Chewning, VP of consumer
insights, Marriott International; Bob
Alter, president, Seaview Investors; Elizabeth Keating, partner
and president, Revolver New York; and James Biggar, EVP,
HHM.
Copyright of Hotel Management (21582122) is the property of
Questex Media Group and its
content may not be copied or emailed to multiple sites or posted
to a listserv without the
copyright holder's express written permission. However, users
may print, download, or email
articles for individual use.
Assignment: Individual – Industry Trend article
Assignment Description
The purpose of this assignment is to locate a credible article
regarding current trends or changes in your industry of study.
Articles can be found in newspapers, journals, industry
magazines, etc.
For this assignment:
1. Create an article summary that summarizes the entire piece.
2. Consider all information when writing the summary
1. Overall sense
2. Who, What, Where, Why, How?
3. Main points
4. Supporting points
5. Overall summary
Trend articles will also be discussed orally in class.
Grading Rubric
Professionalism
The summary appears to be neat and professional.
Writing Proficiency
Writing is easy to understand and gets to the point quickly.
Word choice is professional and explains the section.
Content
The article that was chosen is credible and in the chosen
industry of study. Summary is clear and concise and covers all
main points of the article. Summary is easy to follow and
clearly summarizes the article. Actual article is attached to the
summary
Guidelines & Specification
Writing will be clear and professional. The summary should be
double spaced (2), in 12-point Times New Roman font, and have
1 inch margins. The actual article should be stapled to the
summary.

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  • 1. BY DAVID EISEN @DAVIDEISEN3 Know it or not, your digital footprint is wide and far, and companies are taking advantage of that data to predict your next move. It’s enough to make the most implacable unsettled, but companies are mining this valu- able information just the same. Marriott International, for one. The Bethesda, Md.-based hotel operator and franchisor is a powerhouse. With its acquisi- tion of Starwood Hotels & Resorts Worldwide, it now com- mands 30 brands and has more than 6,000 properties in 122 countries and territories, encom- passing more than 1.2 million rooms. According to Lodging Econometrics, Marriott is fore- casted to open 351 hotels with 43,587 rooms in 2018, 31 per- cent of all U.S. hotels expected to open. Lodging Econometrics also reports that Marriott has the largest franchise pipeline in the U.S. with 1,410 projects and 180,647 rooms.
  • 2. And it wants to keep it that way. In order to do so, Marriott is in a constant race to cultivate new customers, retain legacy ones and sign and open new hotels in new markets. Part of that job falls to Eric Jacobs, who is the chief development officer for Marriott International – U.S. and Canada. Jacobs is respon- sible for franchise and managed growth for Marriott’s select brands, which are Courtyard, Sheraton, Four Points, Sprin- gHill Suites, Fairfield Inn and Suites, AC by Marriott, Aloft, Moxy, Residence Inn, Element by Westin and TownePlace Suites. That’s a lot of brands and there is only so much dirt. “We have to be smarter about how we place our brands,” Jacobs said during the Americas Lodging In- vestment Summit. “What is the business case? Part of branding is making sure we deliver the right product [for our guests] that is best for our investor.” DATA DIVE To help make that happen, Mar- riott enlisted Buxton, a customer
  • 3. analytics company based in Fort Worth, Texas. There is no lack of available data: household profile, including number of kids; type of jobs held by family members; their salaries; where and how they spend their money and even the type of jeans they buy: “Levi’s or Gap,” Jacobs said. Buxton manages more than 300 unique data sets and has ac- cess to data from an astonishing- ly high 116 million households, said Jack Hall, Buxton’s VP of strategic accounts. The company helps brands identify who their customer is, where they live and work and what’s their overall value to the brand. “By looking at the number of times someone travels—for business or leisure—where they live and what they travel for, we can understand, by brand, where the unmet demand is for additional hotels and help identify where that demand is nationally, by market and region,” Hall said. The level and granularity of data is what makes consumer analytics a veritable gold mine
  • 4. of information. Companies like Buxton monitor and collect data patterns, but it’s up to their clients to turn the data into ac- tion because, as Buxton SVP Bill Stinneford pointed out, “Data in and of itself is worthless; it’s what you do with it.” It’s the nitty-gritty data that makes the data collection all that more impressive. Consider your smartphone. As Stinneford explained, “Every phone emits a unique ping every couple of seconds, so we can see trip origi- nation—where the pings came from.” That opens up a range of pos- sibilities. “When a guest leaves an urban hotel, we can track how far away they go,” Stinneford said. Buxton’s data also can be used to track competitor brands and hotels. “We can geofence a specific hotel’s parking lot and see where those pings go after a stay,” Stinneford said. How, then, does the data become actionable? As Jacobs described it, if they identify a
  • 5. yogi or someone into health, “we know they will resonate with an Element or Westin, so we target them,” he said. Westin and Ele- ment are positioned as health- and wellness-conscious brands. TRIBAL TRAVELERS To further predict development trends, Jacobs refers to six types of travelers or tribes: simplicity searchers, those who value ease and transparency travel over everything else; cultural purists, those who use travel to immerse themselves in an unfamiliar cul- ture; social capital seekers, those whose travel choices are shaped by social reward; reward hunt- ers, those who seek indulgent or luxurious must-have experi- ences; obligation meeters, those who travel by the need to meet a bounded objective; and ethical travelers, those who allow their conscience to be their guide when organizing travel. Jacobs said Marriott aligns its brands to those “traveling tribes,” which enables “us to see where they are traveling, where they shop, where they eat, how far they live from an airport.” “Any hotel brand out there
  • 6. wants to maximize its footprint,” Hall said. “What are the total markets of opportunities?” With 30 brands, Jacobs said that one of his biggest tasks now is dealing with impact issues and territorial disputes, so-called AOPs, or areas of protection. Before the Starwood acquisition, there was no issue with, say, a Westin next to a Marriott, a Courtyard next to a Four Points. “We have to drive thoughtful development,” Jacobs said. Hotels have the potential to market to and cultivate consum- ers beyond those staying with them; those who live in the local community, or what Stinneford refers to as “people in the trade area.” “How do I use consumer analytics to understand who the best potential patrons are?” he said. “How do I market to them and create concepts that are pleasing both to guests and people in that area?” Marriott is all ears. HM DATA DRIVEN Marriott bets on predictive analytics for brand growth
  • 7. March 2018 | HOTELMANAGEMENT.NET10 NEWS 1 Best Western’s new SureStay Hotel Group brand opened a new property in Lexington, Ky. The 104- room hotel has one suite, and the property includes an outdoor pool and hot tub and a business center. It’s located near the Kentucky Horse Park. 2 Pod Hotels opened its flagship property, the Pod Times Square, in New York City. BD Hotels owns the hotel, which is the fifth asset in the Pod Hotels Collection and the brand’s third in New York City. The hotel is located on the corner of 42nd Street and 9th Avenue, and offers 655 rooms, each roughly 115 square feet in size. 3 RLH Corporation’s Signature hotel brand signed its first hotel since the concept was unveiled in 2017. The Signature San Francisco will be located in San Francisco’s SOMA district, and is being
  • 8. repositioned as a 34- room boutique hotel. 4 The 96-room Tryp by Wyndham Miami Bay Harbor officially opened. Wyndham Hotel Group Management operates the hotel, which is the fifth Tryp to open in North America. 5 HRI Lodging and Hyatt Hotels Corporation teamed up to add the Holston House in downtown Nashville to Hyatt’s Unbound Collection. The 1920s-era, 191- room James Robertson Hotel was converted to the Unbound Collection following a redesign from New York designers Stonehill Taylor. NEWS BRIEFS5 Marriott International uses consumer data to predict where to add new hotels geographically. Copyright of Hotel Management (21582122) is the property of Questex Media Group and its content may not be copied or emailed to multiple sites or posted
  • 9. to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. BY WARREN MARR HM COLUMNIST T he U.S. lodging industry ended 2017 on a strong note, supported by improving macroeconomic fundamentals and strengthening consumer and business sentiment. Further driving industry performance were dramatic regional increases in demand in Houston and South Florida following hurricanes Harvey and Irma. While revenue-per- available-room growth continued to decelerate in 2017, our revised lodging outlook anticipates that in Q4 2018 the lodging industry will have recorded its 35th consecutive quarter of growth in RevPAR (Figure 1). As we started 2017, several headwinds, including economic weakness abroad and domestic political uncertainty, placed moderate pressure on initial forecasts for industry performance. However, demand proved resilient, fueled largely by the leisure transient segment (which, in turn, was buoyed by strengthening consumer spending). While corporate transient demand continues to grow at a sluggish pace, business activity in the overall economy remains relatively strong, as evidenced by a strong fourth-quarter performance in equipment and construction spending, in addition to an optimistic forecast for nonresidential fixed investment.
  • 10. Supply growth has been relatively tame during this cycle and is expected to reach the long-term average of 2.0 percent this year. Despite continued growth in supply, our outlook anticipates a ninth consecutive year where occupancy does not decline, reaching 66.1 percent in 2018 (Table 1). As we look ahead, several key factors are expected to drive industry performance in 2018. Improving consumer and business sentiment: Marking the end of a tumultuous first year, the Tax Cuts and Jobs Act was a significant political win for the Trump administration. The Act is anticipated to have the most positive impact for consumers in the short term (three to five years), reinforcing consumer spending and supporting roomnight demand for hotels. While businesses will certainly benefit from the lowered corporate tax rate, economists at IHS-Markit expect that the economic impact from other elements (such as the offshore earnings repatriation tax holiday) will be muted, as public companies elect to fund share buybacks and dividends as opposed to increases in hiring, investment or production. Return of favorable supply-demand balance: While we previously anticipated supply growth to exceed demand in 2017, the favorable relationship continued to hum along and is now expected to remain through 2018 (Figure 2), due in no small part to the displacement and construction demand for hotel rooms resulting from hurricanes Harvey and Irma. Overall, demand growth is expected to decelerate from 2.7 percent in 2017 to 2.2 percent in 2018, while an anticipated increase in supply is expected to meet the long-term average of 2.0 percent, resulting in record occupancy levels.
  • 11. International travel in flux: The U.S. dollar, which can act as a proxy indicator for inbound international travel, steadily weakened in 2017 (Figure 3). A weaker U.S. dollar typically benefits the domestic travel industry, as international visitors find that their local currency is able to purchase more goods and services. However, according to the U.S. Travel Association, inbound international travel actually declined in the first and second quarters of 2017 (latest data available at the time of this writing), even as the U.S. dollar weakened. Political uncertainty and travel restrictions likely played a large role in this decline. However, its November 2017 Travel Trends Index indicates that international travel to the U.S. is expected to moderately increase over the next six months, a key aspect considered in our revised lodging outlook. Relatively strong macroeconomic and industry fundamentals support our positive outlook for 2018. However, as we are now in our 32nd consecutive quarter of RevPAR growth, our outlook reflects cautious optimism. HM Warren Marr is a managing director at PwC, specializing in the lodging sector. He can be reached at [email protected] Economic fundamentals paint compelling picture for 2018 March 2018 | HOTELMANAGEMENT.NET24 TRENDS & STATS 2016 2017 2018 Occupancy 0.0 0.9 0.2
  • 12. Average Daily Rate 3.2 2.1 2.4 RevPAR 3.2 3.0 2.7 Real GDP 1.8 2.5 2.8 Average Demand 1.5 2.7 2.2 Average Supply 1.5 1.8 2.0 Note: GDP growth is shown on a fourth-quarter-over-fourth- quarter basis. All figures are rounded. Sources: Bureau of Economic Analysis; IHS Markit (January 2018 forecast); STR; PwC (forecast released January 22, 2018). Note: Figure shows the value of the U.S. dollar relative to the value of the preset, weighted basket of currencies from the United States’ major trading partners (European Union, Japan, Canada, Great Britain, Sweden and Switzerland.) Source: Federal Reserve Bank of St. Louis and IHS Markit (January 2018 forecast) 125 120 115 110 105 100
  • 13. 95 90 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: STR (1987 to 2017); PwC (1968-1986; 2018F) 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
  • 14. 57 Quarters of Positive Growth 37 Quarters of Positive Growth 35 Quarters of Positive Growth Note: Data represents difference between annual demand and annual average supply growth. Negative values reflect supply growth exceeding demand growth in the respective years. Source: STR (1987 to 2017); PwC (1968- 1986; 2018F) 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Compared to the two other lodging cycles shown in Figure 1, demand growth in the current cycle has consistently outpaced supply growth. ▼ Forecast
  • 15. Copyright of Hotel Management (21582122) is the property of Questex Media Group and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. HTM 300- Business Communications for Hospitality Assignment: Individual – Industry Trend article Turned in- beginning of class Assignment Description The purpose of this assignment is to locate a credible article regarding current trends or changes in your industry of study. Articles can be found in newspapers, journals, industry magazines, etc. For this assignment: 1. Create an article summary that summarizes the entire piece. 2. Consider all information when writing the summary 1. Overall sense 2. Who, What, Where, Why, How? 3. Main points 4. Supporting points 5. Overall summary Trend articles will also be discussed orally in class. Grading Rubric Professionalism The summary appears to be neat and professional.
  • 16. Writing Proficiency Writing is easy to understand and gets to the point quickly. Word choice is professional and explains the section. Content The article that was chosen is credible and in the chosen industry of study. Summary is clear and concise and covers all main points of the article. Summary is easy to follow and clearly summarizes the article. Actual article is attached to the summary Guidelines & Specification Writing will be clear and professional. The summary should be double spaced (2), in 12-point Times New Roman font, and have 1 inch margins. The actual article should be stapled to the summary. Assignment: Individual – Trend persuasive Presentation Turned in- beginning of class The purpose of this assignment is to identify an up-and coming trend in the hospitality industry. Students will collect credible sources regarding the trend and be able to find facts/evidence in support or in disagreement with the industry trend. Students will then present orally regarding their research and recommendations. Oral presentations will be given in 5 minutes via Power Point. The power point presentation will include facts and data from credible sources. Students will also turn in a brief proposal summarizing their findings including proper APA citation. For this assignment:
  • 17. 1. Select a trend in the hospitality industry based on an academic journal article. 2. Identify specific companies who are implementing this trend. 3. Why was this trend developed? 4. What other articles or literature mention the trend? a. Need at least 3 articles. 5. What are the pros of this trend? 6. What are the cons of this trend? 7. Who benefits from this trend? 8. Who could be harmed by this trend? 9. Would you recommend implementing this trend in San Francisco? Why or Why not? Where? Oral Presentation should have 1. A clear and concise introduction 2. A clear and concise conclusion. 3. A reference slide including citations in APA Grading Rubric Oral Presentation Used proper presentations skills as learned in class (voice annunciation, eye contact, visuals, graphics, and engaging presentation techniques). Compliance Presentation was 5-7 minutes in length. Answering all questions. Includes the components of an oral presentation Summary Writing will be clear and professional. The summary should be double spaced (2), in 12-point Times New Roman font, and have 1 inch margins. The summary should include all information required in presentation. Summary should be no more than 2 pages long. Trend Topic: _____________________________________________________ __________________
  • 18. Article 1: Title: _____________________________________________________ _________________________ Author: _____________________________________________________ _______________________ Source: _____________________________________________________ _______________________ Support of Trend #1 _____________________________________________________ ____________ Implication of Trend #1 _____________________________________________________ ___________ Support/Implication #2 _____________________________________________________ ___________ APA Citation: Article 2: Title: _____________________________________________________
  • 19. _________________________ Author: _____________________________________________________ _______________________ Source: _____________________________________________________ _______________________ Support of Trend #1 _____________________________________________________ ____________ Implication of Trend #1 _____________________________________________________ ___________ Support/Implication #2 _____________________________________________________ ___________ APA Citation: Article 3: Title: _____________________________________________________ _________________________ Author: _____________________________________________________ _______________________ Source:
  • 20. _____________________________________________________ _______________________ Support of Trend #1 _____________________________________________________ ____________ Implication of Trend #1 _____________________________________________________ ___________ Support/Implication #2 _____________________________________________________ ___________ APA Citation: Recommendations in support of the trend or against: Page 2 of 4 BY DAVID EISEN @DAVIDEISEN3 LOS ANGELES – It’s lodging’s age-old question: What will the hotel
  • 21. of the future look like? Mobile check-in? Smartphones that unlock guestroom doors? Rooms that adjust and react to guests when they are in and out of the room? It all sounds pretty futuristic, and— well—much of it already exists. The question really is: What’s next? The future of lodging, many agree, is focused on the guest expe- rience, particularly as millennials commit to more travel. “It’s the notion of experience over possessions, and travel is such a part of that,” said Lauren Chewning, VP of consumer insights at Marriott International. The experience, Chewning alluded to, is not just specific to the physical hotel anymore. “Consumers view travel broadly; it’s not just the hotel experience, but beyond it. They are looking for authentic travel experiences—internally or beyond.” Chewning pointed to Marriott Moments, which allows custom- ers to book “unique experiences” the world over using Marriott Rewards points. Not unlike eBay, rewards members can bid on experiences, of which some 100,000 exist. A COMMUNITY EXPERIENCE Ron Swidler, a principal at Chicago-based design firm The Gettys Group, is also on the experience train, and sees it continuing to define the hotel of the future. Design, he said, will help fuel it. “We used to think that our role was to just take care of basic guest
  • 22. needs, but now design is a differentiator, creating memorable experiences,” Swidler said.” Hotels, Swidler added, are an opportunity for transformation. He sees hotels serving the community as much as their paying guests. The idea is that hotels should be fulcrums of a neighborhood, to transform neighborhoods, what he called “the responsibility to contribute to the overall betterment.” Elizabeth Keating, partner and president at creative consultancy Revolver New York, took it a step further, remarking that hotels should have a sense of service toward the local community. She thinks hotels have a duty to staff the hotel with those in the im- mediate location, which not only promotes job growth, but also gives the hotel a level of authenticity. “It brings a local flavor,” she said. Labor is a salient issue for the hotel industry; finding and re- taining talent is no easy task when the country is essentially at full employment. Scarcity of labor, said James Biggar, EVP of hotel management company HHM, has to be factored into the hotel of the future. “As the cost of labor goes up, hoteliers have to look for ways to be more efficient with labor, while also upping the guest experience,” he said. Biggar said technology can help, particularly in the prearrival experience and with the advent of mobile check-in.
  • 23. “If that mundane stuff can be done in advance, then labor can be focused more on the guest experience,” he said. Future hotels, many have suggested, won’t need humans to run them, but will rely on robots or other nonsentient beings. If this is the future, Chewning wants no part of it. “A hotel without anyone working in it would be creepy,” she said. “You have to deliver the human element.” A NEW PERSPECTIVE This seeps down into the design of the hotel. Swidler expects the traditional front desk to go away, in favor of what he referred to as “stations, needed for guest arrival.” He also thinks that as more technology and automation trickle into hospitality, employees will be tasked with doing more than just one singular job, such as a traditional front-desk employee also pitching in in retail or F&B. Swidler cited the citizenM brand for the way it staffs and oper- ates hotels, hiring actors and employees with theater backgrounds. Building on that is the idea of hotels cultivating an environment that promotes interaction between guests and between guests and employees, such as staging TED Talk-style seminars, for example, a hallmark of RLH Corporation’s Hotel RL brand and Marriott, too. Interactive public spaces, like these, are the wave of the future,
  • 24. Chewning said. “Academics and actors engaging with guests,” she said. Still, not everyone is sold on the future. If it’s up to Keating, a nod to the past is what the hotel industry needs; what she called a “return to classics with a twist—a blending of the old and new.” Keating said the industry has gone too far in the other direction. “You don’t always want to be public,” she said. “Some guests want more private moments.” She pointed to the NoMad Hotel, with outposts in New York and Los Angeles, as a brand that has been able to strike the right balance. New technology, from virtual reality to artificial intelligence, has and will continue to be intertwined in the future of hotels. Mar- riott, for one, has been at the forefront of the movement, creating what it calls “additional points of engagement for guests, powered by artificial intelligence.” Last September, its Aloft brand launched ChatBotlr, a chatbot available via text message that gives guests an additional way to make service requests. The future hotel, Swidler said, will allow prospective customers to experience the hotel virtually before physically through VR. Hilton now uses VR technology to experience its Canopy and Tru brands.
  • 25. “This will progress,” Swidler said. HM ALIS COVERAGE What’s next for the hotel of the future H OT E L M A N AG E M E N T. N E T | M a r c h 2018 Stay Curious Make a statement with a franchise that caters to the creative and inquisitive. We are a new kind of hotel experience. Most properties are independently owned and operated. © 2018 Red Lion Hotels Franchising, Inc. franchise.RLHCo.com We don’t wait for the future. We create it. NEWS 9 Looking into the crystal ball. [From left] Ron Swidler, principal, The Gettys Group; Lauren Chewning, VP of consumer insights, Marriott International; Bob Alter, president, Seaview Investors; Elizabeth Keating, partner and president, Revolver New York; and James Biggar, EVP, HHM.
  • 26. Copyright of Hotel Management (21582122) is the property of Questex Media Group and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. Assignment: Individual – Industry Trend article Assignment Description The purpose of this assignment is to locate a credible article regarding current trends or changes in your industry of study. Articles can be found in newspapers, journals, industry magazines, etc. For this assignment: 1. Create an article summary that summarizes the entire piece. 2. Consider all information when writing the summary 1. Overall sense 2. Who, What, Where, Why, How? 3. Main points 4. Supporting points 5. Overall summary Trend articles will also be discussed orally in class. Grading Rubric Professionalism The summary appears to be neat and professional. Writing Proficiency Writing is easy to understand and gets to the point quickly. Word choice is professional and explains the section. Content
  • 27. The article that was chosen is credible and in the chosen industry of study. Summary is clear and concise and covers all main points of the article. Summary is easy to follow and clearly summarizes the article. Actual article is attached to the summary Guidelines & Specification Writing will be clear and professional. The summary should be double spaced (2), in 12-point Times New Roman font, and have 1 inch margins. The actual article should be stapled to the summary.