Milestone Recovery Framework

Milestone Recovery
Framework
Communicate Correctly
to Bring Customers Back
June 23, 2020
MilestoneInternet.com | +1 408-200-2211 | @MilestoneMktg

Confidentialwww.milestoneinternet.com | 1-408-200-2211
YOURSPEAKERS
2
Benu Aggarwal
Founder & President
Milestone
Erik Newton
VP of Marketing
Milestone
Rob Cole
Founder
Rock Cheetah/Phocuswright
Loren Gray
Founder
Hospitality Digital Marketing

1. CRG and Recovery Framework
2. Market recovery trends
3. 5 new ground rules for marketing
4. Correct communication
5. Alternative use and new offers
6. Special offer for audience
7. Questions & answers
TODAY'SAGENDA

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ABOUT MILESTONE

RECOVERYWEBINARSWITHINDUSTRYTHOUGHTLEADERS
Website experience
consistent with
messaging
Weddings,
Meetings and
Events
Crisis-Recovery-
Growth Paid
II
Purna Virji, Microsoft
Fred Vallaeys, Optmyzr
Kurt Weinsheimer,
Sojern
Recovery
Framework
I
Bob Gilbert
President and CEO
HSMAI
Market trends
Hotel recovery
On demand
https://blog.milestoneinternet.com/web-
design-promotion/webinar-recap-
reopening-keys-to-success-from-hsmai-
ceo-bob-gilbert/
Market trends
Digital media
for recovery
all industries
6/18 Registration
https://blog.milestoneinternet.com/digital
-media-marketing/webinar-june-18-
recovering-and-growing-your-business-
with-digital-media/
Recovery
Framework
III
Rob Cole Phocuswright
Loren Gray Hospitality
Digital Marketing
Market trends
Hotel recovery
6/23 Registration
https://milestoneinternet.zoom.us/webin
ar/register/WN_O0IcAF46SUKbe1jS6x
m2nw
Recovery
Framework
IV
Chip Conley
Modern Elder
frmr Head of Hospitality
AirBNB
Hotel recovery
Hotel management
7/1 Registration
Coming soon, check blog!
Website experience
consistent with
messaging
Weddings,
Meetings and
Events
Recovery
Framework
V
Chip Rogers
AHLA
Hotel recovery
Stay Safe Guide
Hotel marketing
7/8 Registration

CRGFRAMEWORK
Milestone’s
Crisis-Recovery-Growth (CRG)
framework

STATESAREOPENING
Updated June 17, 2020Source: https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html

MILESTONERECOVERYFUNNEL
BUILDING CONFIDENCE
BUILDING DEMAND
DRIVING
CONVERSIONS
BUILDING
TRUST
Visibility and Presence
Visits and Traffic

DIGITALTRANSFORMATIONACCELERATED
Covid
March 2020
After Covid
years ahead of trend
Time
Digitization

Industry Trends,
Customer Sentiment &
Demand Regeneration
Hotel Reopening and Recovery
Milestone Webinar Series
June 23, 2020
Image: “Crowd” Governors Ball Music Festival 2016 (Giphy)

Agenda
• Science
• An Efficient Foe
• Industry Stats
• Recovery Optimism
• Sentiment
• Consumers Want to Travel Again
• Demand Regeneration
• Do You Understand Human Behavior?
Milestone - Communicate Correctly Industry Trends, Sentiment & Demand Regeneration Robert Cole  RockCheetah | 11

Science
Image: “Back to the Future” Universal Pictures 1985 (Giphy)

Covid-19 is Serious
• Good News
• Transmissibility, severity &
mortality lower than projected
• Masks, social distancing, testing
& tracing work to reduce spread
• Bad News
• Need herd immunity to beat it
• Remove access to hosts
• Successful vaccine
• Convenience v. security…
• Social distancing fatigue
• Desire return to normal
United States (as of June 21, 2020)
Source: “United States” Worldometer.info June 22, 2020 https://www.worldometers.info/coronavirus/

Future US Health Projections
• First Wave
• Peak – March 29
• Plateaus through summer as 1st wave
spreads into new cities & local outbreaks
• Second Wave
• Begins in fall due to school/business
reopening, greater mobility, indoor activity
• In October, cases nearing March level
• Fortunately, death rate half of March level
• Why a 2nd Wave? The Mobility Rate
• February: Base line
• April 5-10: -53%
• September 1-15: -1%
United States (Forecast to October 2020)
Source: “United States of America” Institute for Health Metrics and Evaluation June 22, 2020 https://covid19.healthdata.org/

Industry Stats
Image: “Good Will Hunting” Miramax 1997 (Giphy)

Hotel Industry Dynamics
• Lockdowns Impact RevPAR
• Not directly tied to case rate
• Depends on LOCAL decisions
• US has abandoned lockdowns
• RevPAR Disruption Improving
• Bottom April 11: -84% YoY
• Current June 13: -63% YoY
• Seeing Continual Progress
Source: “Video: U.S. performance results for week ending June 13” STR https://str.com/data-insights-blog/video-us-performance-results-week-ending-june-13

Stages of Recovery
• Projected Sequence:
• Local Leisure
• Domestic Leisure
• Domestic Business
• International
• Group/MICE
• Destination Exceptions
• Beach
• Mountain
• Highway/Rural
Source: “Webinar Recording: COVID-19 impact on Europe hotel performance - 18 June” STR https://str.com/whitepaper/covid-19-impact-europe-hotel-performance-18-june

It’s All About Demand
• Understanding Occupancy %
• Reporting Occ% – Open Hotels
• Economic Occ% – Full Supply
• Advantage to “Smaller Guys”
• Less International Traffic
• Less Dense Destinations
• Less Meeting Space
• Fewer Rooms
• Longer LOS
• Lower ADR
Source: “Webinar Recording: COVID-19 impact on Europe hotel performance - 18 June” STR https://str.com/whitepaper/covid-19-impact-europe-hotel-performance-18-june

Industry Remains Optimistic
• CBRE Forecast
• Demand recovery to pre-Covid-19
levels by 3rd quarter 2022
• ADR lag slows RevPAR to 2023
• Multiplication Refresher
• 100 rooms * -50% = 50 rooms
• 50 rooms * +50% = 25 rooms
• End result = 75 rooms
Source: “STR, Tourism Economics adjust U.S. hotel forecast downward” Hotel Management May 2020 https://www.hotelmanagement.net/operate/str-tourism-economics-adjust-u-s-hotel-forecast-downward

Customer Sentiment
Image: “Easy Rider” Columbia Pictures 1969 (Giphy)

Consumers Want to Travel
• Travel Ranking Relatively Well
• Intent 2nd to dining out
• Challenging Areas
• International travel lagging
• Good news for US hoteliers
• Major demand generators low
• Amusement parks & concerts
• Additionally – Sporting events
Source: “When Will Consumers Feel Safe Again?” Morning Consult June 2020 http://morningconsult.com/2020/06/15/tracking-consumer-comfort-with-dining-out-and-other-leisure-activities/?utm_source=morning_brew

Safety is Highly Personal
• There is No Silver Bullet
• Priorities Vary Widely by Country / Person
• Top US Protection Methods (>10%)
1. Intense Room Cleaning – 32%
2. Rapid Tests at Check-In – 27%
3. Temperature Check All Guests – 21%
4. More Downtime Between Stays – 19%
5. Fewer Seats in F&B/Public Areas – 18%
6. Free Hand Sanitizer – 18%
7. Issue Free PPE for Guests – 13%
8. Automated Check-in – 13%
Source: “Hospitality and COVID-19: How long until ‘no vacancy’ for US hotels?” June 2020 McKinsey & Co https://www.mckinsey.com/industries/travel-logistics-and-transport-infrastructure/our-insights/hospitality-and-covid-19-how-long-until-no-vacancy-for-us-hotels

Intentions – Next 6 Months
• Domestic Leisure Trips Rebound
• 40% Likely/Extremely Likely to travel (June)
• Net leisure travel sentiment score:
• March 27: +9
• April 11: -7
• May 8: +/- 0
• June 9: +9
• Domestic Business Trips Up Too
• 41% Likely/Extremely Likely to travel (June)
• Net busines travel sentiment score:
• March 27: +7
• April 11: -8
• May 8: -14
• June 9: +1
Source: “Travel Intentions Pulse Survey” MMGY June 2020 https://www.mmgyintel.com/travel-intentions-pulse-survey-tips-impact-covid-19

Demand Regeneration
Image: “This is Spinal Tap” Embassy Pictures 1984 (Giphy)

Human Behavior
• Maslow’s Need’s Hierarchy
• Must Satisfy Basic Needs First
• Roadmap for Recovery
1. Protect Health
2. Help Them Feel Safe
3. Promote Belonging
4. Enable Guest Control
5. Encourage Creativity

Demonstrate Expertise
• Engage Health Experts
• Involve Local Community
• Protect Guests & Staff
• Explain Processes & Protocols
• Clearly Communicate Procedures
• Set Guest Expectations
• Create Opportunities
• Persona-Informed Activities
• On & Off-site Locations

THENEWGROUND
RULESFORMARKETING

MARKETING RULE#1–
DON’T SELL,COMMUNICATE
• How are you making everyone safe? (including
your team)
• What’s changed in the rooms?
• Elevator social distancing guidelines?
• Parking, pool, gym, spa use?

Confidentialwww.milestoneinternet.com | 1-408-200-2211 @MILESTONEMKTG
MARKETING RULE#2-
BEFORE‘REOPENING, THERE'S ‘PREOPENING’
MOVE FROM THINKING
ABOUT CHANNELS
TO ABOUT BEHAVIOR
& SOLVING PROBLEMS
Drive and feeder markets,
no international
GDS – global distribution
system update
Website – content, images,
offers, schema, mobile
Google My Business

MESSAGING –SAFETY&TOGETHERNESS

MARKETING RULE#3-
‘ONESIZE’ DOESNOTFIT
ALL • New personas
• Hyper-targeting
• Campaigns > ad sets > ad types
• Communication channel use
• Progressive retreating budget
• Emergence budget modeling
• Become your own destination marketer

CUSTOMERTRENDSANDPIVOTINMARKETINGSTRATEGIES
Audience is looking to travel to drive by locations and
prefer local attractions nearby
*Date Range – April 1 to 28 May 2020 vs Dec 1 2019 – 31 Jan 2020
Mobile is driving more awareness, but desktop usage has
increased in last couple of months to drive conversions
Primarily audience is exploring travel via generic and non-
brand queries with emphasis on safety & hygiene
People are spending a lot more time online and there is a
surge in demand for special packages for travel.

MARKETING RULE#4-‘WHAT ISOLDISNEWAGAIN’
• It’s not about you and the property anymore
• Advance to guest-centric communication
• Ask your guests and listen to answers
• Direct and detailed
• Transparent communication
• Local is ’in’

BECOMEYOUROWNDESTINATION
The audience is looking
for local information –
what is open, what they
can do, etc.
Create a "go local" page
highlighting safe local
activities from walking
tours to open local
attractions and dining
options.
Include diverse content
formats, including blog
posts, FAQs, local
activities feed, etc.

Marketing Rule #5 – There is no ‘Normal’
You must be ahead of what is working,
contingency planning
The WHOLE team needs to know
Everyone is now a ‘hunter’
Marketing / Revenue Management / Sales =
Convergence

• Offer
• Message
• Medium
• Channel
• Reach
• Frequency
• Low occupancy gives you space to experiment
• Identify and fill a need
WHATISCORRECTCOMMUNICATION?
BUILDING CONFIDENCE
BUILDING DEMAND
DRIVING
CONVERSIONS
BUILDING
TRUST
Visits and Traffic

RECOVERYFUNNEL
BUILDING CONFIDENCE
BUILDING DEMAND
DRIVING
CONVERSIONS
BUILDING
TRUST
Visits and Traffic
• Home page banner and messaging
• New “care” page focusing on safety & commitment
• Covid-19 - advanced attributes
• Robust schema, FAQ & blog content
• Social media postings
• “Go local” power page and package
• Cross promote special offers – local and social
• Email campaigns to local customers
• Custom targeting based on geography & audience interest
• Retargeting existing or recent customers
• Flexible policies
• Special offers – LTO, book now and pay later
• Bundles with restaurants & local attractions
• Enhanced paid strategies
• Customer testimonialson social media
• Createstories
• Signagewithinthefacility

GOONOFFENSEONTHEPANDEMIC –BENIMBLE

• Scan coverage
• Survey prospective
customers
• Call a few customers
and converse
• Read feedback of
guests after visit
KNOWYOURCUSTOMER AND THEIRNEEDS

1. Family room: Family trips in multiple rooms with a common room
2. Pet-friendly: Accommodations for well-behaved pets
3. Micro-weddings: Celebrate with as many people as allowed
4. Back-to-school: College dorm housing
5. Essential workers: Nurses, doctors, public officials
6. Weekly and monthly apartments: Soon-to-be-evicted
ALTERNATIVE USEIDEAS

ROOMFORFAMILIES

FAMILY ACCOMMODATION

PET-FRIENDLY OPTIONS

BACKTOSCHOOL

WEEKLYANDMONTHLY BOOKINGS

BUILDVARIETY OFPACKAGES

LIMITED-TIME OFFERS
Other LTOs could be around
• Father’s Day
• Local events
• Other occasions
• Family events
(combined with the book
now, pay later combo)

SENSEOFURGENCY -PROMOTE LIMITED-TIME OFFERS
✓ Maximize conversion with custom ads and page experience
✓ Motivate users with offer urgency, confidence in sanitation and cancellation flexibility
✓ Custom page supported by Milestone CMS
Keywords
e.g. july 4 hotel package,
san fran july 4 hotel deals
Ads Limited-Time Offer Page
PAIDSEARCH
DISPLAY&
REMARKETING

BUILDRELEVANTAUDIENCEBYAUGMENTINGPAIDSTRATEGIES
Display Ads
Search ads with new messaging
Social Carousel Ads

HOMEPAGEMESSAGING
Testimonials from travelers
FAQs around questions asked by travelers
Local attractions
Safe dining options

POSTSOCIALMEDIA –FACEBOOK, GOOGLE,YOUTUBE,
INSTAGRAM
1. INSTAGRAM POST
2. FACEBOOK POST 3. GOOGLE POST
4. YOUTUBE VIDEO SHOWING BEHIND THE SCENE AT BUSINESS

1. Build confidence (Consumer and
market insight)
✓Messaging across all channels
✓Team alignment
2. Build demand
✓Target right audience, change marketing strategies
✓Attractive offer, packaging
3. Driving conversions
✓Time-sensitive offer
✓Extra incentives
4. Building Trust
✓Post-purchase exercise
✓Staff alignment and training
✓Guest review and feedback loop
RECOVERYFUNNEL
How to we adapt during the recovery phase?
BUILDING CONFIDENCE
BUILDING DEMAND
DRIVING
CONVERSIONS
BUILDING
TRUST
Visits and Traffic

SIGN UPFORAFREERECOVERY AUDIT
•
https://go.milestoneinternet.com/audit

CHIPCONLEYSHARINGINSIGHTSAROUNDRECOVERY
Recovery
Framework
IV
Chip Conley
Modern Elder
frmr Head of Hospitality
AirBNB
Hotel recovery
Hotel management
7/1 Registration

Milestone Recovery Framework

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