This document summarizes key findings from an international study on strategies for hotels to survive an economic downturn. The study's main recommendations are: (1) don't panic and be strategic instead of broadly discounting rates; (2) maintain marketing efforts focused on existing customers; and (3) consider rate-obscuring practices or adding value through packages to attract customers without lowering rates. The study also advises hotels to prepare contingency plans in advance and not reduce service quality even if costs must be cut elsewhere.
Here are some grand strategies companies could pursue:
A) Concentrated growth - Focus resources on core businesses and markets to gain market share and economies of scale.
B) Market development - Enter new geographic or demographic markets with existing products.
C) Product development - Develop new products and services for existing markets.
D) Diversification - Enter new businesses that are unrelated to the core. Can be conglomerate or related diversification.
E) Alliance/joint ventures - Form strategic partnerships or alliances to enter new markets or technologies.
F) Retrenchment - Reduce costs, divest non-core businesses, and focus on most profitable areas. May involve downsizing.
G
Evaluating Incentive Programs in 5 star hotel settingsCharles Audley
The document is a report evaluating incentive programs in a 5-star hotel environment. It aims to explore proven incentive programs, identify those currently working in luxury hotel chains, and focus on incentivizing staff to sign customers up for loyalty programs. The research design is exploratory. A literature review found that incentive programs must not replace training, should reward existing desired behaviors, and consider individual employee differences. Recommendations will be based on evidence and tailoring programs to individual employee needs, location, and demographics. Popular current programs include gift cards, travel vouchers, and points systems.
Blue Ocean Strategy - An overview for TEC MembersMOVUS
This presentation has been developed for members and guests of The Executive Connection in Australia and New Zealand.
This is an introduction to Blue Ocean Strategy and focuses on the core phases of the overall process - in an easy to digest format.
This presentation includes content from the Australian Blue Ocean Strategy licensee
1. The document discusses key elements of a strategic plan including determining the product market, level of commitment to resources, and objectives and plans for each functional area.
2. It also outlines the strategic planning process including collecting data, analyzing the situation, developing objectives and strategies, and measuring progress toward goals.
3. Finally, it provides examples of strategic planning tools like the wants-gets grid, conceptual map, value chain analysis, five forces of competition, and requisites for a learning organization.
M/A/R/C's Amy Barrentine-EVP General Manager, Randy Wahl-EVP Advanced Analytics, and Scott Waller-VP Business Development, co-presented at Quirk's event in March 2011.
Amazon's vision is to be the most customer-centric company and offer low prices across a wide selection of products. The company pursued an aggressive growth strategy by investing heavily and expanding into new product categories and businesses. Amazon has seen strong international growth and now generates nearly half of its sales outside of North America.
Here are some grand strategies companies could pursue:
A) Concentrated growth - Focus resources on core businesses and markets to gain market share and economies of scale.
B) Market development - Enter new geographic or demographic markets with existing products.
C) Product development - Develop new products and services for existing markets.
D) Diversification - Enter new businesses that are unrelated to the core. Can be conglomerate or related diversification.
E) Alliance/joint ventures - Form strategic partnerships or alliances to enter new markets or technologies.
F) Retrenchment - Reduce costs, divest non-core businesses, and focus on most profitable areas. May involve downsizing.
G
Evaluating Incentive Programs in 5 star hotel settingsCharles Audley
The document is a report evaluating incentive programs in a 5-star hotel environment. It aims to explore proven incentive programs, identify those currently working in luxury hotel chains, and focus on incentivizing staff to sign customers up for loyalty programs. The research design is exploratory. A literature review found that incentive programs must not replace training, should reward existing desired behaviors, and consider individual employee differences. Recommendations will be based on evidence and tailoring programs to individual employee needs, location, and demographics. Popular current programs include gift cards, travel vouchers, and points systems.
Blue Ocean Strategy - An overview for TEC MembersMOVUS
This presentation has been developed for members and guests of The Executive Connection in Australia and New Zealand.
This is an introduction to Blue Ocean Strategy and focuses on the core phases of the overall process - in an easy to digest format.
This presentation includes content from the Australian Blue Ocean Strategy licensee
1. The document discusses key elements of a strategic plan including determining the product market, level of commitment to resources, and objectives and plans for each functional area.
2. It also outlines the strategic planning process including collecting data, analyzing the situation, developing objectives and strategies, and measuring progress toward goals.
3. Finally, it provides examples of strategic planning tools like the wants-gets grid, conceptual map, value chain analysis, five forces of competition, and requisites for a learning organization.
M/A/R/C's Amy Barrentine-EVP General Manager, Randy Wahl-EVP Advanced Analytics, and Scott Waller-VP Business Development, co-presented at Quirk's event in March 2011.
Amazon's vision is to be the most customer-centric company and offer low prices across a wide selection of products. The company pursued an aggressive growth strategy by investing heavily and expanding into new product categories and businesses. Amazon has seen strong international growth and now generates nearly half of its sales outside of North America.
Learning from other sectors: How did low-cost business models change an industry?
By: Raúl Sánchez, Director, Strategy & Operations, Deloitte, Barcelona, Spain
The document discusses emerging trends in marketing and service industries. It identifies 10 principles of new marketing, including recognizing consumer power and focusing on customer point of view. New trends in market research like using internet and new techniques are also covered. The document discusses the current environment and socio-economic trends, as well as emerging consumption trends like consumer empowerment.
Huong dan de_tai_tot_nghiep_marketing_managerViệt Long Plaza
The document provides guidance on marketing strategy planning for a new product launch. It outlines a 12-step process for developing a marketing plan, including conducting market, consumer, competitor and situational analyses to inform the objectives, positioning, and integrated marketing mix strategy. A budget for the marketing plan between $400,000-$800,000 USD over 3 years is proposed. Key elements of the process involve understanding customer needs and the business and market environments to develop a focused strategy.
Governance of Risk in Public Policy - Nigel Gibbensmliebenrood
Modelling is useful for evidence-based policymaking in complex systems to evaluate options and costs/benefits. However, models have limitations and uncertainties that must be clearly communicated. Effective modelling requires constant dialogue between policymakers and modelers to ensure the appropriate question is answered and results are understood and usable. While modelling provides insights, it does not remove uncertainty, and results should not be presented as definitive facts.
1. The agenda includes a Walmart case study, an exercise on using Porter's 5 forces framework, a discussion of short-term objectives, and executive compensation.
2. Porter's 5 forces framework will be used to analyze industry forces for the University of Phoenix case study. Groups will analyze the forces and select a spokesperson.
3. Characteristics of good short-term objectives include being specific, achievable, and measurable. Deficient objectives lack measurability while good objectives tie objectives to measurable outcomes.
This document provides an overview of an MBA course titled "Advanced Strategic Management". The course aims to help students gain expertise in strategic management concepts and techniques. It focuses on applying these concepts to understand business performance, generate strategy options, assess options under uncertainty, select strategies, and implement chosen strategies. The course also aims to integrate knowledge from prior courses and develop students' general management skills and judgment. It covers key concepts like strategic competitiveness, sources of above-normal profits, levels of strategy, and common elements of successful strategies.
The Future of Social Media Monitoring - Concrete case studies and step by s...Marcus Tewksbury
The document discusses a methodology for quantifying social media data for consumer insights. It involves developing a social media measurement framework by identifying relevant search terms, benchmarking conversations, and extracting target data sets. Demographic data is then analyzed and refreshed quarterly to develop a social media scoring model that can provide ongoing tracking of key themes over time for strategic decision making.
This workshop was created to provide a framework for thinking about and measuring marketing investment.
For more marketing advice, contact info@hawkpartners.com
The document discusses challenges facing the financial services industry and how analytics can help address them. It outlines five trends creating difficulties: 1) slowing growth, 2) increased regulation, 3) shifting customer behavior, 4) heightened risk management needs, and 5) new competitors. It then presents a methodology using causal clarity and five profit engines to help companies adapt: 1) customer lifetime value analysis, 2) customer retention, 3) cross-selling, 4) marketing ROI, and 5) new product design. Finally, it stresses the importance of integrating these analytical approaches rather than using them in isolation.
Analytics in financial services - practical methods that convert data to dol...fitzgeraldanalytics2
The document discusses challenges facing the financial services industry and how analytics can help address them. It outlines five trends creating difficulties: 1) slowing growth, 2) increased regulation, 3) shifting customer behavior, 4) heightened risk management needs, and 5) new competitors. It then presents a methodology using causal clarity and five profit engines to help companies adapt: 1) customer lifetime value analysis, 2) customer retention, 3) cross-selling, 4) marketing ROI, and 5) new product design. The talk emphasizes integrating these analytically-driven engines to magnify their impact in overcoming industry challenges.
This is the summary of Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.), chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity) by Keller, K. L. (2008, Prentice Hall.)
I designed this powerpoint for an HTM631 class (Strategic Marketing in Hospitality and Tourism) in spring 2009.
1) The lecturer discussed the incumbent's advantages that established companies have over new entrants in a market. This includes existing customer information, brand recognition, and existing assets/infrastructure.
2) It was recommended that companies exploit their incumbent advantages by developing a customer segmentation database to identify profitable and unprofitable customer segments. Teams should then focus on retaining profitable customers and improving profitability of less profitable segments.
3) Creating a customer-centric information system allows companies to track customer profitability and behaviors in order to better serve customer needs, defend against competitors, and continuously improve business performance. Maintaining focus on customers is key to sustaining incumbent advantages long-term.
Risk offshoring brings cost benefits but also builds risk knowledge through centralization. It is important to set clear governance and ownership over processes, regardless of location. While market risk offshoring has been successful, credit risk results vary due to needing more client interaction. The document discusses different offshoring models and their tradeoffs regarding costs, efficiency, and challenges like cultural differences, motivation, and competitive demand for risk professionals.
From One to a Million: Managing Social Media at ScaleDave Fleet
This document summarizes the challenges of managing social media at scale. It discusses moving from managing one account to millions, and outlines strategies for structure, community management, content, and measurement. Structure requires deciding on centralized vs decentralized control. Community management involves scaling one-on-one interactions while maintaining relationships. Content requires understanding objectives, channels, and executing rigorously. Measurement focuses on the right metrics and connecting them to objectives to generate insights. The key is having a full-program approach that ties measurement to objectives, plans, execution, and assessment.
Climate-smart Approaches to Agriculture: lessons from recent experienceFAO
This 3-sentence summary provides an overview of the key points about a project on climate-smart approaches to agriculture:
The project is funded by the European Community from 2012-2014 to build evidence and capacity for climate-smart agriculture in Malawi, Vietnam, and Zambia by researching synergies between food security, adaptation, and mitigation practices; identifying policy barriers to adoption; and developing strategic frameworks and investment proposals to increase productivity, resilience, and reduce emissions. The project aims to strengthen capacity through research, engaging local institutions, supporting national policy dialogues, and consulting stakeholders to guide climate-smart agriculture policies and investments.
The document discusses the mass appraisal technique for valuing hotels. It begins by defining mass appraisal and how it can be used to value complex property types like hotels through the development of models. It then describes how to segment hotels into categories and quality classes. The preferred income approach for valuing hotels through mass appraisal is described, including how to estimate income, occupancy, expenses, and capitalization rates from various data sources. Methods for isolating and removing business value are also summarized.
Product Taxonomy & Model Risk Management: 'Putting the Beans back into Coffee'Markus Krebsz
This document provides an overview of product taxonomy and model risk management. It discusses defining and structuring a product taxonomy according to order and law. A product taxonomy aims to fully classify a firm's product suite to enable modeling risks, monitoring model performance, and meeting regulatory requirements. Challenges in developing and maintaining a taxonomy are addressed. Benefits include meeting cross-functional needs for model control, certifications, and risk management.
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
4 overlooked key competencies in customer experience management for sustainable business results (white paper). See http://ClearActionCX.com Contact us at OptimizeCX@ClearActionCX.com
This document summarizes a research report on applying revenue management strategies to restaurants. The key points are:
1) Revenue management focuses on allocating the right capacity to the right customer at the right time and price. Its goals are to increase revenue and profitability.
2) Restaurants are well-suited for revenue management as they have relatively fixed capacity, perishable inventory (available seat time), time-variable demand, and segmentable customers.
3) The report proposes that restaurants measure revenue per available seat hour (RevPASH) to capture their performance over time, rather than just average check size.
4) The two main levers for restaurant revenue management are duration management (controlling
This study examined customer perceptions of best-available-rate (BAR) pricing at hotels. The researchers surveyed 153 travelers about their reactions to BAR pricing and their views on its fairness, acceptability, reasonableness, and honesty. They found that customers prefer to be quoted individual nightly rates rather than an average rate for a multiple-night stay. Respondents viewed individual rates as significantly more fair, acceptable, reasonable, and honest than blended average rates. However, frequent and infrequent travelers had different reactions. The findings suggest hotels should quote non-blended individual nightly rates to customers to ensure positive perceptions of price fairness and honesty.
Learning from other sectors: How did low-cost business models change an industry?
By: Raúl Sánchez, Director, Strategy & Operations, Deloitte, Barcelona, Spain
The document discusses emerging trends in marketing and service industries. It identifies 10 principles of new marketing, including recognizing consumer power and focusing on customer point of view. New trends in market research like using internet and new techniques are also covered. The document discusses the current environment and socio-economic trends, as well as emerging consumption trends like consumer empowerment.
Huong dan de_tai_tot_nghiep_marketing_managerViệt Long Plaza
The document provides guidance on marketing strategy planning for a new product launch. It outlines a 12-step process for developing a marketing plan, including conducting market, consumer, competitor and situational analyses to inform the objectives, positioning, and integrated marketing mix strategy. A budget for the marketing plan between $400,000-$800,000 USD over 3 years is proposed. Key elements of the process involve understanding customer needs and the business and market environments to develop a focused strategy.
Governance of Risk in Public Policy - Nigel Gibbensmliebenrood
Modelling is useful for evidence-based policymaking in complex systems to evaluate options and costs/benefits. However, models have limitations and uncertainties that must be clearly communicated. Effective modelling requires constant dialogue between policymakers and modelers to ensure the appropriate question is answered and results are understood and usable. While modelling provides insights, it does not remove uncertainty, and results should not be presented as definitive facts.
1. The agenda includes a Walmart case study, an exercise on using Porter's 5 forces framework, a discussion of short-term objectives, and executive compensation.
2. Porter's 5 forces framework will be used to analyze industry forces for the University of Phoenix case study. Groups will analyze the forces and select a spokesperson.
3. Characteristics of good short-term objectives include being specific, achievable, and measurable. Deficient objectives lack measurability while good objectives tie objectives to measurable outcomes.
This document provides an overview of an MBA course titled "Advanced Strategic Management". The course aims to help students gain expertise in strategic management concepts and techniques. It focuses on applying these concepts to understand business performance, generate strategy options, assess options under uncertainty, select strategies, and implement chosen strategies. The course also aims to integrate knowledge from prior courses and develop students' general management skills and judgment. It covers key concepts like strategic competitiveness, sources of above-normal profits, levels of strategy, and common elements of successful strategies.
The Future of Social Media Monitoring - Concrete case studies and step by s...Marcus Tewksbury
The document discusses a methodology for quantifying social media data for consumer insights. It involves developing a social media measurement framework by identifying relevant search terms, benchmarking conversations, and extracting target data sets. Demographic data is then analyzed and refreshed quarterly to develop a social media scoring model that can provide ongoing tracking of key themes over time for strategic decision making.
This workshop was created to provide a framework for thinking about and measuring marketing investment.
For more marketing advice, contact info@hawkpartners.com
The document discusses challenges facing the financial services industry and how analytics can help address them. It outlines five trends creating difficulties: 1) slowing growth, 2) increased regulation, 3) shifting customer behavior, 4) heightened risk management needs, and 5) new competitors. It then presents a methodology using causal clarity and five profit engines to help companies adapt: 1) customer lifetime value analysis, 2) customer retention, 3) cross-selling, 4) marketing ROI, and 5) new product design. Finally, it stresses the importance of integrating these analytical approaches rather than using them in isolation.
Analytics in financial services - practical methods that convert data to dol...fitzgeraldanalytics2
The document discusses challenges facing the financial services industry and how analytics can help address them. It outlines five trends creating difficulties: 1) slowing growth, 2) increased regulation, 3) shifting customer behavior, 4) heightened risk management needs, and 5) new competitors. It then presents a methodology using causal clarity and five profit engines to help companies adapt: 1) customer lifetime value analysis, 2) customer retention, 3) cross-selling, 4) marketing ROI, and 5) new product design. The talk emphasizes integrating these analytically-driven engines to magnify their impact in overcoming industry challenges.
This is the summary of Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.), chapter 7 (Leveraging Secondary Brand Associations to Build Brand Equity) by Keller, K. L. (2008, Prentice Hall.)
I designed this powerpoint for an HTM631 class (Strategic Marketing in Hospitality and Tourism) in spring 2009.
1) The lecturer discussed the incumbent's advantages that established companies have over new entrants in a market. This includes existing customer information, brand recognition, and existing assets/infrastructure.
2) It was recommended that companies exploit their incumbent advantages by developing a customer segmentation database to identify profitable and unprofitable customer segments. Teams should then focus on retaining profitable customers and improving profitability of less profitable segments.
3) Creating a customer-centric information system allows companies to track customer profitability and behaviors in order to better serve customer needs, defend against competitors, and continuously improve business performance. Maintaining focus on customers is key to sustaining incumbent advantages long-term.
Risk offshoring brings cost benefits but also builds risk knowledge through centralization. It is important to set clear governance and ownership over processes, regardless of location. While market risk offshoring has been successful, credit risk results vary due to needing more client interaction. The document discusses different offshoring models and their tradeoffs regarding costs, efficiency, and challenges like cultural differences, motivation, and competitive demand for risk professionals.
From One to a Million: Managing Social Media at ScaleDave Fleet
This document summarizes the challenges of managing social media at scale. It discusses moving from managing one account to millions, and outlines strategies for structure, community management, content, and measurement. Structure requires deciding on centralized vs decentralized control. Community management involves scaling one-on-one interactions while maintaining relationships. Content requires understanding objectives, channels, and executing rigorously. Measurement focuses on the right metrics and connecting them to objectives to generate insights. The key is having a full-program approach that ties measurement to objectives, plans, execution, and assessment.
Climate-smart Approaches to Agriculture: lessons from recent experienceFAO
This 3-sentence summary provides an overview of the key points about a project on climate-smart approaches to agriculture:
The project is funded by the European Community from 2012-2014 to build evidence and capacity for climate-smart agriculture in Malawi, Vietnam, and Zambia by researching synergies between food security, adaptation, and mitigation practices; identifying policy barriers to adoption; and developing strategic frameworks and investment proposals to increase productivity, resilience, and reduce emissions. The project aims to strengthen capacity through research, engaging local institutions, supporting national policy dialogues, and consulting stakeholders to guide climate-smart agriculture policies and investments.
The document discusses the mass appraisal technique for valuing hotels. It begins by defining mass appraisal and how it can be used to value complex property types like hotels through the development of models. It then describes how to segment hotels into categories and quality classes. The preferred income approach for valuing hotels through mass appraisal is described, including how to estimate income, occupancy, expenses, and capitalization rates from various data sources. Methods for isolating and removing business value are also summarized.
Product Taxonomy & Model Risk Management: 'Putting the Beans back into Coffee'Markus Krebsz
This document provides an overview of product taxonomy and model risk management. It discusses defining and structuring a product taxonomy according to order and law. A product taxonomy aims to fully classify a firm's product suite to enable modeling risks, monitoring model performance, and meeting regulatory requirements. Challenges in developing and maintaining a taxonomy are addressed. Benefits include meeting cross-functional needs for model control, certifications, and risk management.
This webinar covers the fundamentals of Value Pricing so that participants can:
Understand the relationship of pricing with the other elements of the marketing mix.
Achieve the value you deserve through optimal pricing strategies that maximize profits.
Ensure that marketing is more proactive to optimize value for new products and maintaining value over different life cycles.
4 overlooked key competencies in customer experience management for sustainable business results (white paper). See http://ClearActionCX.com Contact us at OptimizeCX@ClearActionCX.com
This document summarizes a research report on applying revenue management strategies to restaurants. The key points are:
1) Revenue management focuses on allocating the right capacity to the right customer at the right time and price. Its goals are to increase revenue and profitability.
2) Restaurants are well-suited for revenue management as they have relatively fixed capacity, perishable inventory (available seat time), time-variable demand, and segmentable customers.
3) The report proposes that restaurants measure revenue per available seat hour (RevPASH) to capture their performance over time, rather than just average check size.
4) The two main levers for restaurant revenue management are duration management (controlling
This study examined customer perceptions of best-available-rate (BAR) pricing at hotels. The researchers surveyed 153 travelers about their reactions to BAR pricing and their views on its fairness, acceptability, reasonableness, and honesty. They found that customers prefer to be quoted individual nightly rates rather than an average rate for a multiple-night stay. Respondents viewed individual rates as significantly more fair, acceptable, reasonable, and honest than blended average rates. However, frequent and infrequent travelers had different reactions. The findings suggest hotels should quote non-blended individual nightly rates to customers to ensure positive perceptions of price fairness and honesty.
This document discusses the importance of listening skills for hospitality managers. It finds that managers agree listening is vital for business success but that most in their organizations do not listen well. Listening is key to exchanging information accurately and building strong relationships, both important for good service. While listening skills are difficult to develop, managers can improve employees' abilities by modeling good listening, providing training, and reinforcing skills on the job to ultimately enhance service delivery.
The document discusses multi-restaurant reservation sites and their role in restaurant distribution management. It finds that while the telephone remains the most common way for consumers to make reservations, over half of survey respondents had made reservations online. About 60% of those making online reservations used a multi-restaurant site like OpenTable. Younger consumers and those who dine out more frequently were more likely to use these sites. While multi-restaurant sites provide benefits like additional exposure, restaurants have concerns about costs and loss of control over their inventory and customer data. The document examines advantages and disadvantages of these sites from the perspectives of both consumers and restaurants.
The document summarizes the proceedings of the 2011 Cornell Hospitality Service Innovation Roundtable. The roundtable examined mechanisms for service innovation in the hospitality industry and specific innovations aimed at improving the guest experience, including interactions with employees and addressing technical issues. Many hospitality firms are focusing on innovation to enhance guest satisfaction, boost revenues, and increase participation in loyalty programs. Metrics for service innovations include improved customer satisfaction scores and cost savings from more efficient guest service processes.
This document summarizes discussions from the 2011 Cornell Hospitality Service Innovation Roundtable. Many innovations focused directly on improving the guest experience. Marriott discussed improving the lobby experience through its "great room" concept. Wyndham emphasized sustainability initiatives through its Wyndham Green program. Data analytics and social media were discussed as sources of innovative ideas. Successful innovation requires a data-driven approach as well as tenacity to overcome challenges in implementing new ideas. Measuring the impact of service innovations can be difficult but metrics like customer satisfaction, loyalty program participation, and cost savings were cited. Throughout the process of innovating, both support and resistance must be addressed.
This document discusses various aspects of menu planning, design, analysis and profitability. It provides guidance on how to evaluate a menu, including analyzing the sales performance and profitability of individual menu items over time. Key aspects covered include setting performance goals, tracking actual results in a performance table, classifying menu items based on their popularity and profitability, and considering the labor intensity required to prepare different dishes. The overall goal is to maximize profits by understanding which menu items are most popular and profitable for the business.
This document discusses various aspects of menu planning, design, analysis and profitability. It provides guidance on how to evaluate a menu, including analyzing the sales performance and profitability of individual menu items over time. Key aspects covered include setting performance goals, tracking actual results in a performance table, classifying menu items based on their popularity and profitability, and considering the labor intensity required to prepare different menu options. The overall goal is to maximize profits by understanding which menu items are most popular and profitable for the business.
Us Thl Hospitality Vision Us Performance Review 020911Baschir Cristian
The document provides an overview of the recovery of the US hotel industry in 2010 following declines in 2009. It summarizes performance metrics for major hotel markets such as occupancy rates, average daily rates, and revenue per available room for 2010 compared to 2009. Several key cities such as Atlanta, Chicago, and New York saw improvements in 2010 with occupancy rates and revenue per room increasing from the previous year as travel demand recovered. However, new hotel construction remained weak across many markets.
Us Thl Hospitality Vision Us Performance Review 020911
Cornell 1003
1. Special Report
Successful Tactics for Surviving an Economic Downturn:
Results from an International Study
by Sheryl E. Kimes
Cornell Nanyang Institute of Hospitality Management
In association with
www.chr.cornell.edu
3. D 2
.1
3
4
http://www.rockcheetah.com/blog/hotel/us-‐hotel-‐industry-‐recession-‐enters-‐new-‐rate-‐erosion-‐phase/, http://
www.occupancymarketing.com/white-‐papers/marketing_recession.html
2 travel.nytimes.com/2009/05/26/business/26hotel.html, http://travel-‐industry.uptake.com/blog/2009/05/26/owners-‐brand-‐hotel-‐oper-‐
ators/
3
Cornell University Center for Hospitality Research Report
Cornell University Center for Hospitality Research Report (
Cornell University Center for Hospitality Research
3
4. EXHIBIT 1
Hotel performance by world region
5
Demographic profile.
Methodology.
5. EXHIBIT 2
Strategies and tactics studied
Category Tactic Description
Discounting Lower Rates Offered lower rates, not necessarily any conditions or packages.
Value-added Packages Included other things (e.g., F&B, spa, parking) in addition to the room for one price
Extra Night Free Offered an extra night for free when a guest stayed for a certain number of nights
Opaque Channels Used opaque distributions channels such as Priceline.com for selling rooms
Rate-Obscuring Offered Free Breakfast Included free breakfast with the room rate
Two for One Offered two nights for the price of one
Prepaid F&B Offered prepaid food and beverage packages
Packages with Air/Car Offered packages that included airfare and car rental
New Market Segments Developed new market segments that had not been used before.
Marketing Pay per Click Used pay per click advertising (e.g., AdWords with Google.com)
Other Revenue Streams Developed other revenue streams (e.g., f&b, spa) within the hotel
Reduced Hours Reduced the operating hours for certain facilities
Cost-Cutting
Closed Facilities Either shut down part of the hotel or scheduled renovations
Hotel Performance.
9. The foremost piece of advice
from this survey was to be
prepared and to have a plan
(some people even suggested
a standard operating
procedure manual) on how to
Performance respond to a recession.
Maintain the
Future use
brand image, be insistent on the pricing strategy. Focus on
your long-term goal and be patient
(1) Don’t panic!
Use in 2010
Do not panic. Do not compare downturn
periods with previous good periods. Think more in terms of
long-term decisions
(2) Be wary of broad-scale discounting
Don’t
drop rate—or let me state it this way: “Don’t drop your public
or retail rate.” Use the retail rate as the benchmark for dis-
count rate programs and fence these discounts appropriately
My advice would to be
careful about playing the rate reduction game. In 2007 and
2008 we were aggressive with increasing our corporate pricing
and in the space of a few months, all that and more has been
undone. We have literally undone 3 years of solid work in the
It is never too early to be prepared. You space of the last 8 months. It will take us another 3 to 4 years
should always have a contingency plan that you can imple- at least to get that back
ment within minutes
(3) Don’t cut your marketing budget
10. Lessons from this Study When the bad
times hit again, save the marketing dollars on new initiatives
(e.g., acquire new customers or promoting new hotels) but
(1) Don’t panic. Instead be focus the spending on the existing customer base.”
(4) Consider marketing approaches
strategic.
Explore
(2) Beware of broadscale new market segments and new ways of promotions. Try not
to drop down rates for all market segments, there are some of
discounting. them that are not so price sensitive. We have to identify these
guests and work hard to attract them to our property.”
(3) Maintain marketing efforts. We just
have to diversify our business rather than rely too heavily on a
particular business and geographic segment. At the same time,
(4) Focus on market-based more emphasis has to be put on how to optimize revenue con-
initiatives. version from all revenue streams be it major or minor, which
will ultimately help to improve bottom-line.”
(5) Consider rate-obscuring
Capitalizing on e-channels. We have re-launched
practicies. our website, re-structured our URLs for better ranking, and
organic search in the search engines
(5) Consider rate-obscuring practices
(6) Maintain service levels.
My
advice is maintain rate, continue to look for new markets
(e.g., religious retreats, romantic weekend packages), develop
specials which focus on value added extras like spa treatments,
be creative in your F&B promotions, and watch for pro-
longed gaps in occupancy which might be filled with internet
promotions or opaque distribution channels which won’t later
effect your rate strategy so dramatically.”
Don’t drop rate drastically, and use opaque dis-
tribution systems when you are forced to do so.”
Opaque channel customers are not desirable. They
don’t want to pay the premium an upper-upscale or luxury
charges on services (e.g., parking, F&B), but expect the moon
11. in return. In the long run, it doesn’t cover your costs and often
can drive down your GSI.”
(6) Maintain service levels
Don’t reduce standards but add added value; guests
are very sensitive to changes. Bad times are not forever, and it
could take a longer time to recover if you cut corners to save a
buck
Do not make cost
cuts on quality service. It is okay to bring prices down, but set
yourself a limit which will not handicap you when you want to
bring the ADR up again the following year. “