Briefing: Understanding your digital skill level

According to the L2 Digital IQ Index, Marriott has the highest digital IQ of all luxury hotel brands, at 162. This is a considerable margin above the second ranked hotel group, which has been given a Digital IQ of 137. An understanding of how to engage online is vital to the success of a hospitality business today, but given that traditional hotel brands’ strongest skill is in service, they will always be at a disadvantage to specialised tech companies in the digital arena, as our hospitality experts discuss:

The Index assesses the digital competence of 55 Luxury Hotel brands by looking at the ‘effectiveness of brand site and E-commerce investments’, ‘Search, display and email marketing efforts’, ‘Social Media presence, community size, content and engagement,’ and ‘Mobile compatibility, optimization and marketing on smartphones & tablets’.

One reasons for Marriott’s high score is its online visibility. The study shows that in a Google search made from the US, Marriot is the most visible brand when looking for hotels in The Americas and Asia, and top three in Europe and Asia.

The study found that 81% of online travel booking is abandoned before completion. The study highlights frustrations during the booking process as key factor in and says that nearly 40% of sites surveyed required four or more clicks from search result to reservation.

Another barrier in the booking journey is the device used. According to the study, 46% of travellers who performed research via a mobile device did not execute their booking on that same channel.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Stories make brands stand out

This month two historic hotels have reopened with a flourish.

After a four year multi-million renovation, the Ritz Paris has opened its doors once again, and The Watergate Hotel in Washington has been renovated and reopened having fallen into disrepair nine years ago. A great brand story or an innovative product can help a hotel stand out in the competitive hospitality market. For properties with less history; location, technology and style can give a product more value.

Watch hospitality experts discuss differentiation in the industry:

The Ritz Paris is an iconic hotel and is bold enough to claim that ‘The Ritz is Paris’ on its website. Reopening after four years is a story in itself but the brand has spared no expense on making the relaunch a classy affair, even making a short dramatic silent film ‘Behind the Door’.

Brand values and credentials can also set a hotel apart. Starwood’s uniquely eco brand ‘Element Hotels’ is on track to more than double its North American portfolio by 2018. This was the first major hotel brand to mandate that all properties pursue sustainable certifications.

Jumeirah as a brand is hinged on having the ‘highest standards of truly Arabian hospitality’ and its story is tied in with the development of Dubai’s hotel industry itself. The Jumeirah website claims that it is these ‘standards of service that have made Dubai exceptional in what it offers to visitors.’

Technology and online presence can be another great differentiator, as show by the Ritz Paris in it relaunch site and brands such as citizenM.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Europe still on the up

CBRE hotels has reported that investment into European Hotels totalled €3.7bn in the first quarter of 2016. PwC’s latest predictions show that Eurozone GDP will continue to expand by around 1.6% in 2016 and 1.7% in 2017. Strong investment from North America and high visitor numbers from the US are expected to continue. However, this year was always unlikely to beat 2015’s record performance, and Q1’s transaction volumes have indeed reduced by 30% year on year.

In these videos hospitality experts discuss the European Market in 2016:

According to CBRE, hotels continue to have 8% share of European real estate. Performance does of course vary in the different markets across Europe. CBRE’s report shows that Belgium and Italy have had an increase in transactions in Q1 2016 whereas UK and France have seen a decline. CBRE says Germany is becoming the most attractive Market and Eastern European cities have more room for growth than cities in the west.

Growth in Europe is levelling out and will slow into 2017 and beyond according to PwC. PwC is predicting that Rome will have the biggest RevPar growth in 2016 at 19.2% however in 2017 this will drastically slow again in 2017 (-14.9%) when Dublin will have the biggest growth at 8.2%. The report says that in 2017, most cities, except Geneva and Zurich, will see further ADR growth.

There are a number of geopolitical issues that could also affect growth including Brexit, which our experts discussed in a recent hospitality briefing.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Bigger is better for competitive companies

In April this year, shareholders from both Marriott and Starwood voted to approve a merger of the two companies, which will create the world’s largest hotel group. In the same month, Shanghai based Home Inns Hotel Group completed a merger with Hong Kong based BTG Hotels Group.

The industry is reshaping to meet the evolving needs of the consumer and to stay competitive. While these international hotel groups are growing to record levels more sub-brands are being created within them. In these videos, four experts discuss industry consolidation and the reasons behind it:

Consolidation is widely accepted as one of the big trends for 2016. So why are these companies joining up?

The Marriott – Starwood Merger means that they will be a force to be reckoned with. For example, it will allow them to strongly compete in new spaces. An early press release about the merger from November 2015 states also that merging with Starwood, which has ‘first mover advantage’ in the lifestyle segment will make the combined companies a leader in this space.

The vote shows stockholder confidence from both sides but the companies had to also convince loyalty members that the merger be positive. While the loyalty programmes will not immediately combine, in a statement to its reward members, Marriot said that it was excite to be able to ‘Give our members access to our collective portfolio of 5,500 hotels and resorts in more than 100 countries’.

And, importantly for any business, it will save them money. Again in the November statement Marriott said; ‘Marriott expects to deliver at least $200 million in annual cost savings in the second full year after closing.  This will be accomplished by leveraging operating and G&A efficiencies.’

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Chat Button