You need to know

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HospitalityBest Practices

Whether it’s finding the best platform for your social media efforts or adding simple perks that your guests will remember long after they have returned home, there are a number of things that hoteliers can do to market their properties and build brand loyalty. The challenge is to balance guests’ digital needs with personalized services that will keep them coming back, especially now that technology is paramount. Here are the top 10 hospitality best practices you need to know.

Millennial travelers — a generation expected to outnumber baby boomers 78 million to 58 million by 2030 — are forcing hotels to rethink every aspect of their operations, design and service. According to a report on millennials from hospitality consultancy HVS, “Millennials use a shorter booking window consisting of 75 days compared to 93 days, the rule for older generations.” They also consult an average of 10.2 sources, such as online review sites, before booking a stay. Hotel professionals are taking note of their unique preferences. According to a recent SmartBrief poll of lodging professionals, 42 percent said millennials are more focused on a hotel’s technology, and 37 percent said they are less loyal to brands. An additional 16 percent noticed that millennials expect more modern design and décor. Tellingly, only 5 percent said they don’t see any major differences between millennials and older travelers.

Embrace the Millennial Generation

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One major difference is how connected millennials are through social networks. Tapping into those networks is key, according to Jim Petrus, chief operating officer of Trump Hotel Collection.

“They’re not bashful about sharing their opinions,” Petrus said during a recent Hotel Business Executive Roundtable sponsored by The Wall Street Journal. “If we can nurture that population, that segment of our business, and have them speak on our behalf, it’s actually a great form of advertising. We look at this as an audience that obviously we want to nurture and we want to cultivate, because it really is another form of marketing for us.”

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In response to these trends, Marriott created Moxy hotel, a brand that partners with Ikea and targets “millennial global nomads.” More than 150 of the three-star hotels are planned across Europe in the next decade, with the first location at Milan’s Malpensa Airport. As an economy hotel, the rooms are smaller, but the idea is that the social millennials would rather spend their time elsewhere. Design features include high-style communal spaces, prominent recycling stations, complimentary computers and free Wi-Fi, as well as being compliant with LEED Gold certification from the U.S. Green Building Council. Starwood aggressively courted millennials when it launched the Aloft brand in 2008. The select-service hotels emphasize design and technology. In November they announced an online platform, www.mtvasia.com/aloftlive, to promote

local, up-and-coming musicians who perform at the “Live at Aloft Hotels” showcase at the hotels’ bars. With 79 locations worldwide — 60 in North America — Starwood is betting this is how younger generations will want to travel.

How are millennial travelers different?

They are more focused on a hotel’s technology

They are less loyalto brands

They expect more modern design and décor

They are similar to older travelers – I don’t see major differences

42% 37%

16% 5%Results from a recent SmartBrief poll of lodging professionals.

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Does anyone travel without a smartphone or tablet these days? As the devices have become essential, especially while on the road, hotels are moving beyond simply offering a mobile version of their website. Adapting in-room entertainment to work seamlessly with devices is one major change. At the Aloft Cupertino in California, which opened in 2013, rooms feature a digital-media hub where guests can plug in their own devices to access media, such as stream music, through their in-room television. Offering in-room iPads, like The Plaza hotel in New York, allows guests to conduct transactions such as ordering room service or requesting the car from the valet. Another service some guests want digitally is their daily newspaper. While many still enjoy reading the traditional printed newspaper, others want another option. The Wall Street Journal offers a product for hotels called The Wall Street Journal Digital Daily. At check-in, guests receive a custom URL and code so they can access WSJ Digital on any of their devices. The content is available in nine languages. The idea is for hotel management to provide guests more options for getting information in the most accessible manner.

What media do guests use at your hotel?

Results from a recent SmartBrief poll of lodging professionals.

Reach Guests Where They Live:On Their Devices2.

10%

15%

10%

We provide newspapersand digital subscriptions

65%They bring their own movies,

music and books

We offer premium in-roomservices such as Roomlinx

We loan them Kindles,iPads and other devices

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Some guests prefer interacting with their smartphones or tablets instead of hotel staff. An example of how hotels have adapted to this trend is check-in kiosks. In a recent SmartBrief poll, 35 percent of respondents cited self-serve check-in as the top guest-facing technology they wanted to implement. An additional 25 percent said they wanted to upgrade in-room entertainment, 24 percent wanted digital room keys and 16 percent wanted apps to connect guests’ mobile phones to televisions. As guests have become more comfortable with the self-serve options, companies keep innovating. Marriott Hotels & Resorts started offering mobile check-in and checkout through its Android and iPhone app. The service allows guests to register as early as two hours before they arrive

and receive a notification when their room is ready. At checkout, the app will e-mail guests a copy of the final bill, which is especially appealing to business travelers tracking expenses. For meeting planners, Marriott’s new Red Coat Direct mobile app connects them with hotel staff to address needs such as adjusting the room temperature or ordering more coffee, all without leaving the room. A digital version of Marriott’s 50-year-old Red Coat meetings concierge service, the program also tracks response time and other metrics so hotels can better serve meeting attendees. Oversize touch screens in central locations are another emerging innovation, such as the ones installed at the newly renovated Park Central Hotel in New York. Natalie Vachon, Park Central’s marketing manager, said the quick, self-service aspect appealed to guests. She noted that the amenity was particularly useful for international travelers who choose to disable their smartphones and no longer have handheld access to the Internet.

What guest-facing technology do you most wish your hotel had?

35%Self check-in

25%Upgraded in-roomentertainment

24%Digital room keys

16%Apps to connect guests’ mobile phones to the television

Automate Your Services3.Results from a recent SmartBrief poll of lodging professionals.

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The question was, how do you activate the brand so it doesn’t feel commercial but is a beautiful content strategy?

Harnessing social media — to respond to complaints and compliments, engage guests with original content and promote local properties — is a challenge. Starwood’s Le Méridien found a balance while still accomplishing its goals of building awareness for the growing brand, driving loyalty, personalizing the experience and creating channel growth. “I wanted to take an approach that felt authentic and has a sense of discovery,” said George Fleck, vice president of global brand management for Le Méridien and Westin. “The question was, how do you activate the brand so it doesn’t feel commercial but is a beautiful content strategy?” Le Méridien used two social media marketing campaigns to achieve this objective. The first, in 2012, partnered with Air France to send a photographer around the world to capture iconic images and post them in an online gallery. Followers voted on their favorites through Facebook, and the winners were displayed in an exhibition. The contest also awarded airline tickets and a hotel stay to one fan.

Find Your Social Media Wheelhouse4.

In 2013, Le Méridien used Instagram for a campaign called “Filters of Discovery.” It chose three photographers with large Instagram followings and sent them to Paris, San Francisco and New Delhi, where they posted photos using the hashtag #LMfilters. The most popular images were used in city guides that were created with Travel + Leisure magazine and made available in-room in those cities.

“We fell in love with Instagram,” Fleck said. “What we learned is, for Le Méridien, we interact with so many languages and cultures, so images were much stronger than languages.”

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Does your staff reply to online reviews on sites such as TripAdvisor?

81%Yes, we try to

engage as much as possible

12%No, we choose not to engage

8%

0%

Only the negative posts

Only the positive posts

Individual properties can use social media to create their own identities and reach out to guests on a personal level. At the Westin Puntacana Resort & Club, opened in December, hotel managers regularly respond to guest reviews on sites such as TripAdvisor. Because it’s a new hotel, the comments are a way to set the tone as well as get feedback on improvements. The replies are specific and note any additional follow-up. Westin provides a social media “playbook” to guide property-level managers on communicating in the brand’s voice. “We encourage hotels, whether on TripAdvisor or our own ratings and review sites, to engage with customers whether it’s a positive or a negative review,” Fleck said. “We hope they’re doing it in real time, when they’re there and recover from any service issues. Or if it’s positive, we can learn from the stay and make it even better.”

Other hotels also feel the need to respond to reviews. More than 80 percent of lodging professionals said in a SmartBrief survey that they try to engage as much as possible, while an additional 8 percent said they reply only to the negative posts. Just 12 percent said they choose not to reply.

Be Original5.Even something as routine as a promotion, for example a two-for-one Mother’s Day brunch, should be presented in a way that engages. Instead of showing the deal with a generic photo of a brunch, Fleck suggested sharing a recipe from the property’s chef or asking guests what they would like to see on the menu. “It still needs to have a content story, and it needs to be original,” Fleck said. “Social media today can be like junk mail or a spam folder. If I have two seconds to look at a post on Instagram or Facebook, I would want it to be so beautiful that it puts a smile on my face. The last thing I would want is a commercial.”

Results from a recent SmartBrief poll of lodging professionals.

For all travelers, a large driver of bookings is a responsive loyalty program. Historically, only major hotel brands have offered these incentives, so people who prefer independent hotels have long been forced to choose between one-of-a-kind properties and the perks of repeat stays.

To address this, a network of independent hotels created Stash Hotel Rewards. Guests earn points based on their room rate and can redeem them for free stays at the program’s members such as The Brown Hotel in Louisville, Ky.; The James Royal Palm in Miami Beach, Fla.; and Denihan Hospitality Group’s The Benjamin in New York. The Stash website features a blog that promotes the properties and deals, functioning as another marketing vehicle.

Add Value to Your Loyalty Program6.Bill Carroll, a senior lecturer at the Cornell University School of Hotel Administration, examined Stash and the value of rewards programs in research published earlier this year with Clay Voorhees of Michigan State University and Michael McCall of Ithaca College. The report, “Assessing the Benefits of Reward Programs,” looked at whether joining affected the average daily rate members paid, the total nights and stays per year and the revenue of members at two hotel groups. The results showed that rewards users paid slightly higher rates, but the real value to hotels was in the increased number of stays and annual revenue. It concluded that “a properly conceived and executed program can and does deliver positive results in terms of revenue, stay frequency, and consumer spending.”

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Carroll said hoteliers have expressed skepticism that rewards programs offer true value to hotels, arguing that they simply give additional benefits to the best guests. “There was a definite behavioral change that we observed,” Carroll said. “You’re influenced to stay more frequently than you would otherwise.” But independent and branded hotels can learn from the research. Carroll encouraged the hospitality industry to consider other ways to change loyalty programs besides rewarding bookings. Brands could award points for dollars spent at a restaurant, bar or spa. Hotels also should use loyalty programs for data to recognize guests, Carroll said. Thanking them for belonging to the program at check-in shows their loyalty is appreciated. Major brands are continuing to offer their own innovations to loyalty programs. InterContinental Hotels Group revamped its offering in July with a new name and benefits. Now called IHG Rewards Club, the program gives its 71 million members free Internet access. A study that the company commissioned showed that nearly half of adults said they would choose not to stay in a hotel that charged for Web access. The chain, whose nine brands include Holiday Inn, the luxury brand InterContinental Hotels & Resorts and the lifestyle brand Hotel Indigo, began offering the perk to all members this year.

Diners have the option to instantly share the photos on social media networks, providing automatic exposure for the hotel and restaurant.

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In the past few years, the popularity of food trucks has increased. Hotels are responding by adding their own, such as the iTruck at PGA National Resort & Spa in Palm Beach Gardens, Fla. The food-and-beverage outlet serves upscale fare such as truffle fries, crab fritters and fish tacos. The vehicle also is available to cater off-property events and is the centerpiece in the resort’s PGA Pig Out Gourmet Food Truck Festival, which attracts 30 local purveyors. Pop-up restaurants are another culinary trend. Think Hotel Group located its Sweetwater Beer Garden temporarily at the Ansonia Hotel. Plans to open a permanent version at its South Beach Hotel are underway. The new restaurant will have an expanded menu, but the successful trial run was crucial in developing the concept and building a fan base.

One of the must-have amenities at events is a photo booth. T45 Midtown Diner, the newly opened restaurant at the Hyatt Times Square, incorporated a photo booth into its design, allowing guests to snap pictures. Diners have the option to instantly share the photos on social media networks, providing automatic exposure for the hotel and restaurant, said Klair Johnston, director of sales and marketing.

Use Pilots to Test Changes7.

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The biggest factor in guest loyalty is a personal experience at a specific hotel, according to a SmartBrief poll of lodging professionals, with 61 percent of respondents choosing it over hotel brand or loyalty brand (nearly 14 percent each). Only 12 percent said that price alone drives guest stays and loyalty is not a factor. Thoughtful perks and amenities can offer guests a personal experience and show them you are thinking of their needs. Hyatt recently started its “Hyatt Has It” program, which provides guests with an array of personal items they may have forgotten, such as a phone charger, curling iron, yoga mat or makeup-remover wipes. Guests can keep, borrow or buy the goods.

For stylish travelers, the Hyatt Union Square New York created an “Accessories Butler,” a service that loans guests chic pieces of jewelry, scarves and clutch purses. The curated selection and where to buy the items are displayed in the hotel’s lobby.

Get Personal8.

What’s the biggest factor in guest loyalty?

Personal experiences at a specific hotel

The hotel brand

The loyalty brand Price alone – loyalty isn’t a factor

61% 14%

14% 12%Results from a recent SmartBrief poll of lodging professionals.

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Creating memorable experiences is a surefire way to get guests talking (and posting to social media). Chicago’s ACME Hotel Company offers visitors the opportunity to try Google Glass, something not available anywhere else. Since March 10, guests have been able to reserve for three hours a day the Web-enabled, interactive glasses. The hotel is touting the technology as a way to research the area’s landmarks, restaurants and sights. Affinia Manhattan, the official hotel of the annual Westminster Kennel Club Dog Show for the past 16 years, created a VIP dog lounge during this year’s event. The property, across the street from Madison Square Garden, offered an outdoor play area, treadmills, chew toys and treats for dogs. Marketing stunts can also earn headlines. PGA National Resort set an official Guinness World Record for the longest ice-cream sundae. The 1,250-foot dessert, created as part of the resort’s first Ice Cream Festival Weekend in August, generated free media coverage but also drew nearly 1,300 people to the property.

Make Headlines9.

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Multigenerational family travel is on the rise. Ritz-Carlton, Dallas, just debuted a multiroom “Privacy Wing” that connects several spaces into a master suite for families, usually international travelers or VIPs with entourages. Offering a combined 5,500 square feet, the wing includes the Ritz-Carlton Suite plus four connecting rooms, a dedicated private entrance, an access staircase and service elevator, and keyed elevator access.

Bridge the Generation Gap10.The Breakers Palm Beach in Florida offers extensive programming for families, including a 6,160-square-foot Family Entertainment Center, with amenities such as an arcade, movie room and toddler playroom. Not every property is big enough for a complex like this, but the resort offers services that any property could try, such as childproofing guest rooms and setting up cribs with linens from Pottery Barn Kids.

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Serving more than 5 million senior executives, thought leaders and industry professionals, SmartBrief is the leading online publisher of targeted business news and information by industry. By combining technology and editorial expertise, SmartBrief filters thousands of sources daily to deliver the most relevant industry news in partnership with more than 180 trade associations, professional societies, nonprofits and corporate entities.

From its inception in 1889 to today, The Wall Street Journal continues to be one of the most influential and respected news publications — and is America’s top-selling newspaper. Winner of 35 Pulitzer Prize awards and considered the gold standard of journalism, The Wall Street Journal is the industry leader delivering the most crucial news of the day, insightful opinion and fair-minded analysis More than two million people read The Wall Street Journal every day including travelers staying at your properties. With surprisingly affordable options, The Wall Street Journal, available in both print and digital editions, keeps your guests up-to-date on everything from global news to sports, travel, fashion and entertainment. To request further information, click here.

The industry leader in curated business news.

Hotels are evolving to meet the needs of today’s travelers by catering to families, providing the latest technology for millennials, and personalizing experiences. These and other strategies can yield immediate benefits through positive media coverage and social media posts, but over time they will create loyalty and returning guests.

Conclusion