Briefing: A new era for hotel F&B?

After 187 years one of the London’s oldest hotel restaurants, Simpsons-in-the-Strand, part of The Savoy, could be closing according to The Londonist. This could indicate a shift in attitudes towards food and beverage in the industry. But while it may be the end for this traditional establishment other hotel brands are taking on more F&B projects and finding new ways to make them stand out. How integral are restaurants to a hotel experience? Our experts discuss the importance of F&B:

The Savoy is managed by Fairmont Hotel and Resorts and has six restaurants and bars. Simpsons-in-the-Strand offers a very traditionally British dining experience but may be bought and rebranded by another operator, according to the report.

On 16 January IHG acquired Kimpton Hotels & Restaurants for $430 million. Kimpton operates 71 hotel-based destination restaurants and bars. This is not the only area where IHG is showing an interest in F&B. IHG’s Hotel Indigo boutique brand has launched a new “food and drink philosophy” focusing on “Locally crafted” products. The brand is running a competition in the UK to find “Britain’s favourite local food artisan” and has celebrity chef Jimmy Doherty on the judging panel.

Finally, DoubleTree by Hilton has pulled in award winning chef Jean-Christophe Novelli for it’s new property in Liverpool, which opens in April this year.

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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.

Robot Staff: How technology is changing guest experience

It has been reported this week that a hotel at a theme-park in Japan is to be staffed by Robots. The Henn-na Hotel is scheduled to open in July and alongside some human staff it will have, ‘remarkably human-like robots who will be able to greet, carry luggage to rooms, make cups of coffee – and even smile’, according to the Telegraph article.

Our experts discuss changing technology in hotels:

This remarkable plan is taking technology in hotels yet another step in to the future. But whilst guests interacting with robots sounds extraordinary it is only highlighting the trend for changing guest touch points and the emphasis on experience in hotels.

Another new product launched this year was the very first Virgin Hotel in Chigaco. A new player in the hotel industry, the brand promises to be innovative much like Virgin’s other ventures. The hotel has its own app which guests can use to interact with staff and other guests, and to request services. The app can control the room thermostat, order room service, plays music from a built in music library, and displays messages from staff for updates on hotel events and the processing of the guest’s requests.

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

Briefing: Global employers need to rethink recruitment

A new report from CEB has revealed that 1 in 5 new hires are “bad” or a “regretted decision”. Staff are of vital importance to the success of a business and the recruitment process can be an important factor in the way a new recruit behaves, according to the CEB SHL Global Assessment Trends Report, first published in November 2014. The report states that; ‘New hires who report a positive candidate experience apply 15% more discretionary effort and are 38% more likely to stay with the organisation.’

Does more attention need to be paid to recruitment in hospitality? Our experts give their insight:

Global employers are finding it difficult to find and keep talent. A survey by Towers Watson found that 65% of respondents were experiencing problems attracting ‘top performers’ and 64% had problems attracting ‘high-potential employees’. It also highlights that employee career development could be paid more attention as only, ‘27% say their organisations monitor the effectiveness of their career management programmes.’

According to the research base pay/salary, job security, and career advancement opportunities were the top three things mentioned by employees that attract them to new roles. However when business leaders were surveyed they only ranked job security 7th suggesting that there is a lack of recruitment understanding across employers.

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

Briefing: Hotels struggle to follow trend for personalisation

Companies using personalised marketing have experienced an average uplift in sales of 19% according to research. Personal customer service has always been key in hospitality; ‘A warm and sincere greeting using the guest’s name’ is step one of the Ritz Carlton’s three steps to service. With the increase in data that is being collected from guests, hotels should be able to recognise guests from previous stays and personalise service towards them, but it is not easy. Figures from UNWTO show that there were 1087 million international tourists in 2013 and 6 billion domestic tourists worldwide. With so many different faces passing through the doors it is hard for hoteliers to distinguish individual customer profiles as our experts discuss in this week’s briefing:

Many hotel brands have loyalty programs, which can help them keep a profile of each guest but even within this there are many people to keep track of. Hilton HHonors is Hilton Worldwide’s loyalty programme, which has 42 million members. IHG has 161 million guests nights per annum and its reward club has 82.4 million members globally.

Research shows that 78% of consumers feel that personalised marketing content leads to a deeper relationship with a brand. Personalisation is also used in online retail. 60% of consumers prefer it when online store remembers their contact details and purchase information. In a survey by Oracle 54% of retail consumers said personalisation was important. With customer service becoming more personalised across the board this will continue to be a challenge for hospitality to figure out.

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

Briefing: 2015 could be a tipping point for mobile commerce

30% of travel will be booked on mobile devices in 2015 according to Expedia. Mobile and tablet usage is set to grow further in all industries this year following 2014 during which the number of people owning both a smartphone and a tablet in Europe more than doubled to 48%. eMarketer predict that in 2015 half of digital travel researchers will use mobiles as well as PCs, while Gartner predicts that by 2018 more that 50% of users will use a tablet or a smartphone first for all online activities.

In the following videos industry insiders explain how mobile devices are being used in hospitality today:

Criteo’s report State of Mobile Commerce Q4 2014 shows that at the end of 2014 mobile accounted for 30% of ecommerce transactions in the US.  Smartphones have overtaken tablets in mobile transactions in the US, although there are currently higher conversion rates on tablets than mobile. The difference is being attributed to the larger screen size and the fact that not all websites are designed for easy mobile use. Criteo’s global research shows that Japan is the most advanced mobile shopping market with 49% of retail transactions being done on mobile there. The UK is not far behind this at 41% and the US is at 27%.

2014 saw an increase in hospitality companies using apps. Mobile only companies such as Hotel Tonight have grown, and more sophisticated approaches to mobile commerce are emerging. Expedia’s Scratchpad software is designed to help customers use the Expedia website across multiple devices. Apps can be used to show hotel information and process bookings. They can also be used to enhance the guest experience inside the hotel or for travel around the area. In America 33% of hotels now offer an app for their guests. According to Expedia almost 1 in 5 travellers globally have checked into a hotel on their mobile for business purposes, with around 15 percent having done so for a leisure trip. Mobile technology is sure to be integrated yet further in of all aspects of the travel and hospitality experience over the next 12 months and will continue to be a focus point for the industry.

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Briefing: Online Reviews – How getting involved increases bookings

Online responses to customer reviews by hotel managers encourage bookings, according to research by TripAdvisor. The review site analysed customer usage of its pages and found that responding to 50% of reviews increased the likelihood of hotels receiving a booking enquiry by 24% (compared to not responding at all). The study places management responses as the factor with the third biggest impact on customer engagement behind the number of photos and the total number of reviews that a property has.

Experts give their views on the power of online ratings, including TripAdvisor’s Minesh Shah, who offers advice on responding to negative reviews:

TripAdvisor’s research also shows that responding to reviews increases ratings. Properties which respond to 5%-40% of recent reviews have on average a 4.04 review rating, compared to a review rating of 3.81 for those which don’t respond. The highest factor influencing bookings and clicks on the site continues to be photos, with just one image increasing engagement by 138% compared to properties with no photo.

TripAdvisor advisor is not the only review site and reviews are also integrated into OTA sites such as Booking.com. TripAdvisor is currently the largest travel site with 280 million unique monthly visitors in the second quarter of 2014 and more than 100 new contributions posted every minute.

In response to a poll by TravelClick, 78% of hoteliers said that TripAdvisor was the social media channel which drove the most bookings to their property site.

The poll also found that these hoteliers are investing in other social media with two thirds now spending on Facebook advertising. Nearly 11% of the hoteliers polled named Facebook as a booking driver with the same number mentioning Google+. Facebook is also integrated into the TripAdvisor site and statistics from Facebook say that users logged in through Facebook contribute more than 1 in 3 new reviews on TripAdvisor.

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

Briefing: 60% of Consumers are acting on their conscience

Consumers’ buying choices are increasingly influenced by the social responsibility that brands have displayed, according to new research by Nielson. In the survey, 60% of global online consumers said that they are willing to pay extra for products and services from companies that are committed to positive social and environmental impact. This has increased from 45% in 2011. These attitudes were found to be strongest in the Asia-Pacific (64%), Latin America (63%), and Middle East/Africa (63%) regions.

In this briefing experts comment on how responsible business practice can drive profits and corporate value:

In September in the UK an initiative called Social Saturday encouraged consumers to buy from social enterprises. In relation to this event Social Enterprise UK and the Cabinet Office polled British adults on their attitude towards social responsibility in business. 1 in 3 people surveyed said they feel ashamed when they buy from a socially irresponsible business and 26% said that there is a stigma attached to buying from socially irresponsible businesses.

But this is more than a passive reaction to corporate responsibility. Research by Cone Communications and Echo Research found that 27% of global consumers believed that consumers themselves can have significant positive impact through their purchases. The study surveyed 10,000 citizens in 10 of the largest countries in the world (by GDP), and found that 91% of people believe companies must go beyond the minimum standards required by law to operate responsibly. It would seem that this is a matter that people not only care about but are willing to confront. Nearly two-thirds of those surveyed (62%) said they use social media to address or engage with companies around CSR and 93% said they will be more loyal to a company that supports CSR.

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

Briefing: Disengaged employees need some inspiration

According to research by Gallup, only 13% of employees Worldwide are engaged in their work. Similarly worrying statistics have shown up across several studies in recent years. Boston Research Group, for example, found that 27% of corporate bosses and only 4% of employees believe their firms are inspiring places to work. People are vital in hospitality at all levels. Studies suggest that, when it comes to motivating teams, it can be the basics that make the difference, such as positive contact with management and a pleasant working environment.

In this briefing experts share their insights on employee engagement and motivation:

The 2013 study ‘State of the Global Workplace’ by Gallup suggests that it is important to ensure employees have good working lives. This is because “engaged employees are more likely to be ‘thriving’ – i.e., to rate their overall lives highly on a zero-to-10 scale.”

There may be many different ways of dealing with this issue across different companies and hotel brands. One element of Misha Pinkhasov’s (featured) ‘shared value’ approach to business, is to always considering things on an individual level. The approach suggests that companies as a whole need meaning so that individual employees are inspired.

Engagement, or lack thereof, also reflects in a company’s profits. Gallup estimates that employee disengagement costs Germany €112 Bn to €138 Bn per year ($151 Bn to $186 Bn) and the U.K. between £52 Bn and £70 Bn ($83 Bn to $112 Bn) per year.

A report by Towers Watson suggests that good leadership can make all the difference. It says: “in companies where both leaders and managers are perceived by employees as effective, 72% of employees are highly engaged.” This report, Global Workforce Study 2014, also states that whereas some employees may be engaged on a basic level, they are lacking the ‘enablement’ (tools and resources) and ‘energy’ (from a good work environment) to perform at their best. They say that that this ‘unsupported’ worker accounts for 19% of the global workforce.

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

Chinese are tourism’s biggest spenders

China overtook Germany and the United States as the largest spender in international tourism in 2012, according to UNWTO, with an expenditure of US$ 102 billion. The market is only getting bigger, in fact The Tourism Administration of China predicts that more than 100 million Chinese tourists will travel abroad in 2014.

Experts from the hospitality industry discuss increased travel within and out of China:

UNWTO says that the increase has been due to, “rapid urbanization, rising disposable incomes and relaxation of restrictions on foreign travel.”

Hotels.com has been following Chinese travel trends since 2012. The Chinese International Travel Monitor 2014 shows that 97% of Chinese travellers have been abroad for leisure and 49% have been for business and education. It says that Chinese international travellers were the top spenders for hotel accommodation in Australia, Japan, Netherlands, and New Zealand in 2013.

This monitor surveyed Chinese travellers about booking and travel behaviour. The research found that on average Chinese travellers looked at almost five sources of information when researching holidays, which is up from four in the 2013 monitor. 53% said they book accommodation online or through a mobile app. 59% of those surveyed said Free Wi-Fi was the most important service they look for on a trip abroad, and 71% of hoteliers said that Free Wi-Fi was the service most requested by guests from China. This desire for connectivity reflects global trends.

Countries across the globe, including Mexico, New Zealand, Russia, Spain, Taiwan, UK, and the US are targeting this growing source market with tourism campaigns and initiatives. However, according to Hotels.com, Australia is the place Chinese travellers would most like to visit. The USA was the top destination actually visited in 2013, and Hong Kong and Thailand follow in second and third place.

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

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