Tag: CEO

Briefing: Understanding Millennial priorities

Posted on by Guy Lean

The latest research on millennials from Choice Hotels found that 33% of Millennials would put off buying a home to take a dream vacation.

Holidays remain as desirable as ever. Particularly for this young generation where an opportunity to have a new experience can take priority over other areas of life. The study also found that 12% of Millennials have quit their job to take a vacation or go to an event such as a concert.

In these videos four experts discuss the behavior of Millennial travellers:

Choice Hotel’s study Uncovering the Millennial Mindset looked into the behaviours and priorities that Millennials have when taking a holiday. The survey polled 1,000 U.S. adults, ages 18-65 between September 30 – October 3, 2015.

It highlighted some differences between a Millennial at home and a Millennial on holiday, finding that 27% of Millennials have stayed in a hotel to impress someone and 79% of Millennials say they are more adventurous about eating and drinking when travelling.

The industry has had to drastically change to cater to emerging distribution methods. But tradition has not been shunned altogether, with 35% of Millennials will still turn to the friendly help of a travel agent to make their decision.

Not all the generational shifts are as drastic as the move to online research and booking. The study also found that 61% of Millennials carry hand sanitizer when travelling—more than any other generation. And 30% of Millennials keep earbuds in their ears when travelling so people don’t talk to them.

The study highlights the Millennials appreciation for instant rewards. It states that 69% of Millennials see freebies (such as snacks/sandwiches/to-go breakfast) as more important than opportunities for increased loyalty or reward points. And 43% of Millennials believe that if you do sign up to a rewards program you should receive your first benefit straight away.

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: Learning to evolve is key to success

Posted on by Guy Lean

In a survey by Gap International, 34% of executives ranked Mind-set/Attitude as the most important attribute for the success of great business leaders.  31% ranked People Skills/Team Building as most important, while only 15% rank Industry Experience this way.

In an industry that is constantly evolving, no one can expect that the same skills will always see them to success. Having an organisation that embraces change is the key to making progress. Leaders need to be open to new ideas and be willing to take the time to learn about new developments.

Our experts discuss growth and evolution in a changing world:

The way leaders deal with change and growth is very important as it can directly affect the attitudes and performance of employees within the organisation. A report by Towers Watson found that communication in an organisation going through change can be 6% worse than in an average company, whilst a high performing company could be 16% above average, making a 24% difference between the two. Company image can fall down by a massive 14% and empowerment can go down by 6%.

The study also found that a preference for change amongst employees can increase their engagement at work. The report found that among employees who prefer change 57% were engaged, while among those who preferred stability, only 19% prefer change.

So a positive attitudes toward change across the board can keep companies moving forward with the changes that are happening around them.

The Gap international study, surveyed 301 senior executives at companies in the United States with revenues of $1 billion or more.

The Towers Watson 2014 Global Workforce Study surveyed more than 32,000 employees across a range of industries in 26 markets around the world.

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: Mobile is now the leading digital platform

Posted on by Guy Lean

A new report by comScore has found that mobile is now the leading digital platform. The report found that total activity on smartphones and tablets accounts for 62% of time spent on digital media. It states that mobile applications alone now represent the majority of digital media usage (54%).

This has implications for many of the processes within the hospitality industry. In this briefing four hospitality experts discuss embracing mobile:

As discussed in our briefing at the beginning of the year, 2015 always had the potential to be the tipping point for mobile commerce. Mobile capabilities are increasing all the time. This year saw the release of Apple’s iPhone 6, and rumours are already flying about the iPhone 7. Meanwhile Google’s AMP Project aims to speed up page loading times on its mobiles so they are more convenient to use.

According to a report by Forrester there are 30 billion mobile moments happening every day. These moments are defined by Forrester as times when somebody turns to their mobile phone in order to get information or a service immediately. They also found that 70% of US adults spending almost two hours per day on their mobiles. So when someone turns to their phone for a mobile service. Will you be there?

Whilst mobile use is increasing, research shows that smartphone ownership is nearing saturation. Pew Research Center has found that 86% of Americans own a smartphone, up only 1% from 2014. At the same time ownership of computers and laptops has reduced from 89% in 2012 to just 78% in 2015, again highlighting the switch to mobile devices including smartphones and tablets.

So what’s to come for hospitality and mobile use in 2016? A report from eMarketer has predicted that “In 2016, 51.8% of travellers who book trips via digital means will do so using a mobile device” The report also states that; “Out of the 48.5 million US adults who book trips via mobile this year, 78.6% (38.1 million) will use a smartphone to do so.”

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: Unique experiences engage guests

Posted on by Guy Lean

According to research by Gallup, luxury brands have the highest customer engagement level of all hotel segments, with 33% of luxury guests being fully engaged in a brand.

In the luxury/high end market, excellent service and memorable experiences are more important to guests than getting a bargain, so the potential for brand loyalty is higher. But it is becoming more and more difficult for hotels to offer a truly unique experience and keep up with what guests want.

In these videos industry experts discuss how they are attracting guests:

Engagement is important because, according to Gallup; ‘Hotel guests who are fully engaged spend 46% more per year than actively disengaged guests.’ If guests are engaged and returning to the same brand or property time and again, then these guests must be recognised and valued, as discussed above by Dan Wakeling. Gallup’s 2014 Hospitality Industry study found that ‘79% of guests who strongly agree that the hotel they visit most frequently takes care of their well-being, are fully engaged,’

Those who are willing to pay more for a high end stay have more requirements on their minds than a king size bed. Research by Booking.com found that sustainability is increasingly sought after and that ‘sustainable travellers’ were 50% more likely to intend to book more luxury accommodations in 2015 than they did in 2014, as compared with other traveller types.

The way that people engage with brands has changed. So how can one hotel make itself stand out over another?

The Zighy Bay Resort in Oman gives guests the option to paraglide into the resort on arrival.

In Sweden guests can stay in an Ice Hotel.

Some hotels and restaurants are epitomising ‘luxury’ by offering diamonds as part of their package.

And, as mentioned in the above video, Club Med offers a Cirque du Soleil experience.

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: Design – Demand and revenue

Posted on by Guy Lean

Hotel design is rapidly evolving to keep up with consumer demands and global trends. When it is done well, clever design can really add to the revenue of a hotel.

The hospitality industry spends annually about $3.7 billion on energy. Initiatives like UNWTO’s Tourism and Sustainable development goals are in place to help companies making good choices. A reduction in room size has emerged as another trend that can save hotels money while maximizing space through design.

In this briefing our experts discuss design drivers and profitability:

The pod or ‘capsule’ hotel concept, originated in Japan where space is exceptionally tight. It is being used mostly in airports and cities. Marriot has taken on board the small room concept in its Moxy brand, which has one hotel open so far at Milan Malpensa Airport. Yotel has hotels in New York, London, and Amsterdam. The successful Pod Hotel from BD Hotels has two hotels in New York, and one planned in Washington DC.

Sustainability has become an important aspect of development in all industries. As one of the worlds’ largest industries Travel and Tourism has a huge footprint.  According to the UNWTO, the industry accounts for 5% of greenhouse gas emissions, and a typical hotel uses 218 gallons of water per day per occupied room. As discussed above, improvements in this area will not only greatly benefit society and the environment, but can reduce outgoings for the hotel.

Although this movement is not driven by the consumer as much as other changes in design, such as social areas in hotels and wifi, studies have shown that guest are very much in favour of sustainability programmes. A study from Cornell University found that three quarters of guests participate in green programs when they are offered at the hotels, and 45% of guests in one hotel in New York said they would be willing to pay a higher room rate for hotel sustainability initiatives.

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: 72% of families considering alternatives for holiday accommodation

Posted on by Guy Lean

New research from ExpertFlyer found that 72% of family travellers have either booked a non-traditional vacation accommodation, such as hostels or home and apartment rentals, or would consider it. The popularity of alternative accommodation continues to increase. For example, Evercore found that; ‘the online vacation rental market stands to grow from approximately $30bn to $70bn over the next five years.’

In these videos experts from different sectors discuss the appeal and profitability of their product compared to hotels:

Alternative accommodations not only appeal to markets untouched by hotels but can make better financial sense. Research by design consultancy WATG found that an aparthotel operation is able to drive higher levels of profit per sqm than an equivalent hotel operation (£488 and £442 per sqm respectively). WATG’s research also showed GOP margins of 63% for an aparthotel compared to 49% for hotel operations.

Online distribution has helped open up the market to different types of accommodation. Evercore’s report A Change of Vacation Plans, released in April 2015, states that the online vacation rental opportunity stands at approximately 7% of global bookings, a figure which they expect will increase to approximately 11% over the next five years.

The major distributors of vacation rentals are HomeAway, Airbnb and TripAdvisor. HomeAway has over 1 million listings. TripAdvisor’s Vacation Rental’s business grew from 29% of properties in 2011 to 45% by year-end 2014.

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: Hospitality professionals start small & seize opportunity

Posted on by Guy Lean

In a Survey by the American Hotel & Lodging Association, more than half of respondents said 50% or more of their managers began their hotel careers in an entry-level position. Half said that 50% or more started in minimum wage positions.

With the growth the industry is seeing at the moment, job opportunities are coming in fast. Getting each new operation up and running opens up a variety of vacancies. New entry level roles could be the starting point for a great career for those applying.

In these videos four successful hospitality professional discuss handwork, dedication and passion for the industry:

More opportunities may become available within existing hotels if leaders are confident in the market remaining positive. The Barclays Employers’ Survey 2015 found that ‘77% of business still think that sales lead to job creation – as opposed to job creation leading to sales’.

It has been reported that the opening of the new InterContinental London – The O2 this year, would create 650 new jobs (including peak time temporary roles). The hotel is managed by The Arora Group under a franchise arrangement with the InterContinental Hotels Group (IHG).

A new hotel by the Beannchor Group in Belfast made local news for creating 100 new jobs, whilst in Glasgow a new Radisson hotel was reported to be bringing 60 new jobs opportunities to the area.

This summer, Travelodge created a new careers website in order to drive recruitment for 750 new jobs; 600 in existing hotel and 250 in new hotels to be opened before the end of the year.

One company pushing to get young people to start their career in hospitality is Hilton, which has an annual Global Career Awareness Month. In May they hosted 750 events globally reaching 90,000 young people.

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: Guest satisfaction – Meeting expectations

Posted on by Guy Lean

A new study from J.D. Power has found that the overall hotel guest satisfaction score in the US has risen to a record high of 804 out of 1000 in 2015.

It is a different story in the UK. A survey by Hotel Info looked at guest satisfaction scores in Europe. The UK only scored 7.39 out of 10, which put them second from bottom in the list and far behind the top ranked Slovakia, which had an impressive score of 8.22.

So what makes the difference in these scores, and how important is guest satisfaction anyway? Our experts discuss how to ensure guests have what they want:

J.D. Power’s 2015 North America Hotel Guest Satisfaction Index Study is in its 19th year and this is the first time the overall score has passed the 800 point, having risen 20 points from 2014. The factors covered in the score are; the reservation, check-in/check-out, guest room, food and beverage, hotel services, hotel facilities, and cost and fees.

The study suggests that there are two very important elements in achieving good scores. One is that staff anticipate needs and offer friendly service. The second is that the overall operation meets the guest’s expectations of that hotel. The expectation element will vary depending on the branding of the hotel, whether it is a luxury or a budget hotel, and the cost. Guests expect to get what they pay for, and seek out good value.

The survey put The Ritz-Carlton top of the luxury segment, and put Microtel Inn & Suites by Wyndham top of the Economy Segment in the US.

Hotel Info’s survey of six million guest evaluations compared guest satisfaction in cities in the UK.  Sheffield had the highest score in the UK at 8.03 whereas the UK’s biggest market and capital city, London, lagged behind with a score of 7.12.

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 so here. It’s free.

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

Briefing: Illuminating all accommodation options

Posted on by Guy Lean

A new report from Savills found that only 8% of UK consumers can name a serviced apartment or aparthotel brand.

Although alternative accommodation sectors like serviced apartments, vacation rentals, and hostels have been growing, largely thanks to the opportunities online, there is still a lack of awareness of these products compared to hotels.

To rectify this, companies have been investing in marketing campaigns and launching TV adverts.

In these videos, four experts discuss awareness of hospitality products:

Savills’ European Serviced Apartment report states that 41% of UK consumers don’t know what a serviced apartment is and 57% don’t know what an aparthotel is. Awareness of serviced apartments was better among business travellers, although only 52% knew what an aparthotel was.

HostelWorld put out a new TV advert this year, aimed at young travellers looking for an authentic experience and inviting them to ‘meet the word’. This booking site features campsites, self catering accommodation, B&B’s, and budget hotels as well as independent hostels, and currently lists over 27,000 properties in more than 180 countries.

HomeAway, a vacation rentals model based around people renting out their second homes to holiday makers, has put a significant investment into its marketing budget this year. According to HomeAway’s second quarter reports, the company spent $100,887 on sales and marketing in the first half of 2015. This is up by about 25% on the same period in 2014. They have put out a 2 part TV campaign aimed at families.

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 so here. It’s free.

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

Briefing: A surge in hotel investment

Posted on by Guy Lean

2015 has been a great year for hotel investment so far. There has been renewed positivity in the market and a rise in portfolio transactions. According to JLL, the UK has led transactions in the EMEA, with deals up 172% in the first half of 2015 compared to 2014. Overall in the EMEA region half year transaction volumes are up 85%. The US has also seen a rise in investment with transaction volume nearly doubling in the first half of 2015.

In this briefing industry insiders discuss the state of hotel investment, and who is investing in what:

JLL have reported that significant amounts of investments into the EMEA region has come from China and North America. Chinese investment has amounted to $1.9 billion so far this year.  Investment from North American private equity funds, which has reached $1.1 billion, has accounted for 57% of regional UK portfolio deals.

International investment into America amounted to $6.6 billion in the first half of 2015 representing nearly 30% of deal volume and showing a marked increase on 2014.

Some portfolio moves this year have included Accor’s restructuring of HotelInvest’s assets, which has involved the sale of 29 hotels in Germany and the Netherlands under a €234 million sales & Franchise back agreement in April, and the sale of seven hotels in the UK and Ireland for €38 million in May.

In June, Ashford Trust announced its intention to sell a 23 select-service hotel portfolio. And last month Pinnacle Hotel Management (PHM) sold a 15-hotel, select-service portfolio comprised of Marriott- and Hilton-branded hotels for $203 million to the Blackstone Group.

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 so here. It’s free.

Video clips produced by yBC 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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