REPORT FROM THE U.S.—The word “value” can mean different things to different people. Hoteliers on a webinar presented by HSMAI and STR on Tuesday discussed what value means to them and, more importantly, what value means to the guest.
Kristi White, director of demand and distribution marketing for TravelClick, said hoteliers must create a value proposition for their property when selling rooms to guests: Why would a guest choose to stay with you over the hotel he or she called five minutes ago?
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But most importantly, she said, hoteliers must value their employees and instill in them the hotel’s value proposition so it becomes engrained in the company culture.
“Train your staff and on your value, cross train and then do it again,” she said. “Are your values meant to serve the employee or the customer? Put employees first, and they will be happy at work and then give better customer service.”
As an example, White said Virgin Airlines is a company that clearly puts their employees first. Staff members are fun, knowledgeable and excited to be part of the brand.
Like Virgin, hotel brands have spent millions of dollars to see what is important to customers—information hoteliers can rely on to determine a hotel’s value, White said.
She suggested hotels determine who their perfect customer would be and then determine who their actual customer is. “Is this the right mix for your hotel?” she asked.
By getting to know your customer better, White suggested you can create strategies to appeal to them directly, with packages, for example. She said the easiest, most effective package is a rate that includes wireless Internet access. “Why wouldn’t you build some sort of package where you build in wireless?” she asked. “As a guest, I feel like I’m not technically paying for the Internet.
“Create value-add packages,” she added, “but if the package doesn’t resonate with customers they won’t buy it.”
White also advised investing in long-term amenities that will position your hotel ahead of the rest. Specifically, she mentioned the mobile channel and how quickly guests are adopting mobile devices to shop, among other tasks. Google Wallet, she said, is working quickly to take away the anxiety behind entering a credit card number on a smartphone.
Whatever you decide are your value strategies, White said, maintain them. Don’t derail a strategy because of a competitor’s action; instead consider tweaking the daily tactics.
Paul Wood, VP of revenue management for Greenwood Hospitality Group, said having a strong value proposition achieves the followings results:
• increased revenues;
• decreased operating costs;
• improved efficiencies;
• increased market share;
• lower employee turnover; and
• improved guest satisfaction.
Marketing to guests
When creating a value package or marketing in general, develop a customer market of one, said Kimberly Tranter, associate professor and director of management programs at the Hospitality College of Johnson & Wales University. Instead of creating value based on what the average guests might like, she suggested thinking of an individual guest and determining what she might like.
“We want to create a unique selling proposition of what we’re selling today, not 10 years ago,” Tranter said. “Instead of customizing your entire property, customize your value to each guest. How can we add distinct value to each market?”
Tranter said Dell was the first company to perfect the “market of one” strategy. At Dell, customers can design their computer to get exactly what they want. Hotels, she said, could provide a similar proposition. Through partnerships and strategic alliances, she suggested a setup where guests could complete all tasks through one touch point at the hotel’s website—book a room, book social events, book ski tickets, etc.
“Convenience is key today. Convenience is a major value,” she said. “I would let people hit the button to design a package, see what their price is, shop and come up with their ideal vacation.”
Tranter offered a handful of suggestions of how hotels can provide a unique value:
• Provide a takeaway, such as a monogrammed teddy bear or something the guest can collect from your property that will keep them coming back.
• Partner with other hospitality providers, such as nearby restaurants or the local convention and visitors bureau, to customize a guest’s experience
• Make customers your salespeople by wowing them.
Tranter also suggested designating one person—a real-life “avatar” she called it—to handle all of the guest-facing concerns. For example, this employee would answer guest questions, put together the newsletter and manage all guest comments, whether on paper or online.
“You can either pick up the phone or text and this person will get back to you immediately,” she said. “Make it personable. We’ve got so rate-only driven that we’ve lost the human touch.”