Building local brands

TripAdvisor is showing how the travel industry is adapting to the new world for brands

Last week this site looked at the idea from Colonial First State Funds Management economists James White and Stephen Halmarick that brands are doomed in a world of perfect information.

Forecasting the end of brands is a big call despite the massive changes the internet is bringing to industries. One of the things I suggested is that the concept of the brand – which was largely born out of Twentieth Century mass communications – is evolving with the social media and online world.

This view is born out by Tom Vanderbilt in an article in Outsideonline where he describes how TripAdvisor is changing the way people travel.

In Ireland Vanderbilt claims the hotel industry found TripAdvisor to be a harsh wakeup call that saw local hospitality businesses lift their game as they realised customers were now far better informed.

Across the Atlantic on Mexico’s Yucatan peninsula Vanderbilt describes how hotel owners in the town of Tulum had to realign their listings and marketing when TripAdvisor changed how they were grouped in the region. It shows how users are searching and finding accommodation.

Importantly for guests, hotel managers are using online reviews to measure how their premises are measuring up to expectations through social tools and using the results to justify capital expenses on upgrades.

This could justify White and Halmarick’s view that the major global brands such as the Marriots, Hiltons and Sheratons are in decline however it more likely shows those chains are having to raise their game to maintain their worldwide position.

What Vanderbilt, White and Halmarick indicate though is social channels are changing the way the hospitality industry works. This is an opportunity for smaller operators to build strong brands in their own niche or region.

Similar posts:

  • No Related Posts

Mapping AirBnB in San Francisco

The San Francisco Chronicle mapped the city’s AirBnB rentals showing how both hospitality and data journalism is evolving

The San Francisco Chronicle has a great feature mapping apartment rental service AirBnB’s effects on the city’s economy.

By trawling through the AirBnB database, The Chronicle found 4,800 properties for rent in the city to glean a great deal of information that the company is not keen to share.

A key point from the survey is that over 80% – 3200 – of the properties are householders renting out spare rooms or their places while they are away, which is exactly what AirBnB claim their service is designed for.

The other, professional hosts are what’s attracted the wrath of regulators in cities like New York, where it appears unofficial hotels are skating around taxation and safety regulations.

A new breed of middleman

Catering for these professional hosts has seen another group of middlemen service pop up and The Chronicle features Airenvy, a service that helps landlords manage their properties.

Airenvy is now the biggest San Francisco host, managing 59 properties on behalf of its clients and charging 12 percent commission for dealing with the daily hassle of looking after guests. Since launching in January it employs twelve staff.

Unlike many of the internet middlemen, Airenvy does seem to add value to the renting process above being a simple listing service. For absentee hosts, the fees would seem to be worthwhile in reducing risks and problems.

Filling the gaps

A unique thing about San Francisco is the concentration of hotels around Union Square with 20,000 of the city’s hotel rooms within a ten minute walk of the Moscone Centre.

For non-convention visitors, particularly those visiting family or friends, AirBnB is an opportunity to get a place out of downtown.

The price ranges reflect the service’s diversity as well; from $18 a night for a couch through to $6,000 for a mansion. The average though is close to a typical hotel rate of $226 a day.

The effects of AirBnB

What the survey shows is AirBnB has diversified San Francisco’s accommodation options without the problems being encountered in New York.

That isn’t to say there aren’t problems – the Silicon Valley model of pushing responsibility and consequences onto users leaves a lot of risk for the both the service and its customers – however AirBnB is another example of how industries are evolving as information becomes easier to find.

Another thing this survey shows is the new breed of data journalism and how analysing the numbers can be the foundation of building great stories.

The AirBnB and the changing global travel industry is a great story in itself as the San Francisco Chronicle has shown.

 

Similar posts:

  • No Related Posts

Coping with Generation LuXurY

Starwood Hotel’s Phil McAveety describes how tech will help hotel understand a new generation of customers.

Speaking at the recent ADMA Global Summit in Sydney, Starwood Hotel’s Phil McAveety described Generation LuXury – the changing hospitality expectations of Gen X and Ys.

McAveety sees the new generation of travellers as being more diverse, younger, female and increasingly from emerging economies making them very different from the middle aged Caucasian male from Europe or North America which seems to be the focus of most of the hospitality industry.

The lessons from McAveety’s presentation weren’t just for hotels, much of his message applies as to almost every other business sector.

3D printing featured heavily, with McAveetry seeing the technology as delivering the personalised experiences demanded by Generation LuXurY, as an example he cited a concierge being able to create a pair of running shoes for a guest in exactly the size and style required for a guest.

Big Data played a role too with McAveety illustrating how hotel managers used to watch for important, valued guests with hidden windows letting them see who was checking into their establishment, a role that’s now carried out by Big Data and social media.

McAveety though had a warning about social media in the risks of giving away business intelligence and intellectual property to the services.

The big risk though is in technology itself – that hotels treat it as an end in itself instead of tools to deliver better experiences to guests.

“It’s not about tech,” warns McAveety. “If so, we are going to lose.”

That’s a lesson all industries need to heed, that technology is a means to the end of delivering better products to customers. Understanding what Generation LuXurY perceive as a better product is one of those uses for tech.

Similar posts:

Hotels and 3D printing

Technologies like 3D printing will change the hotel, locksmiths and other industries in ways we don’t expect

One of ADMA Forum’s second day speakers, Phil McAveety, EVP of Starwood Hotels, had a look at the hotel of the near future.

In Phil’s view, the key to success in the hotel business lies in providing in a unique guest experience as the world’s middle classes explode.

The role of the 3D printers in the hotel experience where guests can order a pair of sneakers or swimming goggles to be printed up when they’ve forgotten their own is one of Phil’s fascinating views on how technology will change the hospitality industry.

Its a shame that most hotels have old style door keys, All Things D looks at a start up called KeyMe that stores details about door keys on the cloud which customers can download 3D printing files.

These two examples illustrate just how a technology like 3D printing will change industries.

Similar posts:

Travel review: Jupiter’s Hotel and Casino, Gold Coast

The Gold Coast’s Jupiter’s Hotel and Casino is a property desperately in need of a refurbishment.

Jupiter’s was built in the late 1980s as part of Australia’s initial casino mania. Today it’s looking its age despite several refurbishments in recent years.

Apart from the gambling room, the complex’s main attraction is its proximity to the Gold Coast Convention and Exhibition Centre.

Location

Jupiter’s Hotel and Casino is located centrally on the Gold Coast in Broadbeach, around 4km South of Surfers Paradise and 20km North of the Airport, right next to the Pacific Fair shopping mall.

The Casino sits on its own island some 500m away from the beach. The Gold Coast Convention Centre is a 200m walk from the hotel across an open air walkbridge.

Most of the time that walk will be fine but be prepared to get soaked in wet weather.

There is also a cheesy and largely pointless monorail that runs to the shopping complex across the highway. The $3 fare is reportedly waived for hotel guests but check at reception first.

Check-in

The front desk staff are friendly and helpful. There was no problem with checking in two hours before the official check-in time.

Asking reception for some fresh milk for the tea making facilities was no problem.

Rooms

While it’s claimed there have been ongoing refurbishments since 2008, the rooms are dated and tired, despite a relatively recent paint job.

Beds are comfortable and the blackout blinds do a good job of plunging the room into darkness and keeping the early morning or late evening sun out of the room on a hot day.

The bathroom, mini-bar and tea making facilities are basic but adequate. Each room has a digital combination safe as well as ironing equipment.

One aspect of the 1980s legacy is the scarcity of power points with only one double power outlet next to the fixed desk unit. Luckily there are nearby shopping centres to buy a powerboard if you can’t borrow one from reception.

Rooms have wireless and wired Internet available for a fee, although it may waived for convention guests. Surfing and downloads are extremely quick.

Amenities in the room are satisfactory with the standard range of free to air and cable TV stations including CNN, Bloomberg Asia and Sky.

Unfortunately the room doesn’t have dressing gowns and it’s little touches like that which let the hotel down.

Fitness Facilites

the Gym is well equipped with the usual range of weights, rowing and walking machines and open from 5.30am on weekdays.

 It’s open to the public and could get crowded at busy times. The weekend times are fairly limited with Sunday being a stingy 8am to 4pm, Saturday’s are 7 to 5.

If you want a swim, there’s a large, warm pool next door to the gym and lap swimmers can get a 25m stretch if it isn’t busy. The pool area is open from 6am to 9pm and also has two spa baths.

Overall impressions

Jupiter’s desperately needs an investor to spruce the place up. The public areas are looking  run down with chipped tiles and scuffed walls. Generally there’s a faded 1980s vibe about the place.

That 1980s feel also comes from the patrons, a midweek stay at Jupiter’s will find you sharing with a lot of grumpy seniors who are presumably playing the pokies (slot) and games in the casino.

In many respects Jupiter’s reflects much of what is wrong with Australian hospitality — a 1980s property that hasn’t had the investment to compete in the 21st Century catering for a declining, low value segment of the marketplace.

Overall the hotel is adequate but there are better deals to be had on the Gold Coast.

If you’re attending a conference at the Gold Coast Conference Centre then it may be worth checking out rooms at the nearby Sofitel or the many serviced apartments in the Broadbeach area.

Paul stayed at Jupiter’s Hotel and Casino courtesy of Microsoft when attending the 2012 Australian TechEd conference.

Similar posts: