The Travel Career Connexxions Opportunities Newsletter
05/12/09
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This week in Opportunities:
Americans Warm Up to Summer Travel in 2009
Major Hotel Brands Have No Plans to Compromise Service or Amenities
Opportunities Watch!
Executive Movers! See who's going where?
Travel Executive Employment Report
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OPPORTUNITIES NEWS & TRENDS
Americans Warm Up to Summer Travel in 2009
With Memorial Day as the kickoff to the summer season, more Americans are taking some time to relax and refresh with the
economy only slightly impacting their summer travel plans, according to a new study released today by Deloitte.
Nearly one-third (29 percent) of respondents are taking vacations this Memorial Day weekend. This is up slightly from the 24
percent who said they took a Memorial Day vacation last year.
In addition, nearly two-thirds (64 percent) said they are taking a summer vacation this year, although half of them said they will
likely change some aspect of the trip due to economic/financial concerns. The most likely changes those consumers expect to make
include: staying at less expensive hotels (50 percent), spending less on eating (50 percent), spending less on entertainment
(46 percent), taking fewer trips (46 percent) and spending fewer nights away from home (45 percent).
"We are seeing less of the 'staycations' of 2008, when record gas prices forced many Americans to take vacations close to home, or
not to take them at all," said Adam Weissenberg, Deloitte, US Tourism, Hospitality and Leisure leader. "Whether traveling on Memorial
Day or during the summer, we are finding that Americans are planning to travel and take advantage of incentives and good deals on room
rates. Economic concerns, however, have many travelers spending cautiously on accommodations and other expenses. While travel spending
will likely not be as strong as several years ago, these survey results are a positive sign for the industry."
The survey showed that 69 percent of all respondents do not belong to any hotel loyalty programs. Even among this year's summer vacationers,
61 percent have yet to sign up for a hotel loyalty program.
"Hospitality companies have a big opportunity this summer to develop better customer relationships and build long-term loyalty," said
Weissenberg. "Hotel brands that can seize this opportunity will likely be better positioned to retain and attract new guests as the
market rebounds. Successful programs are often based on a deep understanding of guests prior to, during, and following their stays, and
new approaches to building long-term loyalty."
Consumers are showing that environmental issues remain important to them, despite today's economic challenges. Thirty-two percent of those
surveyed agreed that they expect the hotels they stay at to be environmentally friendly, and 29 percent said they would like to know more
from hotels about their green efforts. Thirty-seven percent of consumers said they are more aware of the environment than they were a year ago.
"As part of their efforts to build customer loyalty, hotel companies should consider better communicating their sustainability initiatives
to consumers. While guests may never see some of these efforts, they do want to know about property retrofits and other efforts to conserve
water and energy -- investments that are the backbone of many sustainability programs. In addition to reducing operating costs for hotels in
the long-run, these efforts can help win the approval of customers, drive revenues and satisfy increasing investor demands for sustainability
reporting and disclosure," added Weissenberg.
The survey was commissioned by Deloitte and conducted online by an independent research company April 24-28, 2009. The survey polled a
nationally representative sample of 1,047 adult consumers. The survey has a margin of error for the entire sample of +/- three percentage points.
Major Hotel Brands Have No Plans to Compromise Service or Amenities
Representatives from Hilton Hotels, InterContinental Hotels Group, Omni Hotels, and WORLDHOTELS recently convened for an hour-long, Live
Chat Event on BusinessTravelConnexion.com to discuss insights on the best methods to navigate the current industry landscape and opportunities
to derive maximized value from a managed hotel program. Powered by American Express Business Travel, BusinessTravelConnexion.com is an online
community that harnesses the collective intelligence of the business travel industry.
“Our recent Business Travel Monitor data showed the average international and domestic hotel rates booked have softened in the first quarter,
indicating the pendulum is swinging back towards a buyers’ market,” said Herve Sedky, moderator of the Live Chat and vice president and general
manager, Global Advisory Services, Corporate Meeting Solutions and Global Business Partnerships, American Express Business Travel. “If both
suppliers and buyers can adopt the same return on investment and value-based mindset, they can adjust managed hotel programs to maximize the
value of their relationship.”
According to participants, despite receding hotel rates in the face of continued economic pressure, service and amenities remain a priority
with none having plans to scale back to save costs. When participants were asked whether or not the hotel brands would unbundle services to
reduce the advertised room rate, now common practice for airlines, they all agreed it would not be an effective cost management strategy for hotels.
“Unbundling fees would hurt hotels,” stated Alice McQuade, director of Travel Agency and Government Sales at InterContinental Hotels Group
during the chat. “Buyers believe they are buying an experience with services included. Giving a lower rate and then start charging for other
services or amenities would make it difficult for travel managers to benchmark pricing.”
Tom Griffiths, vice president Americas of WORLDHOTELS continued, “We don’t want to be a commodity buy. We want to be a value buy to travel
managers and business travelers.”
Other Chat highlights include:
- The process of hotel negotiating and re-bidding is becoming much more of a business-as-usual process, ongoing throughout the year making
the hotel season near obsolete.
- Compliance remains a key variable for both hotel suppliers and buyers and is a powerful tool during negotiations. Further, hotels have
invested in more sophisticated technology to analyze data and traveler behavior in order to aid travel managers in increased compliance and
greater cost management.
- Building loyalty through increased communication and interaction builds sales.
According to the panelists, new negotiating and bidding techniques are becoming commonplace, potentially shifting away from negotiating
“seasons” toward a more fluid, ongoing dialogue based on changing market conditions.
“The days of issuing a single, one-year RFP in September, loading it in November so that it is available in January are gone. Companies
and hotels are looking at ways to maintain the greatest degree of flexibility in pricing,” stated Mr. Griffiths.
Dynamic pricing that allows discounting based on a floating rate was discussed as an alternative to ongoing negotiation but received mixed
reviews among participants as some didn’t consider it economically relevant in a recovered market.
“Dynamic pricing has never been more relevant. It fluctuates with the market and provides a cost-neutral solution, saving time in the RFP
process and negotiation,” stated Kelly Phillips, vice president of Leisure and Business Travel Sales, Hilton Hotels.
Conversely, Brad Frazier, corporate director of Global Business Travel Sales at Omni Hotels stated, “When we mention dynamic pricing to
customers we get pushback because it’s difficult for a travel manager or procurement professional to show value in times of prosperity.”
While a buyer’s market is prevalent in the negotiating process, chat participants revealed that rather than decreasing rates across the
board, hotels are determining whether or not to reduce rates on a case-by-case basis, and often come to the table with their own asks to
generate a “win-win” scenario.
Mr. Frazier commented, “Absolutely, we will have a discussion about reopening a bid, but it has to be determined hotel by hotel, market
by market. In the end it has to be a win-win for both parties. Assuming a mid-year renegotiation is a reduction, we are looking for
buyers to offer something in return such as increases in our market share, a reduction of preferred properties in the market, or
institute a clause in the RFP to allow for a rate increase in the second year. It has to be a situation where both the hotel and buyer feel good.”
Sophisticated reporting and data analysis, along with travel patterns and behavior, can drive compliance and empower travel managers to make better decisions.
“We’ve taken greater stance on driving compliance,” stated Ms. Phillips. “We have sophisticated reporting that analyzes travel patterns and behaviors and are using data to drive cost savings through compliance. In a good economy or bad, driving greater compliance through travel management companies means we all win.”
Strengthening old relationships and forging new ones was a critical element in maintaining the future strength of the global hotel brand and building loyalty.
“We are strengthening accounts we have by working smarter with them. We have added to our sales force and we’ve reduced the number of accounts so they can sell and market on transient and group basis, or training basis, working more closely with people who are already customers,” said Ms. McQuade. “With this added sales force, we’re more responsive to our clients and hotels.”
Ms. Phillips added, “Loyalty is paramount. We look at things from both a traveler and employer perspective. We analyze enrollment and engagement levels by corporation. Depending upon the results, we then deploy resources against on acquisition or penetration campaign. The ultimate goal is to help drive employer accepted behaviors that both support their hotel program compliance and drive loyalty and share.”
The Live Audio Event was the third in a series of live events providing unique access to senior business leaders and industry experts across the business travel industry. The full chat is available on www.businesstravelconneXion.com.
OPPORTUNITIES WATCH!
Starwood Continues Middle East Expansion with the Signing of a Luxury Collection Hotel in Ajman
From the Arabian Hotel Investment Conference (AHIC) in Dubai, Starwood Hotels & Resorts Worldwide, Inc. has announced the signing of a hotel within The Luxury Collection brand in Ajman, United Arab Emirates. The new-build, 207-room property is expected to open in 2012, and is illustrative of Starwood’s market leading growth in the region and around the world.
Starwood remains on track to increase its global portfolio by 40 percent over the next five years and is set to open its 1000th hotel worldwide this year. The Middle East plays a key role in the global expansion, with plans to open nearly 20 new hotels in the region by 2012. Of these hotels, 75 percent are in the Gulf, which is a priority market for the future growth of Starwood.
“Our presence in the region dates back to our first Sheraton in Kuwait in 1966,” said Roeland Vos, President, Europe, Africa & Middle East, Starwood Hotels & Resorts. “Today, we have an established footprint of 49 properties across 11 countries, and we look forward to continuing to build our presence with best-in-class hotels like The Luxury Collection Hotel in Ajman.”
“By working closely with our proven development partners, Starwood is able to sign and open high caliber hotels like The Luxury Collection Hotel in Ajman, even during challenging economic times,” said Simon Turner, President, Global Development, Starwood Hotels & Resorts. “We are building, opening, converting, renovating and innovating for the recovery and beyond.”
Along with The Luxury Collection, each of Starwood’s brands continues to grow in the region. W Hotels marked its entry into the Middle East with the recent opening of the W Doha Hotel & Residences.
St. Regis is developing world-class hotels in Doha, Bahrain and Abu Dhabi. And the Le Méridien brand, which Starwood acquired in 2005, continues to grow its established presence of 21 hotels in the Middle East with a new hotel scheduled to open in Doha in 2011.
Within the upper-upscale segment, Sheraton Hotels & Resorts is growing in both established and emerging markets with new hotels and important renovations such as the Sheraton Oman. This hotel is undergoing a $57 million renovation and is set to reopen December. Westin is expected to open new properties in Abu Dhabi and Aqaba, Jordan by 2012.
Starwood’s new and established select serve brands are seeing growth in the region as well. Four Points by Sheraton is slated to open hotels in Doha, Tripoli, Tartous (Syria), Jeddah and Dhahran in the next three years. This year, the Aloft brand will open its first hotel in the region with the Aloft Abu Dhabi. And Starwood’s green trailblazer, Element, which also launched in 2008, will soon expand with the recent signing of a new hotel also in Abu Dhabi. Upon the opening of this hotel, the Middle East will become the second region in the world to have Starwood’s complete portfolio of nine brands represented.
OPPORTUNITIES EXECUTIVE MOVERS!
AIRLINES: American Airlines has announced that Jim Carter, Vice President-Eastern Sales Division, will also head up American's Manhattan-based Greater New York Sales Office. The change is effective immediately. Carter will continue to lead Eastern Sales, which includes Boston, Washington, D.C., and Miami, together with the remainder of the East Coast and Canada.
In his career of nearly 30 years with American Airlines, Carter has worked in a variety of marketing, sales and numerous other leadership positions.
Carter began his career at American's corporate headquarters in Fort Worth, Texas, working in American's Revenue Management department. He also worked on several revolutionary projects that have become American Airlines mainstay programs, including AAdvantage, the industry's first and largest frequent flyer program, and AAirpass, the first corporate pre-pay mileage program. Carter was also involved in the development of American's corporate travel and travel management programs.
He went on to become Regional Manager in Boston, before being promoted to his current position. Carter now leads the Division's sales and marketing efforts and is responsible for American's corporate and travel agency relationships, programs, routes, division profitability and business development.
Active in community affairs, Carter works with several New England charities and giving organizations such as the Jimmy Fund and the Dana Farber Cancer Research, with which the fund is affiliated. Jim also sits on the Board of Directors for the Greater Boston Convention and Visitors Bureau.
With his new responsibilities, Carter will split his time between American's New England and New York Sales offices, before eventually relocating to New York.
HOTELS & RESORTS: Crestline Hotels & Resorts, Inc. has announced the appointment of Nancy L. Creed as Director of Sales for the new Hilton Garden Inn Blacksburg. The 137 guestroom hotel, located near the Virginia Tech campus, is in the final phases of construction and is scheduled to open in late August 2009.
Creed joins Crestline Hotels & Resorts with more than 20 years of sales experience. She most recently served as the Director of Sales at the Hampton Inn Christiansburg, VA. She has been a Business Travel Sales Manager for Hilton Hotels and a Sales Manager for the Holiday Inn University, VA.
Creed holds a Masters of Arts Degree from Bowling Green State University, Ohio, and a Bachelor of Arts from the University of Pittsburgh. She is a member of the Montgomery County Chamber of Commerce, a graduate of the Chamber's Leadership NRV program and current Chapter President of the American Business Women's Association Express Chapter in Blacksburg...
Crestline Hotels & Resorts, Inc. has also announced the appointment of Michelle Bland, CMP, as Director of Sales for the 158 guest room Hilton Garden Inn BWI Airport, Maryland. Bland joins Crestline Hotels & Resorts from the Jefferson Hotel. She brings more than 10 years of experience to her new role in sales and catering with hotels throughout Virginia including: the Doubletree Hotel Downtown Richmond, The Embassy Suites Hotel Dulles International Airport, and the Hyatt Dulles.
Bland attended National Louis University and Queens College in NY. She also participated in Cornell University's accelerated Business Program. She is a member of the National Association of Female Executives; NAWBO (National Association of Women Business Owners); and ABWA (American Women Business Association)...
Officials of Marshall Hotels & Resorts, Inc., a leading, Maryland-based hotel management and services company, has announced the promotions of Ben Seidel to chief operating officer, Michael Getzey to president of the company's newly formed construction and renovation division, and David Harvill to executive vice president of accounting. The three promotions reflect the company's recent expansion and put the infrastructure in place to support the company's future growth plans.
In his new role, Seidel will be responsible for overseeing the operations of the company's more than 50 managed properties. He has more than 25 years of experience in full- and focused-service hotel, as well as convention center, management. He has held operating positions with such well-regarded branded hotels as Marriott, Sheraton, Hilton, and Radisson. Prior to joining Marshall Hotels & Resorts, Inc. in 2006, Seidel oversaw a $300-million hospitality portfolio that generated more than $80 million in annual revenue. He holds an undergraduate degree from West Chester University in Pennsylvania and received his certified hotel administrator (CHA) and certified hotel sales professional (CHSP) certifications from the American Hotel & Lodging Association's Educational Institute.
Getzey is responsible for the company's development and renovation division. Since joining Marshall Hotels & Resorts, Inc. in 1981, he has been integrally involved in acquisitions, hotel development and project administration. Getzey has consulted on numerous multi-million dollar hotel construction developments and overseen more than $25 million in hotel renovations. He graduated from Delaware's Brandywine College and attended the Culinary Institute of America.
Harvill will head the company's multi-faceted accounting and financing operations. With more than 20 years of experience in the hospitality industry, he has been a property controller, area controller, regional controller and assistant corporate controller for such hotel companies as Hilton, Starwood and Interstate Hotels. While with Marshall Hotels & Resorts, Inc., he has been responsible for the company's accounting discipline at the property and corporate levels, training, audit, information technology and consulting. Harvill has a bachelor's degree in hotel management and a minor in accounting from Tompkins College.
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