More than mere places to stay, “business hotels” have transformed into “business facilitating venues”. Business people prefer to meet or attend a conference in a hotel in the city, rather than travelling many miles to the place where the factory is located. This has been the subject of a true revolution in the hospitality market: business hotels generally earn 40-50% of their total revenue through non-room related revenue. Not only the meetings are charged, also food and beverage sales spice up the total tab. What’s more, business people prefer to stay in the hotels where they have their meetings. In other words, meetings also account for part of the room revenue, making them additionally important for the hotel’s profitability.
In order to attract people to your hotel, your meeting services must excel. This means an excellent environment, good food, perfect location, and also the right meeting room infrastructure. But how can you really differentiate from the competition?
This presentation will give you some ideas how to do this.
2. Investment sentiment at all-time high ...
Investor sentiment for trading
has surged to an all time high,
with positive trading sentiment for
all three regions broadly aligned
Source: Jones Lang Lasalle – Hotel Investor Sentiment Survey June 2014
3. As hospitality market keeps on growing
Source: Euromonitor International, travel and tourism: global hotels
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Global Business Trips
Global Business and Leisure Trips
2011/2016
600
500
400
300
200
100
0
Global Hotel value Sales 2011-2016
Global Leisure Trips 2012 2013 2014 2015 20162011
2011
2016
4. Business hotels
“In the current market
scenario, 40% to 50%
of the total revenue is
generated through
non-room related revenue”.
(Dhiraj Trivedi, director - group e-marketing,
The Park Hotels, India)
50%
room revenue
40-50%
non room
revenue
Generate more than 50% of
revenue from business guests
5.
6. Your average business traveler will change
67 percent of business travelers
are male and more than half of
this group are between the ages
of 32 and 54.
1
Sources: Deloitte: Hospitality 2015, game changers or spectators? – PWC: Room to grow
7. Mobile everywhere2
Source: Smartbrief Media Services: 10 hospitality technology trends you need to know about
87%
Nothing:
it should be free
How much are you willing to pay for Wi-Fi?
8% - 15$ or more
for premium service
4% - $15
1% - $10
8. “Guests, especially business travelers, want simplicity.
They want to be able to turn something on and go. They
don’t want tech for the sake of tech, and we get that.”
Niki Leondakis, CEO of Commune Hotels & Resorts
Simplicity rules3
9. Employee retention4
Hotels will face the challenge of employee
retention in the future. Hotel employees have
historically been asked to work harder for less
money than most other occupations. It is not
unusual for the front desk clerk to also be the
person that sets up the breakfast buffet,
cleans the lobby, does the bookkeeping and
also must greet every guest with a big smile.
Housekeeping is often asked to clean three or
four rooms per hour in an 8-hour day
Source: Deloitte: Hospitality 2015, game changers or spectators?
10. Think beyond hotel guests5
“Most hotels, lobbies and boardrooms, a lot of
them sit empty during the day. Why not allow
people to come in during the day and allow
them to use our space? It creates awareness,
generates food-and-beverage sales—all types
of things.”
Peggy Roe, VP of global operations services for Marriott
Source: www.hotelnewsnow.com/Article/10727/Non-guests-driving-incremental-revenues#sthash.JJFQqI5m.dpuf
11. MICE is changing6
Meeting demand is at its peak since 2008 — and growing across all
sectors.
New age technology — Meetings and events are getting more tech-savvy
than ever before. Apps downloaded on smart phones and iPads, easily
accessible mobile sites and meeting-dedicated Facebook pages are all
around. Note taking through iPads, projectors and the latest audio-visual
technological tools – events have been totally transformed by
technology.
The Meeting Package is back — The last couple of years saw a decline in
the meeting package but it has made a strong comeback again this year.
Source: http://www.worldluxurytourism.com/mice/mice-trends-and-its-immediate-future.html
12. But the one word coming back in every conversation:
BRAND differentiation7
The next five years will herald the era of a
consumer-led brand focus for the hospitality
industry. Consumers are changing faster than
ever before in both attitude and behaviors.
Source: Deloitte: Hospitality 2015, game changers or spectators?
15. Traditional ways of differentiation are gone
The websites of many top end hotel
chains are currently difficult to
distinguish from one another, with
frequent repetition of the words ‘luxury’
and ‘experience’ and relatively similar
messaging. We believe that much
greater differentiation will be needed
over the next five years to capture the
loyalty of the traveller.
Source: Deloitte: Hospitality 2015, game changers or spectators?
16. The answer to the business traveler:
‘smart’ meeting room packages
20. Can technology help further differentiate?
8 out of 10 European business
leaders expect technology to make
meetings more productive
80%
Of the European business
leaders expect technology
to make meetings more
productive
30%
Find hotel technology
essential
50%
Find hotel technology
Important
Source: Meeting room of the future survey by Barco
Source: Smartbrief Media Services: 10 hospitality technology trends you need to know about
21. Screen mirroring as one of the exciting technologies
1. Marketing advantage
2. Loyalty driver
3. Cost saver
4. Attracting new customers
5. Revenue generator
24. Loyalty driver2
“Many customers are coming back
since we updated the meeting package.
They’ve experienced the reliability
of our systems and the comfort and
convenience to hold their meetings
here, hassle free and problem free.”
Erich Zuri, General Manager of Marriott München
25. Cost saver3
“Quite often we have customers coming in and asking for a
meeting room, immediately. In these cases, there is no time
to set up the room or the technology, it just has to be ready…
or we lose the client. With ClickShare, we don’t need much
time to set up the system or instruct the customer. It is ready
and easy to use. We can explain it in three simple steps.”
“During a recent board meeting, a pharmaceutical company
had four different types of presentations to show. They were
really excited about the flexibility to change presentations
during the meeting without interruption or any changing of
cables.”
Kathrin Hanisch, Director of Event Management, Marriott Munchen
26. Attract new customers4
“We’ve all sat outside a coffee shop with free Wi-Fi to be on a conference
call. In hotels there is a lot of underutilized space during the day, and we
thought it would be a good way for our hotels to invite people in.”
Marriott’s new Workspace on Demand service allows non-hotel guests, such
as small businesses and entrepreneurs, to book meeting space at Marriott
properties on half-day or full-day basis. Larger groups can book meeting
space that includes audio-visual equipment and Wi-Fi.
Peggy Roe, VP of global operations service for Marriott International
Source: www.hotelnewsnow.com/article/10764/10-trends-in-hotel-technology#sthash.LCYZbazU.s2fhLQ0t.dpuf
27. Revenue generator5
Our focus on Meetings, Incentives, Conferences and
Events (MICE) Business has generated an average
annual increase in revenue of around 25%
since 2004.
Source: www.rezidor.com/phoenix.zhtml?c=205430&p=devrevenue#sthash.z6ELhvI3.dpuf
Windows PCs
Macbooks
Linux
iPad and iPhone
Android
Indian luxury hotel chain on nine locaitons in India ,- India’s first luxury boutique five star hotels
Add examples of non room revenue
Windows PCs
Macbooks
Linux
iPad and iPhone
Android
According to the 2010 US Census, the median age of the population was 37.2 years. Individuals are placed into different categories depending on the year in which they are born.
• Mature / World War II Generation (40,267,984) – people born before 1946• Baby Boomers (81,489,445) – people born between 1946 and 1965• Generation X (61,032,705) – people born between 1966 and 1980• Generation Y / Millenials (85,405,385) – people born between 1981 and 2000
Generation Z after 2000
Definition of digital natives: The post-millennial "digital native," a term coined by U.S. author Marc Prensky in 2001
Use holiday example: my family
Commune is an international hotel management company with a leading portfolio of transformative, boldly innovative boutique hotel and resort brands. We create the kind of distinct experiences that can transform your day, your trip, or even your life.
Where does she come from: international luxury hotel management company
Multitaskers and less and less specialists
MICE (Meetings, Incentives, Conferences and Exhibitions)
Meeting demand is at its peak since 2008 — There is growing demand across all sectors, telecommunications, education and insurance, healthcare, energy and many more.
In an industry that revolves around customer service and satisfaction, hoteliers must constantly be aware of the changing attitudes and behaviors of their customers. Management that focuses on the most important trends in the industry will better understand what their guests want. Hotels that meet and exceed the expectations of their guests are always in high demand.
As a whole, the hotel industry spends hundreds of millions of dollars doing research to identify the different trends that will have a major impact in the future. Everything from hotel occupancy and room rates to jobs and profits can be affected by making the right or wrong moves. The stakes are big.
A valuable report, published a few years back by Deloitte, identifies those trends that continue today and will become even more pronounced in the future. The report that is entitled “Hospitality 2015: Game changers or spectators,” covers five major points.
• Changing demographics• Market segmentation• Technology• Staffing• Sustainability
Example social media / NPS
“Many customers are coming back since we updated the meeting package with ClickShare. They’ve experienced the reliability of our systems and the comfort and convenience to hold their meetings here, hassle free and problem free.”
Erich Zuri, General Manager of Marriott München
Location is frequently cited as the main reason for selecting a hotel. When it comes to luxury brands, however, key gateway locations are already reachting saturation. Of the 29 key locations considers, there is an average of 5.6 luxury hotels in each location, with some cities having more than 10 competing luxury hotel brands
- meeting packages are tailored in order to turn new customers into recurring customers
e.g.: Novotel + ClickShare : let customers get used to the convenience of wireless presentation and to more interactive meetings, and let them have the same experience in all Novotel hotels.
- note: hotels don’t think they can charge customers more for using ClickShare versus cable. Although this was the plan for Accor – you may ask Nabil whether this is still the plan – most hotels don’t approach it this way. They would give it as standard equipment for their top-clients and charge the others.
- Smart Meetings and Events, are also testing interactive whiteboards in a number of locations
http://www.parkinn.com/meetings/innovative-technology
- BYOD nightmare:
- Cable nightmare:
* 10 VGA cable losses / year / room (Brussels Business hotel). Broken connections.
* several set-up/support interventions per day, every day, by Meeting and Events personnel
* no complete stock of HDMI/DVI/…
Novotel + ClickShare : let customers get used to the convenience of wireless presentation and to more interactive meetings, and let them have the same experience in all Novotel hotels.
Compare from meeting room of the future survey with hotel sector
At first glance, the ability to present wirelessly seems like an unnecessary luxury. After all, connecting a
cable to your notebook in order to present content is easy enough. In fact, it has been standard operating
procedure for 10+ years across tens of thousands of organizations. The reality, however, is that in the
last few years, things have become much more complicated.
Today’s meetings may include,
(1) multiple presenters, (2) sitting in
different parts of the room (or
moving around the room at times),
(3) using a wide range of devices,
(4) equipped with different
connectors, and (5) providing
different types of signals.
In addition, as the millenials take
over the meeting room, they often
want to (6) present multiple content
items simultaneously. In addition, these younger workers expect things to move quickly during meetings,
and (7) will not tolerate the time delay involved in moving and connecting cables. Finally, due to the high
cost of real-estate, (8) many enterprises are supporting divisible meeting rooms with movable furniture.
Such spaces do not support hard-wire connections to the displays / projectors.
So please dont consider wireless presentaiton or technology as an unnecessary luxury