Work-from-Hotel: Adapting To The New Normal

With many hoteliers seeing rising vacancy rates in the wake of COVID-19, some providers within the industry are looking for new and creative ways to encourage bookings and maintain revenue despite travel restrictions.

As a large portion of the Australian workforce transitions to work-from-home arrangements, many employees are going a little stir-crazy spending every day in their homes. Asia-pacific chain Choice Hotels is offering a solution, with the recent roll-out of their ‘work-from-hotel’ option which allows guests to book a room to work in for the day. This allows those currently working from their dining room table a change of scenery, along with a quiet uninterrupted work environment.

Prior to COVID-19, many properties were branching out and incorporating communal workspaces into their floorplans to accommodate the needs of business travellers. The co-working industry is seeing significant growth globally, and it was a logical next step for accommodation providers to become involved, however such large shared spaces have been shut down in Australia during the pandemic. This work-from-hotel offering is an extension of this concept, simply talking into consideration social distancing requirements. The innovative solution offers hoteliers a way to make use of their empty rooms and fill a gap in the market.

Taking it one step further, many hoteliers are offering morning tea and coffee for their guests or arranging meal deliveries in partnership with local hospitality businesses. This community collaboration helps boost business for those operating within the area and is an excellent example of how Australian’s are adapting to the new normal. Further, having guests in their rooms, even if it is not for an overnight stay, allows hoteliers to keep staff hours up and mitigate the impact on the hotels supply chain.

Whilst properties are not expecting workers to check-in five days a week, the new work-from-hotel offering allows people to have a little break from what can be a distracting home environment. Plus, getting to take in skyrise views or watch a movie on their lunch break is an added bonus.

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Domestic Travel Set to Kick-start Australian Tourism Again

There is no doubt that Australia’s tourism and hospitality industry has taken a significant hit due to the travel restrictions put in place during the current COVID-19 pandemic. As Australian businesses begin to plan for the easing of restrictions, the tourism industry continues to experience uncertainty as opening borders to international travel is still off the table. However, there is hope as new research has found that Australian’s are looking to see a little more of their own country.

In an effort to support small business owners in regional areas impacted by the floods, bushfires and the pandemic, we saw a rise in the number of domestic travel campaigns being launched by bodies such as Tourism Australia. Despite the current restrictions, efforts to encourage Australian’s to travel locally are set to continue post-coronavirus, with those same communities still struggling as a result of decreased tourism spend. In fact, regional areas are becoming more appealing to travelers who want to get out and about, but don’t want to expose themselves to COVID-19 whilst doing so. The smaller populations and spread out communities present a lower risk and are an enticing destination to kick-start domestic travel once again.

Whilst travel is not on the mind of consumers just yet, with over 80% stating they believed travel within Australia was still not yet safe, over 50% of those surveyed said they want to travel domestically when restrictions are lifted. When looking at what is driving Australian’s to want to travel, it was revealed that their number one motivator was to support Australian tourism.

However, the impact of the pandemic will be felt even once restrictions are lifted. It was found that future travelers will be more aware of hygiene standards during their stays, meaning that accommodation providers will be expected to follow strict standards. Further, 50% said that they would opt to drive to their travel destinations, rather than flying or making use of public transport in an effort to avoid exposure. Whilst this will continue to place a financial strain on the airline industry, it will help expand the scope of travel destinations beyond capital cities.

It is clear that domestic travel will help lead the recovery of Australia’s tourism industry and the many businesses which rely on it. We look forward to seeing Australian’s see a little more of their own backyard and help out some of the most impacted members of our community whilst doing so.

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Glamping: Outdoor Experience with Hotel Luxuries

The glamping trend isn’t necessarily a new one, with the concept popping up around the globe since the 2010’s. However, the trend is becoming more commonplace with mainstream accommodation providers getting on board.

Glamping is the concept of traditional camping paired with the luxuries that come with a hotel stay and is the perfect option for those who want a little adventure before a glass of wine and comfy bed at night. When you think of glamping, luxury tents may be the first thing that come to mind, however tipis, yurts, domes and treehouses all fall under this category. Many glamping experiences will include a proper mattress and bedding, a generator for lighting and potentially a bar fridge, and bathroom amenities which may be private or shared.

Though the idea really came to life in Africa, where the wealthy wanted the safari experience without sacrificing the amenities they have at home, glamping is now more closely aligned with sustainable travel. Allowing guests to sleep among a beach, forest or desert landscape without the environmental implications of a structure like a hotel. The concept holds appeal among the younger audience, who enjoy the opportunity to get among nature and socialise with fellow ‘glampers’.

However, this is not to say that you can’t get an inner-city glamping experience, with some properties pitching up tents on their rooftops. This gives guests sweeping city views and a night under the stars, without needing to travel far. This is a common occurrence during transitional months, where the weather is more palatable and hoteliers can generate a little extra income without having to run the operation year-round.

Hoteliers may even opt to open a second site dedicated to glamping. With a relatively low entry cost and high nightly rate, this can act as an additional revenue stream. In doing so, site selection and nearby attractions are key, as being close to stunning locations and activities for guests will drive interest.

Overall, it looks like the glamping trend is here to stay. With a range of options available from a more rugged experience to a fully-catered luxury stay, glamping holds appeal across a broad range of consumer groups and could be a valuable addition to any hoteliers portfolio.

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Ancillaries and Their Role In Creating A Customer Experience

For a long time hoteliers have been looking for ways to provide extra value to their guests experience in order to create more satisfied customers. For many years this came in the form of room upgrades, discounts at local hot spots and a knowledgeable concierge service. In recent years the concept of ancillaries has become somewhat of a buzzword, so what role do they play in the customer experience and why should this matter to hoteliers?

There is no doubt that the global travel industry has seen a trend towards selling experiences over the more material aspects of a holiday, which is a natural progression. This trend has been fuelled by many factors, one of which is social media. Guests are in pursuit of activities and experiences that align with the idealistic lifestyles of social media influencers, and ancillaries are a way that accommodation providers can deliver on that desire.

So why should ancillaries by front of mind for hoteliers? Whilst these used to simply be extra’s that were offered to guests upon check in, the role of such value adding elements in the overall customer experience has grown. In a highly competitive marketplace these ancillaries are a way that brands can distinguish themselves from competitors and are key in providing guests with a well-rounded travel experience that they talk about for years to come.

In an era where convenience is king there is a high value placed on the ability to walk down to your hotel lobby and tap into a wealth of local knowledge. Aside from helping hoteliers in building a satisfied customer base, getting serious about ancillary offerings can generate a new revenue stream. Hoteliers can capitalise by partnering with local vendors to provide discounts on day tours, dinner reservations and even beauty treatments. Not only does this result in an outstanding customer experience, but it can also be a brand building exercise where accommodation providers can build associations with likeminded local brands.

The next question is, in what ways can hotels become more active in selling ancillaries? With guests seeking more digital integration during their stay, technology plays a big role. Giving guests access to ancillaries through your website or app is a great way to add value whilst still ensuring it is convenient for the customer. However, it is important to balance digital touchpoints with human interaction, otherwise the service element may be lacking.

Another budding trend is the assignment of customer experience officers. Whilst this role may not be feasible for small boutique brands, for larger national or international chains having someone to focus on enhancing the guest experience can make all the difference. Having a dedicated team member to seek out and vet unique experiences is an asset to any accommodation organisation.

In whichever way you choose to be involved, shifting your focus to your ancillary offerings will be beneficial to your property. Adding that extra bit of value to make your guests’ stay an experience can elevate your brand and result in more satisfied customers, which we all know is good for business.

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Influencer Marketing and the Evolution of WOM Marketing

There is no doubt that word of mouth is one of the most effective and trusted forms of marketing, and this is particularly true within the accommodation industry. As a sector built on reviews, there is nothing more valuable to an accommodation-based business than to have people talking about your property. In 2020 the ways in which people do this has changed dramatically, from humble beginnings on review websites, word of mouth marketing has evolved into a complex web of Instagram influencers, travel bloggers and sponsored posts. The good news is, there is more opportunity than even to get the good word out to your guests.

You might be thinking, what is an influencer? Often influencers are just everyday people who have built a living sharing their passion online. This could be beauty, fashion or travel and is most prevalent on social media platforms including Instagram and YouTube. The reason who these influencers are so successful is because they have the ability to build real connections with their followers, which gives them significant influence over their audience.

A whopping 80% of marketers find influencer marketing effective, according to mediakix, and state that it enables their brand to build trust and expand their reach, whilst influencing purchase decisions. Arguably, no industry is better suited to influencer style marketing than the accommodation space, with the ability to offer social media superstars travel experiences in new and exotic locations (who could say no?).

So how can your property get involved? There are a few different approaches that hotels can use to take advantage of influencer marketing including free/discounted accommodation, sponsored content and brand partnerships.

The first method, offering free or discounted accommodation is by far the most common. This generally involves offering influencers or social media personalities a few free nights stay at your property, or rooms at a discounted rate, in return for a mention on their channel. This could mean featuring in one of their YouTube videos, or being tagged in a few of their Instagram posts. This is an excellent way to gain exposure and find your way onto consumers travel lists and is a great option if you have some occupancy during slow periods.

The second method, sponsored content, adopts more of a traditional advertising approach. This involves paying an influencer a set amount of money in return for a sponsored post or video on their social media channels. Sponsored content can be less subtle than other forms of influencer marketing, but it does provide more control over how your brand is portrayed and where you direct potential customers. You can brief the influencer on the type of content you want them to publish (taking into consideration it will have to align with their personal aesthetic and brand) , what the caption will be, and any links you want to be included. Prices will likely be based upon the number of followers an influencer has.

Finally, brand partnerships are potentially the most lucrative facet of influencer marketing for accommodation businesses. Many beauty and fashion brands are known for hosting ‘Influencer Trips’, where they bring together the biggest names in their industry to launch a new product or generate buzz about their brand. Being the host property of such trips is a significant opportunity to not only benefit from the revenue of large group bookings, but also feature on the various attendees’ social channels.

Influencer marketing is a unique opportunity to utilise the powerful voices of social media personalities to cut through the haze of marketing and reach audiences in an authentic way. Are we saying you must get on board? Not necessarily, but creating an environment and atmosphere that encourages social sharing at your property should be a consideration.

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Communal Spaces, A New Direction for Australian Hotels

There is no doubt that corporate travellers make up a large portion of hotel guests. For a long time, the in-room services available have been tailored to the needs of these business travellers, including shoe shining, suit pressing and complimentary Wi-Fi. However, properties are now looking outside of their guest rooms for ways to provide extra value.

In order to further accommodate this segment of guests, hotels are now focusing on shaping their communal zones into multi-functional spaces. By providing something more than a quite place to catch up on emails and scroll through social media, properties are able to add to travellers experience in ways which can’t be done from the confines of their room.

As CBD properties get refurbished there has been a clear move away from boxy business centres, with lobbies and communal areas being shaped into inviting functional spaces. This change aligns with a rise in popularity among co-working and co-living concepts, suggesting that consumers are seeking out shared experiences.

Some hotels are fully embracing this concept, with several chains including Accor and Marriott partnering with co-working companies. These partnerships offer guests flexible workspaces, reading nooks and cosy corners outside of their individual rooms.

There is a trend among young consumers in particular of spending less time in their rooms, and more mingling with other guests in communal areas. Many properties targeting Millennials have strived to create lobbies which offer more than just check-in, by adding coffee carts, bars, board games and even arcade consoles.

This is a way that traditional accommodation providers can compete with home-sharing providers. A notable draw card for guests when booking homestays is their ability to access a whole house, living, dining and outdoor areas included. This is particularly relevant for group travel, where guests are seeking joint areas to work, play, lounge and eat.

By adapting their current communal spaces to be a balance between quite working spaces and social hubs, hotels are able to appeal to the social traveller, whilst still meeting the needs of the corporate guest.

This form of innovation is becoming more and more common within the industry, with many providers re-evaluating the ways in which guests use the different spaces available in their property. Communal areas are a prime opportunity for hotels to add extra value to their guests, and this new direction for Australia’s accommodation industry could result in some truly unique experiences.

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Independent Hotels: Competing With Chains

For many hoteliers, competing with large chain hotels can seem overwhelming and intimidating. They can often fall into the mindset that due to their limited resources they are not able to compete with ‘the big guys’. However hoteliers need to understand that large hotels are still competitors, and they must address this with the resources they have available. Fortunately, there are many advantages independent hotel owners have over chain hotels, and if utilised correctly, can produce excellent results. To succeed today, hotels should strive to have the best service rating in their price category and location.

There are many advantages that independent hotels have over chain hotels, they should use these to their advantage, including

• Individuality – small hotels are often unique and original, which is a charming feature that attracts many guests
• Focus on individual property – managers are able to focus their attention and resources on an individual hotel, rather than spreading resources across a number of hotels
• More focus on guests needs and experience – hotel staff are able to create more personalised experiences for their guests
• Original concepts drive higher guest review – unique features of small hotels increase the likelihood of positive guest reviews
• No licensing or franchise fees- this allows hotels to use their funds elsewhere

Create Experiences and Build Loyalty 

One of the main advantages of being a small hotel is having greater control over the individual guest experience. Whilst you may not have the huge marketing budgets and resources of larger hotels, you do have the ability to mould and create a personalised experience for your guests. By creating added value for your guests, anticipating their needs and providing solutions, you are providing outstanding hotel service, as opposed to the standardised procedures they may experience at a large chain hotel. 

Upselling is also important during this stage, to really ensure the guests are getting the most out of their stay and you are maximising each customer. A hotel that delivers great experiences can compete in its price category/ location regardless of how big its competitors budgets are. By creating more personalised and memorable experiences, this builds up customer loyalty. You should also employ a CRM to ensure that every step of the guests process is a smooth as possible, this includes everything from pre-arrivals, on property and post stay. 

Online Presence

Your online presence is everything in this age of modern consumerism, and for hoteliers online reviews are critical. Many people rely on online reviews to guide their purchase decisions. According to a recent New York University study, 93% of travellers check online reviews before booking a hotel, and 53% will simply presume the worst and ignore you entirely if they cannot find a current review of your hotel. Encourage and incentivise guests to leave reviews and don’t forget to respond to the reviews within 1-2 days. Through the use of Online Travel Agencies (OTA), you are able to access niche markets, a valuable resource to attract new travellers to your hotel. You should also take advantage of metasearch engine, this is a search engine that gathers data from other websites and displays them together, e.g. Trip Advisor. 

Website

Your website is another very important marketing tool, that should be properly managed and optimised for user experience. The website should persuade potential customers that your hotel is a relaxing, stress free environment and it should contain relevant, accurate and engaging content highlighting your hotels features. The design of the website should be simple and easy to use with the ability to directly book and purchase your hotel room. 

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