2017 hotel trends: Some indications from AHLA 2016 Lodging Survey

Recently, the American Hotel and Lodging Association (AHLA) and Smith Travel Research (STR) released the "2016 Lodging Survey." The goal of this biennial survey is to provide a current and comprehensive understanding of hotel operations, with the possibility of identifying the critical travel trends heading into 2017.

The survey covers a wide range of areas. I highlighted the key findings from the survey on Multibriefs.com, but here is a brief summary:

Technology

#Hotel #Trends http://bit.ly/112216 

• Almost all hotels across various chain scales (from luxury to economy hotels) adopt central reservation systems (94-100 percent).
• More hotels are using mobile apps for customer service, including checking-in into a hotel. 
• 98 percent of hotels offer high-speed in-room internet service with wireless access, with fewer hotels charging for the service. 
• Fewer hotels are using social networking sites for marketing purposes, dropping from 93 percent in 2014 to 87 percent in 2016.

Additional discussions for consideration:

• Replacing the central reservation centers with mobile service centers
• Offering tier prices for hotel Wi-Fi
• Understanding the core principle of social media marketing
• Valuing the importance of human interactions in sales
• Using machines to serve your guests

Sustainability

• A substantial increase in the number of hotels using high-efficiency/LED lighting.
• 94 percent of hotels offer a towel/linen reuse program.
• 47 percent of hotels participate in an amenity-recycling program.
• A record number is set by the hotels using energy management sensors in rooms.

Additional discussions for consideration:

• Understanding how much extra effort consumers will make for sustainability
• Being aware of the damage sustainability can bring to the hospitality and tourism industry
• Being aware of the benefits sustainability can bring to the hospitality and tourism industry

In-room amenities

• A downward trend shows fewer hotels are offering shower-only rooms.
• Only 10 percent use shower shampoo/conditioner dispensers.

Guest services

• 85 percent of hotels that are located at an airport location provide complimentary airport shuttle service.
• 62 percent of hotels offer complimentary breakfast — 80 percent among upper-midscale hotels, 96 percent among midscale hotels and 81 percent among economy hotels.
• The percentage of hotels that provide room service dropped to 22 percent, but at the same, 21 percent offer alternatives to traditional room service.
• 34 percent of hotels charge a fee for checking out one or more days early.

Additional discussions for consideration:

• Delivering impeccable service by well-trained and friendly staff
• Winning customers with a small touch or more

Property offering

• 55 percent of luxury hotels and 25 percent of independent hotels have music/entertainment/nightclubs, much higher than other categories.
• Large meeting space (over 10,000 square feet) is usually found in luxury, upper-upscale and independent hotels.
• More hotels are offering free parking service, increasing from 72 percent in the previous survey to 85 percent this year.

Additional discussions for consideration:

• Managing travelers' experience, through an understanding of the travel trends for millennials

Safety and security

• 86 percent of hotels installed surveillance cameras in the lobby, the highest number ever.
• Additional discussions for consideration:

• Charging a fee for Wi-Fi service for security and stability

Will you be able to see the 2017 hotel trends from this report? Please share your thoughts with us, as I share mine under "additional discussions for consideration."

Advertising Methods Done Right (by Enmy Zheng Feng)

Hotels have a difficulty in building relationships with their customers through advertisements. Nowadays, it is not an easy task to inform a customer about one’s property, especially to the millennials. Some customers do not find ads credible or accurate, and new software such as AdBlock provides customers the options to remove advertisements from their computer. Today, people rely on social media to acquire and follow the latest trends. A new method of advertisement has taken over due to this concept. Many hotels are changing their marketing plan and trying to improve their social media presence to gain more sales. Moreover, Google has come up with a plan to help hotels acquire more businesses. 

Social media have become a great mean to advertise a product. However, advertising on social media is different than on television. It is not as simple as opening a Facebook fan page or creating an Instagram account. It requires hours of preparation and a good understanding of what customers are looking for. For instance, on Instagram, I follow a very well-known fashion stylist who is always traveling. Through her posts, I have noticed that she mentions the places that she has visited. The pictures that she posts show the beauty of those places and can inspire people to visit. The places she has visited, the hotels she has stayed, and the food she has eaten are all advertised in the forms of social media posts.

On the other hand, Four Seasons Hotels and Resorts have utilized social media in a different manner. They decided to create a campaign featuring a plush toy named Maxine. This plush toy was featured in all the most well-known social media such as Facebook, Twitter, Instagram, and etcetera. Maxine traveled everywhere in the Big Apple, and people were excited to see where Maxine was going to travel next. This was a genius idea since it was meant to target family travelers to their hotels. Kids loved the plush toy and they wanted to visit the same destinations that Maxine had visited. They were also able to interact with Maxine in their facilities. The campaign not only brought profits to the hotel, but also to nearby businesses featured in Maxine’s travels.

Google has been experimenting with a new way of advertising, according to Nicholas Ward (2016), CEO of a digital marketing agency. Every time a person searches for information about a hotel, or when they want to book a room through Google search engine, nearby deals will be shown at the top of the list. People will be able to click on them and more information about the hotel will be shown. Also, when changing the check-in and check-out dates, the deal will also change just like any other booking websites. Moreover, Google is trying to make the search engine better to their users by offering not only the best deal but also hotels that are similar in rating for people to compare. Users will be more well informed, and this will make their booking experience more satisfying. 

These new ways of advertisement will influence the sales of many hotels in the long run. On the other hand, it is important for hotels to understand this processes and to know how to employ each mean of advertising. For instance, for the hotel to thrive, it would be beneficial for the hotel to be seen in the nearby deals under Google’s search engine. This is because many millennials seek inexpensive hotels with a good location. Social media advertising can also be difficult but not impossible if they have a good sales marketing plan. I believe if done well, a hotel could increase its sales due to these new ways of advertising. What would the advancement in technology affect sales in the future? Would televised advertisement cease to exist? If so, why or why not?

About the Author

Enmy is a Chinese who was born in Venezuela. She loves to travel, discover new places, and plan events. These are the reasons why she chose hospitality management as a career. Enmy is fluent in Spanish, English, and Cantonese, and she is also in the process of learning Mandarin. Enmy is now a senior at California State Polytechnic University, Pomona, and she is expected to graduate in Spring 2017. She is very interested in event planning and wants to own her own event planning company in the future. She is diligent and cooperative, and she currently works at Wokcano, Pasadena as a host.

Reference

Ward, N. (2016, October 24). Google tests single hotel deal placements in search - Tnooz.            Retrieved November 02, 2016, from https://www.tnooz.com/article/google-tests-single-hotel-deal-search/ 

Olenski, S. (2014, February 7). The Impact Of Social Media In The Travel Marketing Industry.   Retrieved November 2, 2016, from                http://www.forbes.com/sites/steveolenski/2014/02/07/the-impact-of-social-media-in-the-travel-marketing-industry/#2f794f725c37