Luxury Travel, Lifestyle and Marketing Trends

Design and Fashion: What the Hotel Doctor Calls For

kwe blog AC by marriott

When even Apple, an icon of high technology, makes moves to become what tech analysis site Stratechery called a fashion house, you know there’s something major afoot in branding.  For those who haven’t read it, an important article, “Apple’s Team of Tastemakers” appeared in the New York Times recently about the company’s hires of tastemakers from Yves St.Laurent and  Burberry to the addition of Beats’ founders Dr Dre and Jimmy Iovine for top management positions.  Their mandate is to remake the marketing strategy.

What is this about?  Design and fashon that are leading the lifestyle charge. We see this  across product categories and price points. If anything, expect it to accelerate with marketers’ attention turning increasingly to Millennials whom research has shown to  expect a major dose of style and good design,

This hasn’t been lost on the hotel industry as major groups continue to announce new lifestyle brands that they always bill as design forward, one of the latest being AC by Marriott. I couldn’t help but think will we soon see yet another new brand —  the hotel counterpart to a Zara or an H & M — low cost, big fashion statement,  and wildly successful? And then many of these same groups have new executive positions with serious titles who are like creative directors, helping ensure the brands continue to align with changing design and fashion values.

Travelers are seeing hotels with new eyes and new words to describe the hotel product.I  couldn’t help but think about the term “boutique hotel” which, when first deployed, implied a property with special style. Not so much anymore.With simple bed and breakfasts calling themselves boutiques, will this term become meaningless? I think so.

Amenities, even ones with a “wow” don’t seem enough to cut it these days. Travelers are going beyond that, looking for fresh new looks that excite and entertain.  A large dose of creativity is just what the hotel doctor calls for.

For more on hotels and fashion brands, click here to read a previous post on the topic.

 

 

Emotional Marketing and Music

You can’t help reading these days about emotional marketing —  forging an emotional connection with potential buyers or clients as a key to sales success. Story telling and appealing to the senses are touted as  effective ways (and I concur as you’ve read). In the case of the latter,  incorporating aromatherapy and visual candy (design, art, fashion) into the product and marketing are becoming a “given” with many hotels and lifestyle products. But what about the hearing sense? Some interesting information and data recently crossed my desk . Rightune makes music for websites, 1000 of them right now that are active, as well as online ads and applications. They claim this has increased business by 15 to 20%, the highside being in the hotel, travel and lifestyle industries. Here’s an example of what CEO Erez Perlmuter says is one of the more successful of the sites (click on the name to hear the music):

Europa Hotel 

How does this work?  They customize the music based on branding values, target audience, mood to be created and business goal (e.g.lead generation, purchase, staying time). The client then gets a code snippet to embed on their website which will give a user a playlist. The user’s behavior is tracked and music updated as needed. Clients get a dashboard where they can see what was played and its impact on website business performance. What kind of music works? Not surprisingly, soothing tunes in the morning and more upbeat works in the afternoon.

I asked the obvious question, how do they know how many people to the site don’t like the music? They said on average 4% of visitors mute or lower the volume and 96% stayed longer.  I have to say, I found the music on the Europa Hotel relaxing (he said the music increased their business by 50%). What do you think?

No More Hotel Exterior Images Please

Why do so many hotels show a total view of the exterior as the signature shot? I can understand showing a façade in itself if it’s striking in design – a landmark design by a starchitect; a treehouse, tent camp or eco lodge; over the top villas, or something else unusual. Recently on an outdoor advertisement I saw the image of a new island resort with a tag line about the “American Riviera”. The image was of an undistinguished high rise. Wouldn’t it be better to show images that conjure up the glamour implied by the Riviera? How about very fashionably dressed couples lunching at the beach served by waiters wearing  crisp white starched jackets serving champagne as they do on the French and Italian Rivieras? The interior of a glamorous casino that could be out of a James Bond film with the men in tuxes? Or better yet, a collage of images that appeal to powerful visual sensibilities in this age of Pinterest. Tell the story visually. Showcase what’s unique. Focus on the details. That will capture attention.

Service, Small Business and CRM

No one doubts the effectiveness of CRM systems and loyalty programs though for small businesses, the costs of implementation in dollars and human resources can be a challenge. So what’s a small business – be it hotel, restaurant, service provider to do? Here are two examples of the right way and wrong way based on my recent experiences, and then a look at the takeaway.

Two hair salons. Both I’ve been going to for several years. Salon 1: Oribe in South Beach. When the hair stylist is running late they let me know. If there’s a big traffic tie up they give a call. And the best yet, this week I called to make an appointment. First, and unbelieve, the receptionist recognized my voice ( I go every 6 weeks). Then, she asked if I’d like an appointment in the morning, remembering my preferred time. Whenever I walk in, she makes me feel as if I’m coming home.

Salon 2. They have all of the tech stuff – as soon as I make an appointment I get a text confirming it. Then, a day before I get another text and a call (overkill). The problem. When I call they always ask me for my phone number which is in the computer, act as if this is my first time at the salon, and have me spell my name more than once.

Now which salon will I recommend? What’s the takeaway? It’s so important in a service company to have a good receptionist and do whatever to keep him/her so there’s longevity and he/she gets to know the client. Tech goes just so far.

Madigan Pratt, President of MP & A Digital and Advertising who has serious credentials in CRM summed it up. “Today CRM software allows companies with a culture of great customer service to move up to another level. When they do they can achieve a sustainable competitive advantage.

Problem arises when companies think office automation software is the answer to their customer service problems. Staff may know how to push buttons, but do they really know how to empathize a customer? More often than not, the answer is no.

“CRM with a human touch just may be the answer”, he concluded.

Tactics to Drive Direct Bookings Vs. OTAs

hotel direct booking

With OTAs (Online Travel Agents) driving over 20 percent of total room bookings, taking commission fees ranging from 10-25 percent, what can a hotel do to drive direct bookings to its website? A survey of 2500 consumers by Software Advice, a source for hospitality system reviews, revealed perks hotels can offer to get direct bookings. Here are the  results of their findings:

Main Takeaways to Drive Direct Bookings

1. A free Room Upgrade
It is the top incentive that will convince customers to book directly. This can be as simple as a better view, balcony or kitchenette.

2. Free Meals Top the List of In-Room Perks
When asked which in-room perk would convince respondents to book directly, 43 percent said they could be swayed with a free room-service meal. Tied for second was an in-room massage and free access to the minibar and snacks (19 percent), followed by free movies on demand (16 percent).

3. Free Food and Drinks Also Outrank Other Amenities
When asked which on-site amenity would convince guests to use direct booking through a hotel website, a vast majority (55 percent) chose free food and drinks.

For many hotels, offering a free meal isn’t new. Incentives like this already exist, and many hotels likely understand their effectiveness. The second most convincing amenity was a free spa package, at 23 percent. Trailing behind are a free fitness class (11 percent) and free golf or tennis reservations (7 percent).

4. A Restaurant Gift Card Is the Most Popular Offsite Perk

45 percent of respondents said they would be convinced to book directly if they received a gift card to a popular restaurant as an incentive over other types of gift cards. Far behind are free tickets to a popular event and free transportation services.

You can read the full report here: http://overnight-success.softwareadvice.com/skip-ota-with-incentives-0214/

Latest Trends: Men, The Rich Opportunity for Luxury Segment

luxury latest trends

New Berluti Shop in New York

 

Most everything comes full circle at some point, so in that sense it’s not surprising that men, once far surpassing women in sales of luxury goods, are back as a major target. And nowhere is this more evident than in luxury retail. LVMH, whom we know is the lead to follow, is investing tens of millions of dollars in the male market segment. This week they’re opening the first New York store of Berluti, the maker of expensive men’s shoes that they’ve turned into a full apparel and accessories line and are showcasing this in their new outpost. This is part of a $137 million investment they’re making according to the Wall Street Journal. During the Great Recession many women who previously traded up become introduced to the likes of H & M, Zara, Forever 21 and others, and realized they could get knockoffs of the latest trends, such as an “it” bag or clothing items, for a lot less. And it’s unlikely they’ll return to shopping as before. Not so men, who, according to the article, are more loyal to brands and care less about the latest trends. Plus, according to Bain & Co., between 2009 and 2013 men’s luxury spending increased 55% compared with 37% for women. So the luxury heavyweights are opening men only stores. In the past year alone, for example, in Miami’s Design District, Dior and Christian Louboutin have opened shops for men only along with a Berluti store.  If fashion leads the way in luxury latest trends, then what can we expect to see  for men in other lifestyle categories like hotels and spas?  Sounds like a real business opportunity.

 

Media trends 2014: celebs and content

Everything seems to constantly change – except the public’s appetite for celebrities. Sometimes it’s just too much, especially when it comes to Justin Bieber these days. But back to the point at hand…..

Celebs images, even “B” list it seems, are front and center in the media who chronicle their every step and, ideally in their eyes, misstep. But that’s nothing new. And now, it seems we’re getting the benefits of their wisdom as magazine columnists as the printed product in particular struggles to keep front and center in the public eye. As recounted in Adweek in article “It’s Written in the Stars”, this month kicked off A list celebs picking up the pen for magazines from Brides and Vanity Fair to Redbook, InStyle and Glamour. 

The lineup includes Drew Barrymore on beauty for Brides, Pippa Middleton on a guide to watching rugby for Vanity Fair, Alison Sweeney for Redbook, Q &A for InStyle with Diane von Furstenberg, and Girls’ Zosia Mamet for Glamour.  Does it build readership? The jury is still out but results are promising. Actress Olivia Wilde’s “The Dos and Don’ts of Turning 30” was among the top 10 most shared stories of 2013 on Glamour.com.

 

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Rent a Slum Dwelling, the Newest Hospitality Niche

 

 

The favela of Rocinho in Rio de Janeiro

The favela of Rocinho in Rio de Janeiro

We’ve written about tourism microniches from danger and grief to scandal and slum tourism. But all of that was about visiting sites – an in and out kind of thing. Now a new company is offering a chance to get up close and personal with Rio de Janeiro’s favelas, promising “cultural immersion, stunning views, and an alternative to expensive and boring hotels”. Fueled by the scarcity of rooms projected during the upcoming World Cup, a new start up called Favela Experience begun by an American is promising “affordable World Cup accommodations” in Rio’s slums. This can range from bunk beds to a private room or entire apartment. Many of the accommodations have WiFi and large screen TV as well as the promise of a favela tour by the owner, and rooftop terraces. Plus, they talk of an opportunity to do good as in helping to supplement the income of the favela dwellers. Part of the profits go to fund a DJ school for neighborhood youth. It’s very easy to believe that we could see the beginning of the gentrification of the favelas, already being snapped up  by investors who see the potential in the dramatic views commanded from the hilltop locations.

Using Art to Market Hotels

the betsy

Hotels have been using art to appeal to the affluent market for years. I remember when we launched Ritz Carlton Hotels years ago, art in the public areas was promoted as a major amenity, as it would become with many other hotel groups and individual properties. Artists in residence, experiences with art such as the Peninsula Academy’s class in Chinese brush painting, art tours, and even one with the word “museum” in its name (21C Museum Hotel), have all been part of the appeal. But now, especially at the recent Art Basel in Miami, it has been taken to the next level, both in uses in marketing and in reaching out to new audiences.

And that’s not just travel products, but lifestyle in general, brands ranging from American Apparel and Fiat to Maserati, Harper’s Bazaar and Samsung. Publishing, apparel, automotive, beverage, food, they’re all jumping on the bandwagon and in a major way. According to a recent New York Times article, “In Marketing, Art’s the Thing”, they’re using art to reach consumers in their 20’s and 30’s who are already making art part of their lives, as a differentiator in the luxury category, and as a point of reference for relating to the beautiful and artisanal.  Miami hotels chose to wave their flag during Art Basel with popups – from The Newstand at the Standard Spa Miami and all night dining at The Raleigh to cultural events at The Betsy. The Betsy’s tie-ins were especially notable, featuring exhibits in its dedicated visual arts space, programming inviting guests to interact with the artists, and a cause related marketing initiative. Percentage of all works sold is contributed to the Zara Center for AIDS Impacted Youth in Zimbabwe.

Restaurants and bars got into the act with special themed menus like Red Steakhouse’s “Red Basel” and cocktail bar The Broken Shaker serving up drinks with their companion art. Pamela Drucker Mann, publisher of Bon Appetit cited food and art coming together, giving examples of restaurants designed to look like art galleries and “tablescaping”, designing table arrangements or centerpieces. Indeed, art sells.

Blogpost by Karen Weiner Escalera, President & Chief Strategist

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Psychographics and Hotel Lifestyle Branding Part 1

Branding

Special interests and passions are driving travel decisions more and more, from themed weeks at hotels and cruise ships and tour operator offerings to learning vacations and now, hotel brands. Drivers in travel buying decisions are increasingly about psychographics – behavior rather than demographic determinants.

Let’s take a look first at the traditional “big four” of demographics: gender, age, geography and income and their influence today:

  • Gender lines continue to blur with women taking on more of the traditional role of men and vice versa, and the advent of same sex marriage.
  • Age is also less important. Whether it’s the “coveted” 18-34 males or moms from 25-44, this is an outdated way to target for many reasons. First, people are age shifting and not living lives based on their chronological age. Second, the top end of a demographic (34) has almost nothing in common with the low end (18). Also, age demos leave out influencers and others for whom a message may be relevant. Finally, focusing on age can take you away from emotional or other relevant benefits.
  •  Then we have geography. In this global, highly mobile world, people often spend their lives in multiple cities.
  • Of the four determinants, the only one that is still very important is income, especially at the two ends of the spectrum: budget and high end.  Price will trump passion if you’re on a budget and at the high-end, travelers are reluctant to compromise their comforts and service.

However, these traditional measurements don’t tell you “why they buy”- why consumers would choose one brand over another. Psychographics, or lifestyle and behavioral information are playing a larger role in hotel branding, which was my topic as a panelist for the Urban Land Institute, Southeast Florida/Caribbean chapter, last month. What are some of these options and new directions for the hospitality and cruise industries? Check out the answer in Part 2 tomorrow.

By Karen Weiner Escalera, President & Chief Strategist