Catering to Emerging Tourism Markets

China and Iraq, two countries with seemingly nothing in common. Except for the fact that they are both being heavily targeted by the hospitality industry, but in two different respects.

Many major hotel chains in the United States are implementing changes in an effort to cater to Chinese tourists coming into our country, while at the same time making headway into building properties in certain regions of Iraq as economic development continues to boom.

Chinese tourists. credit:chinatraveltrends.com

Just this week, both Hilton and Starwood introduced new programs that focus on the well-being of Chinese guests. Starwood's program, called "Starwood Personalized Travel," will offer specific services for Chinese travelers, such as in-room tea kettles, slippers and translation services. The hotel is also updating its menu to include fare from China.

Hilton'a program is called "Hilton Huanying"--which is the Chinese word for "welcome." Basically, every Hiton hotel that has this service will employ a front desk worker that speaks Mandarin, provide a Chinese television station, and offer a full Chinese breakfast that includes dim sum, congee (rice porridge) and fried dough fritters.

These initiatives prove that the Chinese are slowly taking over the world. I mean that in the best sense. Their country and their corporations are becoming incredibly influential in our world, and Chinese travelers are expected to have a big impact on the travel industry. It's a similar trend that happened a few years ago, when Japan became a major mover in the economy and hotels started featuring rice, dried seaweed and miso soup on menus. You cater to the people who are going to provide the most business--or more appropriately the biggest amount of revenue. In my opinion, I think it's a smart move, because it shows that Americans can adapt to another country becoming a big world power. When America grew into a international powerhouse, every country made sure to teach their kids English and employ people who could communicate to foreign tourists from the U.S. Now, we have to do the same thing and prove that we can be multicultural.

Erbil, Iraq. Credit: WSJ

In Iraq, both Marriott and Best Western plan to build hotels in the city of Erbil. The properties are on course to be the first U.S. hotel brands in the region, and other companies have expressed interests in moving there.The Erbil Marriott will have 200 rooms and four restaurants and lounges and will open in 2014. 

Many companies have been hesitant to enter the country due to civil unrest and perceptions of corruption in the corporate world. While there is still some question as to whether or not these locations will be successful--or safe--many in the travel industry believe that northern Iraq, near the border of Turkey and Syria, is much more stable and presents a great deal of potential.

I wish I could say that I would visit Iraq, but there is definitely a sense of uncertainty when it comes to traveling there, especially for Americans. Many countries in the Middle East have been affected by political upheaval this year, like Egypt and Lybia. Those events crippled their tourism businesses as many visitors fled for home or canceled trips, and big cruise companies dropped ports from voyages. I know that any tourism income Iraq had before the war has certainly disappeared, and it has been struggling to get back on its feet for a long time. I think the fact that hotels are starting to invest in property there is a promising sign that the economy is turning around and that business is starting to boom in Iraq. I certainly hope it gets to a point where people feel comfortable enough to go there, even with all the fighting and turmoil, which, God willing, will end soon.

Would you do a digital detox?

Imagine arriving at a hotel to check in and before they hand you the room key, they demand your cell phone, iPod and any other kind of electronic device you may be carrying. You stand there in utter shock. How can this person ask you to give up your phone, your main means of communication, your life source? Are they nuts?

I may not be that dependent on my phone, I barely use it to search the internet or listen to music or play games, but obviously I rely on it to stay in touch with people and check my email when I'm not near a computer. So the idea of going even a day without it does seem like a stretch. However, I think I could do it, probably easier than other people.

This is a trend going on in the hospitality industry, where hotels are offering "digital detox" packages to people, a way to completely "unplug" and get away. This is the kind of vacation I fully support, especially for those people who are permanently attached to their phones, to the point where it is an addiction. What makes these packages even better is that those who agree to them get either a discount on their hotel room or extra amenities. For a cheaper room, a free meal or spa treatment, I would gladly give up my electronics. I do not know many people who would do the same, but maybe I am the exception.

Feel free to read more about these "digital detox" packages in this article. And I encourage everyone to consider actually partaking in one.

Satisfaction Guaranteed

When it comes to travel, customer service is essential for success in air transportation, hospitality and facilities. So who will guarantee you a satisfactory travel experience?

Credit: J.D.Power & Associates

According to J.D. Power & Associates' 40 "Customer Service Champions" list, the Ritz-Carlton and Four Seasons Hotels and Resorts are two of the top customer service hotel chains in the United States. Enterprise Rent-A-Car was also a top company. As far as airlines are concerned, go with Southwest, JetBlue and Canada's WestJet to receive exceptional care and attention. A somewhat surprising member of the list is Indianapolis International Airport, which recently underwent a major redesign and reopened as a state-of-the-art facility in 2008.

J.D. Power based the awards off consumer surveys conducted over the past year. They use the five P method to measure how people feel about each company: people, presentation, price, product and process.

Of the selected travel companies, I only have experience with Enterprise.I am sad to say I have never stayed at the Ritz-Carlton or Four Seasons, or flown with Southwest or JetBlue or WestJet, or visited Indianapolis Airport. But I am excited to experience the customer service with these institutions, and I will definitely report back and let you know whether or not J.D. Power knows what its talking about.

Hotels Upgrade to Boost Business

Even in times of economic worry, organizations are still trying to make improvements in order to please the customer, rather than making cuts to save money. The hospitality industry is one of them. Despite the crippling effects of the down economy and unpredictable stock market, business travel is on the rise, and hotels are trying to win over travelers as they jump from city to city for work.

The Chicago Tribune reported that hotel chains were looking at a number of different factors that travelers expected when staying at a hotel. Wi-Fi was the number one request from guests, followed closely by a quality workout facility and free breakfast. So hotels are starting to offer these amenities at a reasonable price point, rather than increasing rates and charging guests more for these extras. The hope is that customer loyalty will increase, bringing more guests to the hotels. The more business they get, the easier it will be to offer these kinds of benefits, without worrying about extra costs.

The question is whether or not business will improve, and if it does not, will hotels have to start pushing costs up in order to balance out offering free breakfast and Wi-Fi? Only time will really tell, but right now, hotels are investing in their product, hoping to secure loyal customers and keep people from migrating to other companies. Targeting business travelers is the main objective, because these people travel so frequently, they want to know they have a hotel they can trust. But since business travelers are always moving, hotels have to keep things fresh, offering comfortable benefits and amenities to help travelers relax for a moment during their hectic lives.

It's nice to see that hotels will go the extra mile to please their clients, rather than nickel and dime them on small fees like breakfast or parking or internet. I hope this continues as the economy slowly improves, and even after it's gotten back to it's pre-downturn state.

Hotel on the Market

The hotel and hospitality industry has been suffering in the wake of the economic downfall the past two years. Even with the recessions crippling effects, business and leisure travel has been on an upturn, increasing significantly in recent months. Hotels are eager to fill their rooms and keep them booked consistently throughout the rest of the year and the holiday season. Despite increased hotel occupancies and room rates, the hotel investment market is still slow, making investors hesitant to put money into any property. But Starwood Hotels & Resorts Worldwide Inc. is crossing its fingers for a risk taker. According to Crain's Business, Starwood's loop property, W Chicago on Adams, is up for purchase, and they are hoping to get over $130 million dollars for the hotel.

Experts say it is a lofty goal, especially after the brand new JW Marriott Chicago opened its right across the street earlier this month. The 610-room hotel will certainly have an impact on what happens with the W, and some industry officials still think it's a worthy investment. Remember, Host Hotels & Resorts Inc. did purchase the Westin River North in August for $165 million, so there is still hope for the W. Although, it may not go for the initial asking price. Starwood may have to settle for less money, but it all depends on the group of investors they try to sell to.

It is promising, however, to know that quality properties like the W Chicago are being considered as worthwhile assets. It would be a real shame to see the hotel shut down entirely, another fallen victim in the hospitality industry's epic battle with the economy.

Have A Little Faith

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When it comes to hotel brand loyalty, the 2011 forecast does not look good. According to an annual survey by TripAdvisor, there was a severe drop in hotel brand loyalty this last year, the amount of people saying they are loyal to one hotel name dipping from 59 percent to 39 percent. Travel experts and analysts speculate that the economy could be the main reason for the decline, the recession causing more people to question prices even on quality products. Another reason people are changing their tendencies is due to more access to other options. With all the social media and review-based websites out there, people have a wealth of information available to them, which makes it easier to make frugal and savvy decisions.

So what is keeping people faithful to their brands? Rewards programs. A huge factor in maintaining client loyalty, hotel reward programs provide quality benefits, upgrades and services that make for a more intimate experience. But no matter what a hotel gives to a client, it all comes down to how the brand interacts with the guest. All the upgrades in the world cannot replace a friendly customer service experience, and guests appreciate personal attention that can make them feel like the only people in the hotel.

One of the biggest mistakes airlines have made is their lack of effort to reach out to travelers and make them loyal customers. Unless someone is a frequent flier on an airline, he or she will probably not receive the kind of treatment that will make them feel appreciated as a client. In fact, the main reason people say they are not loyal to airlines is because the company has not done anything to deserve the loyalty.

A hotel brand taking the necessary steps to show its appreciation for its customers is Preferred Hotel Group. Their I Prefer program lets travelers sign up for free and take advantage of special services right away. Where other reward programs require customers to build up points or stay a certain number of nights before cashing in on upgrades, I Prefer gives them automatic benefits at no fee. Who wouldn’t want to get extra amenities or priority check-in or exclusive offers just for becoming a member? The program also offers online booking rewards, like complimentary breakfasts and rounds of golf. There are a number of exclusive hotel deals and partner companies offers that members can take advantage of, all for no cost.

With loyalty rates dropping by 20 percentage points this year, hotel brands need to find ways to make their customers feel special; that their business is greatly appreciated. Every guest is looking for a memorable vacation, and hotels need to go out of their way to provide that. Some people are happy with a few extended amenities, such as 24-hour access to hotel facilities, free coffee in the rooms and the lobby, free wi-fi and complimentary food. Others are looking for better customer service and a welcoming atmosphere. Still others feel that competitive prices and discounts are essential to win their loyalty. When it comes down to it, though, every guest is looking to be amazed with their hotel experience, and even if the smallest gesture can win them over, it’s worth doing.

Tax Day Deals

Tax day is hardly something to celebrate, right? Wrong! April 15 looms ahead, and those tax forms need to be dated and stamped. Once you send them off, it's over. So why not enjoy some sweet deals. I'm accustomed to getting free food; McDonald's and Cinnabon are both contributing to the tradition this year. And personally I'd go for the mini cupcakes over the burgers, but I have a severe sweet tooth. Anyway, moving on. I was browsing around on Twitter and saw an update from Travel + Leisure Magazine:

No Taxation Without a Vacation: Tax-Day Hotel Deals - Carry On - Travel + Leisure

After reading this, I seriously considered the Hard Rock Sand Diego deal. Who wouldn't want an EFFEN cocktail? But this article also got me thinking about something my co-worker Justine told me. There are promotions being put forward by the travel industry--specifically student travel--encouraging people to spend their tax refunds on trips. I thought that was a great idea. So while hotel deals during the month of April acknowledging tax day are great, companies could also look into deals promoting tax refund spending on travel.

For example, the bigger your refund, the bigger the discount you get on a hotel rate. Of course, there would have to be a way to prove what your refund was, otherwise people would probably exaggerate the amount a little bit. (Ok, probably a lot.) The bottom line is that it could be a great way to push the industry, especially with summer fast approaching and vacations being planned. Travel agencies, hotels, airlines, travel media outlets, all of them could capitalize on TAX REFUND DEALS!