As ever, the recent HOSPACE Conference and Exhibition featured an excellent programme and speakers, combined with multiple opportunities to network as well as meet many of the suppliers who provide essential services to the hotel industry. An intensive day, therefore, but one which can pay for itself many times over in 2015.
Here are just some of the points made, issues raised, and challenges for 2015.
Industry Overview
- Speakers as well as delegates were in general agreement that the ongoing recovery in the hotel sector could still be set back by uncertainties around the World and European economies – as well as next year’s UK General Election
- Peter Martin of Peach identified the ‘promiscuous customer’: greater available choice is being used; customers favour multiple brands not just one – young, affluent customers will use a portfolio of up to 15 pubs and restaurants.
- And it’s worth noting that, whilst London leads the way in size and variety, city centres across the country are following suit, with strong growth and variety of food and drink outlets.
Leaders’ Panel: key issues, trends and developments
- The regions as well as London are in recovery, with conversations everywhere about growth and investment options and opportunities.
- Nonetheless, there is a general trend to be careful with money: looking for value as well as high quality when investing
- Low oil prices are, of course, helping
- Hotels should look to manage revenues and push rates up along with increased demand. Regional hotels experiencing 90%+ occupancy on mid-week nights have the opportunity…
- Technology can undoubtedly add value to businesses, helping to optimise revenue management (the scalpel versus the hammer), improving rates and revenues – technology may even have been and be as influential in this as the economic recovery?
- Customers demand technology that is easy to use and which makes their life better – online ordering, check-in – ignore this at your peril! At the same time, such technology makes life easier for staff, freeing resource to provide better customer service where it matters.
- Technology delivers data and analysis which delivers greater insight to be applied through improved marketing – or should.
- Transactions are online, key customer influence points are online, which means marketing focus needs to be online
- Online search can certainly deliver more data to customers, more easily – including pictures and video – but be aware of the competitive ‘noise’ that surrounds what you do, including the OTAs.
- How can the roles of marketing and revenue management be ‘harmonised’ or even integrated for the good of your business?
Spotlight Session: getting the most from the data insights revolution
- For all the talk of Big Data, the real issue is what to do with all the data that can and is being collected: data insights are required to assist revenue management and marketing.
- Loyalty programmes deliver lots of data: is it used effectively for business value? Apps likewise.
- What do you want from the data you are collecting? Prioritise and focus: do not allow yourself to be overwhelmed by volume and choice.
- What can you do with it to make a difference, influence decisions, deliver change?
- Data can tell you about the current position, which is a starting point for trying to make predictions: it is tricky expecting data to make predictions for you!
- Education is necessary: many colleagues (even Senior Management) don’t ‘get’ data and the insights it can deliver – it’s necessary to educate them…
The Tourism Council – an Overview
Ufi Ibrahim, Chief Executive of the BHA, in conversation with Carl Weldon of HOSPA, gave a clear outline of the Council’s objectives:
- Prime objective is to connect the dots between Government and its departments and the industry, so that it can raise knowledge and awareness of tourism and hospitality, and influence effectively and continuously – not having to start again with every change of senior staff, minister, or government.
- The Council has agreed 3 primary tasks, and set up groups to focus on them:
- Boosting tourism across the UK
- The skills requirements of the future workforce
- Identifying and articulating one core narrative to identify what the industry is about, so that every Minister and Ministry makes better decisions based upon knowledge of the industry.
- The Council is not allowing itself to be distracted – or diverted – by other or commercial issues: the campaigning or lobbying for those (such as VAT reduction) continues but elsewhere.
- 900 members of the BHA are already helping with the ‘education’ of MPs, local councils and other organisations: delegates were urged to actively participate.
Spotlight Session: what keeps us awake at night?
The panel shared its thoughts and concerns as the sector comes out of the recession:
- Not being prepared for trading and pricing under improved conditions – having both the data and the confidence to push prices up, think bigger and more ambitiously – change of mindset.
- Corporate clients not responding to the new environment and not recognising hotels’ need to increase rates (agents appear to be more realistic).
- Risk and cost of a PCI breach: adequate security is essential and the consequences – both reputational and financial – of a breach can put small operators out of business. Remember the data could be personal data as well as credit card information.
- Distribution going forward? Will there be a new ‘generation’ to succeed or build upon the current OTAs? Will we recognise and understand the implications of any such operations? – the sector didn’t anticipate the impact of the OTAs. Will Google become an OTA, in effect?
- What exactly are hotels offering in the years ahead? Traditional models and service less important than design, technology, different ‘guest experience’?
- Online reviews and comments have major impact and can change reputation – for good and bad.
- Sound IT infrastructure is essential – for management, for guests!