T&L Top Ten

Here are the recently released Travel & Leisure top ten "service" hotels in the U.S.

1 Woodlands Resort & Inn, Summerville, South Carolina
2 Blackberry Farm, Walland, Tennessee
3 Peninsula, Beverly Hills
4 The Wauwinet, Nantucket
5 The Peninsula, Chicago
6 The Lowell Hotel, New York City
7 Ritz-Carlton Reynolds Plantation, Greensboro, Georgia
8 Little Palm Island Resort & Spa, Little Torch Key, Florida
9 Post Ranch Inn, Big Sur, California
10 Inn at Little Washington, Washington, Virginia

It's not surprising that the majority have the following in common: independent, great story to tell, sense of place and one of a kind.

Go here for the top ten in the world.

Versace on Dubai

Palazzo_versace

It looks like they have design pegged at the recently announced plans for a Versace Hotel in Dubai. And, with the namesake, spreading the word won't be much of a problem either. Let's hope they spend as much money and time on the people as they do on the constant temperature beach sand.

With all of the design money going into Dubai, whoever comes up with the best stories and service wins!

A Whole New World

The_world


The World looks like quite a place. And, they have one heck of a story to back it up...

The World' in Dubai rises up as sand reclamation reaches 55 percent

Rising out of the Arabian Gulf with incredible speed, 'The World' has quickly taken shape with up to 10 dredgers working daily. The scale of the logistics operation is immense: more than three million cubic metres of sand is moved every week, which amounts to more than 181 million cubic meters of sand deposited to date. A fleet of up to 14 barges transports rock to the site, with more than 5.5 million tons of rock placed to date. When completed, 'The World' comprises some 321 million cubic metres of sand and 31 million metric tons of rock.

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Opening Your Doors

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In_line

The key to a new hotel (at least for most of us) is to have business when it opens.

Apart from getting the lights to work, the furniture in place and the staff trained, there is little that is more important than having a stream of guests when you throw out the welcome mat. You can talk all you want about having a great sales team, partnering with powerhouse marketing organizations and developing fancy websites with on-line booking capability. But, it really comes down to two things: desire and anticipation.

Desire is created by offering something meaningful that didn’t exist before. Anticipation follows suit and is driven by the desirability of your new offering and how well you tell the story about it. The combination of the two determines if there’s a line to get in when you turn the lights on for the first time.

Creating something that people want is much more than being on the right side of the supply and demand equation (which is what the bank cares about). Maybe you can hang your hat solely on the economics if you’re lucky enough to find a market running 80%, and you’re the first in line to develop a new project. Most of us, however, are faced with creating some new demand, either on our own or with the help of our neighbors.

A new Comfort Inn (nothing against them, just an example) in a sea of existing budget hotels is born from numbers. It’s not what most people want. And, it’s certainly nothing to write home about. Its success is dependant almost solely on the supply and demand equation. That’s extremely dangerous. One twitch in the wrong direction on either side and they might have trouble making the loan payment.

A better way is to start with something people want. It’s much more fun and interesting. Plus, you get the added bonus of creating some insulation in the event the market starts behaving uncharacteristically.

The Inn on Biltmore Estate was developed to satisfy desire. For over 100 years, people (I mean, a lot of people) wanted to spend the night on Biltmore Estate. Only a select few were ever given the privilege as a personal guest of Mr. Vanderbilt. So, when the plans for the Inn were announced, there was a firestorm of anticipation. The Biltmore marketing team was very smart. They turned that desire and anticipation into one of the most successful PR campaigns I’ve ever seen (about $1 million in free advertising prior to opening). As a result, they enjoyed a first year occupancy of over 70%. That’s virtually unheard of.

The Stephen F. Austin Hotel, first built in 1924, had a storied history including tales of Babe Ruth signing autographs on the front porch, Charles Lindbergh stopping by before his historic trans-continental flight, Frank Sinatra giving an impromptu performance in the lobby and a whole host of political heavyweights calling it their outpost including LBJ. Unfortunately, the energy bust of the late 70’s and early 80’s took its toll, and the Stephen F. closed in 1986. So, when plans were announced to revive her in the late 90’s, you can imagine the heightened level of interest and the increased level of “talk” about the “new” Stephen F. The people of Austin desperately wanted her back.

Do something different. And, get people to talk about it…long before you open the doors. Everyone will be smiling, especially the owner.

Only For A Few

W_wow_suite

When putting together your marketing arsenal for memorable experiences, don’t forget about exclusivity. “Limited” and “out-of-reach” are attention getters to most of us, and more importantly make us feel special if we’re lucky enough or have enough money to be included.

Rolls Royce
Cuban cigars
A sky box at a major sporting event
Dinner at Per Se

Like this $70,000 package offered by W, New York. Now, it probably won’t sell, but it makes for a really good story.

Big Isn't Better

Org_chart

Thanks to Ben and Jackie over at Church of The Customer, I recently learned that GM spent around 2.8 billion dollars on advertising in 2004. If that’s even close to being accurate, that’s insane! On top of that, they plan to spend an additional 10% this year to hopefully reverse declining sales.

I won’t go into why they shouldn’t throw that kind of money away, why I wouldn’t buy their cars or what they should do instead. Number one, it’s not rocket science. And, number two, a number of very good alternatives are already listed on Ben and Jackie’s site.

What I do offer is a theory on why companies like this never change, why they rarely choose a path that’s obviously so much better to the rest of us. They won’t do anything new, meaningful or effective because they’re too big. Most big companies like GM can’t make quick or radical changes no matter how sensible the new ideas must seem. They have spent loads of energy, years of time and huge dollars getting the “machine” moving in a certain direction with a certain purpose. Along the way a bureaucracy and political infrastructure was created to manage the process, and ensure its success. So, anything or anyone that comes along and threatens the livelihood of what took so long to create is immediately debunked, voted out or studied until the results say what the fathers want to hear. Another way to say it…It’s too risky to make wholesale changes brought forth by the few (or outsiders), and huge companies typically don’t take these types of risks.

Smaller companies have the edge when it comes to change. They are nimble, quick and able to react to criticism, environmental change or new ideas almost instantly. Some big companies act like small ones. They minimize the superstructure, instill a culture of customer and employee centric thinking and have way fewer managers and consultants to consider every time someone throws a curve ball. Sure, sometimes they crash and burn. But, it’s much easier for them to get back up, dust off and move onto something else.

GM can’t do that. There are too many jobs and egos at stake.

More Is Often Less

Picked this up off the news wire. The point of the release is that more and more "boomers" are turning to travel sites like Travelocity, Expedia, etc., for their travel needs, and abandoning travel agents in the process.

But, when you look more closely, it's not the whole group. Here's the key point of the story...

"Hitwise research analysts note that as Baby Boomers begin to retire and have more leisure time, this price-conscious group will become an increasingly powerful force on travel meta-search engines."

The good news for travel agents, and anyone not competing primarily on price (shame on you if you are) is that more and more people are searching for meaningful experiences, are paying top dollar for those memories and rely heavily on trusted sources, i.e., friends, family and yes, travel agents to get them there. People inherently want to do business with other people. And more importantly, with people they trust.

Virtually all of the travel agents I know are no longer trying to serve the "price conscious" group. Besides the lack of return, it's just simply no fun. Instead, they focus on those who need their expertise and are willing to pay for it.

A large buyer segment is very attractive on the surface. But, it's usually best to break it down into manageable parts, and focus on the audience who's right for you, especially when you have something intersting and different to offer. Remember, more is often less.

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Black Glove Marketing

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Black_glove_1

Marketing is like a puzzle. All of the pieces need to fit neatly together in order for the image to make sense. It doesn’t work if pieces are missing or if you have some that don’t fit anywhere.

I’ve mentioned some important marketing elements before (design, story and care). Any one of these on its own is not enough to carry you...at least not anymore. Take coffee for instance. You could have the greatest blend in the world (yes, hand picked by Juan Valdez). But, put it in a crappy looking cup, and it just doesn’t taste good. Worse yet, deliver it without passion and in a place that’s cold and uninviting and you might as well sell instant.

Here’s a company that seems to get it, Black Glove Coffee. They use design and story to make their product meaningful to people who enjoy more than flavor when they sip their coffee. They make the coffee experience personal with descriptions like, “hand-made”, “small batch”, “New York” and “gourmet”. Of course, they aren’t the only ones making good coffee. But, that’s clearly not what they’re selling. They sell creativity, enrichment, relaxation and joy. The website supports this experience very well. It’s functional, efficient, aesthetically appealing and smooth.

So far, the pieces fit perfectly. I’ve ordered some coffee. We’ll see if it all comes together…I’ll let you know.

Thanks to Aki and Alex for the referral.

Direcway Not The Best Way

Direcway

Don't let that smile fool you.

As a follow-up to Mr. Godin's public service announcement about Direcway, I thought I'd throw in my four cents...these guys are clueless! I should have ranted about these people a month ago. Thank you, Seth, for taking the lead.

The Hostage Factor is definitely well at work. For, it's the only logical reason this group still exists. Last month, I spent almost two full days on the phone with their technical department fixing a problem they created (they decided to no longer support the modem they sold me just over a year earlier). As if my wasted two days and accompanying ear ache weren't enough punishment, you won't believe what I heard from two of the IT nerds..."forget whatever the last guy told you because he doesn't know what he's talking about". This is no joke. That's what two of them told me. So, you know I had to ask the third guy what I should expect the fourth one to say....there was no response.

As Seth said, only choose this service if you have no other options. Well, when you live and work on the top of a mountain, miles from the next house, let alone a town, you definitely fall into that category as well as the one of being up the creek without a paddle.

One day, I'm going to have a choice, and they're going to lose.

Blog Tutorial

I recently released my own Blog Tutorial to friends with some favorable responses. So, it's now made its debut in the downloads section over on the right. If you want something completely accurate, technical or more comprehensive, there's plenty of that all over the web. I've even referenced a better version in the tutorial. I started mine when I was challenged to explain this stuff to my Mom. So, it's no technical manual. Please keep that in mind when perusing my amatuer version.

Are You Wired Yet?

This is a pretty good summary by Seth Godin of where things stand with regard to the internet and related technology. Historically, our industry has lagged behind in using new mediums and technology, especially in terms of building relationships with customers. I think that's starting to change.

Do you know what these are? And, more importantly, are you using them to stay in touch with your guests?

RSS
Technorati
Aggregator (nope, it doesn't live in FL)
Feed
BoingBoing
Google (If you don't know this one, it could be all over but the cry'in)
Flickr

Value or Brand?

This article and related YPB&R survey suggest “value” is far more important than “brand” as a factor for business travelers choosing hotels. I think value has always been important. But, it’s such a vague and subjective concept (as is branding). And, it’s very difficult to break-down what is actually influencing the value in the first place.

In my opinion, here are the key findings from the survey and my conclusions:

“Business travelers also express growing interest in non-chain affiliated hotels (14%, up from 10% last year)”

Independents have and always will (in my humble opinion) deliver a more memorable experience for their guests. They typically have a better story to tell, more attractive design elements and more employees that care.

“The hotel brand name is cited as influential by just over half (52%) of business travelers, down from 64% last year.”

This is a huge shift, and one that is likely to continue as more people seek meaningful experiences which are delivered more often by independent properties (see my first comment).

“Contrary to the trend observed during the past few years, a significantly higher percentage of business travelers report using the services of a travel agent (32%, up from 25%).”

I’m glad to see this moving up again. I think there are two factors driving this trend: a shakeout in the TA business (the last few years have culled out the folks who had no business being in the business), and travelers’ increased aversion to the deceit and confusion created primarily by brand advertising, false promises and the massive amount of information and choices on-line. Travelers need someone they can trust. And, in the absence of a family, friend or co-worker referral, they need an expert.

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Trust Me!

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Trust

Relationships are about one thing…establishing trust. Every time we get to know someone, we move along a line, from skepticism…toward unwavering belief in their commitment to look out for us, and perhaps back again. We don’t always begin or finish at the ends. But, we definitely move back and forth to some degree:

People We Don’t Know (no trust)…………………Our Friends (Unquestionable Faith)

The key to business success is to make friends and keep them by developing relationships perpetuated by trust.

Think about it, buying and selling is all about trust. We listen closely to those we trust about what to buy, and when to buy it. We buy more from those we trust than from those we don’t. We even find ways to forgive when mistakes are made…if we trust them. It’s a quid pro quo world. Show me that you care about me, and I’ll do the same for you.

Strong relationships based on trust enable you to have meaningful conversations. Conversations allow you to ask questions, listen and interact. And, interactions allow you to demonstrate passion, creativity and caring. Together, they make people feel different and special, creating long-lasting memories…and loyalty for your product.

Here’s a good example of what happens when companies are genuinely interested in long lasting relationships with their customers…and, when they’re not…

Brand Investment

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Arts at ASU

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Fac

I’m on business in Arizona today…yes, it’s hot. But, that’s not the story.

Typically, when I travel and am fortunate enough to be near a college or university, I make it s point to explore the campus. I like the scenery, serenity and the people. Usually, I make my journey in a pair of running shoes. This morning as I had the pathways of ASU to myself at 5:30 AM, I noticed something that I really hadn’t taken in before at other places, the arts side of the campus is a far nicer place to be than the sciences. For one, there’s art (duh). But, most of the physical spaces are different. The buildings, curved pathways and even signage…all “designed” differently. Here, they even a have a series of signs along one of the main streets which tells a story about why the Arts are important. It just makes you feel better to be there. Nothing against Science majors (I have one of those B.S. degrees), but the Arts folks have figured out that design and stories matter…more than anything else. No spreadsheet or quantitative analysis will deliver meaning this way. Another plug for Dan Pink’s book, A Whole New Mind. He explains this phenomenon in much greater detail.

If you have the chance, visit a college campus. The youth and spirit alone are contagious.

Design, Story and Care

These are the three keys to success in the hospitality business (likely, in any business)…unless you’re willing to complete on price. And, for most of us, that’s not a good option. We don’t have the supply empire or resources to weather those nasty “price wars”.

More and more, it’s not about price. People want something “different”. Not just in hotels, but in almost everything. Especially, as the price gets higher. People want unforgettable experiences and meaning. They’ve had everything else. And, they can afford to be stimulated in a new way.

So, how do you give people memorable experiences and meaning? With a healthy dose of Design, Story and Care.

Much more on each, later.

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People Power

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Ben and Jackie have done it again over at Church of The Customer...another excellent Podcast.

This one highlights the importance of People...both as evangelists for your product and having really passionate folks on your team.

Check it out for some good advice, excellent stories and even good music.

You can see my related thoughts from previous posts, What's More Valuable? Repeat or Referral? and The Robin Williams Effect.