Tuesday, January 31, 2012

10 Ideas, Trends and Truths About the Lodging Industry


Just completed a 17 month assignment at the Shawnee Inn and Golf Resort and was fortunate to work along side some of the most passionate leaders in the hospitality and tourism industry. The Kirkwood Family and Rob Howell the property General Manager have a one-of-a kind resort nestled quietly alongside the Delaware River in the Pocono Mountains. Promoting the Resort for the past year and half as it celebrated its 100th anniversary was an excellent opportunity to experience first hand some of the fastest growing trends in the hospitality industry come to life. Shawnee Inn and Golf Resort is at the front of the line as it leads the industry towards locally sourced foods for its several restaurants, grows many of the herbs and spices at the Great Shawna Farm, taps its own Maple Syrup and hosts its own honey bee apiary. Not to mention, Shawnee Inn and Golf Resort is home to ShawneeCraft Ales and Lagers, a craft beer served on site at the Gem and Keystone Brew Pub and River Room restaurant. 27 holes of championship golf, a full-service Spa and Salon, River Trips, Gallery and Playhouse all offer a little something for everyone trying to escape the big cities.


Here is a top 10 list of ideas, trends, and truths about the state of the resort, hospitality and tourism industry.


1. Adventure Tourism is quickly becoming a reality and more and more travelers are reaching for an authentic outdoor experience. I experienced first hand Camelback Mountain’s CBK Adventures and can see the adrenalin rush that can lure visitors from the big cities. Combine that with guided fishing and river trips hosted at Shawnee Inn, the Appalachian Trails, Bushkill Falls and of course skiing at six regional ski areas and the Pocono Mountains will be experiencing a boom in this outdoor enthusiast market.

2. Flash Sales and Daily Deal offerings such as Groupon and Living Social can work, but don’t expect to get rich from them. I had the opportunity to experiment several times with these emerging forms of revenue generation and new customer acquisition models and what I found is these programs do offer your organization an opportunity to reach many potential customers and each business needs to evaluate the cost of acquiring a new customer vs. the potential fear of cannibalizing an existing customer. I ran an offer in NYC that targeted males with six figure incomes for an affordable golf, lunch and beer experience and it was successful in attracting approximately 250 new customers to the resort. On the other hand I tried a similar offer with suite accommodations, and dining credit that was not successful as I had placed too many restrictions and did not discount the offer deep enough to capture the impulse buy market. I will create an entire post to this form of sales and marketing in the future.

3. Spa is a big deal! One of the fastest growing segments in the tourism industry is Spa services and having a full-service spa on site is truly a game changer. Considering many of the resort amenities are traditionally weather dependent, having a spa that is open 365 days a year and well into the evening is a clear advantage over those facilities without this amenity. The impact on occupancy is similar to a traditional hotel that offers an indoor pool vs. those hotels that do not, maybe 5% annually. Higher room rates are also a benefit of a resort that offers a full service spa. In addition, spa services assist in closing destination wedding business along with providing a nice employee benefit.

4. Gaming is good for tourism. Legalized gaming and the development of full service casinos in Pennsylvania has created jobs in our industry and is contributing to the overall growth in tourism in our state. Hard to believe some of the casinos are already celebrating their 5th anniversary. The additional revenues from the establishment of casinos in PA have not reduced property taxes as promised nor has it created any crime sprees as others argued, but overall many customers I talked to want to visit the casinos as part of their visit to the region.

5. When it comes to digital marketing keep it simple. It is very easy to get caught up in the buzz as it relates to digital marketing, online travel agents (OTA’s) and social media, but the truth of the matter is know your customer and know your partners. Online travel agents such as Expedia, Travelocity, etc. offer an excellent marketing opportunity, similar to that of a billboard, especially for independent hotels and resorts. If you can create a business model that includes a percentage of your business with a 25% commission structure then by all means use the OTA’s to reach new customers. The cheapest from of advertising and arguably has the highest return is targeting your past customers. Some of the best results in campaigns were delivered by e-mail campaigns targeting our best customers.

6. Social Media makes a better communication tool than a sales tool. One of the best suggestions I heard as it relates to social media is do not let your sales department run your social media efforts. Facebook, Twitter, Linkedin, etc., all need to be considered as a communication tool to those that find your organization interesting. Telling them that Sunday Brunch is $25.95 and reservations can be made by calling does not help put the sizzle in the steak. Photos, and customer engagement and interaction are the keys to a successful social media effort. The ROI measurements are hard to quantify, but goals that track interaction and click thus to your website are key performance indicators.

7. Where have all the golfers gone? Amazingly in the 17 months I was at Shawnee Inn and Golf Resort, the market lost 3 golf courses and yet we really did not see any appreciable increase in the public play. Weather and the economy can certainly be blamed for this recent trend, but golf has been trending down since its peak in 2000. It will be interesting in Tiger Woods return to the leader board will create a spike in rounds played in the future, or has this sport topped out like tennis did in the 1970-1980’s.

8. Craft beer making is hot! Probably not telling you anything new here, but the fact that one of the most requested things to see or do at Shawnee was to visit the brewery where Shawnee Craft beer is born, really shocked me. But nothing brings a smile to a beer drinker’s face faster than tasting a beer made right on site. Recession or no recession, craft beer is a growing industry and we should be hearing a lot more about ShawneeCraft in the near future.

9. Customer reviews are replacing AAA. The old rating system by AAA of the number of diamonds as a representation of how nice a hotel your were going to visit has taken a back seat to Trip Advisor, Yelp and other customer review sites. Lodging facilities that embrace these customer review sites and do not hide or shy away from clear customer feedback are better for it. It will not be long before the large hotel brands incorporate these customer review sites into their property scoring systems.

10. Mother Nature and Old Man Winter are the two best sales people on your team. Never underestimate the weather when it comes to delivering exceptional sales. The best laid marketing plans and sales forecasts are always at the mercy of the weather. Over the past 22 years I have seen many instances when the weather played a significant role in the success of a tourism season. This past year I started to follow weathertrends360.com (day by day 365 day weather forecast), not so much as a crystal ball, but more as another tool in my business plan toolbox to remind me that what happened the year before as it relates to the weather is not an indication what is going to happen again this year or in future years.

Tuesday, February 1, 2011

Superbowl Creates Tourism Hole


Judging by the number of vacation, travel and lodging offers I have received this week, it is clear that the Superbowl is a big pain in the neck for hotels and resorts. Consider for example the Shawnee Inn and Golf Resort, a beautiful full service resort along the banks of the Delaware River minutes from Shawnee Mountain. Booked to capacity for each weekend in January and looking forward to full houses for Valentine's Day weekend and the President's Holiday, the weekend ahead is less than busy. With the best snow in decades on the ground and more on the way, it is hard to believe that a sporting event scheduled for Sunday at 6PM can cause everyone to stay home. But that is exactly what is happening across the Country. My Starwood hotel emails have rates under $100 from California to New Jersey. Half price offers abound from NYC to Washington, DC. I guess there is the pre-party planning and work that involves getting the beer and cooking the wings, but does that really take all weekend? This also leads to my next question. How do you overcome this Superbowl hole? For Baltimore you go in the opposite direction of the Superbowl and book an All-Star Cheerleading competition. My family's butt will be firmly planted all weekend at the Baltimore convention center and the Hampton Inn ($92.00). The CVB sales manager and convention center leadership that recognize this Superbowl hole need to keep this event happy and returning every year on Superbowl weekend. With the event over by 5PM on Sunday, most of us will probably have the ability to catch the second half of the big game in the comfort of our own living room.
I eagerly await the new NFL schedule. Maybe with the proposed 18 game schedule we can finally get the Superbowl on President's weekend. That will accommodate alot of football party hangovers and make for a great winter vacation. For this year my friends at Shawnee Inn have plenty of discounts available at ShawneeInn.com and a great party planned at the Gem and Keystone Brewpub for the smart skiers that already know that the best skiing of the season is always Superbowl Sunday.

Tuesday, August 17, 2010

Owned Media vs. Traditional Marketing

Owned Media vs. Traditional Marketing
By: Gregg Marzano

Over the past two years I have been retained by companies and organizations to help them understand social media and how it can help their small businesses compete with the big guys. Well, not to say that Twitter, Facebook, Youtube, and Foursquare can replace the expertise and convenience of having a PR firm at your disposal, but today small business owners are beginning to embrace the concept of “Owned Media” and learning how to deliver this content to their niche audience.

Historically, small business owners that provided product direct to consumers bought an ad in the local paper or billboard on a busy highway and accepted the ROI, even though they knew they were exposing their products to many eyeballs that may never use their products. Today, we can build our database and customer contacts with affordable customer relation management software, and deliver our message affordably and regularly to our core audience in a matter of moments. In addition, many new message delivering tools are out there including social media networks and blogs.

Recently, I hosted a mommyblogger day for Dutch Springs Aqua Park and NorthStar Adventure. I invited bloggers from around the tri-state area to visit the park with their family. Each of the participants has surprised me with their writing skills and hunger to communicate their recommendations to their loyal following. Cameras in hand and children by their side they click and play and chat with employees to get a feel for the park. Each blogger has thousands of Facebook friends, Twitter followers and loyal RSS feeds that read their blogs and buy from their recommendations. These mommybloggers and bloggers in any field are creating their “Owned Media” library and publishing content for those of us interested in what they have to say. As an emerging media, few blogs have been sold to date, but realistically the databases of these blogs and the content of the authors has some real value.

Creating affordable ways to deliver your message to your audience has always been the secret behind a successful small business. Word of Mouth has been relied on to market a business since the dawn of time. Now this loyal recommendation is being called World of Mouth, since so many more people get to hear what is being said about your business.
I truly recommend learning as much as you can about social media and how it can impact your professional and personal life.

Gregg Marzano is owner of Rainmakers Lehigh Valley, a consulting and business development firm specializing in the lodging and tourism business. Gregg is an adjunct faculty member of Northampton Community College, and teaches in the Hotel and Restaurant Division. He is an active member of ASTD and is Treasure of the Eastern PA Chapter.

Wednesday, July 14, 2010

Pet Friendly Hotels. Do They Make Sense?


Just got a tweet from Poconos Visitors Bureau announcing that another hotel/resort, The Inn at Pocono Manor, had gone "Pet Friendly!" An exclamation point at the end of the sentence indicates that they think this is a good idea. I on the other hand, not so much. Look, pets are great and I agree that leaving them in a kennel is hardly a vacation for your "best friend" or in some cases, your "baby", but think of all the other people in the hotel who have not signed on, to spend their vacation, business meeting, or romantic getaway in a hotel that accommodates pets. These are tough times for hotels as the recession continues to drag on and every market is being looked at very closely to find new business. I get that, but at the end of the day/night is the ROI really there. And if it is not, why do it? I guess my big objection is that most hotels/resorts are still struggling with being guest friendly so how can they go ahead and tackle being pet friendly. Custom room service menus for gourmet dog food with a hotel logo dog bowl, would be cute, if I knew my room service order was going to be perfect and the trays not left in the hallway till noon the next morning. The assurance that the room was deep cleaned after the guests with pets left would be comforting, if I was not routinely picking up pen caps, mint wrappers, etc, form under the bed when I go to make sure I left nothing behind. If a hotel wants to be pet friendly, here are two suggestions:
Put a kennel on the property with an activities director and vet on call.
Have a patio for outside dining for the pet and their family to visit and dine.
I find it interesting that 20 years ago when I sold for hotels that regularly had dog and cat shows, the hotel was looked down on by upscale customers, now the upscale customers are the ones that are suppose to pay for the $100 cleaning fee, gourmet dog food and custom logo dog bowl.

Monday, June 14, 2010

A subsciber's advice to the Morning Call newspaper


I have been a subscriber/reader of the Morning Call since taking my first job in the Lehigh Valley in 1989 at the old George Washington Lodge on McArthur Rd. The paper does a better job than anyone turning over leads for sales professionals in the tourism business. They get all the news and PR releases before anyone else and their stories in the morning paper are a great source. Often the fact that I have read the paper by 7AM allows my first sales call at 8:30AM to be the one early bird that catches the worm.. With that said, one of my recent pet peeves with the paper is their decision not to send a reporter on the road with the Phillies Major League Baseball team. As much as I am sure there are fiscal concerns, I also understand that every decision has a financial impact and one is chosen over another for many reasons. I must say, reading an AP report on the Phillies is painful. Odds are if someone is reading the paper in this day and age, they are looking for insight and content not how the runs were scored. Mandy Housenick has done an exceptional job in her short couple of years covering the team and making the hard task of getting something out of the players and coaches that we didn't learn on tv or on the internet. Having Mandy at only the home games, probably makes the Morning Call a second class citizen when it comes to getting the behind the scenes news. I hope you will give some thought to this idea of sending Mandy on the road. Also, I have a few thoughts on the real estate section, but will leave that for another day....

Sunday, March 14, 2010

Lehigh Valley Tourism Tournament

Lehigh Valley Tourism Top 64 Attractions March Madness Style
I got to thinking about how many great places we have to see and things to do in our region and before you know it, I was up to 64 different events, museums, festivals, waterparks,zoos, etc. So I placed them in geographical regions, Allentown, Bethlehem, Easton and Lehigh Valley. Ranked them 1-16 in each region and now hope to get some feedback as to who gets to the sweet 16 and beyond. Some interesting matchups early on...I posted the bracket at http://tinyurl.com/y9dxlqd.


Thursday, February 25, 2010

New AirTran Routes To Put Lehigh Valley On The Map




Local Lehigh Valley Tourism To Benefit From New AirTran Routes.

When I first saw the press release from Lehigh Valley International Airport’s business development director Susan Kittle about the new AirTran routes to Atlanta it did not make a major impression with me. It seemed like the usual slow growth strategies we have grown accustom to when it comes to major airline announcements here in the Lehigh Valley. But thanks to another snow day, I had time to review the announcement in more detail. Daily service to Atlanta, leaving at 6AM and arriving in Atlanta by 8:00AM, makes the rest of the world’s travel destinations a reality leaving from our convenient, easy to navigate, security friendly, affordable parking home airport!

Imagine this: I can leave Lehigh Valley International Airport (ABE) at 6:00AM, and be in Los Angeles by 12:15PM for an afternoon meeting for $251 one way. The return trip of $190.40 brings me back to LVIA at 12:15AM the next day. Not that I would suggest this whirlwind travel trip, but hey for $441.80 (tax inc.) round trip this could make a lot of business travelers and their CFO’s very happy!

The flip side to this equation is how it opens up the Lehigh Valley and Poconos tourism markets! In the past this same flight into ABE would cost you $600+ (tax inc.) These higher prices would drive meeting business into Newark or Philadelphia airports and often cause meeting planners to choose a hotel or conference center closer to that airport for obvious reasons. Now if Olympus decides to bring all their sales associates into Center Valley, they can conveniently and affordably fly them into ABE.

If it keeps snowing, I will check out some other hot spots for a Spring Break!