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dimanche 20 mars 2011

Hotel reputation procrastination hurts profit!


“Hotel reputation management sounds interesting, but we need more time to think about our strategy.”
So many hoteliers say that,and it is a shame that they still don't understand that Online reputation IS the key to success today.
The fact is that more booking are driven by reputation than either location or price today. The potential guests will automatically rely a review website, or a friend, than just the hotel website. And this because we are all living in an information society. Old times are gone, today, hotels need to manage their reputation.
A source from Expedia says that “Good reviews of 4.0 or 5.0 generate more than double the conversion of a review of 1.0 – 2.9” - this shows us how hurt the profit can be, if hoteliers delay or neglect their reputation management
The article states also that  in most of the cases, “A 1-point increase in a review score [on a 1-5 scale] equates to a 9% increase in average daily rate.”
That is impressive!
So now, I just don't get why so much hoteliers don't monitor at least their reputation, we have so many tools today to work on it, (social medias, influence marketing, review platforms...)
Sure, it can take time, and/or money, but it definitely worths it, and it can give a hotel a competitive advantage if he takes the lead now.

dimanche 27 février 2011

Loyalty Program : Welcome to the new generation!

The article I wanted to comment today is about Carlson and the upcoming launch of their new guest Loyalty program. But let's just remind us what represents this Company:
- More than 1070 hotels worldwide including Radisson, Country Inns, Suites by Carlson, Park Inn, and Park Plazza
- More than 900 TGI Friday's Restaurant
- Main stakeholder in Carlson Wagonlit Travel which is a leader in travel management.
- About 150 000 employees
- Present in more than 150 countries


So now let's talk about their novelty:
The company has presented in last hospitality conference in Washington DC what is to be their new rewarding program, and ambitions.
Talking about this, Carlson is willing to double the current loyalty program size to 10 millions members in 2013, and a major revenues growth for 2015.


The pillars of this new program are as follow:
- Strengthening the network by the possibility of redeeming points accross all the 1070 hotels worldwide and 42 resorts
- Enhancement of partnerships, with diverse suppliers such as: Itunes, Amazon.com, BestBuy, but also with 80 ClubMeds and hundreds of independent hotels, ski resorts, and even cruises, thanks to Carlson Wagonlit Vacation's partners
So members would be enabled to earn either points or discounts in as much retails spots as possible.


On the other hand, the benefits for the guests are:
- Automatically complimentary early check-in, late check-out and continental breakfast for members
- Special online Concierge service dedicated to theater, sport tickets, and best-rated restaurants all over the world.
- No blackout dates warrant
- Development of a mobile application for i phones and android for express bookings, to attract the Mobile users audience
- Insurance of a fast and enjoyable way to reward (if you spend 2 night in a Radisson hotel in LA, you immediately get one night for free in the Park Plazza Prague, and you can use it at your best convenience)
***


This new generation loyalty program has been designed to be one of the most rewarding programs, but we might wonder if it is gonna have good economic fallouts for the company. In my point of view, the answer is Yes. The investment for launching this is about 10 Millions USD, but from now to 2015, the extensions objective must be reached, and the company will built a very strong core consumer relationship, which is the best way to gain profits in this business.


The last point to me is that they absolutely have to maintain a good quality of service, because they may reach 10 millions members of the Club Carlson, but if the quality offered is not satisfying enough in the next years, the members will be less and less loyal, and their number will decrease a lot as well in the future.


ps: The new loyalty program website is to be launched in the end of March 2011, starting from this date, you will have access to full program details on www.clubcarlson.com


Hope you find it as interesting as I did.


Have a great day, sunny Sundays are rare in Paris!