On Monday 3rd September the Boutique Hotel News held a
panel discussion to review the effect of the Olympics and the results for Independent
and Boutique hotels during the period.
Held at The Hempel, the session looked at what can be learned from
the London Olympics and what to expect over the next 12 months.
The panel consisted of
Gareth Banner, general manager, The Hempel
Marie Baxter, general manager, Town Hall Hotel
Chris Foy, head of 2012 games unit, Visit Britain
Ruth Mortimer, editor, Marketing Week
Moderator: Jonathan Langston, managing director, TRI Hospitality
Consulting
The overview
The London Olympics 2012 is about the long game; promoting and
reintroducing Britain back to the world. Building the profile of the country
across the world. The panel noted that it drew the best of Britain through the
media, that was replicated across the world. The mass number of volunteers
demonstrated the country’s hospitality and the ability to be welcoming hosts.
Ruth Mortimer said it is hard to say yet how the legacy will be
fulfilled, “however the immediate success can be seen in the interest in the
Paralympics.”
For The Hempel, the hotel sold out to a single booking which helped
them meet their revenue needs. While Town Hall Hotel experienced good occupancy
and ADR, but “In all honesty conferencing and banqueting took a dip – we had no
weddings or other entertainments because of so many events were happening with
the Olympics.” However Marie noted that the hotel could continue to get success
“off the back of marketers, who will bring more people into London.”
The panel noted how boutique properties are good for hospitality
events with the right amount of space (40-60 rooms) that adds character and
history of London through the original building structure that feels
historically different.
The underlying theme though was to truly understand what the
customer wants from you! With thousands of hotel room nights opening in London
that have more luxury capacity and as the Olympic spotlight fades hoteliers
need to begin being creative rather than taking everything for granted.
Boutique hotels will need to work hard and be very smart and
creative otherwise 2013 will be a difficult year. The UK has had its fair share
of international events over the past couple of yeas with few to come except
the Rugby World Cup 2014.
As hotels in the UK will need to market rates inclusive of VAT, at
20%, the country may start to look expensive, especially to Europeans with the
low value of the Euro.
#empty13
The panel talked of the year of 2013 that has little to look forward
to. More budgeting, people needing to work harder and hotels to find those
hidden gems and stories. The industry will need to look closer at the potential
of providing a more personalised experience.
By 2014 the country is expecting an additional 4.5milliom visitors,
a commitment made by VisitBritain.
Distribution
For the hotels, OTA is a very dirty word as direct sales are more
profitable. However OTAs are needed in January, February and Sunday nights. The
Town Hall Hotel works with the Kiwi Collection, Mr and Mrs Smith and other very
specific boutique brand agencies, doing the marketing on their behalf. Marie
said she works hard to qualify whom they work with and there is a growing
understanding with consumers that the best rate is a direct rate with the
hotel.
For working with the large OTAs like Expedia and Booking, for them
it is a listing, to be on the hotel search engine, but keeping an optimum price
on these channels positions them correctly in the market.
Ruth talked about how other industries have lost control over their
inventory – Insurance for example. Where everything is done through price
comparison websites. “People's behaviour in how they look has altered and what the
hotel suffers from when people are just looking at the big number. It is totally
rate driven.”
For the hoteliers in the room being a boutique hotel means they can
stand above the rest because they are unique. “We have a unique quality, an
independence. We shouldn't be competing on rate but marketing ourselves on
distinct differences. We're not cheapest out there and this is why we are not
being ashamed of it because we give out more than others.”
As for Social media, Ruth believes it is great if using it for the
right reasons. Some for specials, some quick enquiries, some as communities.
Such an individual aspect for each business it needs to be considered on how it
works best.
There’s a lot more to come from the Olympics, if hotels, the country
and everyone works hard enough to bleed as much from the international profile
gained as possible.
