How Hotels Can Win More Business Travel

Great Suggestions. It would be great to be able to indicate interests when booking and have a custom sheet printed with what is going in the city from amenities to dining and entertainment.

Most hotels are Web 0.1 and for all of the low cost sometimes free solutions out there the return on investment would be very attractive.

Great Suggestions. It would be great to be able to indicate interests when booking and have a custom sheet printed with what is going in the city from amenities to dining and entertainment.

Most hotels are Web 0.1 and for all of the low cost sometimes free solutions out there the return on investment would be very attractive.

Hi Chris – The reality is that leisure travel is suffering much less than corporate travel in this crisis. At some point, leisure travel’s decline will level off – people will visit families, people will eventually go on vacations again – but corporate travel is different – it’s a controllable expense which CFOs are intensively focused on right now (they finally got the message!), and more and more, companies are going to a procurement approach which is going to drive some of the added value and incentives you listed above right out of the market.

Business hotels generally concentrate their sales energy on their volume customers, who in the past were professional travel buyers who were skilled in squeezing both savings and value out of their hotels. Individual travelers like you benefit because of the demands of the high-volume buyers – HP, Boeing, MS, JP Morgan etc who individually purchase hundreds of millions of dollars in travel services each year. These buyers are cutting way back. Way, way back. So are the smaller accounts. And they are staying at Holiday Inss now, instead of Sheratons. And they are laying off the employees who used to travel. And they are cancelling meetings. You may need a conference room, but most companies are deciding right now that they can do without the offsites and the added expense. They’re going to webex and freeconference.com, anything to reduce cost. So the hotel is stuck with a lot of expensive square footage that isn’t making them any money.

More and more, travel management is now dumped into procurement departments, where it is sourced like rubber bands or cell phones, by people who can negotiate on price up to a point, but don’t necessarily know how to get the perks and amenities – things like free wifi that the hotels don’t want to give away anyway. I know a lot of travel managers who’ve been laid off, and if you’re a travel supplier, you have to wonder what these companies are thinking – while welcoming the opportunity to increase prices every way you can.

Service is great, and I’m all in favor of profiling guests and anticipating needs, but until a Boeing or MS buyer says ‘my travelers always need to know where the nearest drugstore is,’ that is probably something you’re just going to have to ask the front desk for.

Hi Chris – The reality is that leisure travel is suffering much less than corporate travel in this crisis. At some point, leisure travel’s decline will level off – people will visit families, people will eventually go on vacations again – but corporate travel is different – it’s a controllable expense which CFOs are intensively focused on right now (they finally got the message!), and more and more, companies are going to a procurement approach which is going to drive some of the added value and incentives you listed above right out of the market.

Business hotels generally concentrate their sales energy on their volume customers, who in the past were professional travel buyers who were skilled in squeezing both savings and value out of their hotels. Individual travelers like you benefit because of the demands of the high-volume buyers – HP, Boeing, MS, JP Morgan etc who individually purchase hundreds of millions of dollars in travel services each year. These buyers are cutting way back. Way, way back. So are the smaller accounts. And they are staying at Holiday Inss now, instead of Sheratons. And they are laying off the employees who used to travel. And they are cancelling meetings. You may need a conference room, but most companies are deciding right now that they can do without the offsites and the added expense. They’re going to webex and freeconference.com, anything to reduce cost. So the hotel is stuck with a lot of expensive square footage that isn’t making them any money.

More and more, travel management is now dumped into procurement departments, where it is sourced like rubber bands or cell phones, by people who can negotiate on price up to a point, but don’t necessarily know how to get the perks and amenities – things like free wifi that the hotels don’t want to give away anyway. I know a lot of travel managers who’ve been laid off, and if you’re a travel supplier, you have to wonder what these companies are thinking – while welcoming the opportunity to increase prices every way you can.

Service is great, and I’m all in favor of profiling guests and anticipating needs, but until a Boeing or MS buyer says ‘my travelers always need to know where the nearest drugstore is,’ that is probably something you’re just going to have to ask the front desk for.

HI !
i agree with burkot ! one have to be aggressive but i am little confused about this business because my point of view is that their is not much risk in this hotel business ….

HI !
i agree with burkot ! one have to be aggressive but i am little confused about this business because my point of view is that their is not much risk in this hotel business ….

Hi Chris, I really like this post. Let me ask you, is there a way business’s or the hotel using your example could database its customers preferences using social media apps?

Hi Chris, I really like this post. Let me ask you, is there a way business’s or the hotel using your example could database its customers preferences using social media apps?

Interesting post. I totally agree that there are a lot hotels can do to increase their business, not only by attracting more customers, but also by providing more added value services.

A few months ago I wrote the blog post “7 steps to better hostels” and I think that many of these steps could be considered by most hotels as well.

Interesting post. I totally agree that there are a lot hotels can do to increase their business, not only by attracting more customers, but also by providing more added value services.

A few months ago I wrote the blog post “7 steps to better hostels” and I think that many of these steps could be considered by most hotels as well.

[...] don’t need no stinkin’ concierge! March 14, 2009 at 6:46 am | In Uncategorized | Chris Brogan writes about ways hotels can win business traveler’s hearts and [...]
P.S. – Sorry, forgot to tell you great post!

Tourism has become a popular global leisure activity. In 2007, there were over 903 million international tourist arrivals, with a growth of 6.6% as compared to 2006. International tourist receipts were USD 856 billion in 2007

Tourism has become a popular global leisure activity. In 2007, there were over 903 million international tourist arrivals, with a growth of 6.6% as compared to 2006. International tourist receipts were USD 856 billion in 2007

Hotel chains are a weird model. While there aren’t a ton of different brand flags flying outside their door, the ownership and often management of each is highly fragmented. They count on the brand to spec operating systems and to drive demand.

What Chris is recommending requires each hotel to operate like they are their own cafe shaped business and rely less on the mothership. Tough times require creativity. I like the idea of improving listening skills and creating new opportunities using social media.

Till now, most hotels are relying very heavily on solutions like Trip Advisors, Expedia, etc. There is critical mass in these channels that can’t be ignored.

After 9/11 hotels had a terrible problem with rate integrity. You could get a rate for one price on hotels.com and potentially a different price at their own brand.com They have invested significantly into the incredible number of distribution channels to ensure that you can get the best rate on their brand.com site.

Many hotels are definitely hurting with the cut backs in leisure and business travel. They are in a business that is highly driven by the supply and demand. They need to institute a variable pricing each and every night to maximize revenue. Generally speaking, we should see hotels offering the greatest flexibility in pricing for weekend stays. Additionally, most revenue management experts recommend not overly discounting rate, but increasing value. Good news is that we should start seeing more hotels throw in WiFi, parking and breakfast.

Hotel chains are a weird model. While there aren’t a ton of different brand flags flying outside their door, the ownership and often management of each is highly fragmented. They count on the brand to spec operating systems and to drive demand.

What Chris is recommending requires each hotel to operate like they are their own cafe shaped business and rely less on the mothership. Tough times require creativity. I like the idea of improving listening skills and creating new opportunities using social media.

Till now, most hotels are relying very heavily on solutions like Trip Advisors, Expedia, etc. There is critical mass in these channels that can’t be ignored.

After 9/11 hotels had a terrible problem with rate integrity. You could get a rate for one price on hotels.com and potentially a different price at their own brand.com They have invested significantly into the incredible number of distribution channels to ensure that you can get the best rate on their brand.com site.

Many hotels are definitely hurting with the cut backs in leisure and business travel. They are in a business that is highly driven by the supply and demand. They need to institute a variable pricing each and every night to maximize revenue. Generally speaking, we should see hotels offering the greatest flexibility in pricing for weekend stays. Additionally, most revenue management experts recommend not overly discounting rate, but increasing value. Good news is that we should start seeing more hotels throw in WiFi, parking and breakfast.

Hi Chris,

I’ve been a reader for a couple months. Great stuff!

Here’s a suggestion for a spin-off story: How Airlines Can Win More Business Travel.

Have airlines not noticed people fly with notebooks (even when we’re traveling for personal reasons)? Do they not know that we need electricity?

Just do this: give me an electrical outlet next to my seat at the gate area, so I don’t have to sit on the floor next to the only available outlet. And provide electrical jacks on board. A few airlines are starting to offer power on board, although in some cases only for the expensive seats up front or only in certain rows, and you need to call ticketing to find out which. Not even the flight attendants know.

Hi Chris,

I’ve been a reader for a couple months. Great stuff!

Here’s a suggestion for a spin-off story: How Airlines Can Win More Business Travel.

Have airlines not noticed people fly with notebooks (even when we’re traveling for personal reasons)? Do they not know that we need electricity?

Just do this: give me an electrical outlet next to my seat at the gate area, so I don’t have to sit on the floor next to the only available outlet. And provide electrical jacks on board. A few airlines are starting to offer power on board, although in some cases only for the expensive seats up front or only in certain rows, and you need to call ticketing to find out which. Not even the flight attendants know.

Hotels need to offer their business travelers incentive to return as leisure travelers – especially those biz travelers with families. I like the hotels.com offer – would definitely use that so that a family trip can benefit from the free night offer.

Hotels need to offer their business travelers incentive to return as leisure travelers – especially those biz travelers with families. I like the hotels.com offer – would definitely use that so that a family trip can benefit from the free night offer.

And yet some hotel chains just don’t get it. I’ve been a loyal HIlton customer for several years, but am just not traveling that much right now. Instead of making an effort to figure out what might spur me to travel more, they decided that a better tactic would be to try force: buy something from us or you’ll forfeit the points you’ve earned using your Hilton loyalty program. I simply don’t think that’s the right approach.

And yet some hotel chains just don’t get it. I’ve been a loyal HIlton customer for several years, but am just not traveling that much right now. Instead of making an effort to figure out what might spur me to travel more, they decided that a better tactic would be to try force: buy something from us or you’ll forfeit the points you’ve earned using your Hilton loyalty program. I simply don’t think that’s the right approach.

Now a days, Most of the travelers choose to stay in the cheaper hotels in order to save money during the trip.Most of the hotels now even it is cheap you can avail some facilities like those expensive one. :)

Now a days, Most of the travelers choose to stay in the cheaper hotels in order to save money during the trip.Most of the hotels now even it is cheap you can avail some facilities like those expensive one. :)