a) One of the trends that are occurring in the hotel industry is the increase in construction in certain pipelines and areas. The Spanish influenced countries of Latin America and South America are seeing the largest increase. The increased interest in the Hispanic culture by society is driving many consumers to want to escape to the sandy beaches and the tropical oasis. The other trend is the decrease in the African and the Middle Eastern Pipelines. Much of this can be contributed to the political unrest in these countries that is covered by the media.
While many still want to go on vacations to their holy lands for religious purposes or visit many ancient areas of art and documented history not many consumers are wanted to travel with young children to these areas due to the unrest and military presence and rather are looking for rest and relaxation rather than additional intellect and experience. b) Based on the headlines and the articles on Hotel Online I have found a trend to be the renovations of hotels that have been long standing.
The renovations of these hotels are focused on the consumer and the upgrades to the lifestyle changes and health and environmental awareness across the world. Many hotels are going green and adding markets or dining options that are also green and health conscious. This is important as the world begins to become more aware environmentally of what the waste is doing to the planet that we want to have around for our children many more people are recycling and finding innovative ways to reuse and cut back. A more health conscious society is also moving toward eating foods that are not processed and are not filled with fillers and pesticides trying to increase the longevity of life. Consumers are looking for options that can meet both of these needs. Many hotel chains are going through multi-million dollar renovations to make the upgrades and meet the needs of the social empire that influences cultures all over the world. Exercise #2
a) Each of the 3 sites has similarities such as a lit of their properties, information for investors as well as the company history or mission statement. The differences start with Starwood that offers very detailed as well as list and map views of the properties as well as photos of the individual properties. Host hotels have a place for news releases about information from within the company. The FelCor Lodge Trust is different as it lists the hotels that the company has on the market for sale. b) Starwood – Target market is the well rounded and has a hotel for every one and every amenity such as pets, conventions, and weddings so that the most diverse of people are collectively attracted to their properties both domestically and internationally.
Host Hotels – Target market is both for the wealthy and socially connected since names as the Four Seasons, Hilton, and Ritz Carlton are among the properties they own. The target market of the wealthy open likes to mix business trips with pleasure and their properties seem to be able to accommodate both. FelCor Lodging Trust- Target Market is the vacationing family that wants to be centrally located in the city they are traveling to or visiting. Many of the properties are also located within the airport so they make it easy for family to not have to travel far from the airport for their accommodations. All of their properties are within the US except for one in Canada. c) Starwood – Westin, Sheraton, Four Points by Sheraton, W Hotels, St Regis, The luxury Collection, Element Hotels, Hilton Worldwide.
Host Hotels- Ritz Carlton, Four Seasons, Marriott, Sheraton, Hilton, Hyatt, W Hotels. FelCor- Embassy Suites, Wyndam, Sheraton, Double Tree, Hilton. d) Starwood is a paperclip REIT which is different from the standard REIT. In each case, the idea is to maximize the tax advantages inherent in real estate investment trusts, or REIT’s, while allowing the company to operate properties that such trusts normally cannot run. The paper-clip structure is very similar to spin-offs of operating companies. Although the stock in the two companies is not traded in tandem (or stapled), the economics of both businesses are closely linked, or “paper clipped,” due to an intercompany agreement between the REIT and the operating company. In other words, shareholders who wish to capture the combined economics of the distinct companies can acquire shares in each company and paper clips them together. Chapter 12:
a) Both of the sites have their rewards programs for returning guests as a highlight to win continued business. They further compete by making it clear
on their websites with photos and labels as well easy navigation and online booking that they have options and are here to accommodate the needs of any consumer whether it be business or pleasure, short term or long-term stays, and their presence throughout the world. b) Both sites offer franchise information however in my opinion Wyndam has a more comprehensive and easily navigated information site with tabs.
This information is slightly generalized as they have many different brands. Before you get specific information form Choice Hotels you have to choose your brand and location which may not be decided upon and may change from location to location. I think that the support services and the FAQ from Wyndam is more inclusive of what to expect. Choice Hotels wants you to email them for additional info and many people who are interested may just be looking for upfront costs and other items without having to email the company. Exercise #2
a) The 3 hotels compete for the same target population but each configures a different marketing style. The Four Seasons focuses on the location of the hotel and the beauty of the city in which it is located so it is attraction based. The Ritz Carlton website focuses on the room amenities and what you will experience inside the room for the duration of the stay and highlights that in scrolling photos. Rosewood highlights a full screen picture that is very different from most websites and the actual background of the site is the photo that changes with different cultural experiences that you could have as a guest at the resort in that country. b) In my opinion the hotel with the best marketing strategy is Rosewood Hotels & Resorts. This is because as the website features the different locations you see photos of actual people interacting with another from that particular region or culture.
You see “yourself” in the eyes of the people who are living the experiences captured. This is very effective as it is assumed the room with be gorgeous and the amenities top notch so why not showcase the experience the guest can choose to have. c) These hotels cater to the wealthy and the people who do not look at the price of the stay but rather the experience the stay will give them and the social status of the location as well. These hotels are large and expensive as well as the contemporary décor and the sought after privacy that the guest will get. The Choice and Cendant hotel groups market their price on price and breakfast as well as comfort ability and internet amenities as they are serving the population of business personnel and families who will most likely spend most of their time out of the room at local attractions rather than entertaining in their own suite as is possible with the luxurious facilities.