sorting “myth from reality” 08-17-2011.pdf · sorting “myth from reality” d.k. shifflet...

SORTING “MYTH FROM REALITY”

D.K. Shifflet & Associates Ltd.

2011 Industry Trends Presented at the HSMAI-DC Luncheon

August 17, 2011

2

top5 myths

vs.

reality

Social Media 6th

Customer Segments

Hotel Guest Satisfaction

Hotel Amenities

Generations

Technology Replacing Travel

D.K. Shifflet and Associates Ltd.

MYTH

Two Traditional Lodging

Guest Segments:

1. Weekday Business

2. Weekend Leisure

Six+ Lodging Guest

Segments:

1. Convention

2. Seminar

3. Transient Business

4. General Vacation

5. Getaway Weekend

6. Personal Leisure

3 D.K. Shifflet and Associates Ltd.

REALITY

4

Transient Business and Personal Leisure Dominate Business and Leisure Segments Respectively

Business

Leisure

Two Travel Segments

Transient Business

Convention

Seminar Personal Leisure

General Vacation

Getaway Weekend

Six Travel Segments


% of Total U.S. Lodging Room-Nights by Travel Segments (2011P)

5

50

100

150

200

250

300

2007 2008 2009 2010 2011P 2012P

U.S

. Ho

tel R

oo

m-N

ight

s in

Mill

ion

s

Convention Business

Transient Business*

Seminar Business

*Transient Business includes Client Service, Consulting, Inspections/Audits, Construction/Repair, Sales, Purchasing, Government/Military, Other Company Business

U.S. Domestic Business Travel Segment Hotel Room-Night Demand

Convention and Seminar Business Recovered in 2010 Followed by Transient Business in 2011 and 2012

6

50

100

150

200

250

300

2007 2008 2009 2010 2011P 2012P

Getaway Weekend

General Vacation

Personal Leisure*

U.S

. Ho

tel R

oo

m-N

ight

s in

Mill

ion

s

U.S. Domestic Leisure Travel Segment Hotel Room-Night Demand

Personal Leisure and Getaway Weekend Leisure Show Stronger Recovery in 2010-2011 With General Vacation Recovering in 2012

*Personal Leisure includes Visiting Friends/Relatives, Special Events, Personal Business such as Medical Visits, Relocation, College Visits, etc.

7

17%

13%

9%

9%

23%

23%

11%

13%

17%

16%

22%

27%

Top 25 Markets

Total U.S.

Convention/Mtgs Seminar Transient Business Getaway Wkend Vacation Personal

Top 25 Markets Attract More Conventions and Less Personal Leisure

% of Lodging Room-Nights By Travel Segment

8

17%

24%

9%

10%

23%

31%

11%

6%

17%

17%

22%

12%

Top 25 Markets

Washington DC

Convention/Mtgs Seminar Transient Business Getaway Wkend Vacation Personal

DC Attracts More Convention and Transient Business Room-Nights Compared to the Top 25 Markets

% of Lodging Room-Nights By Travel Segment

MYTH

A Good Hotel

Is Rated High by

All Lodging Customers

Not All Lodging

Customers Are Alike


REALITY

10

Washington DC Hotel Guests Rate DC Hotels On Par With the Top 25 Markets

52.7% 53.1%

25%

50%

75%

Top 25 Markets Washington D.C.

High Lodging Ratings (%9-10 on 1-10 scale) Among Hotel Guests


11

However Satisfaction Varies Depending on the Guest Segment

25%

50%

75%

Total Satisfaction Group Business Transient Business General Vacation Getaway Weekend Personal Leisure

Top 25 Markets Washington D.C.

High Lodging Satisfaction Ratings (%9-10 on 1-10 scale) Among Hotel Guests

MYTH

Guests Always Expect

the Lowest Price

Guest Are Willing to Pay

More for Some

Amenities…


REALITY

13

Business Guests Are Willing to Pay More For Some Services (Four in Ten Will Pay More Internet, Breakfast, Shuttle, Frig)


0 20 40 60 80

Restaurant coupons Internet/WiFi in lobby

Upgraded desk area Coffee/tea 24/7 in lobby

Soft drinks/snacks in room Buffet dinner

Evening social hour

Premium TV channels Large HD TV

Fitness center 24/7 Soft drinks/snacks in lobby

Microwave in room Bottled water 24/7 in lobby

Late check-out Coffee/tea in room

Bottled water in room

Refrigerator in room Shuttle to/from airport/businesses

Buffet breakfast Internet in room

3rd Tier

Top Tier

2nd Tier

% of Business Travelers rating 8,9, or 10 on a 10 point scale (n=1100 surveyed in January - February, 2011)

% of Business Travelers Who Are More Likely to Stay and Pay a Higher Room Rate if Complimentary Item or Service Offered (2011)

Additional Items (ranked from high to low) 1 Concierge 2 Video library at front desk 3 Local/national newspaper at front desk 4 Local/national newspaper at door 5 Pets allowed 6 Same day laundry (2 item max) 7 Gaming System (Wii, Play Station) 8 Luggage storage lockers 9 Automated massage chair in lobby

10 Loaner work-out equipment

14 0 20 40 60 80

Internet/WiFi in lobby Fitness center 24/7 Evening social hour

Restaurant coupons Soft drinks/snacks in room

Coffee/tea 24/7 in lobby Premium TV channels

Bottled water 24/7 in lobby Bottled water in room

Shuttle to/from airport/businesses Buffet dinner Large HD TV

Soft drinks/snacks in lobby Coffee/tea in room Microwave in room

Late check-out

Internet in room Refrigerator in room

Buffet breakfast

Leisure Guests Are Willing to Pay More For Some Services (Four in Ten Pay More: Breakfast, Frig, Internet, Late Check-out)


Top Tier

2nd Tier

% of Leisure Travelers rating 8,9, or 10 on a 10 point scale (n=1100 surveyed in January - February, 2011)

% of Leisure Travelers Who Are More Likely to Stay and Pay a Higher Room Rate if Complimentary Item or Service Offered (2011)

3rd Tier

Additional Items (ranked from high to low)

1 Upgraded desk area

2 Local/national newspaper at door

3 Video library at front desk

4 Pets allowed

5 Local/national newspaper at front desk

6 Concierge

7 Gaming System (Wii, Play Station)

8 Automated massage chair in lobby

9 Same day laundry (2 item max)

10 Luggage storage lockers

11 Loaner work-out equipment

MYTH

Millennial

Generation

Is Taking Over So

Need To Promote &

Design For Them

REALITY

Gen X and

Boomers

Still Dominate

---

And Will

For Years


16

Millennials Are Increasing The Fastest, But…

U.S

. Ho

tel R

oo

m-N

igh

ts in

Mill

ion

s


Generations: U.S. Domestic Hotel Room-Night Demand*

0

100

200

300

400

2007 2008 2009 2010 2011P 2012P

Millennials <31 Silent/GI 66+

Boomers (47-65)

GenX (31-46)

*Age as of January 2011

17

-20 -15 -10 -5 0 5 10 15 20

Millennials Are And Will Be A Small Component For Many Years

Generation Total Room-Nights Size and Growth (Millions) - 2010-2011P

Boomers (47-65)

GenX (31-46)

Silent/GI 66+ Millennials <31


18

Washington D.C. Attracts a Larger Proportion of Boomers; Smaller Proportions of the Youngest and Oldest Generations

Silent/GI 11%

Boomer 37% Gen X

39%

Millenial 14%

Top 25 Markets Silent/GI 8%

Boomer 43%

Gen X 39%

Millenial 10%

Washington D.C.


% of Hotel Room-Nights By Generation

MYTH

Technology will

replace business

travel in the future

REALITY

Not happening yet

…

Stay tuned


20

Travel Wins Over Technology For Now

0% 25% 50% 75%

Electronic business relationships as important as in person

Electronic methods for business communication will replace most travel in next 5-10 years

In person business meetings necessary regardless of distance

Travel hassles have made electronic business communications more desirable

Nothing will ever replace in person meetings regardless of distance

People communicating in person have business advantage over people communicating electronically

Strongly Agree Somewhat Agree

% of Business Hotel Guests Agreeing With Statement

Technology

Technology

Travel

Travel

Travel

MYTH

Travelers Use

Social Media to

Download,

Post,

Tweet,

Blog,

…

REALITY

A Picture IS Worth

a Thousand Words


22

0 20 40 60 80 100

Follow hotels on Twitter

Follow destinations on Twitter

Post reviews/comments about hotel experience …

Subscribing to podcasts

Post reviews/comments about travel experience …


Sign-up to receive blog posts

Join hotel fan pages on Facebook


Download mobile applications about hotels

Join destination fan pages on Facebook


Download mobile applications about destination …

Subscribe to destination newsletters

Visit destination blogs

Visit hotel blogs

Sign-up on-line for cultural events

Watch videos on-line of destination’s sites or …


Sign-up on-line for restaurant deals

Request printed travel guides

Sign-up on-line for hotel deals

Pick-up travel material at Visitor Centers

Plan trip or itineraries online

Share travel pictures/videos on social network sites

Take travel pictures/videos

Before

During

After

Activity Engagement Before, During, After Trip


23

0 20 40 60 80 100

Sign-up on-line for cultural events

Watch videos on-line of destination’s attractions

Post reviews/comments about travel experience on Facebook

Sign-up on-line for restaurant deals

Request printed travel guides

Sign-up on-line for hotel deals

Pick-up travel material at Visitor Centers

Plan trip or itineraries online

Share travel pics/videos on social network sites

Take travel pictures/videos

Before During After

TOP 10 Activities


24

top5 myths

vs.

reality

Social media is all about pictures 6th

Understand differences across travel segments

Not all hotel guests are the same

Guests willing to pay more in rate for some amenities

Boomers have lots of travel left

Technology will not replace travel yet…


25

THANK YOU!

For Additional Information Contact:

Chris Klauda [email protected]

www.DKSA.com

Insert Fun Picture

sorting “myth from reality” 08-17-2011.pdf · sorting “myth from reality” d.k. shifflet...

Documents