Unless one resides on a remote mountain top, blissfully isolated, you can
hardly miss our national shift in mood. No matter our 'stripes' or political
persuasion, we are manifesting collective angst as a nation. We have been
assailed with doubt for our institutions, our industries, and our security.
Unless one resides on a remote mountain top, blissfully isolated, you can hardly
miss our national shift in mood. No matter our 'stripes' or political
persuasion, we are manifesting collective angst as a nation. We have been
assailed with doubt for our institutions, our industries, and our security. And,
anyone who manages Destination marketing and development needs to revisit their
plans, budgets and strategies, for your Visitor will be ever vigilant and more
discriminating on how they make their travel decisions and where they will stay,
dine and play. Our focus must adapt, too!
It would be very easy to make this a political, economic or social polemic, but
events and realities supersede those options. The calamity in the Gulf region is
heartbreaking, and our response, even with many knowns, was not satisfactory. In
a world laced with terror, we are not feeling secure ; our preparedness
is not assured. Gasoline prices will never be the same, and travel decisions
will be made, based upon that gasoline cost . The ski industry will be
impacted, as well as large Destination areas such as Myrtle Beach, where 92% of
their Visitors arrive by car, and others, such as Branson, MO and Lake Tahoe.
We know the airline industry, hemorrhaging already, will pass the fuel cost on
to the traveler. The automotive industry, emphasizing SUV's and trucks, is in
similar straits, announcing recalls, while Asian manufacturers 'eat our lunch'.
The Housing Industry is reportedly on 'the bubble', but our Lodging segment
builds like crazy. Who will fill all those rooms? The economy is strong, yet we
carry the largest deficit ever, and we are at war. And, organized labor is just
itching to get at our soft underbelly, where the Hospitality Industry is very
vulnerable. These are the most unusual of times!
The American spirit is resilient and optimistic. But, the face of Hospitality
and how we do our business will need to be flexible and proactive. Those who
represent our businesses, the DMO's, and those who deliver the goods and
services to the Consumer will need to reconsider and reframe what we will
promote and provide to the Visitor going forward. Those who are summer seasonal
have a respite, while others are ramping up for the next season, whether it be
for the 'leafers', the 'snow birds', the leisure traveler, or the convention
business. The Labor Day Weekend in the East was odd, perhaps a harbinger of what
is to come.
Meeting Planners certainly have new items to consider beyond heightened
amenities and activities when looking to 'book' a Destination. They want a
feeling of security and tremendous value for the price. Anything that a
Destination can do to make itself more distinct and to differentiate their area
as compared to another must become a priority . Be very careful with
discounts and 'couponing', as it is difficult to regain that edge, after you
have devalued your product.
Past experience has shown that the Consumer will still travel, stay, dine and
play, but the target business changes, from fine dining to more casual dining,
for example, and there is the need to stay closer to home for the travel
pattern. Cost drives this, and it is not a new phenomena. But, it shall become
more embedded.
If there ever were a time for all parties to unite and represent the Destination
community together, it is now. The dynamics are changing, bold initiatives must
be considered, and someone else will not take the lead - each and every one must
participate. Many times we are very slow to react and do due diligence; the
Hospitality Industry must discover what the Consumer wants and how they feel
about the Experience you have delivered. If you have not defined this and
measured your performance, how can you succeed? For an Industry which should be
leading the way in defining satisfaction and better than meeting expectations,
we are woeful! Branding exercises, marketing plans, budgets will all need
another review. The market has changed, just as has the Consumer psyche!
Contact:
John R. Hendrie, CEO
Hospitality Performance, Inc.
www.hospitalityperformance.com
978-346-4387