Skeletal Staffs, Crunched Cash Flows, Depleted Capital Budgets:
How Can Luxury Hotels Maintain Service Levels?
Rob Rush, CEO of LRA Worldwide, a consulting company for companies wishing to maximize their service delivery, has worked with the likes of Ritz-Carlton, Starwood, InterContinental and Hyatt. LRA's specialty, said Rush, is to help brands "operationalize their brand promise" - putting that promise into on-the-ground practice - a tough job for luxury hotels in these times. Here are a few bits of advice from Rush:
"Communication between brand managers and employees should not be
through ads in CNN or the Wall Street Journal; that makes for a
disconnect between the brand promise and the execution."
"Advertising is important to attract customers but we are interested in
post-trial purchasing behavior. We believe the best service brands are
the ones that do a good job of meeting their promise and growing by
word of mouth."
"It's all about front line reality. Measurement is crucial - including
quality assurance, customer surveys, mystery shopping and more to
ensure that promise is being delivered."
"A change in rate will not impact occupancy. Our
message is to double down on efforts to distinguish yourself around emotional
elements of experience. How does your staff interact with and engage your
guests? These experiences are what drive luxury."
"At Four Seasons, they are redoubling the effort even if it's a daunting task
as they fight the headwinds. It's about being more than friendly; it's about
being resourceful, responding and providing personalized experiences. Everyone
has standards around service like making eye contact and answering the phone
quickly but that can be executed robotically."
"The
delivery depends on the brand. At W, they offer the warmth of cool - and you
have to figure out what that is."
"If new customers are trying luxury brands because of lower prices, they must still get an exceptional, engaging experience. To the extent that you can
provide a positive, memorable experience, you potentially have a convert even
if prices start creeping up. People are trying new products at a historically
high rate and we think that means it's time to redouble your efforts and
protect the brand promise. Nothing is worse than people trying your brand and
being disappointed."
Ipsos Mendelsohn and American Express Publishing-Harrison Group OfferFreshInsight on Consumer Behavior in 2010
According to new studies from two blue-chip research sources, Ipsos Mendelsohn and American Express Publishing - the affluent are not only ready to travel -- they are frequently going to spend more on it. While the Ipsos study focused on intent and American Express Publishing on mindset, they both point to a surge in affluents taking to the road (Amex sees an increase of 6 to 8% in spending on all luxury categories).Interestingly, both studies agree on a positive attitude despite lingering concerns about the economy. Here's a look at the highlights of both 2010 studies.
LuxuryTravel 360 has long looked to the affluent as a burgeoning market in business and leisure travel, fueling growth in more affordable, common sense luxury - less glitz and glamour, but ready to pay extra for memorable family experiences and genuine local culture.
