After launching last week with TripAdvisor in the bottom spot of the "Best Deals" section with the "Official Website" link, we have been able to work with the folks at TripAdvisor and come up with a much better solution.

Now all members of BedandBreakfast.com have a link directly to their detailed listing as the first link at the top of the "Best Deals" box on the right side of the page.

We are excited to be able to bring our members such great exposure by working directly with the team at TripAdvisor.

Need R&R?  Go B&B!

Eric

Over the past few months, we have been working hard to make some progress with the folks at TripAdvisor.  Many innkeepers have noticed that BedandBreakfast.com has been testing a number of different ways to get more exposure for the industry and our members with Trip Advisor.  We had not announced anything as we were not sure how it was all going to work.  After a few months of working with them, we are excited to say we have finally figured out a great solution and I wanted to get the word out since we have been getting so many questions from interested innkeepers.

Our plan is to have a link that shows up on the TripAdvisor page for every BedandBreakfast.com member that goes to directly to their detailed listing on BedandBreakfast.com.  This will provide consumers with one-click access to each property’s detailed BedandBreakfast.com listing with your phone number, website url (and multiple links), availability calendar links (if you have them), high-res photos, video (if you have it), maps, etc.  Previously if a consumer wanted to find a property’s website or phone number they would typically have to leave Trip Advisor and go look up the property on a search engine.  Now they can just click a link and get directly to a detailed page on your property.  Properties participating in the BedandBreakfast.com Online Reservations program were shown as bookable through Expedia, but no direct property information was given and properties not in the program had no links.  You will see this new link on the right-hand side of a property page, titled “Official Website” which is part of the paid sponsor link area. 

Given the confines that Trip Advisor works within, this is a great step forward for small properties.  Since Trip Advisor has no self-serve model, or any way for individual properties to become advertisers, this should open a new doorway to help get more and better information available to consumers about our industry and specifically our member properties.  BedandBreakfast.com will be updating the list of member properties with Trip Advisor each month so that all new members are promptly loaded, and any expired members are removed.  So far over ten thousand consumers have clicked over to BedandBreakfast.com detailed listings since we launched this final placement confirming our thinking that if we find a way to more prominently get the information available, more travelers will easily find the properties. 

Here is an example of the link:

We will continue to monitor these links and we plan on keeping this integration going now as a permanent member benefit of BedandBreakfast.com.

If you have any questions/comments/thoughts on this, please let us know.    

Need R&R?  Go B&B! 

Eric  

Peter Yesawich, Ph. D, president and CEO of YPartnership, discussed consumer travel habits, preferences and intentions during the third virtual Resort Conference webinar session, “Emerging Lifestyles and Travel Trends: Implications for Resort Marketing,” sponsored by Hospitality Sales & Marketing Association International (HSMAI). The 90-minute session presented research findings revealed in Ypartnership's National Travel Monitor™ and travelhorizons™ surveys, and their implications for future resort marketing practices.

Yesawich noted that their Traveler Sentiment Index is on the upswing, with the biggest factor being the perceived current affordability of travel, cited by 97% of surveyed travelers. Also, despite the economy, “54 percent of active travel households are planning travel in the next six months, up from 50 percent last year.” Travelers are “trading down, not out.” Consumers are seeking out packages to book, staying fewer nights, and comparison shopping online to save money.

“Personalization will become the new service strategy for many resorts,” Yesawich stated. “As consumers become more comfortable with the idea of paying a premium to get what they want, personalization will become key.”

Yesawich also touched upon the issue of time poverty and how many travelers feel that they don’t have enough time for vacations.

“Ease of access is the single greatest challenge for resorts in remote locations,” said Yesawich. “If a consumer is going on a four-day vacation, they don’t want to spend two days traveling, and are more likely to pick a closer vacation spot.” He also noted that, according to their research, “the older and more affluent you are, the less interested you become in traditional resort destinations, and the more likely you are to choose an urban destination.”

So what does that mean for innkeepers? The typical B&B experience is exactly what today’s traveler is looking for: 

• great value
• personalized experience
• one-tank trip

Make sure you are messaging these features on your website and on your BedandBreakfast.com listing, and be sure to log in to your Home Base to add a Tanks for Traveling special.

PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. President and CEO Philip Wolf has spoken at the PAII conference and other innkeeping conferences, and we are frequent attendees at PhoCusWright events. Because so many innkeepers are Baby Boomers, we thought this article was especially relevant to innkeepers: Move Over Boomers, Y Has Come of Age: Some excerpts:

• “Bailing Boomers: The report reveals that trailing-edge baby boomers (45-54 years old) actually spent the least of any age group per household on travel. They are also the most likely to reduce their travel spending in 2009, with 27% planning reductions in travel frequency and spending. Stuck in a middle-aged slump, trailing edge boomers with children in college, devalued homes and ravaged investment portfolios have been among the hardest hit by recent economic struggles.

• “Gen Y spenders: On the other side of the spectrum, 18-24 and 25-34 year olds are more likely to increase their travel spending in 2009. In particular, 32% of 25-34 year olds (the group that spent the most on travel in 2008) plan on spending more in 2009. So why is Gen Y spending more? Beyond their cultural branding as being free-spending or experiential, they are less likely to be burdened by high-fixed expenses or to have suffered significant investment loss. They also have plenty of time to save up for retirement, so they are not afraid to reach into their wallets. And fortunately for the industry, travel is high on their to-do list.

• “Travel Marketers Take Note:As the U.S.travel industry suffers through a predicted 11% decline this year, age-specific targeting may help improve marketing effectiveness. Young travelers are scanning online travel agencies and metasearch engines in their quest to see the world. Boomers will appreciate quick, affordable, "off the beaten path" (think quaint, not exotic) getaways that allow them to unplug from their stressful everyday lives. The right age-driven spin might be just the trick to cutting through the din of deals in the marketplace this year.”

For more details on the report, click here.

Our thoughts?  Good news is that B&Bs are typically a perfect fit for Boomers looking for “quick, affordable getaways. Although most innkeepers have done a fantastic job of providing the free wifi access that Gen Y expects, there’s definitely room for improvement in the area of such things as updated décor (as in death to doilies and forget the florals), iPod docking stations, flat-screen TVs, online reservations, website video, and a social marketing presence with reviews/blogs/Facebook/Twitter.  

The Interactive Travel Services Association reports that its members are seeing very few cancellations outside of Mexico. "Many are waiving cancellation and change fees for travel to Mexico and helping with any rebookings associated with Mexican travel, as necessitated by the H1N1 flu virus situation.

"Travelers should act on science, and not on rumors or reports blown out of proportion. The World Health Organization and the US Centers for Disease Control and Prevention issue advisories that are up-to-the-minute and authoritative. The public should continue to rely on them as their primary sources of information on which to base travel-related decisions.

"There are no advisories concerning travel to or throughout the US, to Europe, the Caribbean and a host of other destinations. Travelers can take advantage of extraordinary savings and value now for business and leisure trips in many locations outside of Mexico. By exercising caution and some common sense, and guided by the advice of WHO and CDC, travelers can still go ahead with their plans without undue concern throughout much of the world."

Many B&B and travel associations are encouraging members to educate their employees so that they are doing everything possible to safegaurd the health of guests and themselves, educate their sales and reservations staff so they can respond to any questions from guests about the flu, and institute extra procedures to ensure that door knobs, TV remotes, phone hand sets, etc. are sanitized.
 
Hoteliers may send business-specific questions to DHSPandemic@dhs.gov or contact the Center for Disease Control and Prevention (CDC) Hotline at: 800-CDC-INFO (1-800-232-4636). This line is available in English and Spanish, 24 hours a day, 7 days a week. TTY: 888-232-6348. E-mail questions to inquiry@cdc.gov.

As of April 27, there have been no reported cases of swine influenza found in U.S. hotels. The CDC recommends that U.S. travelers avoid all nonessential travel to Mexico; the World Health Organization advises no restriction of regular travel or closure of borders. 
 
Official resources include the following. Thanks to the California Hotel & Lodging Association for compiling this list.
 
2009 Swine Influenza Event

• Center for Disease Control Twitter feed
• CDC Questions & Answers
• CDC website on the 2009 swine flu outbreak
• One-stop access to U.S. Government swine, avian and pandemic flu information
• AH&LA statement on Swine Influenza - (April 27, 2009)

Lodging Business Planning for Flu Outbreaks (2005)

• AH&LA Flu Preparedness Plan: detailed information on what hotel businesses can do during flu outbreaks
• AH&LA Hotel-Specific FAQs: hotel-specific questions about flu outbreaks
• Preparing for a Flu Pandemic: AH&LA's tips for hotels during an outbreak  

Government Resources for Influenza Outbreaks

• Preparing Workplaces for an Influenza Pandemic: how to maintain business operations during a flu pandemic outbreak
• Proposed Guidance on Stockpiling of Respirators and Facemasks in Occupational Settings: information about equipment needed during a serious flu outbreak
• CDC/HHS Business Pandemic Planning Checklist: use when planning for a pandemic (November 2005)
• State Pandemic Plans - All 50 U.S. states have pandemic plans, online via this central webpage

Crisis Communications Resources
Risk Communications Resources - Pandemicflu.gov communications resources on swine and avian flu

Has your inn been affected by the swine flu? Have you received any cancellations? Please share your thoughts.

With over 7,500 member properties, I am fortunate to get a lot of opportunities to visit with a large variety of innkeepers from around the world.

It seems that more innkeepers are finally trying to get a better understanding of their Return on Investment (ROI) from their various marketing spends - which is great and is ultimately how innkeepers can determine what is a good marketing spend and what is not. One thing that seemed to stick out to me in these discussions is that it appears most innkeepers are looking at the revenue they get from a customer only for the initial/first stay. The vast majority of inns (certainly all worthwhile properties) still get a fair amount of their business from repeat and referral/word-of-mouth. To get a clear understanding of your ROI, you need to know your lifetime value of a guest (LVG).

It's not just about the room revenue the guest represents for their stay, but any and all revenue for as long as they are customers. This includes items such as gift shop sells, dinners, and assorted add-ons (massages, picnic baskets, etc.), as well as additional revenue derived through their repeat business (how many times does the average guest return) and how many people do they tell (word of mouth). Only once you know this do you know the true value of a customer and can determine what you should be willing to spend to acquire that revenue. 

An easy example: Let's assume an innkeeper takes a reservation for their average stay -- two nights at $160/night, representing $320 in revenue -- and that this innkeeper paid 25% for this reservation ($80). If the innkeeper looks at the total revenue the guest represents over their lifetime value, they will get a different picture and a much more realistic understanding of the value of their marketing. If this same innkeeper sold two nights at $160 a night (for $320), but also sold $70 in add-ons, and then realized that 50% of their guests came back, so they added 50% of their average stay ($160), and that word-of-mouth represented 25% of their business so they added another 25% of the average stay (or $80), then you realize that this one reservation easily represented  a minimum of $630!  That's without factoring in that the word-of-mouth customers will also generate repeat and word-of-mouth business as well as anciliary sells.  

Now you see that paying $80 to get $630 in revenue makes the cost of acquisition about half of what you originally thought as a percentage ($80/$630 = 12.6%, versus 25%).

So next time your phone rings and you are completely vacant that night and are trying to decide if you want to take the reservation or not so you can sleep in in the morning, make sure you think through the lifetime value of the guest, not just the revenue they represent to you today! Likewise, when choosing where you spend your marketing dollars and what gives you a good ROI, make sure you are looking at the total amount of business you get from a marketing spend by factoring in your LVG.

Need R&R? Go B&B!

Eric

Innkeepers have heard me preach time and again about basing their marketing spend on their Return on Investment, not on the investment (cost).

Unfortunately, too many innkeepers base their marketing decisions on the cost of a directory/association/local website, etc. that they are considering rather than on their return or expected return from the investment. This is clearly a bad way to make spending decisions for a host of reasons. It is called Return on Investment (ROI) for a reason.  :^)  Let's look at some of them...

• Basing your marketing decisions on cost would lead you to believe that you would be better off spending $25 to join an online directory/association/etc. than spending $250. If all things were created equal, that would be a very logical decision. But if the $25 investment yields you no business, and the $250 investment yields you several thousand dollars in return, clearly the $250 spend was the far more worthwhile spend, and the $25 (in this example) was a complete waste of time.
  
  
• Some innkeepers make the mistake of thinking all directories/associations/local websites deliver the same value/exposure. They sort of think a website is a website is a website, so they should all cost the same and probably all deliver the same return on investment - therefore they feel they should just focus on the least expensive directories to market their property. This is no more accurate than to say that all TV shows, radio shows, newspapers, billboards are the same. Website marketing is a media just like most other forms of advertising (TV, radio, print, etc.). If priced correctly, you are paying for the reach you will get (the number of potential guests/eyeballs you will be exposed to) within that channel/media.
  
  There is a reason a 30-second TV ad during the SuperBowl costs $3 million and a 30-second ad on late night cable costs $1,000. It's reach. The cost of an ad in a medium is directly related to the number of folks the ad will put your product/service in front of. With tens of millions of folks watching the SuperBowl, you pay more than you will pay for the couple hundred folks watching late night TV. The analogy works across all mediums.  A full-page ad in a small-town newspaper should cost you way less than a full-page ad in a national newspaper. The same applies with a local magazine compared to a regiuonal or national one. A billboard on a lightly traveled Farm to Market road should cost way less than the same size billboard during the same time on a major highway that is heavily traveled. You get the picture....
  
  
• With many independent third-party research houses saying that in 2008, over two-thirds of travel was researched or booked online and that in 2009 they expect even more travel to researched and booked online because travelers are looking for the best value/deal, it stands to reason that for most innkeepers the internet should be getting the lion's share of their marketing dollars.
  
  So when we look at ROI within the internet, how do we best determine what works and what doesn't? Many innkeepers still rely on asking the guest where they heard about them. Unfortunately this is very unreliable.  According to feedback from innkeepers attending a presentation I made recently, this method can be off by up to 50%. The problem is that when you ask a guest where they found you, they say, "The Internet".  They do not recall that they started on Trip Advisor, clicked through to your property photo powered by BedandBreakfast.com, and then clicked through from there to your own website (or any other of a hundred possible scearios). So they may say they found you on your own website, BedandBreakfast.com, TripAdvisor or finally "The Internet". Clearly there has to be a better way!
  
  
• Well... there is! All innkeepers should be using tracking software for their website. If you are not using tracking software, how do you know how many potential guests visit your website from the various places you market your property online? How do you know how long they stay or which page they leave from? How do you know which site(s) send you the most potential guests? What your conversion rate is? In short - how do you understand your ROI without understanding what is working and what is not, and who is driving you how much business??? The answer is, you don't.
  
  At the highest level, one of the most simple benefits of using tracking software is it allows you to see how much traffic a directory/association/chamber website/etc. sends you. This allows you to see that not all sites send you the same amount of traffic. They are all different, and you have no idea what is working "for you" unless you look at your web stats. Although I highly recommend innkeepers ask other innkeepers what works for them and what doesn't, just remember that is one data point in the decision-making tree. What works for another innkeeper may not work for you for a variety of reasons (the property type, location, price, etc.). 
  
  Traffic is a good leading indicator of value you receive from the various sites you advertise on. But realize that not all traffic is created the same. You can have three different sites that all send you the same amount of traffic, and all three will deliver different amounts of revenue because they will convert to reservations at different levels. Why? Because different sites send you more or less qualified levels of potential guests. A simple example is traffic that comes to you from a directory with a poor layout/design that does not provide the potential guests with much information will be less qualified (and therefore convert to a reservation at a lower level) than traffic coming to you from a site that provides lots of detailed property information in an easy-to-read format. This is because the potential guest already saw much of what they needed to know before they clicked through to your site, and therefore, they are further along in the selection process. They already know that you allow pets (or don't) and that you allow kids (or don't) and that you have a nice breakfast that can be served in the room, etc. So once they click through to your website, they are more likely to book a room (ie. they have a higher conversion rate). 
  
  
• Finally, in addition to traffic and conversion, innkeepers need to realize that not all reservations represent the same amount of revenue. Different sites send different amounts of traffic that convert to reservations at different levels and that also represent different amounts of revenue per reservation. One site may sell your more expensive rooms more, and another site your lower-end rooms more. A great example of this would be to compare traffic a Select Registry member gets from the SR website versus the traffic they get from their local chamber/CVB. I'd be willing to bet that the traffic from the SR website is a customer more interested in your higher-end rooms/suites with all the bells and whistles versus the traffic from your CVB would trend more toward the average consumer, and therefore represent less revenue to you per reservation.
  
  Any more advanced booking engine should be able to allow you to track the revenue all the way through from the website they came to you from, through to the booking, and the amount of revenue it represents to your pocketbook.

Ulitmately, revenue is what we need to determine to see what website is worth the marketing spend or not. We are not looking at "Traffic on Invesment" (TOI?) or "Conversion on Investment" (COI?), we are looking at how much money we get back as a return on capital compared to what we spent to get it - Return on Investment!

To be continued...

Need R&R? Go B&B!

Eric

I just read an article on the Travel Weekly website saying that people are traveling but taking shorter trips... 

It's clear that people still need to get away regardless of the economy. Plenty of research shows that folks still want to get away, but due to the economy they are taking shorter trips AND they are staying closer to home.

Staying closer to home helps because not only are they not spending money on air -- they are taking their car -- but they also don't want to spend 20%-40% of their getaway time messing with traveling to/from their destination.

Bed and breakfasts and inns are a perfect solution for these short 3-4 day getaways! There are over 15,000 unique properties scattered throughout the United States. So wether you are looking for Victorian charm in the countryside or modern in the city -- there is something for everyone. In addition, B&Bs are a great value compared to hotels since most properties include a full home-made breakfast, many even include afternoon snacks/wines/cheeses, and most have free parking and free Wifi, no daily resort charges/fees, and the best concierge's in the hospitality industry - the owner!

The article states that many folks are looking to spend less than last year (shorter trips = less money spent). Now is a great time for innkeepers to make sure they are doing what they can to shield their rate integrity and protect their RevPAR by packaging and bundling. You don't have to cut your rates to provide more value! Create some packages with massages. wine, dinner -- anything that you think potential guests would want and that you can buy at a discount and package in with your room and set a price point less than it would be if the consumer bought the items seperately/by themselves.

Innkeeper's can also use this trend to try and turn 1 and 2 night stays into 3 and 4 night stays! Have a "Stay Friday and Saturday nights and get Sunday for free" if you usually cannot sell your Sunday rooms anyway. You could even have a boxed breakfast for them to take with them in the car as they leave in the morning on their way to the office/home. Or buy three nights and get a fourth night free.  By offering a limited time offer that gives them an effective discount without you decreasing your rates, you are in a better position as the economy improves to simply not extend the special promo any longer as you do not have to raise your rates.

Need R&R? Go B&B!

Eric