Yesterday, we attended the CREJ Hotel & Resort Summit & Expo with 300+ other people in the industry. What did we learn?
The good and the bad: the hotel and real estate industry is still growing at record-setting pace but it’s starting to level off.
With 55 hotels in the Denver pipeline (1,686 rooms in the final planning stage) and another 1,519 in construction, the hotel landscape in Denver is changing…quickly. According to STR, research shows that the number of hotel rooms in Denver will grow by 65 percent over last year making it one of the top three U.S. Markets under construction in overall room supply (behind Las Vegas and Dallas). The room demand for the Denver market is predicted to decline by -2.5 percent. That means Revenue Per Available Room (RevPAR) is predicted to also decline by -2.7 percent. The highest RevPAR will be in the Center Business District of Denver.
With our Scream Agency offices in LoDo Denver and only a block from Union Station, we know the hotel landscape is changing (along with all the new breweries and restaurants) because we see it everyday.
So what does all of this mean for hotel brands and marketers? It means you better figure out a way to differentiate and market so you stand out from all the competitors.
How does marketing affect room bookings?
With the growth of the Millennials, and Gen Z following right behind them, hotel brand marketers will need to focus on the experience. Similar to the independent-seeking Gen X crowd, this cohort of people prefer unique experiences catered to their personality (and delivered in their social channels).
If you’re a hotel or resort brand, ask yourself…what is your unique experience that you provide guests? Do you offer a local craft beer tasting at check-in? Do you offer to walk their dog for free upon arrival? Will you give them information so they can “live like a local” as Kimpton Hotels & Restaurants has done?
Let’s look at how top brands are performing in these social marketing channels. Technology and data company Engagement Labs, released rankings on the top U.S. hotels on social media and through word of mouth (WOM) conversations.
As we all know, research shows that travelers are turning to social media now more than ever to discover various options, reviews and receive recommendations on where to stay during trips. It’s prime time for hotel brands to use social media to provide a story and visuals about what makes their property unique and why travelers should buy.
Hotel brands that build a two-way communication with guests build trust with the consumer, thereby making them a hotel they’d prefer to book. Provided you deliver on the experience, this in turn will then allow them to share in their channels, introducing your brand to more consumers who will eventually affect your bottom line.
Interested in knowing more about hotel marketing and branding? Scream Agency has worked with Four Seasons, Kimpton Hotels & Restaurants and several small independent boutique brands. Contact Lora@screamagency.com for a free 60-minute hotel marketing consult.