Insights July 2009
LEISURE TRAVELERS TRADING DOWN
The current economic environment is beginning to influence consumers’ interest in certain types of lodging accommodations as revealed in our just-released Ypartnership/Yankelovich 2009 National Travel MonitorSM. Compared to last year, preference for independently-operated hotels and resorts is up, while preference for chain-affiliated properties is declining. Leisure travelers are also more likely to cite “value for the price” as a key consideration when selecting lodging accommodations.
Although preference for independent lodging is growing (now cited by 20% of all leisure travelers), it is still important to note that 8 out of 10 leisure travelers prefer chain-affiliated accommodations. This preference has declined significantly from the level recorded last year (84%), however. Also, compared to last year, leisure travelers are more likely to prefer a limited-service hotel or motel without a restaurant (40% versus 34%), and less likely to prefer one that offers full service with a restaurant (60% versus 66%).
The growth in preference for independent hotels and resorts appears to be driven by two factors. First, a growing number of consumers appear more interested in the novelty and/or special character many independent operators have scripted into their properties. Second, the quest for better value, now defined in terms of a more attractive rate, appears to be motivating many leisure travelers to evaluate independent lodging alternatives.
Selected highlights are provided below:
|
Preferred Lodging Accommodations
When Traveling For Leisure |
||
|
%
2008 |
%
2009 |
|
| Chain-affiliated hotels/motels |
84
|
80†
|
| Independent hotels/motels |
16
|
20†
|
| Full-service hotels/motels with a restaurant |
66
|
60†
|
| Limited-service hotels/motels without a restaurant |
34
|
40†
|
| † Denotes statistically significant difference from prior year. | ||
The top three factors leisure travelers consider when selecting lodging accommodations are “value for the price,” the “location of the property,” and the “room rate.” While location and room rate were cited by essentially the same percentage of respondents in both 2008 to 2009, “value for the price” increased significantly from 82 percent to 88 percent (82% to 88%). Another apparent contributor to the perception of good value, a complimentary breakfast included with the room rate, jumped from 51 percent to 58 percent (51% to 58%). The influence of a recognizable brand name decreased significantly from 51 percent to 44 percent (51% to 44%).
|
Extremely/Very Influential Factors
In Hotel/Resort Selection |
||
|
%
2008 |
%
2009 |
|
| Value for the price |
82
|
88†
|
| Location of hotel |
85
|
85
|
| Room rate |
84
|
85
|
| Getting a free breakfast included with the room rate |
51
|
58†
|
| Brand name |
51
|
44†
|
| † Denotes statistically significant difference from prior year. | ||
For further information on the results of the 2009 Ypartnership/Yankelovich National Travel MONITORSM please visit the Publications section of www.ypartnership.com.
July 24th, 2009 at 10:08 am
As the owner of a small 7 room Inn in Maine we have certainly noticed value driven bookings. What strikes me as perhaps odd is that the guest expectation is as high as it has ever been while they are seeking lower rates. Even in our property which has the lowest rates in the entire region, but the most amenities included than any other, they still expect more for less. As a business owner you have to start at some point removing costly items when you lower the rate. Managing that expectation in response to the downward pressure on value has become a constant discussion.
July 24th, 2009 at 10:28 am
I know there are many hoteliers and innkeepers who share your concern. The reality is, however, that consumers are demanding more “value” than ever before because of the pressure that prevails on the discretionary part of their household budgets.
July 24th, 2009 at 11:46 am
For innkeepers of smaller, higher end properties, this is great news. The value proposition of bed & breakfasts and quality full service inns has long been superior to chain hotels. The uniqueness of the guest experience combined with superior hospitality (made possible by the intimate size) make small inns a logical choice for today’s value-conscious leisure traveler. And with only 20% of travelers expressing this preference, there’s a big potential market for the innkeeping industry to tap. The challenege is to sell the value without compromising the quality.
July 24th, 2009 at 4:46 pm
While being connected to a great brand is still a huge advantage in many ways, all hotels must continue their own campaign to sell the value of each hotel-the takeaway here may be that providing superior service is still a top sales tool in your arsenal. Having systems and procedures in place to connect and keep in touch with these customers is paramount in any marketplace.
July 24th, 2009 at 4:53 pm
As we discussed yesterday!
July 26th, 2009 at 6:10 pm
High “value” does not necessarily dictate high cost. From our guests viewpoint “value” = an interested innkeeper, a few moments of individual attention and conversation or possibly local knowledge on the best place to see an Indigo Bunting….all potentially create an “aha” moment that brings them back.
August 11th, 2009 at 12:04 pm
Value has always been in the “eye of the beholder”. It is hard for me to know what “Value” to a guest might be. Each individual has his or her own idea of value. The trick is finding out what it is and then doing it, what ever “it is”. We are a high end, “Romantic” get a way, with a great location. I tried to put inplace when we opened, the amenities a guest would feel important when booking such accommodations. But I am not sure they even recognize them when they are here. I have taken some of the amenities away for cost sake since we haven’t raised our rates in 10 years to help with the bottom line, but I am not sure if the guests have even noticed so I have recently started providing a “volunteer information card” that is left in the guest room that asks among other things, 1. Why did you choose us over the other area B&Bs, 2. How do you rate your room amenities, are there amenities you would have liked to see that were not provided, and 3. What can we do to ensure you will stay with us again. I have only been doing this for 3 weeks now and I want to do it for about 3 months to get a true read as the the “Value” guest see in staying here. I am also taking a look at my menu. Providing less costly menu items. So far everyone is still raving about the breakfasts, so I am safe there.
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