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The Statler HotelCornell University, Ithaca, New York, USA
When WATG launched a blog three years ago, we were among the first architecture and design firms in the world to embrace this medium.
While most company blogs in existence today – and there are still relatively few – have a single voice, ours includes contributions from over 50 WATG staff members to date.
Many senior leaders were skeptical at first, considering blogging a waste of time. But some of these folks have come around, even posting a blog or two themselves.
In addition to providing a forum for sharing insights and observations internally, our blog has become the fifth most popular way that people find and enter our website. Over 35,000 visitors have read WATG's blog in the last year alone. If you Google "architecture blog," WATG now appears on the first page of results.
According to research conducted recently by HubSpot among 1,531 businesses, other benefits of blogging include increased lead generation, customer acquisition, Twitter reach, and website visits.
Blog on!
Despite the lodging industry's well-meaning efforts to go green - and to tell the world about it - we've barely made a dent to date.
Check out the recently released 147-page CMI Green Traveler Survey Report. Based on a survey of 4,109 adults throughout the United States, the study focuses exclusively on the 1,736 respondents who consider themselves to be "extremely" or "very" eco-conscious and who took at least one overnight vacation in the past year. That's a population that is likely to be educated about the concept of sustainability and open to hearing your message.
If you believe your company is doing a great job branding itself as green, you may be disappointed. When asked which hotel brand had done the best job of presenting itself as environmentally friendly, few respondents were able to name any. Respondents voted Kimpton [a study partner] as the environmentally friendliest brand, yet it was cited by only 4 percent of respondents. Hilton and Marriott received a 3 percent response.
When asked to name a green certification program, 97 percent of respondents could not name any. That does not surprise Glenn Hasek, publisher of Green Lodging News, who cites this survey in a recent issue. According to Glenn, there are more than 350 different environmental tourism certifications. Of the 1,412 respondents who answered the related question, only 32 had an awareness of LEED, 13 knew of Green Globe, and seven were aware of Green Seal.
The recommendation of the study's author: "The green travel industry, analysts and green travel advocacy groups must come together to: establish workable standards for green travel throughout the industry; award certification for meeting those standards—an industry 'seal of approval' on par with Michelin, UL or ADA; and proactively brand that certification to gain wide recognition and trust among travelers."
Consumers want to do the green thing, but there is a gap between their intentions and their actions. Perhaps one of the reasons this gap exists is the lack of a consistent set of standards and the resulting confusion caused by the clutter of competing claims.
There is an opportunity here to educate the traveling public. While savvy hoteliers know people are skeptical about advertising, there is power in positive word of mouth. Integrate social media, blogs and website reviews into your marketing mix to raise awareness of the specifics of your green initiatives. Meeting planners, especially, are hungry for this information and will reward you with their business.
For even the wealthy traveler, value will be a top priority in the coming years. The fact that consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all, spells trouble for brands with no authentic meaning, whether high-end or low.
"People want value for their money in every single market," according to Ralph Toledano, chairman and CEO of Chloé in Paris, as quoted in The Wall Street Journal. Affluent travelers will be looking for an optimal price/quality balance when they are selecting their luxury vacation destination.
Here's further evidence of the value of value: The March 2010 issue of Travel+Leisure magazine ranks readers' favorite destinations in a feature entitled, "World’s Best Hotel Values." The winners prove that you can have a luxury hotel experience for under US$250 a night. Several projects designed by WATG are on that list.
Pan Pacific Singapore
Ayana Resort & Spa, Bali
Four Seasons Hotel Westlake Village, California
But it's not just about price. To Isadore Sharp, founder, chairman and CEO of Four Seasons Hotels and Resorts, real value comes from more than offering reduced room rates; rather, it is about delivering "service that is consistent, reliable and tailored to each guest's individual needs."
That suggests that luxury hoteliers and travel companies will thrive if they can demonstrate why it's worth paying a bit more for an extraordinary experience.
In terms of travel choices, conspicuous consumption and bragging rights may no longer be the motivators they once were. Ted Teng, president and CEO of The Leading Hotels of the World, Ltd., sums up what's important when he says that elite clientele will become even more discerning, but in slightly different ways: "Customers will increasingly be seeking value, quality, authenticity and personalized enriching experiences."
The luxury hoteliers who succeed in these challenging times will heed these trends and position their properties accordingly.
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Luxury hospitality has been hit harder by the worldwide financial disruption than any other segments of the hotel business. According to Mark Lomanno of STR, it may rebound the quickest, but it has the farthest to go.
While all indications are that affluent travelers will indeed return, what they will be hoping to find in the hotels and resorts they visit will have morphed in a number of subtle ways. Shifting perceptions about luxury will account for changes that we are already seeing in high-end hospitality design.
The changing nature of luxury
To the extent that conspicuous consumption and ostentatious décor might be considered bad form in a global recession -- where so many people and businesses have been hard hit -- design aesthetics will be tamped down in new and renovated properties, thereby changing the look and reconsidering the definition of luxury.
While luxury conjures images of excess and indulgence, Isadore Sharp, founder, chairman and CEO of Four Seasons Hotels and Resorts, views it as something that goes deeper than aesthetics: "For our guests and clients, luxury is about making the most of their precious time. It's about feeling welcomed and recognized. It's about not having to worry about a thing."
Conscientious consumption
Among affluent travelers, there seems to be a general self consciousness about the appearance of over-indulgence and a desire to feel vindicated in some way. Sonu Shivdasani, CEO of Six Senses, identifies the shift as "a move away from conspicuous consumption to conscientious consumption."
In other words, bling has blung. When it comes to luxury hotel design in 2010 and beyond, expect to see less flash and more substance; comfort over coolness; friendliness over pretentiousness.
Back to basics
Though clearly a five-star brand, St. Regis recently went through the conversion of a property in Princeville, on the island of Kauai, that involved removing tons of polished marble, ornate railings and chandeliers, European themed furniture and artwork, and gilded Corinthian columns. Designers repositioned the Hawaii property to reflect its locale through the use of indigenous materials, paintings and sculpture by local artists, and custom-designed carpets and furnishings with a residential feel that exude warmth and hospitality.
In 2010 and beyond, polished brass and shiny chrome will be out. Natural stone and salvaged wood will be in. Recycled materials and accessories will enhance the guest experience and give a property a unique story to tell.
Simplicity and sustainability will be the key drivers for success.
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A compelling reason to renovate now is that construction prices have declined significantly following a 30-year rise. Saving money in labor and materials can increase the internal rate of return for any hotel renovation projects that are being contemplated … and have bottom-line benefits. But, as they say on TV, "Hurry, this offer won't last."
As reported in Rider Levett Bucknall's quarterly cost report, construction costs in the US declined for the fourth consecutive quarter, but the rate of decline has diminished considerably. Whereas in the first quarter of 2009, prices dropped in many cities by an average of seven percent, recent reductions in labor and materials (as well as overhead and profit) have leveled off to a single percentage point.
The data suggest that builders are unlikely to make additional deep cuts to their already tightened margins, even as workload projections remain pessimistic. In other words, if you're a hotel owner, operator or asset manager who has been deferring maintenance or waiting to renovate until prices go down even further, this is as good as it's going to get.
Act now.
Howard J. Wolff Hotel News Now Interview "Should hoteliers renovate"
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I recently spoke on a panel at The Lodging Conference in Phoenix on the subject of "Practical Green Concepts in Design, Construction and Conservation Practices." The session moderator, John Scaggs of HVS Eco Services, noted that we have the technology to monitor energy and water usage in individual hotel rooms. If we can do that, why not provide an incentive to guests to conserve resources by letting them know at check-out how their usage compared to the average and offering them a rebate if they used less water and electricity.
I made this suggestion, and fellow panelist Bill Weinaug of X-nth took it a step further: Why not build it into a hotel's guest rewards program? You can earn conservation points that can be converted to a free night's stay.
If there are any hoteliers reading this, feel free to steal this idea and run with it.
Guest aren’t motivated to save a hotel's money by not having their bed linens and towels laundered each day of their stay. They view the practice somewhat cynically. But if they are saving their own money, it could change behavior and be a win for the environment, a win for the property, and a win for the guest.
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When times are good, hotel owners don't want to impact revenues by taking rooms out of circulation and embarking on a renovation program. Paradoxically, today, poorly performing properties in need of a facelift lack the necessary revenue to do anything about it.
Alas, a Catch-22: If your property is making money, you don't feel the need to renovate. But when occupancies are down and you feel the need, you don't have the money to renovate.
So, when is a good time to renovate?
John F. Kennedy once said, "The time to fix the roof is when the sun is shining." In terms of the economic climate, these are cloudy times at best (even stormy, in many locations). So, what can a hotel owner do today who is strapped for cash?
Find some money. Invest in capital expenditures and make decisions with an eye on ROI.
WATG has coined the term "RevPAD" to refer to the impact that creativity can have on a hotel's top- and bottom line: Revenue Per Amazing Design.
The most obvious advantage of renovating in this environment is cost savings. Now is the first time in the 30 years I've been in the business that construction costs have actually come down. Historically, they have gone up steadily, if not sharply. Today, in many parts of the world, costs are down by over 10% from just six months ago. According to statistics compiled by Rider Levett Buchnall, construction costs in cities like Denver and Seattle declined by as much as 8% in the first quarter of 2009 alone.
A second advantage: When business is slow and occupancies are down, there is less disruption to guests and less impact on cash flow from operations. On top of that, construction can proceed more quickly, and property owners can get the word out that their hotel is newly renovated and open for business.
Properties that have been newly renovated will be in the best position to restore and/or raise rates and increase occupancies. Hotels that defer needed maintenance and refurbishment and wait until times are better will miss being able to take full advantage of the inevitable upturn.
When planning a trip, travelers seek out hotels and resorts that are either new or newly renovated. Data from a study conducted by STR and Hospitality Advisors LLC shows that, over a five-year period, revenues for renovated properties increase at three-and-a-half times the rate of un-renovated properties.
Bottom line: Hard times are good times to prepare for better times.
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Built in the 1970s, in Corfu, Greece, Eva Palace's architecture and interiors were completely refurbished in a fast-track design and construction effort completed in just over six months.
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Part of a property-wide renewal initiative, the creation of The Orchid Suite at Halekulani combines a contemporary aesthetic with casual elegance.
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Following a "green" upgrade, Marriott Manhattan Beach is now an ENERGY STAR rated hotel.
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The story of Four Seasons Hotels and Resorts is a tale of remarkable expansion, continual innovation, and a single-minded dedication to the highest of standards. WATG has had the pleasure of designing a dozen built Four Seasons properties around the world, including the recently-opened Four Seasons Resort Mauritius at Anahita.
Despite their stellar reputation, Four Seasons has not been immune to the troubles that luxury hoteliers are experiencing in these economically turbulent times. As everyone struggles to emerge from this downturn, we can learn something from Four Seasons in terms of their uncompromising commitment to maintaining the service, quality and culture that distinguish their brand.
Isadore (Issy) Sharp, founder, chairman and chief executive officer, wrote a book this year entitled "Four Seasons: The Story of a Business Philosophy." MSNBC.com's Christopher Elliott interviews the respected hotelier about how luxury fits in the global recession. The interview - and the book - are worth a read. There are lessons in it for all of us.
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I’m not an expert, but I play one at conferences.
Last week, I was invited to speak at a "Marketing Now" conference in San Francisco. The organizers presented WATG with a first-place Marketing Excellence Award for the design of our web site, and I was invited to speak on two panels on "new media."
Thanks to Dean Kawamura, WATG's marketing resources manager and webmaster, I was able to share some useful bits of information:
Web traffic – Of the 60,000 visitors to www.watg.com so far this year, half find us through search engines, a quarter from referring sites, and a quarter from direct traffic. Those who find us directly arrive through over a dozen variations of our name, including misspellings of Wimberly Allison Tong & Goo.
Search engine optimization – There has been a four million percent increase in web pages on Google in the last decade! 68% of searchers don't go past the first page of results. So, if you're not on page one, you're virtually invisible. The key to high rankings is regularly adding keyword-rich content.
Global differences – www.watg.com has had visitors from 171 countries and territories. While most spend an average of four minutes on the site – usually searching for information about our projects – those who linger the longest are from Azerbaijan and Lichtenstein (13 minutes), Bahamas (14 minutes) and the Seychelles (17 minutes). Those who view the greatest number of pages are from China and South Korea.
Twitter – According to fellow panelist Vik Duggal (www.konstructr.com), "Twitter is word of mouth on steroids." Last year, Twitter was #475 on the list of referring sites to www.watg.com. This year, it has risen to #17. We are following over 1,700 clients and thought leaders, re-tweeting their tweets and sending them information of interest anytime we post something new to our web site.
By the way, Hyatt, Marriott, Fairmont, and Aqua Hotels & Resorts are among those who have found very creative business uses for Twitter and other social networking sites.
Other topics of interest to attendees of this conference included e-newsletters (the best day and time to send them, apparently, is Friday morning); video on web sites (www.fliptv.com, www.blip.tv.com, and www.vimeo.com); blogs, podcasts and a host of other new technologies.
What I learned is that there are very few "experts" in new media; there are simply those who are embracing it (and learning as they go) and those who are neither.
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