Archive for August, 2008
There is a growing phenomenon of websites that publish feedback from gusts that stay at commercial accommodation, including motels. Web-cred is of increasing importance as a motel’s consumer rating is being formulated and exposed to the world by guest reviews. Past guests are more than happy to share accommodation experiences and future potential guests are using these reviews to determine their accommodation choice.
The importance of your motel’s on-line consumer “rating” will soon outstrip rating systems such as Qualmark. The Internet not only is making the traditional “Agent” redundant, but will soon be threatening traditional quality assurance programmes. In the very near future, it is conceivable that a motel’s “star rating” will be solely determined by on-line reviews. This is daunting territory for many motel owners as the reviewers’ data is raw, live and very pointed… who can argue with the adage that the customer / market is always correct!
It will become increasingly important for moteliers to monitor the Internet chatter on social media sites and networks surrounding their motels.
How can you monitor on-line guest feedback and comments? The answer is simple, easy to set up and FREE! Google Alerts provide email updates of the latest relevant Google results based on your choice of query or topic. Your motel name (and variants of) should be entered into your Google Alerts. Google is the most comprehensive search engine that now indexes the whole blogosphere and consumer-generated sites.
Background
It’s common knowledge that the Internet has changed how travel consumers perceive the credibility of information. Any discrepancy between “official” and “unofficial” content should be dealt with immediately. A motel has to stand by its product and service, but cannot ignore the “popular vote” for its product’s quality.
Research has shown that consumer-generated content on social media sites and networks is perceived as more credible by online travelers. The bigger the disparity between official and unofficial content, the bigger the gap in credibility.
Social Media (Consumer-Generated Media) is online content created by Internet users and made available to other Internet users via Web 2.0 interactive technology applications. Motel/hotel review sites such as TripAdvisor.com are part of the Social Media phenomenon.
Fact
- 38% of US Internet users (72 million) use a social media site at least once a month
- 89% of US Online Buyers read customer reviews before they buy – 43% most of the time, 22% always.
So what are the most important motel / hotel-related customer review sites? There are only a handful that the majority of travel reviewers’ visit:
- TripAdvisor.com: TripAdvisor receives over 30 million visitors every month. The hotel can actively respond to any customer review via the ‘Hotel Owner’s Page’ by using the link located at the bottom of the page with customer reviews and then clicking on the ‘Respond to a Review’ link.
- Expedia.com: Expedia is the largest online travel agency (OTA). Currently the hotel can monitor all of Expedia’s customer reviews, but cannot actually respond to a review.
- Google.com: Google is the largest search engine with 60% of search traffic in the United States, and more than 75%-80% of traffic in Europe. Google provides a sampling of reviews for each hotel from TripAdvisor and other review sites (type in the hotel name + location, and then click on Reviews under the hotel listing). You can then visit each of the review sites and respond to an actual review there if allowed.
- Travel Bug: NZ’s own travel site has yet to generate sales that live up to the hype of its successful big brother, TradeMe. Guest reviews are a relatively new addition.
Action Plan for Monitoring Internet Chatter about Your Motel
It is important to respond to reviews and comments as you are made aware of them, so you can immediately address any issues and act appropriately (both negative and positive).
Here are some quick tips for responding to customer reviews:
- Thank the customer for taking the time to write a review
- Apologize profusely if the customer is right on target with their negative review
- Provide a simple, short explanation of what really happened (if such an explanation is possible)
- Assure the reviewer and motel guests in general that every possible step has been taken to address the problem or service in question
- Offer a direct line of communication between you and the reviewer (via email, direct phone line, etc.) in order to rectify the situation
- To conclude the response, use any elements of the customer’s comments that are constructive (e.g. great location, comfortable rooms, etc) to put a positive spin on a negative review.
Conclusion
Moteliers need to work hard to nurture happy customers and avoid negative postings. They must monitor reviews on review sites, TripAdvisor in particular, and react immediately if an extremely positive or negative review is posted.
Use Google Alerts to monitor all online chatter about your motel.
It’s much better to react to these postings and show your current and potential customers that you are 100% committed to serving them by addressing any and all problems, rather than ignoring complaints. You may be under the impression that responding to a negative review is a wasted effort because this customer will probably never return. However, your response should be primarily focused on assuring the traveling public that the issue is being addressed and the motel is dedicated to customer service.
Your response will also speak to future potential customers who might stumble on this review and the motel ’s response.
August 28 2008 | Articles for current moteliers and Changes in Motel Trends | 3 Comments »
Motels currently available, without being specific, range from small leased motels at $300,000 to large freehold complexes in the $millions. Within these motels the complexes range from highly organized operations to small lifestyle coastal motels. It is therefore important to establish the type of complex that would meet your requirements and suit your individual needs.
In general terms there are two ways of entering the industry, either you purchase the freehold land and buildings together with the business of the motel or you just purchase the “business” of the motel while renting the land and buildings, this is known as a “Lease”. Generally the decision as to which way you go is determined by the amount of capital you wish to invest and the type of lifestyle you are looking for EG: a “way of life motel” (say coastal relaxed low return for capital invested) or a “business motel” with a good bottom line.
It is often difficult for people first looking at purchasing a motel to come to terms with investing a large amount of money in a lease which does not contain any “bricks and mortar” as such. It is important to realize that when you purchase a lease you are buying all the chattels, i.e.: beds, furniture, carpets, drapes, crockery, cutlery, office equipment etc., almost everything except the land, bricks and mortar and roof. Also you are purchasing the right to operate that motel business in that building for the number of years on the lease. As long as you abide by the terms of the lease no-one can take that right away from you. Obviously then when buying a lease the length of the lease is an important factor.
With the purchase of a freehold going concern you are buying all of the above but also including the land and buildings. This is another way of entering the industry but as the returns on your investment are lower you would need to invest in a more expensive freehold than a less expensive lease to give you the same returns whilst operating the motel.
Under ideal conditions the cost of operating a motel will equate to 33% to 40% of the true turnover of the business (depending on the efficiency of the operator, items hired or owned and turnover mix). If it is a leased motel the ideal rental will be 28 to 33 % of the true turnover, leaving the balance of turnover to service any debt and provide an income for the operator. Please do not apply this formula rigidly as each operation must be looked at as a business on its own taking location, local environment, length of lease and history into consideration.
The Motel Association of N.Z. have compiled a book which may be of further interest to you. This book “An Introduction to Purchasing or Leasing a Motel”. can be purchased by writing to the Motel Association of New Zealand, P O Box 27 245, Wellington or visit their website www.manz.co.nz.
August 21 2008 | Changes in Motel Trends and Entering the Motel Industry | 4 Comments »
Amid the hype at present to make motels amongst other things more environmentally sustainable we have been encouraged to become more energy efficient and lighting is an area being targeted. The following article from the Dominion Post makes one question if we are in fact following the correct path. Maybe it is a case of implementing change without realising the consequences.
Warning on eco bulbs
By KAY BLUNDELL – The Dominion Post | Friday, 15 August 2008
KENT BLECHYNDEN/Dominion Post
CONCERN: Energy-saving lightbulbs are reported to be melting, blowing up and blackening surrounding electrical equipment.
The Government’s safety agency has warned the Fire Service about the potential hazard of energy-saving lightbulbs, a memorandum to firefighters reveals.
The memo, of which The Dominion Post has a copy, warns that compact fluorescent lamps, or eco bulbs, are reported to be melting, blowing up and blackening surrounding electrical equipment.
The concerns have been passed on to the Fire Service by Energy Safety, two months after Energy Minister David Parker announced plans to phase out traditional bulbs in favour of eco bulbs.
Many instances of bulbs failing went unreported to the Fire Service or Energy Safety, the memo said. People often chose just to replace a defective bulb.
Fire Service national fire investigation manager Peter Wilding confirmed he put a message out to staff “to be aware of the issue and pay particular attention to these faults”.
There were reports that eco bulbs had burnt out and scorched fittings, causing smoke stains, and in a few cases they had caught fire.
“If it does get to a state of flaming or scalding, if in any doubt, call the Fire Service. We do not know if there is a manufacturing fault, a user fault or a dud batch, but we want to give the public assurance we are trying to be responsible.”
A spokeswoman for Mr Parker said Energy Safety had received no reports, however, of eco bulbs causing serious problems.
Mr Parker announced in June plans to phase out traditional incandescent bulbs from late next year because they waste electricity. It is estimated that by changing lights Kiwis could save almost $500 million of the $660 million spent each year on lighting electricity.
Energy Safety senior technical adviser Bill Lowe confirmed the agency had received reports of eco bulbs ceasing to work, not lasting as along as expected, blackening, scorching, smoking and their glass breaking. But no structural fires had been reported.
The agency had received 13 complaints about eco bulbs in the past fortnight. Communications with the Fire Service had been increased in an attempt to confirm what problems existed.
August 15 2008 | Articles for current moteliers and Changes in Motel Trends | 4 Comments »
I guess there are a lot of people who are feeling pretty miserable at the moment. What with the bad weather and constant rain it is hard to get excited. I am even at the stage where I have to park my car in the neighbour’s paddock, behind my house, and climb the fence to get home because my front paddocks and driveway have become a lake. I am a firm believer though that there is a silver lining to every cloud and I figure now I have a lakeside property the value of it must have gone up. The other thing which has kept me from becoming miserable was attending the MANZ conference. As usual I came away with ideas and plans to implement which has renewed the excitement and enthusiasm for my work.
We had a great variety of speakers showering us with information including valuations, personality traits, stress management, interior and exterior design and analyzing yourself and your business just to name a few. Lawrence Smith form Cabbage Tree Creations was the speaker who most affected me with presentation on the internet and the rise of the social media.
The first part of the presentation was on the basics of a web site. There are three phases when a customer is interacting with your web site.
Phase One: Inspiration stage. This is where a customer is searching the internet looking for a place to go and your site should provide the inspiration for them to come to your area.
Why would they stay with you by looking at your web site?
Phase Two: Information phase. Here the customer is looking for details. How will they get to this area? Where will they stay? Where will they eat? Things to do? What’s on? How to get around?
Does your web site provide all this information?
Phase Three: Transaction phase: Once a decision has been made the customer wants to be able to complete the transaction right then and there.
Do you have on line confirmed bookings or do you still need to e-mail back to confirm?
Your web site needs to have focus and commitment. Have a look at your website does it do all the above things. I am just building a new web site for approx $1500. How much does this compare to print medium and which gives you the biggest return? How much would you need to spend to upgrade your current website? Is that a better advertising spend than where you currently allocate your advertising spend? Where do you get most of your bookings from? All very thought provocative but that is what business is about continually reviewing what you are currently doing.
The web is like anything in business. You must continually review research and change with the trends. There is a saying that “if you continue to do what you have always done you will continue to get what you have always got”. This saying itself has been reviewed with time and has now been modified to say “If you continue to do what you have always done you will get less than what you used to get.”
August 09 2008 | Articles for current moteliers and Changes in Motel Trends | No Comments »
Ok I guess this is a good title for my first post because this is a exactly how I feel. Like many others I feel really uninformed when it comes to technology. I have three teenagers and a very computer literate husband so I hear all this jargon about blogs, twitters, face book, bebo and lots of other stuff but I have no idea of what it all means.
However as a firm believer of increasing ones knowledge I attended the Motel Association Of New Zealand annual conference in 2007 and listened to Lawrence Smith from Cabbage Tree creations talk about this thing called blogging. All though I took some of it in most of it was straight over the top of my head. Then last year I also attended a realestate.co.nz presentation by Alistair Helm in which he was basically singing from the same book and I began to think maybe this was something I needed to do.
The thinking was there but the making of a blog went in to the too hard basket until i attended the MANZ annual conference again this year in late July and as Lawrence spoke this time it all started to fall in to place as far as the logic went. A social network where I could share my knowledge and learn from others. Great!! Sort of like one big conversation that never has to end. That sounded like me as I do like to talk.
Okay next step was to actually set up a blog which is what led me to the voices site. The start was pretty shaky. When you have to e-mail them to ask where the button is that you need to click to register for a blog it is not a good start. They were great though and Kerry Kissane very patiently provided me with the information neccessary to get started and pointed me to her blog www.www.unconditional.co.nz/helping-hand which was, as it says a, very good helping hand.
Anyway the end result is “Hello world” here I am. My other comment would be that if I can get this far with a blog then any one else should be able to as well. So if you are thinking of creating a blog it is not as scary as you think.Just do it.
I am now looking forward to learning more about technology and getting better at writing posts which will hopefully benefit us all.
Kathie Shepard Motel Broker.
August 04 2008 | Changes in Motel Trends | 2 Comments »
