Hraba Hospitality Consulting

This is a really big question. I would love to see the industry really delve into this.  The transition from real world to online has been very fast, and a lot of the “infrastructure” is so much e-duct tape, putty, and last minute jury rigs – all of which should have meant to be temporary so that we can rebuild our online world of distribution based off tried and true methods, as they evolve.  I know our industry is never that pro-active, but maybe we have an opportunity to start learning from where we are losing the most money, and patch those leaks.

This Argophilia post by Phillip Butler starts the conversation: Who is the big bad wolf of hotel marketing?  Simply put, there isn’t just one –  OTA’s, Franchise Fees, Internet Marketing Fees, Booking Engine Fees.  This is one leaky ship.

Here is my response, but I am more interested in what all of you have to say?
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Great read. Thank you much. =)

I always thought of the OTA’s as something that filled the gap during the off line to online distribution evolution. They were a stopgap solution. They are now becoming unnecessary, and getting in the way of commerce because they are becoming obsolete, where they used to promote some level of commerce for our industry. Distribution has changed… and their role will phase out. It won’t be in the next 5, maybe 10…. but this will all change. I adore how people revile when you suggest the guy on top won’t be there forever.  The fact is, nothing is forever, and new paradigms unfold.

Another big bad wolf, on top of franchise fees? Ridiculous internet consulting firm charges by hourly consulting model.  Buuteeq is doing some good with simple pricing plans… it makes a lot more sense, and you aren’t nickel and dimed for the internet marketing group’s mistakes or on the job training.

Lastly…. commissions to booking engines. Including the franchise fees, as well… Engines like Synexis get promoted by franchise and flag brands, which then take a cut. It’s incredible how much money is lost to an engine that simply helps facilitate online booking. Eventually, the hotels will realize the money lost can be recouped quickly by building and designing a proprietary engine of your own, off a template, for the hotel to own, outright. That can save 20K – 100K+ a year.  I imagine a management group could justify the development fees to an owner group, based solely off the last 3 years of annual or commissionable fees that the property made to the booking engine company.

Would anyone have any idea how much it would cost for development of a competent template, and simple engine with solid UI – that includes a mobile component? Is that $100k or more?  I know… you can always spend more. =)

I think we need to start with a couple presuppositions about social media:

1) It’s the wild west of social media.

2) This isn’t rocket science – it’s about old school customer service.

3) Knee jerk reactionary business owners will always blow things out of proportion, dodge accountability, and blind themselves to what’s really happening to their brand through the eyes of clients. You don’t need social media for that…. it’s been that way for centuries. Of course reviewers shouldn’t be marked as “problem guests” for writing a critical review – that’s poor real-world management of information, and not about the nature of the information itself.  This is a major component of the flawed (more…)

Cheers and good day! Your friendly neighborhood Hotelier trying to stay on top of hotel news, and travel info, and hospitality & management philosophy… oh yeah… and technology or social media.  Okay okay… I am apparently trying to keep you updated on everything, and here is a little more from my corner of the internet…. endless relevant information filtered into a relatively decadent lunch sized chunk.  Enjoy!  Don’t hesitate (more…)

I actually got into a conversation on linked in today!  Go figure… I haven’t used it much as the “professional facebook”, but every once in awhile meaningful discussion about the industry pops up…. even then I typically don’t dive in.  But it is interesting…. so much conversation about the recession being over, and hoteliers, ownership, and properties are popping up their heads to see if they see their shadow.  As real winter looms, our proverbial “winter of discontent” wanes.  But instead of being rife with joy… let’s cast our doom & gloom nets out a bit.  If you look anywhere in media – fear and panic are often confused and countered by (more…)

The rest that is cut off (hey I am a hotel guy, not a HTML guy) says “($42/month), would you?”  You can take the survey yourself right here: TripAdvisor Survey for Owners.

I will let the pic speak for itself.  I know it’s just a survey, but I assume some (more…)

Once again, Hotels Mag & Mr. Hartesvelt have come up with an interesting piece… this time in regards to “Random Acts of Marketing” and hotels PR people being a bit beleaguered in these times, and acting out accordingly.  I, once again, had too long a blog response and note that the comments section isn’t always the best place for banter… or at least I have trouble posting there at times.  In preparation of that, I linked the article above…. and put my own thoughts here just in case.

The best marketers are skeptics or operators that turned into marketers… because marketing has been a land of long lunches, little data, & arcane, questionable demonstrable results…. ALWAYS.  When times are good, the greased cogs and gears tick forward inevitably… often (more…)

Mr. Kirby from Hotels Magazine has written a great piece about @hiltonsuggests and their new model of using twitter. In light of that, the massive amount of new twitterers/followers since my posts about the development of an “e-concierge / Concierge 2.0″ role, as well as how to effectively establish and utilize your brand using the tool of social media… I thought I would expand a bit and touch on it again.

It is exciting to see brands establishing themselves as I had envisioned… not vapid spam marketing, but being leaders in helping guests. Hospitality is the name of the game, and the only way to build your brand isn’t to market it, so much as effectively position it, with deference to your guests and not your marketing department.

Kirby’s post talks about active searching for guests, instead of the passive approach; letting them come to you. Albeit a massive undertaking for a flag like Hilton, it will also be incredible effective.  I have been doing this for a couple years, and it really works. If you are a property with hot springs… search hot springs.  If you are a property in a wine growing region with fine dining… I think you get it. Fact is, this is INCREDIBLY time consuming, and I have backed off of it a little in need of positioning and building the social media presence for a number of clients… but there should be a point I am back to having the time to filter through aggressive wide netting of google alerts, backtype, twitter search, and other RSS’.  In fact, I think I totally melted down at one point through a blog post, as noted here.

In fact… the following will start to really help you position your property on something like twitter:

1) Firmly commit yourself to the geography and history – know your story, know where you came from, and know what your offerings are, what makes you special.. and share it!

2) Ingratiate yourself to the community – share city and county wide news, events, stories, photos, etc. Celebrate the Juniour Varsity going to state, or the new art gallery exhibit.  People don’t often care about a hotel.  They *do* care about what matters to *them*.  If you share and come together over similar interests, you will start to matter to the social web. Become a leader in information about your surroundings and tap into people’s interests. It isn’t all about *you*. It isn’t about wanting to sell your rooms, talk about your rentals, or pitch your restaurant. If you are myopic enough to think only of yourself, you won’t be as relevant as if you represent yourself as part of a community. Don’t just offer a room rate, talk about what makes a room special – from the historic quirks to green room design.  Instead of selling your bike rentals, talk about the incredible (more…)

Spot on and completely hilarious, I am sure many of you have felt this frustration. Apparently, everything is negotiable nowadays, eh? This makes it nice and ridiculous, for easy lunch time digesting.

Once again, I got carried away with a response to a blog post, and decided to expound on it.  I am sure this counts as real business right?

Newsweek’s Budget Travel has a great article about TripAdvisor trying to deal with the long coming revelation that many of their users and reviews are not legitimate.  This is, frankly, a huge blow to the site, and should pose a happy problem in it’s early adolescence as they deal with all the changes that come along with growing into adulthood.  Frankly, I am thrilled that this may provoke User Generated Content sites to seek the same verification model other sites have.

At any rate, this is vital to all of us, and it recalls some of my previous post (which I seem to mention once or twice):

You know I am skeptical of social media, whether speaking of Facebook’s lack of meaningful interaction, or Flickr’s nebulous TOS.  In general, I have had major concerns since my yelp research project, and resulting thoughts on ethics in social media. I had even mentioned in January that Yelp should consider verification processes.

One scotch fueled evening my jocular side protruded a wee bit and I became a prankster. To be honest it wasn’t to learn the lesson I did, rather just good fun.  I speak of the Ryan Air Twitter spoof of mine, which got considerable attention in traditional media (namely because Ryan Air claimed @ryanaironline was their account).  It  helped me realize that there is a grave concern for brands and trademarks, and both (more…)

I was ranting and raving about not being able to keep structure or organization with social media, so I took some time to find some useful programs to help me out.   Well…. this is pretty cut and dry:    A quick, succinct post for you to be made aware of (and yet another onslaught from) useful social media tools.  Social Media is simply a tool in itself… so they are tools for tools.  With some of my friends’ more sophomoric moments of wit… they might suggest including myself would make it a third tool.  =)

A list of 10 tools that you might know of, or might not.  As many of these lists go you will likely act as I do…. Stoic, dismissive, and blase…  I will find myself say, “I know all these already,” ……. and then (more…)