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Saint Louis
Hotel News

July, 2006
St. Louis Hotels Guide
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Hotel Customers Demand Flexibility, Responsiveness and Innovation
ROSEMONT, IL, (PRNewswire), July 16, 2006 - Customers are demanding flexibility, responsiveness, and innovation across all travel industries as preferences shift from the low-price, no frills travel style to a more transparent model that includes the "right" experience, according to Kanbay Research Institute's (KRI) latest report on travel demand.

Among the key findings, KRI data illustrates that travelers naturally group into five needs-based groups, or Traveler Types: Straight-Forwards, Innovators, Safe-Havens, Reasonables and Clockers. The data indicates that no group makes travel decisions based solely on price, as 76% of respondents said they desire a blend of price and amenities, a model referred to as "Fair- Pricing."

"Back in 2003, my team started to see a critical trend that most consumers -- especially in the airline industry -- really just wanted 'fair fares' when evaluating travel companies," said Gary A. Williams, executive director of the Kanbay Research Institute.

"Mostly due to technology advancements and the Internet, that is being achieved. Today, consumers want more of a 'fair-trade-offs' model where just the right set of amenities is added at a reasonable price premium. In fact, the largest segment of travelers, 31.6%, are best described as 'reasonable' -- focused on value but unwilling to compromise quality. And they are more than double the size just two years ago. The next few years will be dominated by those companies best able to innovate in just the right way, similar to how Starbucks created a unique experience well beyond a relatively simple product. The travel industry has enormous potential to differentiate the consumer experience, yet so few actually do."

Additionally, word-of-mouth is the most influential factor in consumers' selection of a travel company, and is almost three times more important than any television advertising campaign.

"The fact that word-of-mouth is by far the strongest driver in travel decisions highlights how crucial it is for companies to provide a positive experience for their travelers," said Bill Donlan, executive director for Kanbay's Customer Relationship Management practice. "When deciding on a travel company, consumers overwhelmingly look for competency of staff, a promise of personal safety and a travel company's reputation as a leader and innovator as top priorities. Those airlines, casinos, cruise lines and hotels that meet these desires will continue to build a loyal customer base and will be in the best position to attract new travelers."


Summer Travelers Are Forecast to Spend More for Hotel Rooms and Service
ST. LOUIS, (PRNewswire), July 2, 2006 - Hotel rooms will be harder to find, compared to last year and travelers will pay more for these rooms.

In fact, summer travelers are forecast to spend an average of 6.0 percent more to rent a hotel room this summer compared to the summer of 2005. Hotel occupancy rates are forecast to average 74.1 percent, the highest level since 1997. This analysis is based on the summer 2006 edition of Hotel Outlook, an econometric forecasting model developed by PKF Hospitality Research (PKF-HR) and Torto Wheaton Research.

"It will be tough to find a hotel room during the summer of 2006 without booking in advance," said R. Mark Woodworth, president of Atlanta-based PKF- HR. "Given the increasingly sophisticated yield management practices within the hotel industry, the high occupancy rates are enabling managers to more aggressively quote the highest room rates. This is good news for hotel owners, but not for consumers."

News of high gas prices created speculation that people would curtail their summer travel plans. However, historical analyses have shown that the nation's population will continue to take their summer vacations even during tough economic times.

"Regardless of recessions or energy crises, we have observed that the public continues to travel, but they will alter their traditional plans," Woodworth said. "This summer, in order to compensate for higher gas prices and airfares, we are seeing a migration toward more economical accommodations. The gain in limited-service revenue per available room, or RevPAR, of 13.7 percent is far greater than the 7.2 percent increase forecast for full-service properties."

In St. Louis, Summer RevPAR to Annual RevPAR is 150.2%, compared to the National Average of 106.1%.

During the summer of 2006, limited-service occupancy levels are projected to increase 6.2 percent to a level of 74.8 percent. Full-service hotels are forecast to achieve an average occupancy of 73.8 percent, an increase of just 0.5 percent from the summer of 2005.


Holiday Inn(R) Asks Consumers To 'Look Again'
ATLANTA, (PRNewswire), June 18, 2006 - Holiday Inn® Hotels and Resorts has is rolling out a comprehensive multi-million-dollar integrated marketing campaign that asks guests to "Look Again" at the brand.

Through independent research conducted by strategic brand consultancy Landis Global Market Research, Holiday Inn found that the four features most important to business travelers are free High Speed Internet, comfortable in- room work spaces, full-service meeting facilities and a robust loyalty program. Holiday Inn offers each of these core business amenities; however, research revealed most business travelers more closely associate Holiday Inn with its heritage as a family leisure hotel and amenities like the hotel pool. The Look Again campaign aims to round-out consumer perceptions of the brand so they view it as a first option for business travel as well as leisure.

"The campaign reinforces the strengths of today's Holiday Inn and prompts guests to 'Look Again' to see how the iconic brand they think they know has continued to evolve to meet their needs," said Mark Snyder, senior vice president of Brand Management for Holiday Inn Hotels and Resorts in the Americas.

"The emphasis on elements like free high-speed Internet access or comfortable, modern in-room workspaces, for example, may seem fundamental on the surface, but for a brand with a legacy and character like Holiday Inn, they are more meaningful," he added. "Holiday Inn has a history of leading the industry in innovation, and we want to make sure we take this opportunity to shout it from the rooftops -- something we typically have not done."

The primary target of the campaign is what the brand defines as the "modern everyday hero," a blended attitudinal segment that spans Generation X and Baby Boomers. With an existing 100 percent brand awareness, virtually everyone in the target segment has stayed at a Holiday Inn, yet the Landis research revealed these consumers may perceive Holiday Inn exclusively as a family leisure hotel and Holiday Inn's full-service business amenities may not be top-of-mind.


Archived Hotel News:
Major League Baseball Announces Holiday Inn Hotels as 'Official Hotel of Major League Baseball'
Hospitality Industry Presses Congress for 'Comprehensive' Immigration Reform
Hilton St. Louis Ballpark Hotel Undergoes $16 Million Renovation
RLJ Development to Franchise 90 Marriott International Brand Hotels
Sheraton Westport Chalet Completes Remodeling
Intercontinental Hotels Group Launches Virtual Concierge Service for Holiday Inn® Hotels and Resorts
Family Owned Drury Hotels Build on Guest Services & Customer Satisfaction
Kansas City's Landmark President Hotel Reopens
Doubletree Introduces Newest Full-Service
Hotel in St. Louis

The St. Louis Hotels Guide is owned and maintained by the Moore Design Group for the sole purpose of disseminating news and information about the Metropolitan Saint Louis area. Text or graphics may not be copied, rewritten or distributed in any manner whatsoever without written permission. For more information, contact editor@slfp.com All rights reserved world wide © 1997 - 2006 Moore Design Group.

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