Solution for Luxury Hotels

Attention Hospitality Executives:

When you have a free moment, take a gander at this article posted today on CNN.com:

http://www.cnn.com/2009/TRAVEL/04/24/luxury.hotels.bad.economy/index.html

In short, it accounts the overwhelming financial challenges facing luxury hotels. It’s not good. Here's an excerpt:


From December to February, occupancy in luxury hotels, a category that includes names such as the Four Seasons Hotels and Resorts and Ritz-Carlton Hotel Co. sunk more than 15 percent...the revenue generated from the available luxury rooms fell 23 percent in that same three-month period...there are 551,610 rooms opening this year amid sluggish consumer demand...


Meanwhile, there are over 1100 sales jobs open in the US (according to today's posting count on Hcareers.com) - the majority of whose expectations are to fill the aforementioned 550,000+ rooms. Hmmm...

Perhaps instead of trying to figure our how to fill rooms, luxury hotels should consider revenue-generating programs for consumers in their own markets. Specifically, luxury hotels must look to their restaurants, bars, salons, spas, workout facilities, WiFi offerings, smaller meeting spaces, video conferencing technology, and local charities - and program live experiences (events and promotions) that utilize these resources to make money for the property - and essentially work their way back to selling rooms.

The outcome of these efforts will simultaneously maintain if not enhance the “buzz” of the properties – which sales managers, management, culinary and service personnel can all use as a resource in their efforts to secure more traffic and revenues within their own networks.

Without intending to come off as self-serving (I mean it), there are several entries on my other blog (http://marcportugal-expmarketing.typepad.com/) that address solutions to this very challenge in more detail. Please feel free to contact me at marcportugal@yahoo.com with any follow-up questions.

There is a solution, and one that can start sooner than later.

Marc-Portugal