The Year Ahead
Author: Natelle Fitzgerald
March 2008
Trend Watch
So we asked Yesawich to share some of the results with Smart Meetings readers, as part of our trend coverage this month. We’ve also included insight from other industry professionals.
Surfin’ USA
It’s no secret that we’ve become a society of websurfers. The Internet is a dynamic way to find information instantaneously, and that includes reviewing destinations for business travel. And why not surf? Virtual information lends a self-service aspect that is unmatched by the printed brochures of the past. Yesawich states that a hefty 70 percent of business travelers surf the web to plan their trips. Rich content and video-enabled websites allow them to peer into hotel rooms, check out a 3-D view of the grounds and access information on a property’s amenities. The use of this new technology, known as Web 2.0, has grown significantly since 2004, ac cording to PhoCusWright Inc., a research firm based in Sherman, Conn. People are engaging in online interactivity more and more with tools like podcasts, blogs, the use of 3-D maps and, most of all, social networking.
In fact, research from YPartnerships concluded that “the social networking buzz will continue to build—one-third of travelers regularly visit advisory websites like tripadvisor.com to seek the opinions of those who have “been there.” In fact, one-third of all travelers read travel reviews on myspace.com.
Other research organizations agree. Results from an industry panel discussion of online booking hosted by HEDNA (Hotel Electronic Distribution Network Association) found that a consumer usually will begin the search on Google, then continue to search even deeper for detail “with particular emphasis on other consumers’ reviews” (on sites like tripadvisor.com). Travelers are visiting between two and five websites within the planning process, according to PhoCusWright.
Wish Lists
Importantly for our industry, travelers have their sights set on beautiful destinations, primarily in the West. Yesawich found that, when considering travel within the next two years, 68 percent of travelers prefer Hawaiian neighbor islands, and 43 percent are considering San Diego and San Francisco. Almost half of the business travelers listed Lake Tahoe and Las Vegas as desired destinations. Meanwhile, 8 percent are considering the sunny climate of Mexico and 13 percent are focusing on Canada.
Looking ahead, Yesawich predicts that the demand for business travel service will certainly grow, mostly from a rise in the number of corporate and association meetings. One common demand for both business and leisure travelers is the presence of an on-site business center at a hotel. Sergio Laurant, a 14-year hotel business-center profitability consultant, found that about 20 percent of hotel reservations (of both business and leisure travelers) are based on the availability of a business center and computer services. As a result, most hotels are now considering business centers as a basic amenity, Laurant said. For example, in 2005 Hilton Hotels instructed that these types of centers become part of the brand’s usual amenity list—supporting their marketing claim to be “America’s Business Address.”
Growing Greener
Environmental awareness has become more of a lifestyle than a trend, and traveler preferences are reflecting this. Karen Weiner Escalera, the leader of marketing firm KWE group, found that consumers looking for hotel bookings want properties that support sustainability and show “a genuine sensitivity to community.” A survey conducted by A Closer Look, Inc. (an Atlanta-based research firm) discovered that finding a hotel that follows environmentally friendly practices is important to 75 percent of travelers. But hotels have more work to do—94 percent of 701 hotel guests surveyed said they have never stayed in a hotel that offered recycle bins in-room. More than half (57 percent) of this group said that their last hotel didn’t offer eco-friendly and organic food options, either. (Apparently they’ve never stayed at a Fairmont Hotel & Resort—a brand that has committed to operating eco-friendly kitchens worldwide.)
Desperately Seeking Solace
Yesawich’s study found that 76 percent of respondents are seeking new ways to reduce stress—that isn’t surprising—and people are making the most of their work trips. Luxury has become an accommodation standard, and part of that luxury is to mix business with pleasure. In 2007, 57 percent of business travelers combined work and play on one or more business trips within the past 12 months.
Escalera also has seen growth in the work/play trend. “Business trips with the whole family will become as common as tag-along spouses, while high-end business hotels and resorts will roll out the red carpets for families with special suites and villas,” she reported, based on research conducted by her firm.
