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Destination Value Proposition Must Be Honest And Inclusive - By J. Ragsdale Hendrie |
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Several years ago, a Political Strategist labeled the obvious, 'It's the Economy' which was driving the turmoil, and by the end of the First Quarter 2008, we all know this inescapable fact. However, our varied Hospitality segments tend to interpret the realities quite differently. |
Our retail partners are laying off personnel, and some major retailers will certainly fold by the end of the year. Our Restaurant partners have watched their patrons 'dine down', a trickle effect from the white cloth to the self serve. The Hotel sector has a different take, noting that ADR and RevPar are healthy but moderating. Typical business mechanisms, such as discounts and packaged deals, are in place to address these 'slight' deviations. Who is fooling whom?
Consumers will adjust and adapt their spending habits, as basics become jeopardized. They will still travel, seek accommodations, dine, recreate and shop. The trips will be for shorter distances and time stayed. Choice of lodgings will typically downscale, as will their decisions for a meal. In our shops, there will be more lookers than purchasers. Higher end attractions and recreation will see a drop in attendance, whereas operations, such as amusement parks, will balloon with patrons, representing inexpensive family entertainment for a full day.
Destination area leadership faces a thorny problem. For years, we have done more with less, and, now, our Visitor wants more for less. It is the economy, and our Value Proposition is challenged by Price, for our Visitor will comparison shop to maximize what they will get with the smallest dent in their now limited disposable income. Traditional Destination marketing simply will not work. This year ahead is not business as usual!
But, we are used to the 'tried and true' - marketing and promotional schemes, thrown up against the wall, seeing what will stick. 'That one seems to have some legs', we say. 'Let's put our marketing dollars to work'. Visitors will come, we opine. Sure enough, those Visitors do visit our Destination Web Sites. Expectations are framed, and those Visitors begin the comparison shopping, considering our Destination and the picture we painted against other choices. To assist them in making those decisions, they, just as we (Consumers, too), turn to a variety of sources for guidance.
We may start with a Review of Property Ratings, which as of late many question, specifically as to their reliability and, now, their relativity with the onset of Social commentary (Guest/Patron Reviews on-line). These rating companies assess product, service and facility for certain Hospitality related businesses. Some of the players are AAA, Mobil, Michelin and Zagat, and the on-line services like Hotel.com, Expedia, and Travelocity.
The high end businesses seek a means to further refine aspects of their operation, the rest of the market seeks definition. The means are not scientific. The US has led the way with a plethora of Rating Companies, because we have no universal Standards of Quality and Service, a major flaw and presumption from our Industry Leaders and Associations. No wonder the Consumer seeks guidance. For example, the thread count is wonderful, but is a sheet acceptable with stains, rips and tattered edges, even though just washed? In many establishments, yes.
Peer or Patron Reviews (the Social Media) are fun to read, but they should be treated like background music - informative, look for trends, be entertained. They are neither scientific nor definitive, rather just another tool at hand to assist a decision.
The big Rating Company players got in trouble when they began to dissect, too finely, the top of the line hotels, resorts and restaurants and step out of their turf, like Michelin in Japan. They also did not respond well or quickly to the Internet. The smart Rating companies will "batch" their services with running commentary from Consumers. Hotel.com is already doing that with new advertising. "Peer Reviewed and Quality Assured" - how enterprising - and helpful to drive bookings.
The Public (your Consumer) has found a voice on the Internet. The Common Man has a Common Plan. They want a quality experience, value for their dollar, a room that is clean, a well prepared meal, and a sincere smile - what we should have been providing all along. Our Destination marketing should reflect that reliability, which supports our Value Proposition.
The Bottom Line, however, is how we deliver on the promise, when our Visitors, loaded with expectations, flock to our Destinations. Too often, our leadership has lost sight of the fact that a Visitor's experience is delivered by everyone in the Destination, not just the premium and poised businesses. The Blogs and the word of mouth highlight the insincere desk clerk, the rude taxi driver, the harassed waitress, the arrogant policeman. This is what Visitors report to a ready audience, and it is deadly. If not all Destination Partners and infrastructure components are embraced, encouraged and developed, the end Visitor Experience is devalued, and the world hears about it.
Many of our Destinations give 'lip service' to bringing the diverse parties together. Just look at the make-up of your Tourism leadership committees and organizations. Are they representative of all the constituencies? Typically, these enterprises are run, almost in a titular fashion, by the senior management of the larger businesses, who tend to be arrogant and parochial. 'I'm in good shape' is their mantra. They also have the vast resources of their corporate parent at hand. What about everyone else? 'Let's put together an inexpensive program to train everyone to be a good Ambassador for the Destination.' That is the investment in the Partners (the others) - cheap, quick, down and dirty. 'At least we made the effort', our leaders say triumphantly.
Well, it just does not work that way. A Destination's success is dependent upon everyone, all components, becoming involved and, therefore, accountable for the Visitor Experience. Every partner, from the owner/operator through the staff, must understand their role, what is in it for them, and how their performance parlays and translates to the economic well being of a Destination area, whether you are a region, like New England, a State like Oklahoma, a location, like Myrtle Beach , an island, like Anguilla, or a free standing operation. Some Destinations are excelling in their inclusive efforts to promote an exclusive Experience. The State of Oregon is on the cutting edge, the Poconos have dramatically enhanced their image. They get it!
It is the Economy. It will be your Value Proposition which will bring the Visitors to your Destinations, and it will be up to each and every one of your Partners to deliver on that promise you design. You have the capability, and, usually, challenge brings out the best efforts - collegial and synergistic, for this is a community effort.
The author believes that Remarkable Hospitality is the portal to the Memorable Experience. Seek solutions at: www.hospitalityperformance.com
Contact
John R. Hendrie
Phone: 978-346-4387
Email: jhendrie@hospitalityperformance.com
Organization
Hospitality Performance, Inc.
www.hospitalityperformance.com
40 East Main Street
USA - Merrimac, MA 01860
Toll Free: 877-280-3650
Phone: 978-346-4387
Email: jhendrie@hospitalityperformance.com
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