Andy's Articles
HEARTBREAK IN THE HOTEL INDUSTRY - HOW HAS IT TAKEN SO LONG?
Not too long ago, The London Evening Standard ran a detailed article about the hotel business in Central London.
It was called Heartbreak Hotels.
The basis of the article was this: there are already too many hotels in The Square Mile. Competition is very tough right now. But, it's going to get tougher…
…much tougher…
According to this article, major groups and individual entrepreneurs between them, plan to open a number of new hotels, adding a further 2,000 rooms by the end of 2001, to an already cluttered marketplace.
This will mean one thing. There is undoubtedly going to be more blood on the streets in the hotel industry in Central London. There will certainly be casualties.
I, for one, will shed no tears. And I know that a lot of my colleagues won't either.
Because, this particular industry shoots itself in the foot every single time…
My company has worked with a number of the major hotel groups over the past 15 years or so and we are currently working with 5 properties in 3 continents, advising them on all aspects of their marketing and communication programmes.
These 5 I would call enlightened. Some of the others I would be less charitable towards…
I am a very good customer of Le Meridien Hotels. I like the product and have stayed with them all over the world. As a result of my regular and consistent business I was given Carte Noire status, to identify me as a very good customer.
Le Meridien are a hotel group that flatters to deceive. They have a fine product, sure, but the genuine smiles and high service levels you receive when you are at their properties, are completely reversed when you leave.
Carte Noire is their frequent stayer scheme. It is pretty much invisible at most Meridien hotels and appears to have been originated, because someone thought it might be a good idea…
… and, of course, because everyone else has one, we should have one too…
Yes, you're starting to get the picture…very little commitment to a vital element of the business.
Anyway, as I am a very good customer of the group and stay regularly with them all over the world, I received, out of the blue ( unexpected, that's good ) a number of free room night vouchers, as a REWARD for my loyalty and considerable amount of pennies.
So, here I am with 3 FREE room night vouchers to use at any Meridien hotel anywhere in the world. Lucky old me, you might think. Wrong !
I've had the vouchers 8 months now and I haven't been able to use them yet……despite at least 6 attempts…
In Central London hotels, it is virtually impossible to redeem them. And, occupancy levels at the hotels have no bearing at all on the decision. I know, because I checked this personally on the evening of rejection on 3 occasions, at all 3 Meridien properties in the capital.
So, why is this? Certainly the staff I have spoken to, both at the hotels and at Meridien Head Office, have little interest in being of help. All they do is say no, in the nicest possible way and sympathise with my gripe, but…"that's the way it is, I'm afraid…goodbye…"
Jobsworths…
You would think that senior hotel executives would recognize the most important commandment of hotel management, which is
"It is infinitely more profitable to service an existing customer, than it is to find a new one"
In my case, they have obviously forgotten this. They have rewarded me for my business, then on the other hand, made it almost impossible to redeem my benefits, unless it is on their terms…
Not very customer friendly that one, is it…?
All of their Carte Noire members, represent the group's best customers. Accordingly, therefore, I should be one of the most important people in this hotel group's life…I should be pampered, cosseted and looked after like royalty
but I'm not. In fact, quite the opposite, they are causing me pain and frustration and I'm very unhappy…
Who the hell are running these schemes? Why don't they understand the basics?
Don't they appreciate that when I take my business to another group, it is highly unlikely that I will return…ever…
To do it right, isn't hard. Yet hotel groups continue to screw up in this area, by virtually forgetting that valuable client, the minute the bill has been paid and that client is out the door.
Think about it, when was the last time you ever received a thank you letter or card, from a hotel after a visit?
I can tell you now, that I have NEVER received one, in over 20 years corporate travelling. I cannot understand it at all. It is very poor management indeed.
So, when I read an article like the one in the Standard, I have no sympathy for the hotel industry. None at all.
There are going to be tears before bedtime. But I won't shed any…
They deserve what's coming to them.
Andy Owen is Managing Director of Andy Owen & Associates, a Strategic Marketing Consultancy, with offices in Birmingham, Dubai, Paris, New York & Los Angeles. He personally visits Dubai every four weeks to work with clients in the area. He can be contacted on 0044 121 778 6640, or by email at andyowen@aol.com en.co.uk