Chapter News
by Eileen White, Chapter Administrator
HSMAI, Greater Los Angeles Chapter
eileenw@hsmailax.org (323) 469-9304

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Industry News ~ Snapshot

2004 WILL BE A RECOVERY YEAR
Everything we have recently read from prognosticators, industry executives, analysts and even normally pessimistic editors are all very optimistic that 2004 will finally see the recovery that we have been waiting for since the upheaval in the hospitality, travel and tourism industry in 2001. It's now 2004, the worst may really be over and the sun may really shine again on the hospitality, travel and tourism industries.

PWC SEES LODGING DEMAND AT RECORD LEVELS AS 2003 ENDS:
According to PricewaterhouseCoopers (PwC) research, U.S. lodging industry demand will have achieved a new record level in the fourth quarter of 2003 when average daily rooms sold will reach 2.723 million..and will exceed the previous peak level of 2.697 million set in the fourth quarter of 2000. As outlined during the course of the company's 2003 Lodging Industry Briefing Wrap-Up & Forecast, PwC predicted lodging demand would increase 4.5% in 2004, while lodging industry supply will grow 1.4%. On this latter point, it was noted that supply growth - though slowed - remains high compared with previous troughs. It was further contended lodging occupancy will advance by 0.9 percentage points to 61.2%, and although it was said to represent a significant improvement from the trough of 59.1% in 2002, the current level remains low compared to historical values. As a result, PwC suggested average daily rates (ADRs) would only increase moderately at 1.9% after declining a cumulative 2.5% since 2000. Accordingly, it was claimed the combined increases in ADR and occupancy would advance revenue per available room (RevPAR) by 5.2% in 2004.

REV PAR GROWTH EXPECTED TO BE BACK ON PLUS SIDE FOR 2003:
RevPAR growth for the entire industry this year was expected to be 0.3%, a nearly three full percentage point swing from a 2.5% RevPAR decline experienced in 2002. Segment by segment occupancy is rising in all categories except economy. Upper Upscale hotels should expect to see a 0.5% increase in occupancy while the Upscale segments are seeing a 0.8% occupancy increase - the highest of all categories. Midscale with F&B will slide only 0.3%. - HotelInteractive.com

TIA PREDICTS INCREASE IN WINTER TRAVEL BY AMERICANS:
The Travel Industry Association of America (TIA) predicts that 2.3 percent of trips will be taken by Americans this winter for a total of 213.4 million person-trips. Suzanne Cook, senior vice president of research, says increased economic activity and a rise in consumer confidence are fueling the increase. She says there is solid growth in both leisure and business travel, and the latter should be increasing by 3.7 percent. This will be the first increase in business travel since 1999. Leisure travel is expected to grow by 2 percent. -- Travel Agent Magazine

MEETING PLANNERS FIND HOTEL STAFF SERVICE MOST RELEVANT:
The hotel industry's meeting business is finally bouncing back from 9/11, but many hotels could face an uphill battle in wooing back customers unless they appeal to the ultimate gatekeeper - the meeting planner - according to a study from Maritz Hospitality Research Group. Surveying more than 1,700 meeting planners, the Maritz "2003 Meeting Planner: Choice, Experience, Loyalty Study," found that establishing a perception of collaborative partnership between the hotel and the planner throughout the various phases of the meeting planning process was critical to securing future business. Additionally, being responsive to the planner's needs and doing simple things like expressing appreciation for the business during the post-event phase were strongly linked to meeting planner loyalty.

TRAVEL AGENTS STILL COMPLAIN ABOUT HOTEL COMMISSIONS:
Nearly every travel agency (94%) has some problems collecting hotel commissions, and only about a quarter of agents believe commission collection has become easier in the last five years, according to research conducted by Travel Weekly and its parent company's NTM Research. An analysis of the 1,123 responses to an e-mail questionnaire suggests that an age-old problem with hotel commissions has been mitigated somewhat by technology and collection tools but has not gone away. Among the 94% of respondents reporting problems collecting pay, 28% said the issue arises on less than 10% of bookings; 23% said it arises between 10% and 20% of the time; and not surprisingly, were small, overseas hotels, which were cited by 63% of all respondents. -- Travel Weekly

THIRD PARTY WEB SITES ADVERSELY IMPACTING HOTEL REVENUES:
According to a study by Smith Travel Research, third-party merchant internet web sites are significantly impacting hotel revenues and profits. STR estimates that third-party sites will absorb about $962 million, or 6 percent of overall U.S. hotel industry profits this year, up from an estimated $642 million or 4.5 percent of total profits that were absorbed in 2002.

YPB&R LOOKS AT PRICE INTEGRITY AND THE INTERNET:
While consumers are delighted when they find a great deal online, travel suppliers are beginning to question the wisdom of variable pricing across multiple distribution channels in an increasingly transparent world, according to Peter Yesawich, president and CEO of YPB&R. One of the direct consequences of this phenomenon is that a majority of active leisure travelers in the U.S. now believe the internet is the place to go to "get the best prices for travel services." In fact, according to YPB&R's 2003 National Travel Monitor, the percentage of active leisure travelers who believe the internet is the source for best pricing has risen a remarkable 20 percentage points in just the last 12 months, from 38% to 58%. As most travel suppliers will attest, however, this belief doesn't necessarily reflect reality. Nor is it a perception most would like to propagate. And therein lies the challenge, because "price integrity" is difficult to achieve in a fiercely competitive market environment (not to mention one in which much of the available inventory may be controlled by third parties and/or franchisees). -- Peter Yesawich, YPB&R eNewsletter.

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National Events & News

HSMAI's Affordable Meetings®
This show provides meeting planners with free educational workshops on topics related to affordable meeting planning as well as the chance to liaise with a variety of suppliers from hotels and resorts to CVB's, destination management companies, airlines, etc. > Read More...

Contact: HSMAI's Affordable Meetings®
c/o George Little Management (GLM), Ten Bank Street, White Plains, NY 10606-1954
Beth Petersen, show manager, (914) 421-3377; Fax (914) 948-2918
Email: beth_petersen@glmshows.com; www.affordablemeetings.com

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Selling Tips 5 Strategies for Selling Yourself by Kevin Nunley www.drnunley.com (888) 429-6203

This is a constant debate. Should you sell your product or yourself? Of course you should always sell the product. But, your long term goal should be to sell yourself as well. Here's how to start.

Be completely comfortable with who you are. Try to change yourself too much and people will sense dishonesty.

You should have a marketing strategy, but also be willing to give free advice and referrals. If you are building a long-term enterprise, this will be invaluable as you open up relationships with your customers.

Gain a reputation of being sincerely interested in your customers BEFORE you start selling. Talk to them informally and make them remember you were there.

If you have a web site, update it often and make sure there is plenty of information. Invite people to refer to your web site for details on your products and services.

Above all, make yourself interesting to others. If you sell yourself as well as the product you will always have an eager market.

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Email Tip of the Month Instrucments of Email Marketing by Heinz Tschabitscher www.email.about.com

Email marketing is immediately associated with personalized bulk mailings, and possibly newsletters.

A complete email marketing strategy can consist of more marketing instruments, however:

• Individual replies to customer requests
• Newsletters (both with original content and supporting a Web site)
• Personalized mailings
• Public mailing lists (for market research, support, etc.)
• Autoresponders
• Networking (participating in forums, discussion lists, fairs,...)
• Web site

Of course, all email activities should also be in line with the overall marketing strategy.

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