Here is Part II of my exploration of the world of Twitter. I have been tweeting now for about two weeks, and have about 120 people actually following what I am saying on this incredible social media. It amazes me how fast this has grown for me from a peek at a new marketing channel to a full blown way to spread the word about what we do at Quantum Hospitality. More important, I have found so many really interesting people in the Twitterverse to follow. They are writing short notes (140 characters only) about anything and everything of interest to them. Here are my continuing observations about this exploding device.
In last weeks blog article, I described in general how Twitter works, but the simplicity of sending out very short messages belies the fact that a tremendous amount of information is being spiraled around the Internet in this fashion. By using one of many free services to shorten URLs, Tweeters are including references to blog articles and other websites within their Tweets. Once received, each person, if the information is deemed worthy, can then “Retweet” this information to his or her list of followers with a comment. It is this Retweet phenomenon which is the essence of viral marketing. It keeps the message circulating, growing and growing the number of people who ultimately see it. Just think of the possibilities. Imagine your Special Package description gets Tweeted to your friends (presumably your guests) who then spread the word to all their friends, who then send it to all of their friends, and so on. . . . This is the essence of the concept of Repeats and Referral, the two most important kinds of guests and prospective guests a Bed and Breakfast can have. In essence, the marketing potential of Twitter is endless.
Now, does it work? First, there is an etiquette happening as well. If all that you talk about on Twitter is your business, your Twitter followers (i.e. your “friends”) will likely stop listening to what you say. This is a social media after all! They want to know you as a person as well as a business. Here is where all your Innkeeper hospitality comes into play. You can spend a good deal of time on Twitter talking about what is going on at the Inn. It can be as simple as a description of that fabulous breakfast that you just fed to your guests, a description of one of your best guest rooms, or a short note about what is happening in your neck of the woods this weekend. Pictures work great on Twitter, with a Flicr account and a shortened URL, you can include great photos in your Tweets. Again the marketing potential is limitless. The key is to convey the wonderful ambiance of your Inn in 140 characters. That is the Zen of it all.
So the overall answer to the question “does it work?” is a resounding yes! What amazes me is that there are so many bed and breakfasts out there, but only a relative few have caught on to Twitter. This is a missed opportunity. Right now, it appears that the overwhelming number of people on the Twitter channel are people who are into social media as a business. The bloggers and web developers are all there. Also, you will find every form of self help and technical gurus there, as well as some really smart people who just want to learn about the anything and everything of it all. These people are basically your guests or prospective guests.
So what is the first step after signing up for Twitter? You need to get a following that wants to hear your messages. What better way than to put out the word to your guest list that you are now on Twitter. Put the Twitter link on your website, and send an email notice to your guest list with your Twitter ID. Ask them to follow you. Make sure you have the link in all your marketing pieces and newsletters. Set a goal to get a good number of your guest list into following you on Twitter.
Once you have guests following you on Twitter, you can then have a look at who they are following and who is following them. You can elect to follow anyone who is interesting to you (i.e. a potential guest). If you follow someone, they get an email from Twitter advising them that you are now following them. Usually, they will look you up on Twitter, and if it interests them, they can elect to follow you back. This is the social networking feature of Twitter, and it allows you to expand your friends and make new ones. Many, many Tweople have thousands and thousands of followers on Twitter. It is word of mouth at its highest level.
So my advice is “what are you waiting for?” Get going and Twitter on. . . .
Wednesday, March 25, 2009
Thursday, March 12, 2009
Twitter 1.0 for Bed and Breakfasts
This is my first week as part of the Tweople in the Twitterverse. I am trying to discover if Twitter, the new explosion in the Social Media World, is worthy of the time. Is it something that can help Innkeepers connect to their guests and build loyal travelers? My initial conclusion is a resounding Tweet YES!
First, let’s define the process. Twitter is a free Social Media website that asks the simple question “what are you doing?” You have 140 characters to describe anything that you want. Sort of a brief haiku of what is going on in your head. A posting is called a “tweet,” and it goes out to all of the people who have signed up to follow your postings (they are called “followers”). You, in turn, receive tweets from all of the persons that you are following (i.e. your friends), hence the social nature of this new media. That is pretty simple in concept. What it is in reality is like a nuclear bomb on the web. Millions of people are all atwitter about themselves. Here is my own experience over the last week or so.
After I set up the account a few months ago, I shot off a couple of tweets about things that were bothering me, like the new LL Bean credit card. I stopped after a bit, because I wasn’t sure whether anyone was listening to my rants. I just did not get what this was all about. Well in fact, there were at least 8 people in the Twitterverse that must have felt the same way about LL Bean, because they signed up to follow the stuff that I was putting out. I didn’t do anything else, but they seemed to hang in there with me.
Last week, after the mighty Wall Street Journal said that Twitter was hot stuff, I decided to explore this further. What I found just staggered me! First, there are an absolutely amazing number of very interesting people who are talking to the world on Twitter. By doing a search of interests or subjects or anything else you can think of, you start to see the profiles (picture, website, and short bio) of vast numbers of people. By clicking a button, you add them to your “following” list, and, low and behold, some of them look at your profile and decide that you might be worthy of following. Basic networking is then happening, and the more you follow, the more that follow you in return. Then comes a daily stream of tweets about anything and everything, but you can look at what comes in and cull the interesting from those that you really don’t want to read. There is an etiquette to Twitter as well, and clearly if you tweet too much during the day without a whole lot of content and interesting stuff, then your followers are going to turn you off (remove you from their following list). Sort of like immediate feedback about your worthiness. The most “interesting people” are tweeting about things that they have found on the web, and include a URL in their tweet. Other software companies have even set up websites to compress the URL’s into tiny links so that they fit into the rest of the 140 characters that you have to tweet with. So, what is happening is that Twitter becomes an amazing information sharing tool that starts from a very simple premise, but unleashes the power of the Internet to get worthy information to you.
Yesterday, I added a tool called Twhirl that sits on my desktop and monitors the tweets that come in from those who I am following. It has all of the functionality of the Twitter website, and even some great tools like compressing URLs and filtering tweets. It signals each tweet as it arrives. There are numerous tools for Twitter, and I haven’t even scratched the surface of the amazing world of add-ons to make the process better. While the search feature in Twitter is good, there are third market search engines that are incredible in their ability to dig out of the Twitterverse those people who might be relevant to you and your business.
Now let’s talk about electronic marketing for Innkeepers. What most of these interesting people are doing on Twitter is promoting themselves or their products or their blogs or their websites. By creating a group of people who follow them, they are engaging their customers and those people who might be interested in their products or services. So they are setting up a network of people to talk with who might be their customers in the future. Now the tough part. Since this is a social media, the pitch may not be as direct as “I would like you to buy my product.” This is about people, and remember the premise is “what are you doing?” Perhaps you are writing a blog article about a great event to take place near your Inn. You could then tweet what you are doing along with a link to that blog posting. Or you could simply tweet about what his going on at the Inn or anything that makes you more human and likable to your guests and potential future guests. The subjects are unlimited. There are a huge contingent of people on Twitter interested in travel. That is because they first are interesting, very savvy, and literate people. These interesting people like to travel. How do I know this? It is simply because you selected them yourself to follow, and, by their selection, your followers are interested in some of the same things you are. It is elementary, but very, very powerful.
So, that’s all for this post. I will continue to update this subject as I get further into the Twitterverse. If you want to follow my tweets, check out InnConsultant on Twitter.
First, let’s define the process. Twitter is a free Social Media website that asks the simple question “what are you doing?” You have 140 characters to describe anything that you want. Sort of a brief haiku of what is going on in your head. A posting is called a “tweet,” and it goes out to all of the people who have signed up to follow your postings (they are called “followers”). You, in turn, receive tweets from all of the persons that you are following (i.e. your friends), hence the social nature of this new media. That is pretty simple in concept. What it is in reality is like a nuclear bomb on the web. Millions of people are all atwitter about themselves. Here is my own experience over the last week or so.
After I set up the account a few months ago, I shot off a couple of tweets about things that were bothering me, like the new LL Bean credit card. I stopped after a bit, because I wasn’t sure whether anyone was listening to my rants. I just did not get what this was all about. Well in fact, there were at least 8 people in the Twitterverse that must have felt the same way about LL Bean, because they signed up to follow the stuff that I was putting out. I didn’t do anything else, but they seemed to hang in there with me.
Last week, after the mighty Wall Street Journal said that Twitter was hot stuff, I decided to explore this further. What I found just staggered me! First, there are an absolutely amazing number of very interesting people who are talking to the world on Twitter. By doing a search of interests or subjects or anything else you can think of, you start to see the profiles (picture, website, and short bio) of vast numbers of people. By clicking a button, you add them to your “following” list, and, low and behold, some of them look at your profile and decide that you might be worthy of following. Basic networking is then happening, and the more you follow, the more that follow you in return. Then comes a daily stream of tweets about anything and everything, but you can look at what comes in and cull the interesting from those that you really don’t want to read. There is an etiquette to Twitter as well, and clearly if you tweet too much during the day without a whole lot of content and interesting stuff, then your followers are going to turn you off (remove you from their following list). Sort of like immediate feedback about your worthiness. The most “interesting people” are tweeting about things that they have found on the web, and include a URL in their tweet. Other software companies have even set up websites to compress the URL’s into tiny links so that they fit into the rest of the 140 characters that you have to tweet with. So, what is happening is that Twitter becomes an amazing information sharing tool that starts from a very simple premise, but unleashes the power of the Internet to get worthy information to you.
Yesterday, I added a tool called Twhirl that sits on my desktop and monitors the tweets that come in from those who I am following. It has all of the functionality of the Twitter website, and even some great tools like compressing URLs and filtering tweets. It signals each tweet as it arrives. There are numerous tools for Twitter, and I haven’t even scratched the surface of the amazing world of add-ons to make the process better. While the search feature in Twitter is good, there are third market search engines that are incredible in their ability to dig out of the Twitterverse those people who might be relevant to you and your business.
Now let’s talk about electronic marketing for Innkeepers. What most of these interesting people are doing on Twitter is promoting themselves or their products or their blogs or their websites. By creating a group of people who follow them, they are engaging their customers and those people who might be interested in their products or services. So they are setting up a network of people to talk with who might be their customers in the future. Now the tough part. Since this is a social media, the pitch may not be as direct as “I would like you to buy my product.” This is about people, and remember the premise is “what are you doing?” Perhaps you are writing a blog article about a great event to take place near your Inn. You could then tweet what you are doing along with a link to that blog posting. Or you could simply tweet about what his going on at the Inn or anything that makes you more human and likable to your guests and potential future guests. The subjects are unlimited. There are a huge contingent of people on Twitter interested in travel. That is because they first are interesting, very savvy, and literate people. These interesting people like to travel. How do I know this? It is simply because you selected them yourself to follow, and, by their selection, your followers are interested in some of the same things you are. It is elementary, but very, very powerful.
So, that’s all for this post. I will continue to update this subject as I get further into the Twitterverse. If you want to follow my tweets, check out InnConsultant on Twitter.
Monday, March 02, 2009
Recession Reality for Bed and Breakfast Inns.
1. The Numbers Don’t Lie? Once again we are faced with an incredible array of numbers coming out of respected professionals who are trying to figure out the impact of the National recession. The problem is that the numbers can be made to say anything, but a careful review will show that no matter whose numbers are used, the picture is not rosy. Take for example the Gross Domestic Product (“GDP”). The Government released figures in January showing a decline in GDP for 2008 of 3.1 %, the worst in over a decade, clearly signaling the fact that the recession was worse than most economists had predicted. On February 27th, after the markets closed, the Government revised the GDP loss to a whopping 6.2 %. Stocks world-wide are tumbling on that piece of bad news, in fear of a longer recovery period. The downward spiral seems to continue with the report that even revered investor Warren Buffet lost $11.5 billion in the net worth of his Berkshire-Hathaway Corporation.
2. What is the impact on the Inn Business. First, it is hard to get numbers for the Bed and Breakfast Inn business separately. Smith Travel Research (“STR”) is the most respected source of historical numbers for the Hospitality Business, but does not collect data from small properties (under 50 rooms). One data release from STR shows that New England seemed to be holding its own relative to the US National data. For example, December, 2008 results for New England included a drop in occupancy rate of -2.1%, while Average Daily Rate (“ADR”) decreased by -3.6%. This resulted in a huge decrease in Revenue Per Available Room (“REVPAR”) of -5.7%. The National figures during the same December period showed larger decreases in Occupancy of -6.8%, in ADR of -3.2%, and a REVPAR decrease of -6.6%.
For the Year 2008 as a whole the figures are also instructive. New England showed a decrease in occupancy of -2.8%, but an increase in ADR of 1.9%, resulting in a miniscule decrease in REVPAR of -0.9%. The National figures for 2008 were far worse, with a decrease in occupancy of -4.2%, but an increase in ADR of +2.4%, resulting in a decrease of -1.9% in REVPAR.
The numbers from STR show that, until about September, 2008 was a growth year with higher occupancies that dropped precipitously in the 4th Quarter. Rates were still climbing in December, as the Hospitality Business seemed to lag in discounting. Overall, 2008 would be a down year, but only in comparison to the strong growth in the prior three years.
3. New England is not the same. One interesting thing that jumps out of the results shown by STR is that the New England States are not homogeneous. In fact, it was clear in both the December and National results for 2008 that Northern New England (Maine, New Hampshire, and Vermont) fared much better individually than the Nation or their Southern New England counterparts. For example, for 2008 as a whole, Vermont showed an increase in occupancy of +1.9%, an increase in ADR of 4.8% along with a REVPAR increase of +6.8%. While the results in Maine and New Hampshire were more consistent, they were slightly worse than New England as a whole. The bottom line was that overall, 2008 was a non-growth year, with a really cloudy picture for 2009.
4. The Real Data comes from Sales Tax Revenues. Another well respected source of industry research comes from Atlanta-based PKF Hospitality Research (“PKF”). Utilizing results of sales tax collections in Maine, PKF reported that September lodging sales in that state dropped by -12% from 2007, and continued to drop by -2.6% in October on a year-to-year basis. While Maine finished the year 2008 slightly ahead of 2007 (+0.7% growth in revenue), this came after 6% annual growth in the preceding three year period. PKF is projecting as a whole a -7.8% decline in REVPAR for Maine in 2009, which would make it one of the steepest declines in recorded history since the 1930’s. PKF also predicts that Maine will not fare as worse as others, because of its relative low cost and its rural location which fosters escape from the big cities. Presumably this would apply to all of Northern New England with similar characteristics prevalent throughout the region.
5. Summary: Batten Down the Hatches! No one likes to consistently hear bad news, but there is little about the economy that seems to be saying that things are going to get better soon. Predictions for a recovery in late 2009 and early 2010 are all that we have to go on, but most economists are hedging on those dates. Similar to the broad-based declines in 4th Quarter, 2008, retail spending, the American consumer seems to have switched to a survival mode, and this does not bode well for discretionary spending at least until there is some better news on the horizon. We have advised our consulting clients of the following:
a. Budget for a decrease in revenue of about 10% for 2009, adjusting expenses as much as possible to that revenue;
b. Increase spending in Marketing, particularly electronic marketing to capture market share;
c. Neither increase or decrease overall rack room rates. Develop packages with adventure travel features which show good overall value. Up-sell rooms whenever possible, and include value-added options with all room rates. Partner with local businesses and cross-market as much as you can.
d. Hold discretionary spending to a minimum and build cash wherever possible in the event that this recession lasts longer than expected. Do not defer necessary repairs and maintenance, but this is not the year to spend money on capital improvements.
e. Remember why you came into the Hospitality Business. It is all about the guests and not the Innkeepers!
f. This too shall pass. Look to the future, because the past is gone forever.
2. What is the impact on the Inn Business. First, it is hard to get numbers for the Bed and Breakfast Inn business separately. Smith Travel Research (“STR”) is the most respected source of historical numbers for the Hospitality Business, but does not collect data from small properties (under 50 rooms). One data release from STR shows that New England seemed to be holding its own relative to the US National data. For example, December, 2008 results for New England included a drop in occupancy rate of -2.1%, while Average Daily Rate (“ADR”) decreased by -3.6%. This resulted in a huge decrease in Revenue Per Available Room (“REVPAR”) of -5.7%. The National figures during the same December period showed larger decreases in Occupancy of -6.8%, in ADR of -3.2%, and a REVPAR decrease of -6.6%.
For the Year 2008 as a whole the figures are also instructive. New England showed a decrease in occupancy of -2.8%, but an increase in ADR of 1.9%, resulting in a miniscule decrease in REVPAR of -0.9%. The National figures for 2008 were far worse, with a decrease in occupancy of -4.2%, but an increase in ADR of +2.4%, resulting in a decrease of -1.9% in REVPAR.
The numbers from STR show that, until about September, 2008 was a growth year with higher occupancies that dropped precipitously in the 4th Quarter. Rates were still climbing in December, as the Hospitality Business seemed to lag in discounting. Overall, 2008 would be a down year, but only in comparison to the strong growth in the prior three years.
3. New England is not the same. One interesting thing that jumps out of the results shown by STR is that the New England States are not homogeneous. In fact, it was clear in both the December and National results for 2008 that Northern New England (Maine, New Hampshire, and Vermont) fared much better individually than the Nation or their Southern New England counterparts. For example, for 2008 as a whole, Vermont showed an increase in occupancy of +1.9%, an increase in ADR of 4.8% along with a REVPAR increase of +6.8%. While the results in Maine and New Hampshire were more consistent, they were slightly worse than New England as a whole. The bottom line was that overall, 2008 was a non-growth year, with a really cloudy picture for 2009.
4. The Real Data comes from Sales Tax Revenues. Another well respected source of industry research comes from Atlanta-based PKF Hospitality Research (“PKF”). Utilizing results of sales tax collections in Maine, PKF reported that September lodging sales in that state dropped by -12% from 2007, and continued to drop by -2.6% in October on a year-to-year basis. While Maine finished the year 2008 slightly ahead of 2007 (+0.7% growth in revenue), this came after 6% annual growth in the preceding three year period. PKF is projecting as a whole a -7.8% decline in REVPAR for Maine in 2009, which would make it one of the steepest declines in recorded history since the 1930’s. PKF also predicts that Maine will not fare as worse as others, because of its relative low cost and its rural location which fosters escape from the big cities. Presumably this would apply to all of Northern New England with similar characteristics prevalent throughout the region.
5. Summary: Batten Down the Hatches! No one likes to consistently hear bad news, but there is little about the economy that seems to be saying that things are going to get better soon. Predictions for a recovery in late 2009 and early 2010 are all that we have to go on, but most economists are hedging on those dates. Similar to the broad-based declines in 4th Quarter, 2008, retail spending, the American consumer seems to have switched to a survival mode, and this does not bode well for discretionary spending at least until there is some better news on the horizon. We have advised our consulting clients of the following:
a. Budget for a decrease in revenue of about 10% for 2009, adjusting expenses as much as possible to that revenue;
b. Increase spending in Marketing, particularly electronic marketing to capture market share;
c. Neither increase or decrease overall rack room rates. Develop packages with adventure travel features which show good overall value. Up-sell rooms whenever possible, and include value-added options with all room rates. Partner with local businesses and cross-market as much as you can.
d. Hold discretionary spending to a minimum and build cash wherever possible in the event that this recession lasts longer than expected. Do not defer necessary repairs and maintenance, but this is not the year to spend money on capital improvements.
e. Remember why you came into the Hospitality Business. It is all about the guests and not the Innkeepers!
f. This too shall pass. Look to the future, because the past is gone forever.
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