During my interview earlier this week with Brian Ericson, IHG's director of loyalty development, about the company's new Hotels Anywhere program, I also asked him about IHG's aggressive campaign against rival Hilton Worldwide in February.
The "Luckiest Loser" contest enticed Hilton HHonors members to enter a drawing to win points from IHG's Priority Club that they had ostensibly lost during HHonors' recent point devaluation.
Did the Priority Club folks get any calls from their counterparts at HHonors? "I think we may have gotten a phone call or two, yes," Ericson says.
And?
"They got it. They certainly weren't overjoyed, but their reaction was basically, 'Well played.'"
As for the contest's success, Ericson says more than 70,000 HHonors members entered, including 14 confirmed HHonors "millionaires."
Just as crucially, the contest predictably garnered a good bit of press coverage, much of it positive for IHG. "We were extremely pleased with how Luckiest Loser turned out," Ericson says. 'We were really enthused about the amount of press coverage that we got, and even more importantly than that, how enthusiastically it was received almost everywhere in the press. We deliberately called Hilton out on this, but we did it in a relatively friendly, relatively lighthearted manner."
Showing posts with label ihg. Show all posts
Showing posts with label ihg. Show all posts
Wednesday, May 26, 2010
Monday, May 24, 2010
IHG Careful Not To Compete With Itself With 'Hotels Anywhere'
For a couple years, IHG has been boldly letting members of its Priority Club Rewards loyalty program redeem points for hotel industry gift cards, which let guests book room nights at hotels outside the IHG brand portfolio, a candid admission that its portfolio has some market gaps. But the company took things to another level with last week's launch of "Hotels Anywhere," which skips the gift card concept in favor of a direct online booking engine.
Hotels Anywhere is replete with rival chains like Hiltons, Marriotts, Westins and more, along with the IHG family of brands, of course. It must have been a tough sell to IHG franchisees, right?
"Generally speaking, once people—whether it be franchisees or other internal stakeholders—once they understand the program and how the map works, they tend to feel a little more comfortable with it," says Brian Ericson, IHG's director of loyalty development. "It's safe to say that this is not a directly competing product."
In other words, IHG makes sure customers using Hotels Anywhere are incentivized to book its own hotels first by offering them at lower redemption levels than similarly positioned rival hotels. At the same time, the program gives IHG loyalists a way to book free nights in places like Hawaii or the Las Vegas Strip, where IHG market penetration is low. Indeed, since the program's soft launch earlier this month, those two destinations have been the most frequently searched and booked, Ericson says.
Assuming IHG hotels really aren't losing room nights to rivals, the concept is a win-win for the company and consumers. IHG had found that some frequent guests were choosing to stay at other hotels now and then as a way to accrue points for future free nights in places like Vegas; to win back those lost room nights, IHG could either dramatically expand its portfolio or simply open up the redemption barrier. The latter, obviously, is faster and easier.
"Our hypothesis was that destination gaps like (Vegas) are a very bad thing for loyalty to Priority Club, and that people who might otherwise be inclined to stay all of their nights and earn all of their points with Priority Club may be strategically splitting their nights with another loyalty club, like Starwood or Hilton," he says.
But why make the leap from the "Any Hotel, Anywhere" gift cards to direct online booking? Ericson says many consumers were having a difficult time wrapping their heads around the concept, while others were understandably annoyed at having to wait four to six weeks for the cards to arrive in the mail. Hotels Anywhere is in the spirit of better customer service.
Hotels Anywhere uses unfiltered hotel inventory feeds from three third-party providers (Tourico, GTA and Hotelbeds) comprising 36,000 properties. Ric Garrido over at Loyalty Traveler crunched the numbers, and while IHG hotels in the system tend to offer the best rates on a value-per-redemption-level basis, the pricing at other hotels seems fairly arbitrary.
The average free room night booked on Hotels Anywhere thus far would normally cost about US$135.
Hotels Anywhere is replete with rival chains like Hiltons, Marriotts, Westins and more, along with the IHG family of brands, of course. It must have been a tough sell to IHG franchisees, right?
"Generally speaking, once people—whether it be franchisees or other internal stakeholders—once they understand the program and how the map works, they tend to feel a little more comfortable with it," says Brian Ericson, IHG's director of loyalty development. "It's safe to say that this is not a directly competing product."
In other words, IHG makes sure customers using Hotels Anywhere are incentivized to book its own hotels first by offering them at lower redemption levels than similarly positioned rival hotels. At the same time, the program gives IHG loyalists a way to book free nights in places like Hawaii or the Las Vegas Strip, where IHG market penetration is low. Indeed, since the program's soft launch earlier this month, those two destinations have been the most frequently searched and booked, Ericson says.
Assuming IHG hotels really aren't losing room nights to rivals, the concept is a win-win for the company and consumers. IHG had found that some frequent guests were choosing to stay at other hotels now and then as a way to accrue points for future free nights in places like Vegas; to win back those lost room nights, IHG could either dramatically expand its portfolio or simply open up the redemption barrier. The latter, obviously, is faster and easier.
"Our hypothesis was that destination gaps like (Vegas) are a very bad thing for loyalty to Priority Club, and that people who might otherwise be inclined to stay all of their nights and earn all of their points with Priority Club may be strategically splitting their nights with another loyalty club, like Starwood or Hilton," he says.
But why make the leap from the "Any Hotel, Anywhere" gift cards to direct online booking? Ericson says many consumers were having a difficult time wrapping their heads around the concept, while others were understandably annoyed at having to wait four to six weeks for the cards to arrive in the mail. Hotels Anywhere is in the spirit of better customer service.
Hotels Anywhere uses unfiltered hotel inventory feeds from three third-party providers (Tourico, GTA and Hotelbeds) comprising 36,000 properties. Ric Garrido over at Loyalty Traveler crunched the numbers, and while IHG hotels in the system tend to offer the best rates on a value-per-redemption-level basis, the pricing at other hotels seems fairly arbitrary.
The average free room night booked on Hotels Anywhere thus far would normally cost about US$135.
Audio Hotel Room Keys To Debut In Holiday Inns
Holiday Inn Hotels looks to be the first chain to implement OpenWays' Crypto Accoustic Credentials guestroom access system, USA Today's Barbara De Lollis reports.
I wrote about the OpenWays system back in the January issue of HOTELS. In short, the technology sends an encrypted, unique audio code to a guest's phone prior to check-in. When played back outside the guestroom, the signal unlocks the door, letting the guest skip the front desk—guests would also receive a text message with their room assignments—while also eliminating the need for keycards, which is green and saves money.
According to De Lollis' story, the Holiday Inn pilot program will require participating guests—and yes, participation is optional—to download a special smartphone app in order to receive and use the aural guestroom keys. But the OpenWays system is theoretically designed to work with any mobile device, assuming it has a speaker and can receive messages, meaning that even "dumb" phones could be compatible.
The potential benefits for Holiday Inn in implementing OpenWays are several.
First off, the technology will be marketed as a cutting-edge guest amenity, drawing the kind of tech-forward transients that tend to be some of the highest spending hotel guests per capita.
Secondly, because Holiday Inn will require participating guests to register online in advance, that could translate into increased revenue via channel shift—that is, extra motivation to book on the brand site rather than a third-party site.
Furthermore, because guests will have to provide an active mobile phone number in order to access the technology, Holiday Inn gets an easy way to build a highly targeted and accurate mobile marketing database.
If enough guests take advantage of the technology, the need for front desk staffing would be reduced, saving on payroll or allowing workers to be reassigned to meet other guest service needs. And from an environmental standpoint, every guest who uses a mobile device to unlock their doors means one less plastic keycard that inevitably ends up in the trash.
And it is a relatively cost-friendly upgrade for Holiday Inn. Installation costs range from US$15 to US$55 per key, according to OpenWays CEO Pascal Metivier, and existing locks can be upgraded without needing to be replaced.
As for the system's security, Metivier told me OpenWays is at least as secure as a keycard. Like with a keycard, the unique audio key becomes obsolete upon checkout. Additionally, hotel staff have the ability to track guestroom access remotely and to cancel the audio keys in real time.
The pilot will launch in June at Holiday Inn Chicago O'Hare Rosemont and the Holiday Inn Express Houston Downtown Convention Center, De Lollis reports.
I wrote about the OpenWays system back in the January issue of HOTELS. In short, the technology sends an encrypted, unique audio code to a guest's phone prior to check-in. When played back outside the guestroom, the signal unlocks the door, letting the guest skip the front desk—guests would also receive a text message with their room assignments—while also eliminating the need for keycards, which is green and saves money.
According to De Lollis' story, the Holiday Inn pilot program will require participating guests—and yes, participation is optional—to download a special smartphone app in order to receive and use the aural guestroom keys. But the OpenWays system is theoretically designed to work with any mobile device, assuming it has a speaker and can receive messages, meaning that even "dumb" phones could be compatible.
The potential benefits for Holiday Inn in implementing OpenWays are several.
First off, the technology will be marketed as a cutting-edge guest amenity, drawing the kind of tech-forward transients that tend to be some of the highest spending hotel guests per capita.
Secondly, because Holiday Inn will require participating guests to register online in advance, that could translate into increased revenue via channel shift—that is, extra motivation to book on the brand site rather than a third-party site.
Furthermore, because guests will have to provide an active mobile phone number in order to access the technology, Holiday Inn gets an easy way to build a highly targeted and accurate mobile marketing database.
If enough guests take advantage of the technology, the need for front desk staffing would be reduced, saving on payroll or allowing workers to be reassigned to meet other guest service needs. And from an environmental standpoint, every guest who uses a mobile device to unlock their doors means one less plastic keycard that inevitably ends up in the trash.
And it is a relatively cost-friendly upgrade for Holiday Inn. Installation costs range from US$15 to US$55 per key, according to OpenWays CEO Pascal Metivier, and existing locks can be upgraded without needing to be replaced.
As for the system's security, Metivier told me OpenWays is at least as secure as a keycard. Like with a keycard, the unique audio key becomes obsolete upon checkout. Additionally, hotel staff have the ability to track guestroom access remotely and to cancel the audio keys in real time.
The pilot will launch in June at Holiday Inn Chicago O'Hare Rosemont and the Holiday Inn Express Houston Downtown Convention Center, De Lollis reports.
Friday, May 21, 2010
IHG Hires Student Designers For Fresher Perspective, Less Money
Candlewood Suites is getting a design makeover from the same group that gave its IHG sibling brand Staybridge Suites a guestroom refresh last year: SCAD.
No, SCAD is not a design firm. It is the Savannah College of Art and Design. The designers are students in the college's graduate-level interior design class.
I asked Rob Radomski, vice president of global brand management for IHG's extended-stay brands, why the company opted to turn to 20-something students rather than more seasoned professionals for such a major brand redesign project.
For one, he says the students bring a fresher perspective to design.
"We knew that we had to take a non-traditional approach, in order to get the results that we wanted, which were designs that weren’t what you’d typically find at an extended-stay hotel," Radomski tells me. "Partnering with SCAD gave us the opportunity to tap into the next generation of travelers, as I mentioned earlier, to see what they want when staying at a hotel. Some of these students had already spent time in the workplace, so they had experience staying at hotels, but they also had the knowledge about what’s next in terms of design trends. The students were very engaged with the project and had a unique energy that came through in the designs they presented."
Another factor is cost. The SCAD partnership saves IHG and its franchisees a lot of money compared to commissioning a design house. If the end result is just as good—and Radomski believes it might even be better in some respects—then why not?
"This frees up money, which we can use for other brand projects," he says. "Where the students can raise the value proposition even further is through their level of critical thinking. For instance, in the projects we’ve worked together on, they’ve demonstrated the ability to find meaningful cost savings through the use of different—and sometimes more sustainable—products and manufacturing processes. When our franchisees get ready to implement these designs, these sustainable products will save them money in the long run. Additionally, the students have a tremendous design sense, and we fully expect that guests will be willing to pay more for the designs they’re creating for us."
In the Staybridge redesign (left), Radomski credits the students with creating modern design elements that work for an extended-stay brand, namely components that address the need for personalization and storage.
"We have a desk hutch that frees up workspace on the desk and gives storage space for a guests’ office supplies, computer equipment, phone chargers, etc.," he says. "There are nesting tables that fit under the floating bedside tables that guests can use to sit down on and tie their shoes, or lay out their clothes in the morning or use as extra seating if needed. The students created ottoman cubes that have a removable top that can be used as a lap board, with space for storage inside. We also have customizable shelves in the closets, since some guests will need to bring more shoes or clothing, for instance, if they’re staying for a longer period of time."
The students are to present their final design concepts for Candlewood later this month, and the Candlewood brand team will then work with the concepts to come up with workable final designs.Model rooms are expected to begin construction in the fall.
No, SCAD is not a design firm. It is the Savannah College of Art and Design. The designers are students in the college's graduate-level interior design class.
I asked Rob Radomski, vice president of global brand management for IHG's extended-stay brands, why the company opted to turn to 20-something students rather than more seasoned professionals for such a major brand redesign project.
For one, he says the students bring a fresher perspective to design.
"We knew that we had to take a non-traditional approach, in order to get the results that we wanted, which were designs that weren’t what you’d typically find at an extended-stay hotel," Radomski tells me. "Partnering with SCAD gave us the opportunity to tap into the next generation of travelers, as I mentioned earlier, to see what they want when staying at a hotel. Some of these students had already spent time in the workplace, so they had experience staying at hotels, but they also had the knowledge about what’s next in terms of design trends. The students were very engaged with the project and had a unique energy that came through in the designs they presented."
Another factor is cost. The SCAD partnership saves IHG and its franchisees a lot of money compared to commissioning a design house. If the end result is just as good—and Radomski believes it might even be better in some respects—then why not?
"This frees up money, which we can use for other brand projects," he says. "Where the students can raise the value proposition even further is through their level of critical thinking. For instance, in the projects we’ve worked together on, they’ve demonstrated the ability to find meaningful cost savings through the use of different—and sometimes more sustainable—products and manufacturing processes. When our franchisees get ready to implement these designs, these sustainable products will save them money in the long run. Additionally, the students have a tremendous design sense, and we fully expect that guests will be willing to pay more for the designs they’re creating for us."
In the Staybridge redesign (left), Radomski credits the students with creating modern design elements that work for an extended-stay brand, namely components that address the need for personalization and storage."We have a desk hutch that frees up workspace on the desk and gives storage space for a guests’ office supplies, computer equipment, phone chargers, etc.," he says. "There are nesting tables that fit under the floating bedside tables that guests can use to sit down on and tie their shoes, or lay out their clothes in the morning or use as extra seating if needed. The students created ottoman cubes that have a removable top that can be used as a lap board, with space for storage inside. We also have customizable shelves in the closets, since some guests will need to bring more shoes or clothing, for instance, if they’re staying for a longer period of time."
The students are to present their final design concepts for Candlewood later this month, and the Candlewood brand team will then work with the concepts to come up with workable final designs.Model rooms are expected to begin construction in the fall.
IHG VP Explains Decision To Go Gowalla
FourSquare has been the dominant player in the nascent location-based mobile social media segment to date, boasting roughly 1 million users to date. But its chief rival, Gowalla, made a splash this week by partnering with IHG to serve as a primary information-delivery system for the hotel company's summer "Hit It Big" promotion.
Given that FourSquare has five times the market share that Gowalla does, the decision to go with the upstart over the "established" name (although let's face it, both are pretty obscure as far as the general public is concerned) was met with a great deal of head-scratching.
I asked Del Ross, IHG's vice president of global e-commerce solutions, the obvious question: Why Gowalla?
"It wasn't an either/or for us," he told me. "We always like to test and try new media when they emerge; it's really more opportunistic than anything else." Ross said he liked the way Gowalla enables and encourages the exploration of new locations moreso than FourSquare's interface, although he admitted the differences were esoteric enough that explaining them in detail would be difficult. He emphasized that the choice should not be interpreted as an endorsement of one over the other. "We just felt the style and the voice of the Gowalla approach just fit better with this campaign."
The learning curve is steep for companies using location-based social media, in large part because the user base is so fragmented. As such, Ross has no idea what to expect from the Gowalla effort. "We learn by research, but we also learn by doing," he says. "If we gain nothing but knowledge about this platform and understanding of how to use it, then we've won."
As for the promotion itself, IHG is offering guests double Priority Club points or double air miles if they register for the promo. And what exactly is the Gowalla tie-in? Guests who check-in to Gowalla while on property get notified of the promotion.
Not horribly exciting, but some sexier location-based social media promotions may be in the offing from IHG, Ross says—things like onsite discounts, incentives and added amenities. "All this stuff is in the hopper and in our idea basket today, and once we get a better handle on how this medium seems to work for us, and we'll go from there."
Given that FourSquare has five times the market share that Gowalla does, the decision to go with the upstart over the "established" name (although let's face it, both are pretty obscure as far as the general public is concerned) was met with a great deal of head-scratching.I asked Del Ross, IHG's vice president of global e-commerce solutions, the obvious question: Why Gowalla?
"It wasn't an either/or for us," he told me. "We always like to test and try new media when they emerge; it's really more opportunistic than anything else." Ross said he liked the way Gowalla enables and encourages the exploration of new locations moreso than FourSquare's interface, although he admitted the differences were esoteric enough that explaining them in detail would be difficult. He emphasized that the choice should not be interpreted as an endorsement of one over the other. "We just felt the style and the voice of the Gowalla approach just fit better with this campaign."
The learning curve is steep for companies using location-based social media, in large part because the user base is so fragmented. As such, Ross has no idea what to expect from the Gowalla effort. "We learn by research, but we also learn by doing," he says. "If we gain nothing but knowledge about this platform and understanding of how to use it, then we've won."
As for the promotion itself, IHG is offering guests double Priority Club points or double air miles if they register for the promo. And what exactly is the Gowalla tie-in? Guests who check-in to Gowalla while on property get notified of the promotion.
Not horribly exciting, but some sexier location-based social media promotions may be in the offing from IHG, Ross says—things like onsite discounts, incentives and added amenities. "All this stuff is in the hopper and in our idea basket today, and once we get a better handle on how this medium seems to work for us, and we'll go from there."
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