An interesting report was published on eHoteliers.com today outlining the do’s and don’ts of Hotlerier marketing in 2008-2009, strongly advocating that internet marketing is the best, most cost effective method for Hotels to keep alive and out-smart the competition during the downturn.

In a difficult year like this one, Internet marketing can help smart hoteliers generate incremental revenues, improve marketing ROIs, attract more affluent travelers, and out-smart the competition. For the past 13 years, our experience shows that Internet-savvy hoteliers with robust Direct Online Channel strategies in place are the winners in economic downturns like this one. We believe that a comprehensive, ROI-centric Internet marketing strategy is the perfect “survival tool” in the current economic environment.

Fact: 83% of travel planning in the U.S. is done online (TIA). Online travel planning will only intensify this year, fueled by travel consumers searching for the best deals online.

The article points out some thoughtful and effective ideas in the form of Do’s and Don’ts.

In the writers’ opinions, hotels should stay away from Third-Party advertising and any new “sexy” approaches trying to tame the social media networks such as MySpace and Facebook.

Instead, they’d be best served to stick to the basics and methods that have been proven to work and provide dividends to Hotels over the past several years.

• Proven, ROI-centric Internet marketing strategies + formats
• Launching a comprehensive Internet Marketing strategy to reach potential customers
• Launching a Local Internet Marketing Strategy to reach drive-in and impulse-buy customers
• Launching a Differentiation Strategy as a top priority: identifying and promoting the unique value proposition of the hotel

A great read and a lot of great observations, we recommend reading the whole article here.

Marriott International, Inc. acknowledged the effect of the US Economic down turn on the travel sector when it released its room occupancy forecast for North America in the second quarter.

The forecast was lowered to 2% from it’s previous forecast of 3-5%.

The airline industry has been experiencing its woes as well, with losses climbing into the billions as jet fuel prices soar and North American travel slows as a result of the economic pinch. For every dollar the price of fuel rises, they forecast a rise of $1.6billion in operating costs, which are beginning to be passed through to customers but cannot be recollected all together.

With both the Marriott revpar and airlines announcing the slow down and lowered expectations in their forecasts, it doesn’t seem that the US Economy will be bouncing back any time soon.

Read Full Article

In the UK a new investment option has entered the real estate world: leasing hotel rooms on 999-year lease hold.

The idea is that the owner receives 52 nights free stay in the hotel, and 50% of the income from occupancy.

The risks are still relatively unknown, as there is no history from which to determine if hotel rooms would appreciate in value over time. In addition, getting mortgages for these properties would also appear to be difficult.

Nonetheless its an interesting idea thats catching on in the United Kingdom.

Read more about leasing hotel rooms here.