Corporate Hotels

01 Mar 2017 - by Dorine Reinstein

The changing face of corporate hotels

THE corporate hotel

sector has changed

tremendously during the

past few years in an attempt

to adapt to the opportunities

and challenges that face the

corporate travel sector.

Still plagued by the

economic downturn and by

shrinking travel budgets, the

corporate hotel industry has

shifted its focus to value-formoney,

while at the same

time taking into consideration

the changing demographics

of the corporate traveller.

The hospitality sector is

waking up to the fact that

Millennials will become

the core customer within

the hospitality and travel

industries over the next five

to 10 years. With this comes

a new set of demands, from

fast booking to fast check-in,

fast WiFi and fast responses

to customer service needs.

TNW spoke to industry

experts to get a glimpse

into the changing face of the

corporate hotel sector.

1 Travel agents still rule

According to City Lodge

divisional director sales and

marketing, Peter Schoeman,

the relationship between hotel

groups and corporate clients,

linked through the intermediary

of a travel consultant, remains

significant. Although direct

online bookings are growing,

facilitated by booking engines

with increasing capability,

corporate clients still want

the hassle-free experience

provided by a travel agent

and the advantage of having

someone to sort things out

when they go wrong.

Danny Bryer, director of

sales, marketing and revenue

for Protea Hotels, says travel

agents will continue to deliver

an invaluable service for the

corporate travel market.

He says the new emerging

traveller often has fewer than

five years’ travel experience,

which means the travel expert

is a critical part of facilitating

travel. Allan Clingham, gm

Crowne Plaza Johannesburg

– The Rosebank, agrees that

there will always be a need

for TMCs. He says MICE

bookings through agencies

have increased more than

anticipated in the recent past.

He does, however, foresee

day-to-day accommodation

bookings coming direct to

hotels as they do not require

significant industry expertise.

2 Budgets stay low

Corporate budgets are

static, says Peter, and

companies are demanding

more bang for their buck

with value-adds, like the

inclusion of breakfast, at

the same rate. “Pricing

and service delivery thus

present a challenge.”

Corporates appear to be

coping with restricted

budgets with shorter stays,

often booked at short

notice, he notes.

Danny says there’s been

little change in the past

year in terms of room types

booked across the board.

“The industry is relatively

healthy, with greater

occupancy and RevPar

that is finally normalising

at a level congruent with

general economic growth.

The Johannesburg and Cape

Town markets, in particular,

are doing well,” he says.

According to Allan,

however, travel budgets

have definitely been cut and

clients are mindful of the

rates offered by a highly

competive industry. “It

seems unlikely that budgets

will materially increase in

the forseeable future with

the never ending economic

recession, however it is

always very challanging to

forecast such matters.

3 Loyalty’s importance grows

Sigal Nassimov-Geva,

marketing and assistant

operations manager at

Premier Hotels and Resorts,

says South Africans like to

feel that they belong to a

community that acknowledges

and rewards them for their

spend. “Reward and loyalty

programmes are a great way

to connect your customers

to your brands. The trick for

2014 is going to be making

sure the rewards offered

have real value. Budgetconscious

travellers, both

local and international, will all

be looking for the best deals

and value. Virtual currency

rewards through banks, such

as e-bucks through FNB,

also play a part in educating

consumers on tangible

loyalty rewards, which are

increasingly demanded.”

Protea too has seen an

increase in the number of

corporates taking advantage

of its loyalty programme.

Danny explains: “Companies

are encouraged to purchase

Prokards for their frequentflyer

executives because they

save money in a number

of ways and their staff are

eligible for free upgrades

should a superior room type

be vacant.”

4 Free WiFi – a non-negotiable

5 Uncluttered rooms

When it comes to in-room

amenities, there is a

definite trend towards

sleek, clean, uncluttered

rooms with showers rather

than baths, according to

Danny. “Most important of

all is a good bed with crisp,

clean linen and pillows that

are sleep perfection. Get

that right, and you can be

forgiven just about anything

else,” he states.

More plug points have

also become a necessity,

as the modern traveller is

travelling with at least one

or two electronic devices.

“Guests expect value

for money,” adds Allan.

He says Holiday Inn offers

selected DStv channels,

tea- and coffee-making

facilities, en-suite bathroom

with bath amenities and

laptop-sized safes. Gym

facilities are becoming

increasingly popular, along

with café-type experiences

and working areas in

the lobby.

For its part, City Lodge

has upgraded soaps and

toiletries after careful

review, and now offers

a limited range at the

Road Lodge brand, where

previously there were none.

6 Online visibility

Having a well-organised,

coherent online presence is

essential for any hospitality

company nowadays. Sigal says

never before has it been this

important to make sure that

online reviews and referrals

properly reflect hotels.

“Platforms like TripAdvisor are

incredibly powerful and their

reviews are highly regarded.

Other owned platforms like

Twitter and Facebook are

effective ways for guests to

communicate with and about

hotels.” She cautions that

complaints should be dealt

with effectively and efficiently

to avoid negative commentary

in social media realms.

Sigal says ‘owned’ media

platforms provide great

opportunities to advertise

specials and promotions

directly to engaged target

markets. “Consumers are

increasingly self-researching

and booking their trips and

accommodation – using loyalty

cards, virtual currency, specials

and promotions at will, so it

is absolutely imperative that

websites allow for bookings

and that properties are on

online booking systems

such as Expedia, Booking.

com, Travelstart and others.

Websites must be up to date,

interesting and user friendly.”

Peter reports that City Lodge

recently introduced a mobi

site, facilitating bookings from

smart phones. The group also

revamped its website.

Danny says: “Without a wellorganised,

coherent online

presence, you may as well

shut your doors because more

than 90% of destination and

accommodation research is

done online. Hotel companies

can no longer afford to run

text-heavy sites with a couple

of pictures of their hotels. We

spent millions of rands last

year launching new Protea

Hotels and African Pride Hotels

websites precisely because we

need to be dynamic marketers

of not only products but

destinations as well.”

According to Danny the

technology has to be simple.

Travellers booking on a

brand.com site want clear,

concise information and

an uncomplicated, efficient

booking engine that does what

it’s meant to do.

7 Healthy eating

Food trends are shifting

towards healthier eating.

The City Lodge Group, which

offers coffee shops at its

City Lodge brands, has

revamped menus to reflect

more variety and options for

those with dietary issues.

8 Corporates go for green

Allan points out that there

is an increase in the

number of environmentally

savvy corporate travellers.

“InterContinental Hotels

Group (IHG) is leading

this move by providing

more sustainable hotel

stays to our guests. The

sustainability practices of

a hotel are becoming a

significant consideration for

corporates when it comes

to deciding where to book

their next business trip. At

IHG, part of creating green

solutions is designing,

building and running more

sustainable hotels. Nine IHG

hotels in South Africa are

IHG Green Engage-accredited

and they are managing

their environmental impact

without compromising the

guest experience.”

The City Lodge group has

reduced pollution emissions

by 15% across the entire

group with a range of

sustainability measures and

was recently recognised for

its efforts with the Eskom

awards as a runner-up in the

commercial category.

Book it

Cresta Hotels is offering special rates for clients staying at any

of its Zimbabwe hotels during May. The special includes a ‘stay

longer’ promotion where guests staying for five nights pay only for

four. This special is aimed at corporate guests and excludes those

attending groups and conferences. Glenn Stutchbury, group ceo

for Cresta Hotels, points out that Cresta Sprayview at Victoria Falls,

which has been operational since August last year, has already

earned a reputation as a hospitality venue. While Victoria Falls

offers Africa at its tourist best, conference travel to this area is also

a hugely satisfying experience, says Glenn.