A surplus of luxurious rooms?

This is something that apparently affects numerous destinations around the world.

I use the word “apparently” as I do not believe in this concept.

I have just returned from Bali were we held our annual Seven Stars Luxury Hospitality and Lifestyle Awards at the beautiful Trans Resort Bali and I heard and overheard industry professionals mentioning this phenomena saying “oh not another 5 star Hotel”

There are luxurious 5 star properties popping up left right and center and this growing fear or misconception that there is a “surplus of 5 star rooms”  in certain destinations seems to be spreading like a malicious virus, instilling fear and mistrust amongst the hotel industry, operators, investors and, of course, the media.

A surplus of luxurious rooms would indeed be something very negative and very damaging to the hospitality industry and all the brands present there.

The truth is very different and destinations around the world are very far from having a surplus of luxurious rooms.

I don’t believe there is such a thing as a “surplus of 5 star Rooms” in any destination.

I enjoy going to the gym and anyone who also enjoys going to the gym must have heard the term “over training”.

Allegedly this means that you trained so hard that your body cannot recuperate fast enough and you end up losing strength, get mood swings, loose appetite etc.

In reality there is no such thing as over training.

There is however under eating and under sleeping.

If you provide your body with enough sleep it will repair all the damage done during the intense workouts and if you ensure that enough of the correct nutrients are taken in at the correct times , they will fuel the repair and muscular regeneration as the right amount of hormones will be released during your…you guessed it…sleep!

The same applies to this idea and fear mongering of “surplus of 5 star rooms” or “luxurious rooms”.

The real issue is Under-marketing and over charging.

It seems that today’s motto is spend little or nothing and get the most clients possible.

Advertising has gone down tremendously and in other instances, referring specifically to the hospitality industry, it has become nonsensical.

I can’t count how many times I have seen an advert for a hotel or hotel group and all they show me is a pillow…or a vase  or something else that is non descriptive of the destination or the property.

So called advertising Gurus have put such a powerful spin on advertising that the core methods that helped build so many brands have been forgotten and left behind.

The simple reality is that there is no way that I will be sold on going to a particular hotel by just seeing a vase or a traditional coffee jar and I don’t think I am the only one.

These agencies and “gurus” don’t come cheap and once these campaigns flop, someone or something has to take the blame…hence “a surplus of 5 star rooms!”

Since when is it a smart thing to stop advertising? Every brand has the freedom to say “we don’t advertise” and every brand has the freedom to say “we don’t pay for advertising”.

The outcome, in the long term will not be positive as the visibility of the property and/or brand will greatly diminish and the consumer always has the right to say “I’m not staying with you”.

Means for advertising and showing your brand, destination or property directly to the consumer are better, more numerous and more available than ever.

Every budget can be accommodated.

So, why stop?

Save money? In the long term it will end up costing far more money in order to recapture the lost market share.

Wouldn’t it be great if to save time I could just stop wearing a watch?

Sadly real life doesn’t work this way.

Destinations should never stop promoting.

Internet is king at the moment and the majority of publications are now all in digital format as well.

It boggles my mind when I see 100-200 million USD spent on a property and then an outdated and un-optimized website is used to promote it.

What’s the point?

Advertise! You want more customers, you want to move more keys…advertise!

Show them why they should pick you!

Can you imagine a presidential campaign with no advertising and no money spent on it?

Who would you vote for? How would you know what to expect? Would you make the correct choice?

The same applies to the hospitality industry.

Revamp your website, this is the most cost effective face lift anyone can do and it is literally your business card to the world.

I won’t even get started on hotel group websites.

For the most part they are absolutely atrocious and a nightmare to navigate.

What really is funny is that most are built by huge agencies that charge exorbitant amounts for them.

All the brands are mentioning UHNWI.

There are only so many of them!!!

Every brand is looking to attract them!

Every time I read the descriptions of so called “luxurious” publications today I have to laugh as they all mention that they are the leading UHNWI publication….really? I have my serious doubts.

It is simply a trendy term nowadays that is used by agencies, so called advertising Guru’s and, let’s face it, people or organizations that distort the truth to make a quick buck.

Don’t forget about the rest!

Adjust your rates to the point that it becomes attractive to the many instead of the few.

Under marketing and overcharging is a deadly mix.

Direct clients are the best clients, this is an undisputable fact.

It almost seems that in today’s Hospitality industry fear reigns supreme and everyone runs for help to 3rd parties.

3rd parties are necessary and do a great job this is for sure, they also take a nice chunk!

There is such a wide arsenal to choose from in order to showcase your brand or property.

Don’t get sucked into the ideology of  “spend less get more”, instead apply the “spend an adequate amount and get a lot!” formula.

Do more sleep less! Work less earn more! Doesn’t make much sense does it.

Eventually a burn out is assured.

Showcase your property , showcase your brand, tell them what makes it special, tell them why they should pick you, tell them why they will want to come back, show your properties!

This method works great in politics, it works great for the hospitality industry as well, and it just seems that it has been forgotten by many.

There is no such thing as a surplus of luxurious rooms, just under marketing and over charging.

Go back to the roots of advertising but with the new methodology of today.

Apologies if this sounded like a rant, it does get to me when I see incredible properties half empty and excuse after excuse is fabricated to justify the low rate of business.

Someone there simply does not wish to spend the correct amount of money and believes that things will get better by themselves.

It’s just like the great movie, Glengarry Glen Ross, where Jack Lemmon says:” The leads are weak!” and Alec Baldwin’s character replies” the leads are weak!? You are weak!”

Every single person in a tourist board or in a hotel, regardless if their title implies it or not is a sales man! They need to sell the rooms or the destination and they need to feel proud of where they are working knowing that everything possible is being done in order to promote their destination or hotel so that they can…sell!!!

In order to sell you need to have visibility.

If you cut the visibility and raise the prices, you are bound to loose in the long term.

SHOWCASE YOUR PROPERTY!!! In the long term you will only benefit!

The above does not apply to war torn countries or countries that have been devastated by natural disasters, genocide or disease.