New York Hospitality by Vijay Dandapani

All roads lead to New York - #1 tourist hotspot

PRNewswire has a press release stating that "Global Insight, the world's leading company for economic and financial analysis and forecasting, today released its annual ranking of the Top 100 U.S. Tourism City Destinations for 2007". The Big Apple shot to first place as it "jumped two positions from its 2006 standing, overtaking Orlando, Florida and Las Vegas, Nevada to capture the top spot in total tourism spending. New York gained about 1.5 million overseas visitors in 2007 and increased its share of total international visitors by 3.3%".

According to Global Insight much of this growth is due to "exchange rate advantages, economic growth at home, and re-doubled promotional efforts are behind this success". Added to that is the opening of new markets such as China.

The Big Apple, for now, seems to be one bright spot in an otherwise deteriorating international arrival picture caused by a combination of economic and bureaucratic problems.

USA - tourists unwelcome

LA Times correspondent Eric Lucas has an article headlined "Tourists need not apply" that explores an oft heard theme outside the US - Fortress USA. Lucas writes that "Travel is booming worldwide -- except in the United States. And that woman's experience represents just one reason why". The woman he refers to lives in Belize with a daughter in LA who she would like to visit but for the daunting prospect of a trip to the US embassy and the cost of a visa ($100 - whether accepted or not).

The LA Times story records how "Overseas arrivals to the U.S. have declined 11% this decade, to 23 million in 2007 from 26 million in 2000. Travel is the world's largest industry, currently worth $5 trillion, and it is growing 6% a year. It employs almost a quarter of a billion people. And yet the U.S. is missing out on this wonderful human commerce".

Lucas' story has a personal element to it as he writes of how "A colleague of mine has a business in Brazil, and one of his investors conceived the idea of taking his family to Walt Disney World. This wealthy businessman, who could buy a whole hotel in the U.S., never mind hotel rooms, flew to Sao Paulo, paid $500 ($100 a person) to apply for a visa, and patiently spent an hour answering questions. Two weeks later he was turned down. The letter suggested that he reapply ($500 more, please!) but, surprise, he took his family to Europe. Brazilians don't need visas to enter the EU".

At a professional level too, the US does not make its presence felt. Major tourism shows that US companies routinely fail to show up include the Arabian Travel Market, Singapore's ITB-Asia. Both markets represent a wealth of potential tourists to the US. The situation is not much better for World Travel Fair in Shanghai that starts within a month. There is only one exhibitor from the US. Clearly the US is losing out and fast both in terms of dollars and goodwill.

NY shows the way!

New Yorkers have reason to feel a little better while boarding flights from NY. Travelmole reports that NY state's "Airline Passenger Bill of Rights" is now in effect, mandating airlines to provide refreshments and working restrooms for passengers stuck in planes at NY airports for more than 3 hours OR face penalties up to $1000 per passenger. Sounds fair enough! While not applying to tarmac delays, the new bill is a shining example of consumer power in an industy bedevilled by poor customer service!

Train service and travel

A recent report on Amtrak's performance provides a promising outlook on train travel. For long, the roads have ruled American travel. Rising fuel costs, stressful, overcrowded highways and pollution have taken the romance out for road-warriors and die-hard drivers! Amtrak recently reported a 5th straight year of gains with revenue growth being the highest in the North East (14% over last years' ticket revenues)

Hotels and other travel companies could do well to explore the potential of the rail for joint promotions and stress-free getaways! Most travelers have had enough of worrying about how to get there and would like to just sit back and enjoy the ride!

Internet and Breakfast!

Travel companies looking to improve conversion rates might want to note that everyone's in hot pursuit of the same customer - for travel, there's only so much engagement that will keep the customer riveted. The hotel needs to deliver the goods online and offline - an easy-to-use website, value-for-money prices, free basic amenities (Internet and breakfast!) and an excellent arrival and stay (customer service, clean, well-appointed rooms, quick resolution of minor issues). While big brands have an easier time attracting and cultivating new customers, customer retention is not to be taken for granted. According to a Nielsen/Netratings release, travel had the lowest customer retention among 3 key web categories (search, career development and travel), Search at 71%, Career sites at 38% and travel at 31% (at home retention rate). The study used top sites in each category to arrive at their findings but the learnings are clear - travel sites need to give customers a good enough reason to return.

Mobile advertising

Zagat's launch of zagat.mobi, the mobile, ad-supported version of its reputed reviews site is in tune with recent trends which reflect a more positive outlook for mobile advertising. The handheld zagat.com aims to be a convenient resource on hotels, restaurants and nightlife along with links and listings.

A recent report on hospitality trends by Jason Price & Max Starkov also mentioned mobile advertising as a promising avenue in the coming years as the handheld becomes a ubiquitous device in US households (70% with atleast 1 mobile subscriber). Companies are still figuring out effective ways to market an offer through a cellphone and mobile advertising pioneers are still experimenting with adformats to monetize "content". The travel industry has more to benefit from this trend than others - using a web-enabled cellphone to look up hotels, maps and directions seems like a natural thing to do and travelers are less likely to be irritated by offers from companies sponsoring useful info like weather alerts, hotel reviews & local events. Mobile advertising is bound to take off as soon as technology delivers the handheld web as smoothly as the Blackberry delivers corporate email.

Call Centers

Call centers outside the US are now an accepted way of life in the country - try contacting customer service on weekends at odd hours and the chances are you will be greeted by a call center representative in Asia with a carefully trained accent and routine (at most times). Many hospitality majors have moved call centers off-shore and even if the locale is as close to home as Canada, the changed dynamic has implications for customers, companies and, most importantly, to employees.

USA today in May reported on American travelers' experiences with foreign call centers and predictably touched off a torrent of response! Like all things outsourced, foreign call centers have met with a mixed response from the public who complain about the strange accents, canned "solutions" , long hold times & lack of service. The companies, however have benefited from the cost-savings (perhaps savings that lead to more local jobs and a more satisfying fulfilment experience for customers).

Call centers present a challenging experience both for the customer and the call-center! A customer who calls for a refund only to be greeted by an intransigent representative is unlikely to be happy either way, whether the call center is in India or China. However, a satisfied customer is unlikely to spread positive word-of-mouth!

Here are some basic tips for companies looking to improve the quality of service at call centers (based on real experience).

- Cut out the excessive pleasantries - Devote the body of the call to solving the customers' problem or addressing their queries (NOT looking up the customers's background info for the past 5 years!)
- Get straight to the point. Cut down the time that a customer is forced to hold the line while the rep "checks something with the supervisor, looks up the file or seeks more info"
- Cut down repetitions - call centers give you all sorts of call-tracking info (rep ID, transaction #, confirmation # etc etc) but STILL ask a dozen questions if you call again. Why record the conversation/contact if you need to ask the same questions anyway everytime?
- Cut down on the the aggressive sales spiel. Call centers are especially persistent in getting customers enrolled for 30-day free trials of everything! Definitely ask for cancellation #s and hidden terms and conditions!
- Finally, efficiency. Call centres should be trained to use multiple media for a seamless experience, example - following up on a phone call with an email. It's not unsurprising to hear the call center rep say that he/she is not "authorized" to send an email or make a phone call! (something they would never say if they were in the US!)

Lessons in Magic!

A new Harry Potter theme park to be launched by Universal Orlando Resorts in 2009 is the most recent addition to the never-ending Harry Hoopla! Perhaps, the travel industry could consider leveraging off the magic of the world's most famous modern classic.

- A Harry Potter themed hotel with an inhouse school of magic
- Magical meals - A Hogwart style buffet hall/restaurant
- Potter themed in-room entertainment including books, dvds, podcasts, interactive games
- Harry Potter airline that is kids and family friendly
- A Harry Potter museum

Adventurous, risk-taking travelers will welcome the infusion of magic in saturated resorts and destinations!

Independence Day traffic

Those planning last-minute July 4 getaways out of the city will find Pricelines's top 50 destinations for July 4th useful reading. NYC makes the top 10 4 times thanks to the many historic sights and celebrations in Manhattan's more famous neighborhoods. Chicago and Las Vegas enjoy top honors while other regulars like San Diego and Seattle make the top 10. Do historic destinations have an edge on July 4th or is the independence day getaway just another summer retreat? Boston, Philadelphia do appear in the list somewhere further down the ranks. Why is that the same destinations appear in every list every holiday. Travelers are looking to have a guaranteed good time with their families even while enjoying the uniqueness and historical fervour of a July 4 destination.

Student travel gets a shot in the arm

A new 2.0 travel site from the world's largest student and youth travel company, STA aims to connect and bond student travelers - a community long ignored in online travel! statravel193.com has miles to go in terms of destinations and content but it's a great initiative - students (whether domestic or international) are not necessarily a much-sought-after market for travel but could use a little attention in terms of specials for spring breaks, cultural tours and group travel. International students looking for a good deal to visit home could also benefit from a site that aggregates offers and provides tips on travelling abroad.

statravel193.com