Travelers Vote with Their Feet
Lifestyle hotels are a relatively new segment in the hotel market that has been gaining popularity in recent years. It started out in the late ’90s with the W Hotel chain; now almost all major hotel players have introduced at least one lifestyle concept. Travelers have taken notice because they want properties which are hipper, offering different themes, more areas to socialize and enjoy food and beverages with a local flair.As this segment grows, travelers are looking away from the traditional cookie-cutter properties, and travel managers are noticing. There is always a fine line between keeping travelers happy while keeping them compliant within the travel program. In turn, travel managers usually have a split of brands in their portfolio to reduce leakage.Although the major chains have entered the market, I do not see an issue adding some independent lifestyle hotels into the program as long as they meet the duty of care requirements and are within budget. A happy traveler goes a long way in the success of your program.
Chris Brockman
chris@wholdings.travel
Where the Cool Kids Stay
The hotel side of our travel program is probably my least favorite, only because it is hard to please everyone. So I live by the 80/20 rule. As hotel chains expanded and added more property types, it gave us an opportunity to include a few lifestyle properties to our program. I thought “how cool, we can offer something other than a cookie-cutter hotel.” Unfortunately, not everyone embraces change and more than the 20 percent didn’t share my enthusiasm. Maybe we were ahead of the curve (it was early in the lifestyle hotel movement) or we didn’t properly prepare our travelers. Regardless, we have since removed all but one. Maybe someday I’ll be brave again , maybe someday the 80 percent will consider it cool. One thing is for certain, lifestyle brands are here and growing fast.
Cheryl Benjamin
cheryl.benjamin@dart.biz
Near & Dear
As a function of where my offices have been since I got into corporate travel, lifestyle and boutique hotels have always been a necessary (and welcome) partner. For my hotel program, it has always been about the property, the one that works best for our office location and for our staff. I was able to negotiate great rates with important inclusions, such as welcome drinks, room upgrades and welcome amenities. Our relationships also helped us when our employees or guests have showed up at these properties without having coordinated payment beforehand. The hotel allowed the traveler to check in without issue while working with us to ensure the property would get paid. In my experience, many of the boutique/lifestyle hotels I’ve dealt with have more leeway to accommodate their clients to find solutions that work for both parties.
Rosemary E Maloney
Rmaloney@tapestry.com
But What About Points?
The NetApp travel program tends toward the traditional in its outlook and processes. The age of our travelers is in the mid-40s, and they tend to ask for hotels that afford them the most for their budget dollar while giving them something personal. Loyalty programs that offer broad options for our travelers are more well-received than the trendy independent ‘lifestyle’ hotels that seem to be popping up everywhere.Compared to my peers in the Silicon Valley, NetApp is a bit stuffy. We do include independent and trendy hotels, but only when they are near one of our offices or a customer. A couple of chain agreements provide us with important coverage at hotels where we do not have significant travel. The one important factor that is growing in our program is the inclusion of many dynamic pricing properties that offer us extended coverage and have amenities that we do not get from the general chain deals.
Mark Ziegler
mark.ziegler@netapp.com
Reserved for Special Occasions
Independent and lifestyle hotels can offer a level of service and experience that many the major brands cannot. For my company, properties like these are most suitable for smaller retreat-type events. On the broader corporate travel management scale, it’s difficult to incorporate independent hotels into the strategic picture, unless they serve a top business location.
Wendy Palmer
wpalmer@epri.com
Change for the Better
Independent and lifestyle hotels present great opportunities to improve the traveler experience and create a unique offering in the managed travel program. These hotels often thrive on building great partnerships with travel buyers in order to maintain their presence in the corporation’s managed hotel program. Many travelers love the unique offerings and design that is not like a big box property. Buyers focusing on improving the traveler experience should absolutely consider adding lifestyle and independent hotels to their program.
Jennifer Steinke
jennifer.steinke@ppdi.com
