Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market suffers severe decline back to 2005 levels
- A confluence of factors drive revenues down
- Leading hotel companies see losses across the board
- Hotels offer wide range of promotions to stimulate business
- Television advertising
- Online marketing
- Sponsorships
- Promotions with music artists
- Holiday Inn revitalization shows need for investment during harsh climate
- Certain demographics show less decline in travel
- Business travel
- Leisure travel
- Type of hotels frequented for leisure
- Importance of hotel features
- Finding and researching hotels
- Attitudes toward hotels
- Patronage without overnight stay
Insights and Opportunities
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- Five trends you can use
- What the people want
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- Figure 1: Importance of hotel features, by gender, June 2010
- Catering to mom and dad (and the kids)
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- Figure 2: Importance of hotel features, by marital status and presence of children in the household, June 2010
- Using technology to lure the business/leisure traveler
Inspire Insights
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- Experience Is All
- What's it about?
- A thirst for unique experiences
- Making stays memorable
- Implications
Competitive Context
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- Consumers turn to more frugal alternatives
- Staycations
- Staying with friends or family
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- Figure 3: Alternatives to overnight hotel stays, by age, June 2010
- Camping
Market Size and Forecast
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- A confluence of factors cut category sales
- A slow recovery appears under way
- Sales and forecast of market
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- Figure 4: U.S. sales for hotels and accommodations, at current prices,2005-15
- Figure 5: U.S. sales for hotels and accommodations, at inflation-adjusted prices, 2005-15
Segment Performance
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- Hotel/motel and casino segments see sharper declines than B&Bs
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- Figure 6: U.S. sales for hotels and accommodations, by segment, 2005-10
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- Figure 7: U.S. sales for hotels and accommodations, by segment, 2008 and 2010
Segment Performance—Hotels/Motels
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- Cuts in business travel and luxury hotel stays drive sales decline
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- Figure 8: U.S. sales of hotels and motels, 2005-15
Segment Performance—Casinos
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- Casinos take a hit and face challenge from new supply coming online
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- Figure 9: U.S. sales of casino hotels, 2005-15
Segment Performance—Bed and Breakfasts
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- Bed and breakfasts show more resilience
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- Figure 10: U.S. sales of bed and breakfasts, 2005-15
Market Drivers
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- Corporations slash business travel
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- Figure 11: Share of overnight stays, by purpose of travel, 2005-09
- Consumer cutbacks in discretionary spending hit leisure travel
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- Figure 12: Overall Traveler Sentiment Index, March 2007-April 2010
- More supply and lower demand push prices down
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- Figure 13: Industry-wide performance statistics, 2005-09
- Aggressive promotions hurt revenues, especially at luxury brands
- Middle-aged travelers account for largest share but over-55s growing faster
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- Figure 14: Estimated share of hotel visits and population growth, by age, 2010-15
- Bedbug infestation threatens hotel brand reputations
Leading Companies
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- Leaders see losses across the board in 2009
- First half of 2010 sees occupancy rebound, mostly at luxury brands
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- Figure 15: Revenues of leading hotel companies, 2008 and 2009
Marketing Strategies
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- Overview
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- Figure 16: Media spending, by leading hotel brands, 2008 and 2009
- Television advertising
- La Quinta Inns & Suites appeals with offbeat humor
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- Figure 17: La Quinta Inns & Suites, TV ad, 2010
- Courtyard courts the business traveler
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- Figure 18: Courtyard by Marriott, TV ad, 2010
- Hampton Inn scores with basketball stunts
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- Figure 19: Hampton Inn, TV ad, 2010
- Comfort Suites recharges the weary traveler
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- Figure 20: Comfort Suites, TV ad, 2010
- Holiday Inn celebrates everyday wonder
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- Figure 21: Holiday Inn Express, TV ad, 2010
- Brand activities
- Holiday Inn to complete brand overhaul in 2010
- Marriott targets the business traveler
- Best Western runs diverse promotions
- Hotel promotions
- Online marketing
- Sponsorships
- Promotions with music artists
- Other promotions
Innovation and Innovators
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- Courtyard by Marriott’s GoBoard entices the tech-savvy business traveler
- High-end Rancho Bernardo Inn goes à la carte
- New Disney hotel woos ardent pet lovers
- Wyndham serves up Green cocktails
Incidence of Overnight Stays
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- Marrieds, 35-54 year olds, and higher earners make most frequent overnight stays
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- Figure 22: Average number of hotel stays for business and personal reasons, by key demographics, November 2008-December 2009
- Younger (25-34) and higher-earning respondents show milder decline in business stays
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- Figure 23: Average number of hotel stays for business reasons, by key demographics, January-November 2007 and November 2008-December 2009
- Families and middle class show more resilience in personal stays
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- Figure 24: Average number of hotel stays for personal reasons, by key demographics, January-November 2007 and November 2008-December 2009
Type of Hotels Frequented for Leisure
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- Young adults aged 25-34 stay at wide range of hotel types for leisure
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- Figure 25: Types of hotels stayed in for leisure, by age, June 2010
- Large chains and luxury for the affluent
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- Figure 26: Types of hotels stayed in for leisure, by household income, June 2010
- Families more likely to stay at large chains and themed hotels
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- Figure 27: Types of hotels stayed in for leisure, by presence and number of children in the household, June 2010
Importance of Hotel Features
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- Women more likely to expect more
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- Figure 28: Importance of hotel features, by gender, June 2010
- Under-35s more demanding of hotel amenities
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- Figure 29: Importance of hotel features, by age, June 2010
- Parents want easy in, easy out
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- Figure 30: Importance of hotel features, by presence and number of children in the household, June 2010
- Affluent travelers value quality rating and in-room internet access
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- Figure 31: Importance of hotel features, by household income, June 2010
Finding and Researching Hotels
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- Under-45s more likely to research hotels on the internet
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- Figure 32: Ways of finding and researching hotels, by age, June 2010
- Parents also turn online for hotel information
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- Figure 33: Ways of finding and researching hotels, by presence and number of children in the household, June 2010
- Online marketing important in reaching affluent travelers
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- Figure 34: Ways of finding and researching hotels, by household income, June 2010
Attitudes toward Hotels
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- Under-35s attracted to hip and interesting concepts
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- Figure 35: Attitudes toward hotels, by age, June 2010
- Parents think it’s all about the experience
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- Figure 36: Attitudes toward hotels, by presence and number of children in the household, June 2010
- Affluent travelers looking for pampering and adventure
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- Figure 37: Attitudes toward hotels, by household income, June 2010
Patronage without Overnight Stay
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- Active 25-34 year olds use hotels even when not staying there
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- Figure 38: Reasons for visiting a hotel without overnight stay, by age, June 2010
- Affluent respondents better target for hotel as oasis
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- Figure 39: Reasons for visiting a hotel without overnight stay, by household income, June 2010
- Hotel amenities may constitute a family destination
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- Figure 40: Reasons for visiting a hotel without overnight stay, by presence and number of children in the household, June 2010
Impact of Race/Hispanic Origin
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- Hispanics more likely to research online
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- Figure 41: Ways of finding and researching hotels, by race/Hispanic origin, June 2010
- Blacks and Hispanics more willing to spend on pampering
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- Figure 42: Attitudes toward hotels, by race/Hispanic origin, June 2010
- Hispanics more likely to use hotel amenities when not staying
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- Figure 43: Reasons for visiting a hotel without overnight stay, by race/Hispanic origin, June 2010
Cluster Analysis
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- Connoisseurs
- Characteristics
- Demographics
- Opportunity
- Large-chain loyalists
- Characteristics
- Demographics
- Opportunity
- Budgeteers
- Characteristics
- Demographics
- Opportunity
- Characteristic tables
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- Figure 44: Hotel and accommodation clusters, June 2010
- Figure 45: Incidence of overnight hotel stays, by hotel and accommodation clusters, June 2010
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- Figure 46: Types of hotels stayed in for leisure, by hotel and accommodation clusters, June 2010
- Figure 47: Importance of hotel features, by hotel and accommodation clusters, June 2010
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- Figure 48: Ways of finding and researching hotels, by hotel and accommodation clusters, June 2010
- Figure 49: Attitudes toward hotels, by hotel and accommodation clusters, June 2010
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- Figure 50: Reasons for visiting a hotel without overnight stay, by hotel and accommodation clusters, June 2010
- Demographic tables
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- Figure 51: Hotel and accommodation clusters, by gender, June 2010
- Figure 52: Hotel and accommodation clusters, by age, June 2010
- Figure 53: Hotel and accommodation clusters, by household income, June 2010
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- Figure 54: Hotel and accommodation clusters, by race, June 2010
- Figure 55: Hotel and accommodation clusters, by Hispanic origin, June 2010
- Cluster methodology
Custom Consumer Groups
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- Family demographic is more likely to have stayed overnight
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- Figure 56: Overnight stays for business or leisure, by marital status and presence of children in the household, June 2010
- Married with children more likely to use hotel when not staying
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- Figure 57: Patronage of hotels without overnight stay, by marital status and presence of children in the household, June 2010
- Women under 35 more likely to research travel online
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- Figure 58: Ways of finding and research hotels, by gender and age, June 2010
- Males under 35 more likely to use hotel amenities without staying overnight
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- Figure 59: Patronage of hotels without overnight stay, by gender and age, June 2010
Appendix: Other Useful Consumer Tables
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- Marital status
- Overnight stays for business or leisure
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- Figure 60: Overnight stays for business or leisure, by marital status, June 2010
- Types of hotels stayed in for leisure
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- Figure 61: Types of hotels stayed in for leisure, by marital status, June 2010
- Importance of hotel features
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- Figure 62: Importance of hotel features, by marital status, June 2010
- Ways of finding and researching hotels
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- Figure 63: Ways of finding and researching hotels, by marital status, June 2010
- Attitudes toward hotels
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- Figure 64: Attitudes toward hotels, by marital status, June 2010
- Age
- Ways to book hotels
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- Figure 65: Ways to book hotels, by age, June 2010
- Hotel brands used for business travel
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- Figure 66: Hotel brands used for business travel, by age, February 2009-March 2010
- Hotel brands used for leisure travel
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- Figure 67: Hotel brands used for leisure travel, by age, February 2009-March 2010
- Presence and number of children in the household
- Ways to book hotels
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- Figure 68: Ways to book hotels, by presence and number of children in the household, June 2010
- Gender
- Attitudes toward hotels
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- Figure 69: Attitudes toward hotels, by gender, June 2010
- Race and Hispanic origin
- Domestic travel more than 100 miles
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- Figure 70: Domestic travel more than 100 miles, by race/Hispanic origin, February 2009-March 2010
Appendix: Trade Associations
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