ONTARIO RESORTS UPDATE 2019
Since the beginning of 2019 a massive trend in the hospitality industry has swept across Canada
affecting Hotels & Resorts everywhere. The impact on Ontario resorts could be determined by the new generation
of travelling guests that come with a whole set of unique requirements and demands for their stays .
THE INDUSTRY Has CHANGED
HERE IS WHAT HAPPENED
The Game has Changed
Your business may be affected by a massive influx of brand new resorts currently being developed across Canada.
New types of resorts are being built to specifically cater to a new group of guest and new generation of travellers that have unique wishes and requirements for their stays.
It can be a bit confusing to mentally dismantle all the new tech talk and derive meaning out of the new branding for the different ilk of hotel & resort being built today.
Up the Ante
However if you are willing to take up the challenge and ready your organization for the future, NOW could be a great time to leverage the hundreds of millions of dollars currently being spent by the big brand hotel chains. They are changing with the times because their metrics warrant the investment.
Are You Future Friendly?
TOP HOSPITALITY BRANDS LIKE MARRIOTT, HILTON AND IHG ARE BECOMING
Metrics show the investment in the future traveller is warranted and will reap higher revenues. According to Oracle, millennials are the largest generational demographic in the U.S. With a population of 83 million, they outnumber baby boomers and Generation Xers, and wield enormous spending clout – an estimated $200 billion annually. A hefty share of that pie is earmarked for hospitality: 77% of U.S. millennials say they visit a restaurant once a week or more, and each millennial is projected to spend an average of $3,900 on travel this year. More importantly, according to the CTC, a report in 2010 revealed that Canadian Millennials generated 167 billion US in tourism receipts and by 2020 will be travelling worldwide with 300 million trips a year.
How to keep up with top hospitality brands who have already sunk millions into capturing the biggest target market of guests. This will affect existing hotel & resort establishments across the country - big and small. The big brands are now future friendly which means they are looking much closer at the needs of the newest guest segment. Spending money to capitalize on the biggest spending travellers – the millennials (sounds like a good name for a band :) ). Top Brands are owning the market segment by building Independent lodgings and Collection & Lifestyle brands. They are selling unique experiences. You can too.
Now guests of all persuasions have much more to choose from. Smaller, older & dated resorts in need of upgrades may see a decline in revenues or get left behind. However, competing with the big brands is possible…
Inclusive layouts, millennial makeovers, affordable luxury, new considerations for tech, more modern and comfortable furnishings. Don’t forget, millennials will most likely make most of their decisions from inside their suites…while on their phones.
A drone flies through Muskoka, Ontario
If customer satisfaction is #1 in the hospitality business, then technology has to be a close #2. If you are focused on grabbing your share of the massive boom in tourism, the millennial tourists are specifically hoping for tech conveniences - Got an app?
New types of resorts are being built to specifically cater to this new group of guests and new generation of travellers. They have unique wishes and requirements for their stays. Recently, Paul Liu, Deputy General Manager at Briars Resort & Spa in Jackson Point, made the executive decision to make WiFi free for guests and with no sign-in required! It may seem a small gesture but the convenience it provides hits the bulls-eye for millennials.
How to Compete with Top Brands
BIG BRANDS ARE ABOUT SIZE..
BUT size isn't everything
As previously said, big brand hotels and resorts are changing the landscape by sinking billions into creating unique experiences and lifestyle brand lodgings. This shift & new direction is aimed at capturing the boutique market and the largest generational demographic in the world. This includes 84 million Millenials in the US, 77% of which have roughly $4K to spend on travel per year resulting in an annual spend of about $260 billion.
WHETHER YOUR RESORT IS MASSIVE OR TINY
Being current is what makes people intrigued, excited & interested in your lodgings which will equate to more bookings. Even if your resort is on the smaller size: cottage getaway, 2-3 cabin retreat or airbnb on the French river, if you are committed to your brand and willing to re-invest in the right kind of changes, your establishment could become…EXCLUSIVE. This can be a key move to attain high value clientele, increased ADR, higher occupancy rates & greater profits
Case Study - TABOO Resort
They designed and decorated the resort in a MODERN style
The answer is simple..
How did Taboo grab wide-spread appeal and attention so quickly from the public?
A case study of an Ontario resort that gained instant success in the market. They took a big risk..
And it paid off
An example of a Taboo Suite
YES IT IS TRUE…Taboo had post launch difficulties and almost lost their place in the industry. Management issues, unfortunate reviews and service issues caused them trouble at an early stage. However, taboo also attracted guests en-mass as they took one of the ultimate hotel/resort business risks.. They designed their resort in a modern style, breaking a barrier few resorts would even look at. The risk paid off.
Their bold decision created intrigue & excitement = profits
Small Resort? - Go Boutique
Independent and boutique resorts can be unique and creative with decor, furnishings, food, events and anything else - even in how they market themselves. This allows the independent resort to strengthen their identity and reputation, and offer a special, distinctive, memorable resort experience for the guest.
Top hotel marketing agencies agree that you can win or lose a potential guest in a few seconds of them browsing your website. A clutter free web page with clean & clear photos of suites & common areas will influence a site visitor right away. However, the content of your pics should elevate a potential guests expectations…or you may lose them to a competitor that is a step ahead.
Boutique Hotels designed & decorated by FF & A design studio Kiki Phukan Design
A term coined by New York hotelier, Ian Schrager who is famous for creating a luxury hotel for budget travelers. He reduced costs at his New York “Public” Hotel by getting rid of the notion of luxury that his parents liked and he used to like. Also Schrager credits himself with the invention of the boutique hotel. He also states in an interview with new York writer Diana Budds that hotel brands have been trying and failing to hit the sweet spot of “affordable luxury” for the past decade.
The emerging budget boutique hotel sector is bringing in new, younger customers to what has traditionally been a more expensive segment of the hotel market. Part of a broader travel trend, this desire for 'affordable luxury' reflects the aspirations of many holidaymakers who are seeking premium experiences at a price they can afford. What's more, with the rise of "Generation Easyjet" there are a growing number of travellers happy to economize on flights or transport in order to be able to trade-up on accommodation and experiences once there.
To cater to these new type of guests, a resort can offer affordable luxury through incredible design, decor or architecture with features like a great spa, restaurant or a beautiful pool. A well-appointed resort can become more sought-after than ever if their guests can rely on impeccable service - personal, professional, friendly and authentic.
Top Travel Spenders - Chinese Women
Driven largely by the rise in Chinese tourists, the number of luxury hotels in the United States will grow to 1067 luxury hotels by the end of 2019
Made up of mostly Chinese women, they typically spend twice as much as US / Canada tourists when traveling abroad - according to the
United Nations World Tourism Organization
NOT SURE HOW TO START PROFITING FROM THE NEW AGE OF HIGH-SPENDING GUESTS?
Watch our slide-show below to see how we drove profits through the roof for
this local boutique hotel in Toronto
Boutique Hotel Case Study
Find out how we can put solutions like these to work for you.
Hi I'm Doug, Co-Owner
Kiki Phukan Design | Hospitality Design Experts
Creator of the Ontario Resorts Update 2019
We design, construct & furnish hotels&resorts. For best results let us manage your projects for accurate execution.
Kiki Phukan is an FF&A designer with 30 years industry exp.
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