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5 things to know: 30 May 2013
May 30 2013
Highlights

• Wyndham signs deal for 20 Super 8s in Turkey
• Consumer brands break into hotel space
• DKSA: Millennials to travel less this summer
• IHG announces second Even Hotel
• Addressing the ‘3 Cs’ of last-minute bookings

Wyndham Hotel Group signed a development agreement with Ilbak Turizm Isletmeleri Ve Yatirim A.S. for 20 Super 8 hotels in Turkey over the next 10 years, according to a news release. The fourth Wyndham Hotel Group brand to launch in Turkey since 2007, the Super 8 brand aims to meet the growing demand for accommodation at affordable prices. The brand has more than 2,300 properties throughout the U.S., Canada and China.   

The introduction of the brand to Turkey falls on the heels of similar announcements to launch Super 8 in Germany, Poland and Saudi Arabia. Across the four countries, 60 hotels are planned over the next 10 years. 


McDonald’s golden arches did not shine brightly when it entered the hotel business in the early aughts, but the fast-food chain’s misfire has not deterred other consumer brands from honing in on hospitality.

HotelNewsNow.com’s Alissa Ponchione details a swell of players who have thrown their brands into the hotel ring, such as Baccarat, Harrods, Nickelodeon, Virgin, Lego and more.

“Consumer brands are now becoming hotel brands,” explained Rob Cornell, senior VP of global development for Preferred Hotels & Resorts, which recently partnered with Paramount Hotels & Resorts. “And the most critical step (for consumer brands) is getting in front of a core audience to establish credibility.”


Millennials plan to travel less this summer compared with last summer, while their older counterparts are either increasing or maintaining planned summer leisure travel levels, according to a national survey by D.K. Shifflet & Associates. It remains to be seen whether this millennial decline is an overall reduction in travel or simply a shifting of travel to shoulder seasons when travel prices are lower.

The increase in Generation X planned summer leisure travel comes with strings attached. While GenX travelers plan to travel more days, they do not plan to spend more money compared with last summer, according to the DKSA report. Travel marketers should be sensitive to this price-conscious GenX generation when planning summer promotions.


InterContinental Hotels Group announced plans for its second health-conscious Even Hotel brand, reports USA Today. The property will be located in Midtown Manhattan, in the Garment District near the Empire State Building and Times Square.

The 150-room, 25-floor hotel will be a new build and will open in mid-2015. It will have public work spaces, dining and social areas. But the hallmark of the property will be a state-of-the-art, larger-than-normal gym.

Even’s flagship is set to open in a newly built tower near Grand Central Station. That 230-room hotel is scheduled to debut in 2015 as well. An ownership group led by developers Frank Chan and Lance Steinberg is financing both properties.


The explosion of same-day booking platforms has brought a new set of challenges to hoteliers, namely: maintaining control of how their last-minute inventory is sold and promoted; avoiding high commissions on already discounted rates; and not cannibalizing their existing customers.

In a blog on Web in Travel, author Kathrina Gallogly address the “three Cs” one by one:

Control: “The ability for the hotel chain to have control over how they target this market is very important, so this approach is not targeted at loyal customers and instead the hotel can carefully choose which nights and which cities and which hotels it offers last minute deals for, the time of day it promotes last-minute deals and importantly the hotel maintains ownership of the customer relationship.”

Commissions: “Hotel chains need to look at other alternatives that do not take such a high commission rate so that they can have a healthier yield on their rooms.”

Cannibalization: “The key is to take a ‘No Extras’ or ‘No Frills’ approach to same-day bookings. Also the timing and the language used when promoting same-day bookings is important to communicate the context and relative value of the offer.”

Compiled by Patrick Mayock.

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