Learning from the Hotel World
12/8/16
We recently had an opportunity to chat with the CEOs and CMOs of some of the largest hotel brands in the world and were struck by the rapidity of change (AGAIN!) in the lodging business, knowing how hotel marketing, sales, and distribution has long provided us an excellent blueprint, several years ahead of our market approach on Broadway.
Arne Sorenson, CEO of Marriott, which just merged with Starwood, spoke about Marriott’s post-merger consolidation plan for all their hotel brands—they now oversee 30 different flags, as they call brands in the hotel industry. Not that long ago, hotels undergoing a merger would immediately cut brands, pushing guests into fewer and larger funnels to reduce marketing and operating costs.
Not so anymore. Arne’s answer to how many brands would be cut was “zero!” Here’s why:
So for Broadway, the takeaway can be:
Our shows are brands unto themselves—already unique and targeting a specific slice of the audience. Target them personally, socially, and in a data-driven way. Express the essence of the show, and be careful of going too mass market.
For ticketing, distribution via primary-affiliated partners with specific brand attributes for specific slices of the market will become ever more important. It will be harder and harder to win the search wars cost effectively.
And last, wrap it all up in the industry loyalty program, which is Audience Rewards. Encourage loyalty through experiences, points offers, and all the extra care that people come to expect when they stay within the Broadway brand family. No matter what part of the family they like best.
Arne Sorenson, CEO of Marriott, which just merged with Starwood, spoke about Marriott’s post-merger consolidation plan for all their hotel brands—they now oversee 30 different flags, as they call brands in the hotel industry. Not that long ago, hotels undergoing a merger would immediately cut brands, pushing guests into fewer and larger funnels to reduce marketing and operating costs.
Not so anymore. Arne’s answer to how many brands would be cut was “zero!” Here’s why:
- People’s tastes have grown more focused, and they desire a hotel stay at a property that most accurately reflects their personality, taste, and budget. We’re now in a multi-niche world. And with ever more sophisticated search, targeting, and brand awareness of who’s who, consumers can find (or are led to) the flag that fits them best.
- Search isn't a war that can be won cost effectively, even for a mega-brand like Marriott. The unsubstantiated number out there is that Priceline is believed to spend $3 Billion on Google search annually. Billion with a B! In order to compete with that, you need super-strong brand attributes so you don’t become a commodity where low-price is the only thing you stand for. W Hotels, Aloft, Ritz Carlton, Courtyard: those Marriott brands each convey their brand story in a unique way.
- Loyalty, Loyalty, Loyalty. What unites all these brands is that they ALL participate in the overall umbrella loyalty program—so even though you can express your own personalized desires when choosing a hotel, you always get your loyalty points. Every hotel, every stay, every time. In a fractionalized brand world, loyalty is the uniter… and a great way to avoid commoditization.
So for Broadway, the takeaway can be:
Our shows are brands unto themselves—already unique and targeting a specific slice of the audience. Target them personally, socially, and in a data-driven way. Express the essence of the show, and be careful of going too mass market.
For ticketing, distribution via primary-affiliated partners with specific brand attributes for specific slices of the market will become ever more important. It will be harder and harder to win the search wars cost effectively.
And last, wrap it all up in the industry loyalty program, which is Audience Rewards. Encourage loyalty through experiences, points offers, and all the extra care that people come to expect when they stay within the Broadway brand family. No matter what part of the family they like best.
Learn more about Audience Rewards at www.audiencerewards.com.