Friday, January 9, 2009

How's trade?

Where are the traditional NZ family spending their holidays?

In talking to a few "Motellas" around the traps it would appear that demand isn't as intense as it has been in previous years.

There seems to be a definite change in the mix of people traveling at the moment. We have been hosting an increase of comfortable retirees, Gen Y couples, overseas family and couples visiting, newly immigrated families and couples, and a few one-off stays from couples and families that are not so well off - but are treating themselves.

We have found that the traditional middle class family group of Mum, Dad and 2-kids have been conspicuous by their absence. New Zealand's new beneficiaries, the middle-class "Working for Families" subsidised honky family appear to be doing some navel gazing at the moment and are not confident to load up the credit card with motel accommodation at the beginning of an uncertain year.

Disappointingly, we have also found a decrease in quality longer stay bookings. More holiday makers appear to be less willing to commit and are more likely to chance their arm by turning up unannounced, stay for one night and moving on.

Many "Motellas" will be consoling themselves with the return of a few sales reps from the 5 January. Business trade is the backbone of the motel industry and hopefully rep trade will be able to be sustained through 2009 as businesses try to maintain sales.

A quick scan at wotif.com reveals that many commercial accommodation providers are already cutting rates to unsustainable levels. To start this strategy at the peak of the holiday season is madness.

A key focus for the motel industry in 2009 will need to be sustainable yield management and quality.

Tuesday, January 6, 2009

We're back live!

Motella is back!

I love this time of year. High occupancies, hot temperatures and happy guests that are delighted to pay rack rates!

2009 is going to be a blast. We will continue to be an independent lone voice against the non-producers that regulate and influence the motel and tourism industry - often in the name of "the common good".

We will continue to ridicule the creep of political correctness, mysticism, global warming alarmists and corporate welfare.

We will continue the fight against socialist idealism that has slowly become part of business culture. We will rally against the concept of "quadruple bottom line accounting" that champions corporate social responsibility, environmental sustainability and prescribed culture above the financial bottom line.

We believe in capitalism, individualism, the free market and the virtues of the noble businessman - the producer, the creator, the originator.

We will continue to discuss all things "motel" and have a lot of fun along the way...

Monday, December 22, 2008

Have a profitable, safe and enjoyable Xmas and New Year!

Meez 3D avatar avatars games
My, my hasn't the year flown by. It's hard to believe that it is Xmas already.... Yeah right! Let's end the dreaded family Xmas form letter right now!

Xmas can be a "different" time for moteliers. This didn't dawn on me until I had to explain what Xmas was all about to our new motel managers many years ago.

After a flurry of end of year activity, most businesses have a chance to reflect on the year and charge-up the batteries before the work next year commences. Most businesses simply close down (at least for the statutory holidays) and go to the beach. Not in the motel industry!

Being open 365 days of the year can be challenging and Xmas day can bring home to moteliers the realisation of their commitment to the business. As a motelier, often you are unable to attend the yearly family rotated Xmas gathering or worse, you are unable to escape family members descending upon you!

Thanks to many that have supported us. The phone calls, emails and the odd comments on this blog are appreciated. Most of you tend to get what we are saying...

The Motella will be focusing on his day job for a while.

May you all have a profitable, safe and enjoyable Xmas and New Year - 2009 is going to be a blast!

"Don't be a busy fool!"

"I used to give the biggest discounts in town"

For many moteliers, the 2-week build up to Xmas is generally quiet and allows preparations for the busy season ahead. For most, the holiday season will commence on Boxing Day.

While we are in a reflective and preparatory mood, the one message we would like to share with fellow moteliers going into the uncertainties of 2009 is:

"Don't be a busy fool!"

This was one of Maree Winter's favorite sayings. Maree is an ex MANZ President and during her reign she ensured that all moteliers within earshot got this simple parting annotate.

As an industry we work hard, very hard, but often the rewards elude many. Quite simply we are too cheap. By world standards a typical "New Zealand motel apartment" offers incredibly good value.

Motel tariff has not kept pace with the rate of inflation for many years.

Why is that? There are many reasons that we will not go into here, however the blame can probably be apportioned more to the motelier's naive reluctance to increase tariff, more so than the market's reluctance to pay. Moteliers are the industry's own worst enemy!

Look carefully at the cartoon above. Hold firm and add value to your business. As moteliers, what you are offering is world class product. Don't forget yourself - how much are you worth? The effort and hospitality that you pour into business to ensure guest comfort is huge - don't undersell yourself! Don't be afraid to increase tariff and...

"Don't be a busy fool!"

Sunday, December 21, 2008

The wrath of the Motella

4 Whakarire Avenue NAPIER

Moteliers can sometimes make it too easy for guests to gain credit. We do so out of good nature and to provide "good" customer service. In our business we make decisions based on gut feeling, without qualification and most of the time we get it right. Sometimes we get it wrong.

Times are tough, however it rackles me when people try to avoid me, lie and make promises they do not keep.

On behalf of my motel managers, I have been chasing a debt from:

C J L Builders Ltd

The directors are Christopher and Leeanne Winterburn.

Mr Winterburn stayed at my motel and owes me money. He has promised to pay on several occasions but sadly has not delivered or had the courtesy to contact me to explain why.

C J L Builders and Mr & Mrs Winterburn have been registered at Baycorp and will be soon getting a visit at their residence (pictured above) from our debt collectors.

I would suggest that you are wary of any dealings with this company and its directors.

UPDATE

We are pleased to report that Mr Winterburn has finally paid his obligation with us in full after 9-months.

We will not be dealing with Mr Winterburn or his company again. We suggest that you make up your own mind, if you wish to have any business arrangements with him in the future.

Saturday, December 20, 2008

Will 2009 be the year of transparency?


By Ian Yeoman
www.hospitalitynet.org
16 December 2008

President elect Barack Obama talks about transparency in government as the bedrock of his administration and as tourists increasingly share information about experiences and holidays online, they will expect the same kind of openness from tourism organisations and businesses.

In 2009, it will be hard to hide anything, keep things out of sight and the tourist will at the very least know you are hiding something. With the internet they can find nearly everything and tell nearly everyone. Transparency is associated with clarity, clearness, simplicity, precision, intelligibility and accuracy. Futurologist Dr Ian Yeoman talks about transparency, the tourist, brands, technology and business implications.

Why will transparency be more important in 2009?

A number of trends are emerging shaping the phenomena of transparency. The culture of immediacy means we have gone from a world when searching the internet ten years ago might have taken us a few minutes using dial up services to nanoseconds in today's broadband world.

Immediacy in the 21st century is a combination of fast capitalism and the saturation of everyday media technologies in which we run our lives. This coming of immediacy, as authored by John Tomlinson is his book the Culture of Speed has inexorably changed on how we think about and experience media culture, consumption practices, and the core of our cultural and moral values. Basically, we are intolerant of slowness and our perception of speed has changed.

The paradox of choice, as illustrated by Aric Sigman in his research 'The Explosion of Choice: Tyranny or Freedom?' finds one supermarket with 83 shampoos, 68 shower gels, 42 deodorants, 77 washing powders and 87 breakfast cereals. Again the question is how ordinary mortals can cope when "each decision whether to take your holiday in Benidorm or Bolivia or which anti-dandruff shampoo to buy is an act of information processing".

Today's consumer has so much choice they don't know what to do and the internet makes it worse on one hand and easier on the other. As a result of this paradox of choice, there is a Lonely Planet guide to for every country in the world including Afghanistan, North Korea and the Falklands Islands. Therefore, consumers are become more demanding if you want there monies.

Greater competition, globalisation, better distribution channels and the constant invitation for consumers to stand up for their rights to find the best deal resulting in the empowerment of consumers to pursue choice through market forces results of more demanding tourists.

The creeping culture of convenience has been growing stronger over the last decades, to the extent that some traditionalist commentators have seen it gnawing away at the fabric of society ever since the invention of the washing machine. It is a natural urge, we might assume, to spend less time doing things we don't enjoy so that we have more time for the things we do. But the last few years seem to have witnessed a tipping point, where convenience has become a major selling point in almost any market you care to name. This recent explosion has been fuelled by the growth of internet and mobile technologies, as well as shifts in consumer attitudes and expectations as they become more empowered and demand more of the companies they patronise.

In a recessionary world, tourists have come to expect falling prices and intense competitive activity, and in this context, there is virtually no chance that an increase in air fares could be met by an understanding response from travellers. The existence of a 'low-price culture' sharpens resistance to price increases in other sectors of the economy which have not yet witnessed low-price competitive activity. This is the trend of the low cost world as illustrated by Yeoman and McMahon-Beattie in the Journal of Revenue & Pricing Management.

Trust in business is constrained by cynicism to some extent. National tourism organizations such as VisitScotland or Tourism New Zealand present a glamorous picture of pure and unspoilt landscapes. However, potential tourists or visitors can discover facts and figures, opinions and options and talk back to the institutions and brands that surround them on a scale unimaginable only a few years ago - in early 1999 the number of homes with Internet access was only 13% in the UK. Yet it is clear today, that the interactive traveller will search the internet, visit several different websites to find information, read books and talk to friends about holiday plans. Less and less they trust advertising.

One major consequence is that every tourism organisation or business needs to work hard to preserve whatever authority and trust-worthiness it has accumulated. Every destination brand these days is surrounded by the disruptive cacophony of so much word-of-mouth about its performance and progress. The web is stocked full of comment from dissatisfied customers to ecologically outraged lobby groups to those generously advocating better choices and better deals. With varying degrees of commercial success so far, the Internet has slipped the surly bonds of the hard-drive to appear on telephones and televisions. Invitations to interactivity are wallpapering our lives, bestowing new forms of engagement and dialogue upon consumers, permitting even more whim and change-of-mind.

How technology and transparency are changing the world

In 2009, expect more tourists to have even more transparency at their disposal, as reviews and price comparisons move from hotels to every type of experiences, SatLav allows visitor's to London to know where the nearest toilet is, along with reviews. Zigabid allows culture vultures to buy and sell tickets and interact directly with each other to determine the ticket's price. Therefore treating tickets as commodities and subjecting them to a series of offers and counter offers. Know in geek language as bid pricing.

Liftopia lets ski resorts sell discounted lift tickets online. Visitors simply choose places where they want to ski, and then scroll through a list of budget priced life passes. The site also incorporates up-to-the-minute weather data and trail maps help skiers make their choice. Seat Guru provides information on hotels including rooms that are oversized, which have greater bathrooms or which ones are quieter. Delaycast tells tourists the chance of encountering delays on a particular trip. Its delay tools provide broad overviews of the best days, times and airlines based upon selected airports making predictions six months into the future.

Going out shopping, today's tourist looking for the latest Gucci handbag or Rolex watch can find the best price and location for such a product using price comparison software and Google maps. The T-Mobile G1 phone comes with shopsavvy software which allows the tourist to scan almost any barcode using the phone's camera and then get an instant report telling them where to buy it or they simply use the information to barter with the shopkeeper.

But tourism business will have the right of reply; tripadvisor's management response system allows owners and managers to reply to posted reviews on the website.

Where is this all going?

With so many developments, transparency will move to new platforms such as video. For your business, it means being up to date with information, availability and prices. Examples of developments include the sheer mass of reviews, whether hourly or daily will unmask, outnumber and neutralise fake reviews. Ubiquitous online reviews and access from mobile devices means revises can be documented and posted instantly. For example, Orbitz's Updates promises real-time updates from fellow tourists about security wait time, traffic, and taxi lines at airports and much more. Software developed by Plista allows users to tailor recommendations and information. Bambuser offers technology which allows companies to communicate broadcasts live, using mobile phones as broadcasting devices. It's like Facebook but interactive and real time.

Mind you, with all this information on the internet, the tourist will be faced with a situation of paradox of choice and might decide not to engage with you. You as business, have spent time and effort to promote transparency, but are suffering from suggestion scarcity. Not enough online comments, not enough online tips, no body has visited your blog (except you). Tourists are not telling you want they what and what a wonderful destination you are! Silence, means they no longer care and they have moved on.

There is a counter trend to everything transparent, in which opaqueness is accepted by tourists. Many tourists will accept an opaque offering, if that experience consistently delivers and surprises. Also, a lot of tourists like to keep things simple and stupid. They want to save time. They don't want to make all the decisions.

There is a simple reason why billions of people still enjoy listening to the radio instead of searching the internet, a specific rock channel to optimise a news story. Tourists want to be surprised and entertained without any action on their part, hence the importance of making suggestions. When you visit www.amazon.com it knows your cookie and makes recommendations based upon your purchasing and browsing. In other words, if you operate and deliver in a superior way, consumers may actually be happy and they don't want to spend valuable time researching or engaging in conversations with you. They will trust you to do the right thing. Surrender control in order to get on with more important business. If your business or destination is opaque, it means you are one of the best, but you have to work at it to maintain that trust.

Barack Obama has promised transparency in government in 2009. But do you trust politicians to deliver on that promise?


Ian Yeomanis the world's only professional crystal ball gazer or futurologist specializing in travel and tourism. Ian learned his trade as the scenario planner for VisitScotland, where he established the process of futures thinking within the organisation using a variety of techniques including economic modelling, trends analysis and scenario construction.

In July 2008, Ian took up a faculty position at Victoria University, New Zealand as an Assoc. Professor of Tourism Management. He is a popular speaker at conferences and was described by the UK Sunday Times as the country's leading contemporary futurologist. Ian's new book, tomorrow's tourist envisions what world tourism will look like in 2030, where tourists will go on holiday and what they will do.

Ian has a PhD in Management Science from Napier University, Edinburgh and a BSc (Hons) in Catering Systems from Sheffield Hallam University. Previously, Ian was Senior Lecturer in Tourism and Hospitality Management at Napier University and University College, Birmingham. He has extensive experience within the hospitality industry, for which he was a hotel manager with Trusthouse Forte.

Ian has received a number of awards in recognition of his research including his appointment as a Visiting Professor of Tourism Management at Stirling University and Stenden University of Applied Sciences and the Mike Simpson Award from the Operational Research Society. Ian is also Editor of the Journal of Revenue & Pricing Management.

Further details about Ian and futurology in the travel industry can be found at www.tomorrowstourist.com

CONTACT

Ian Yeoman
Victoria University Management School | Victoria University
PO Box 600
Wellington, New Zealand
Phone: 00 64 (0) 4 463 5717
Email: ian.yeoman@vuw.ac.nz

Click for: Source

Wednesday, December 17, 2008

Tourism briefing paper to John Key

The briefing paper for the incoming Tourism Minister prepared by the Ministries of Economic Development and Tourism has been made available for the first time to the public.

The briefing paper includes the current state of tourism, major policy, budget appropriation, key stakeholders etc.

This makes very interesting reading and can be viewed HERE

Monday, December 15, 2008

Mixed results reported by tourism businesses


15 December 2008
Press Release: Tourism Industry Association


Bank of New Zealand – Business NZ Performance of Services Index (PSI) for November 2008 Tourism businesses surveyed as part of the Bank of New Zealand-Business NZ Performance of Services Index reported a mixed response with smaller tourism businesses generally reporting slightly more positive trading than the larger tourism firms.

Of the 22 tourism businesses surveyed, 14 reported that their main activity was positive while eight reported a negative trading environment.

Tourism Industry Association Chief Executive Tim Cossar says tourism businesses are heading into the busy summer holiday season and while trading is expected to be down on past years most businesses are more concerned about what bookings will look like after summer, from March next year onwards.

“The survey results suggest that the global economic situation and the recent slowdown in international visitor numbers are likely to impact larger firms more as they rely more on international visitors to keep their businesses ticking over. The smaller companies with a greater reliance on domestic trade seemed to be faring a little better.

“The industry tell us that while the markets are generally down, this is not the case for all tourism sectors. Some sectors within the industry are doing okay. Notably, backpackers, holiday parks and motels, many of whom are reliant on domestic and Australian markets.

“The fall in petrol prices and the summer holiday season is helping those operators who have a larger domestic base,” Mr Cossar says.

Despite a general slowdown, there have been some recent positive developments with the exchange rate moving in favour of international visitors, a slight recovery in the share markets and more political certainty following both the United States and New Zealand general elections, Mr Cossar says.

“A short term tactical marketing plan is required. We need to increase the focus on keeping both the Australian visitor market and our own domestic market strong.

Full results are available on www.businessnz.org.nz under ‘PSI Reports’. For more information or assistance with data interpretation contact Stephen Summers: 04 4966564, ssummers@businessnz.org.nz .

The Bank of New Zealand - Business NZ PSI draws on the depth of member companies associated with Business NZ: Tourism Industry Association New Zealand (TIA), Employers and Manufacturers Association (Northern), Employers and Manufacturers Association (Central), Canterbury Employers’ Chamber of Commerce, Otago Southland Employers Association, Hospitality Association of New Zealand and the New Zealand Retailers Association. The survey is sponsored by Bank of New Zealand Ltd.

Fast facts
  • Tourism contributes close to 10% of gross domestic product (GDP) for New Zealand
  • Tourism directly and indirectly employs nearly one in ten New Zealanders.
  • Tourism in New Zealand is a $50 million per day industry. Tourism delivers $24 million in foreign exchange to the New Zealand economy each day of the year. Domestic tourism contributes another $26 million in economic activity every day.
  • Total tourism expenditure reached $20.1 billion for the year ended March 2007. International visitor expenditure accounted for $8.8 billion or 18.3% of New Zealand’s foreign exchange earnings.
Visit www.tianz.org.nz for more information

TIA sent away to try again

Tim Cossar, head of Tourism Industry Association (TIA) after a couple of trial runs, gave the first official briefing to the Ministry of Tourism last week. Associate Minister,  Jonathon Coleman stood in for Tourism Minister, John Key.  

With the background of global recession, Cossar has been reported as demanding up to 38% more public funding for Tourism.

The previous government were happy to respond to perceived need, rhetoric and public opinion, however the current government appears to have adopted a business culture and is focused on a return on investment for taxpayers money. Go figure!

John Key does not seem to be impressed with headline grabbing one-liners and prefers suitors to speak the language of business. Through his Associate Minister, Key has sent Cossar away to do some homework. Key has issued the TIA a challenge to return to the Ministry with a business case that includes clear quantifiable goals.

The TIA will need to rapidly transform itself from a tourism trade union into a professional and credible representative of small business.

We wait with baited breath to learn what TIA's  response will be ...

Sunday, December 14, 2008

The Motella's Xmas Supper

I went out to a wonderful meal with a bunch of other "motellas" this evening.

It's always great to share a drink, good food and relax amongst others in the motel industry.

I enjoy new learning new catch-phrases and this evening I came home with one that I will try and slip into conversation over the next week. I'm not too sure how I can do this, however I don't mind a challenge.

The catch-phrase was: "Alternate Drop"

The restaurant had a three course set menu for our group with a choice of two dishes for each course. Each time a course was served, the two dishes were served alternatively to each diner at the table.

Inevitably a bit of negotiated swapping occurred between diners at the beginning of each course, however in an odd way it seemed to work - No orders were taken and the set menu as was served in an "Alternate Drop" fashion.

Just goes to show that you never stop learning...

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