UK hotels reveal trends to beat competition in 2011

Most UK hoteliers don’t plan to increase room rates in 2011, but a more competitive landscape is prompting them to invest in renovation, mobile marketing and social media, according to a new survey by TripAdvisor.

The travel site’s first annual Accommodation Owners Survey interviewed 520 British hoteliers and B&B owners in January this year on their plans to attract customers and stimulate business growth in 2011.

According to the results, published this week, the majority (54 per cent) of hotel owners said they expected room rates to hold steady this year, while 41 per cent expected them to increase. Only 5 per cent forecast a decrease in rates.

"TripAdvisor's survey suggests that the hotel industry is still being affected by a slow economy, as the majority of respondents don't foresee room rate increases this year," said Christine Petersen, president of TripAdvisor for Business.

"Yet, savvy hoteliers are attempting to stand apart from the crowd by embracing social media, launching mobile marketing features and offering the programmes consumers demand most."

Hotel renovations

With the hotel landscape more competitive than ever, the majority of respondents plan to renovate their properties this year, said TripAdvisor.

Around 75 per cent of owners said they are planning renovations to their property's interior in 2011, while 52 per cent are planning renovations to its exterior.

Social media and mobile marketing

The survey findings also confirmed a wider surge in social media in the UK hospitality sector.

Out of those hoteliers already engaged in social media, 44 per cent said they’d pump more budget into their efforts this year.

Overall, 39 per cent of all respondents still don’t use social media, and said they have no plans to in 2011.

Mobile marketing in the hotel sector is also set to grow this year.

Around 18 per cent of survey respondents plan to launch programs, for the first time in 2011, to engage with travellers using mobile devices. Another 27 per cent indicated that they had offered such programs last year and will continue to do so this year.

However, 56 per cent have no plans for mobile marketing in 2011.

Online engagement

Hoteliers are also increasingly moving towards engaging with their customers online.

Over half of survey participants said they planned to respond to both positive and negative feedback on TripAdvisor. 20 per cent said they would respond to only negative feedback, while 23 per cent have no plans to respond to any reviews.

In addition, the survey identified a significant increase in the number of owners posting pictures of their property on TripAdvisor. In 2010, 61 per cent of respondents posted photos on TripAdvisor, and in 2011 this number will rise to 77 per cent.

Hotel promotions and free internet

Three quarters of British accommodation owners said they intend to offer special promotions in 2011 to attract guests, with over half (51 per cent) planning to offer room discounts.

In addition, 17 per cent of hoteliers said they’d offer a free night’s stay with booking, 11 per cent plan to offer special amenities, 9 per cent will offer deals on nearby attractions, 7 per cent on free transportation, and 6 per cent will offer reward points.

Hoteliers are also waking up to the customer need for easy and free internet access. Some 82 per cent will offer free in-room access in 2011, while 7 per cent said they’d charge for the access. 11 per cent do not plan to offer in-room internet at all.