COMPETITIVE EDGE
Region’s hotels find ways to one-up each other
By: Stephanie Brown
Despite the large corporate pool from which Princeton-area hotels draw, managers say the competitive edge lies in developing a demand outside an established niche.
While most hotels can rely on a steady amount of corporate business to reach revenue goals, they say expanding beyond an established market is crucial especially here, where hotels are renovating, expanding and moving into the area.
Both real estate and the cost to operate a hotel is expensive, but given the market demand for corporate-business hotels, the hospitality industry here remains successful and continues to offer a profitable opportunity for new hotels, many say.
"The rates in this area are among the highest," AmeriSuites General Manager Scott Fisher said. "This particular property among the AmeriSuites brand is one of the highest rates and one of the highest occupancy properties in the country."
The demand for corporate-oriented hotels is evident in the sheer abundance of hotels just on Route 1 alone. However, Mr. Fisher does not consider the region’s hotel industry to be overly saturated. "There are a lot of hotels in the area, but compared to the demand, there are not," he said.
Supplying a tailored hotel service for corporate demand limits the range of competitors, therefore increasing potential for success, some say.
Hotels like AmeriSuites and The Courtyard by Marriott accommodate the mid-corporate market, while full-service hotels like the Hyatt Regency Princeton, The Westin Princeton at Forrestal Village and Doral Forrestal Conference Center & Spa meet the needs of high-end corporate market.
Zeroing-in on market-specific demands not only narrows the competitive field, but also makes fulfilling guest expectations easier, experts say.
A successful hotel meets guest expectations, but even within a specific niche guest "expectations are not the same and their needs are not the same," said Bill Andreorio, director of sales for the Hyatt Regency.
For example, "A very seasoned traveler who is on the road a good part of the year for corporate business, they tend to look more at full-service hotels," Mr. Andreorio said. "The reason being is that they require all of the facilities They’re on the road a lot, they want to work out, they want to be able to go downstairs and have a meal, or have room service, and have full menus, because they eat healthy, or because they like a certain kind of food, they might be vegetarian. that a full service hotel can give them without having to get in their car and go somewhere."
Targeting a specific clientele within the broader corporate market and designing a tailored service not only increases guest satisfaction, but also becomes a marketable brand, others say.
Essentially, customers are "buying the brand" and the trust in that brand, according to Thomas Healy, general manager of The Westin. "How we resolve, how we engage, how we interact with our customers," all characterize a distinguishable service brand.
However, strict reliance on corporate business can only sustain a hotel during the weekdays, resulting in detrimental vacancies on the weekends.
"In this marketplace, your occupancy strength your demand for rooms is really Sunday through Thursday," Mr. Andreorio said.
"The valleys are going to loose you as much money as the peaks are going to make you money," Mr. Fisher said.
Supplementing leisure business on the weekend helps even out the ups and downs. "With corporate, you’re looking at about four days a week," explains Mr. Fisher. "Whereas families and teams, transient types of business, is more of a Friday, Saturday, Sunday type of business."
While Princeton offers a steady supply of corporate business, transient business is less readily available. That many say is where the playing field becomes more leveled.
"Every hotel is a competitor," said said Joseph Sirianni, general manager of The Courtyard by Marriott. "It’s because they’re all corporate based, and they’re all going to be looking for the socials on the weekend."
Forming a partnership with Princeton becomes important in filling weekend property.
"In that regard, you look to Princeton for sports," Mr. Andreorio said. Weekend sporting activities create a transient traveler in the visiting team. "When it comes to competing for sports teams, it’s about rates. Sports teams are not open to the usual weekday rates you find in this area. Friday and Saturday nights, you really have to create your own demand, your own occupancy by offering packages, by offering special considerations."
Also, branding plays a strong role in supplementing the weekday corporate business.
"That’s where your consistency comes in," said Mr. Sirianni. "If you have a business person or even a transient traveler coming to an area where they’re not familiar with the hotel, but they are a brand affiliated customer, then they’re going to stick to their brand because they know what they’re going to get."
Hotel rewards programs also help secure transient business. "The frequent traveler programs, the marketing programs create a lot of loyalty, brand loyalty," Mr. Healy said. "Loyalty to a brand helps them get more points."
Filling property all week long requires hotels to compete for a wide range of guests, experts say, and loyalty assists brand-name hotels in remaining successful despite competition in a grab-bag market.