Business Travel News Online recently reported that in an economy that has seen a drop in business travel by almost 10% in the past year (source: NBTA), extended stay hotels are aggressively constructing new hotels. Richard Flores, marketing director for Larkspur Hotels and Restaurants, was quoted as saying , “In 2006 and 2007, you could get away with having one major account, and you were running 80% occupancy with a good rate. You can’t count on Google to fill them up anymore.”
This brings up a number of interesting points. One is that internet referrals, when gleaned from a single source, will fail us in this economy. What is needed is a more innovative way of bringing in internet referrals, and that’s where Shop Corporate Housing comes in. The website allows all providers to compete for a single lead, which in the end means that the prospect is more likely to find the niche provider who is best able to serve their needs.
The other quote from the article that caught my eye was this: “Robert Radomski, vice president of brand management for InterContinental Hotel Group’s extended stay brands, said the down economy also has increased certain types of business travel to extended stay properties. ‘We are seeing growth in liquidations, and those liquidation teams are the sort of thing that brings more extended stay business,’ he said.” Liquidation teams are teams of consultants who are asked to manage the liquidation of large inventories, such as when Circuit City liquidated its inventory across the country earlier this year. What this means to me: now is a time to pursue new markets, and to open up sales into a new clientele. Liquidation teams could be one of them.