📌 Hospitality Highlights: 4th March 2024
Get the Inside Scoop on Hospitality Marketing and Industry Trends in This Week's Newsletter!
Hello and welcome to the latest edition of Hospitality Highlights
This issue is packed with insights and updates to fuel your strategy and spark your creativity. Here's a glimpse of what's inside:
🚀 Top Marketing News
📍 Instagram's Experimenting with a New 'Friend Map' Live Location Display
🎵 TikTok's Stand-Off with Universal Music Could See More Tracks Pulled
🔒 Yelp Releases 2023 Trust & Safety Report
🔍 Google to Enhance Its AI-Generated Performance Max Ads
🔗 LinkedIn Algorithm Change Could Promote Your Best Posts for Months
🍽️ Restaurant Marketing News
🍔 How Wendy's Used Comedy and Creativity to Drive Brand Awareness
🍕 Domino's Makes a Comeback with Refreshed Loyalty Program
🍽️ Diners are Trading Down: What It Means for Fast Casuals and QSR
💲 Wendy's Confirms No Price Hikes During Busier Periods
💯 Calories on Menus in Pubs and Restaurants Could Save 9,000 Lives
🛎️ Hotel and Travel Marketing News
🐾 Japan Hotels Luxury Packages for Dogs
🏨 Marriott Bonvoy Reaches 200 Million Hotel Loyalty Members
🚀 New Space Travel Company Unveils Luxury Passenger Capsule
🏖️ Capital One Travel Launches Vacation Rentals
🏕️ Hilton Partners with AutoCamp to Expand into Outdoor Hospitality
Plus 🍷 Food & Beverage News Roundup
Whether you're looking to enhance your marketing efforts, stay informed on the latest consumer trends, or keep abreast of the freshest hotel and travel marketing developments, you've come to the right place.
☕ Let’s Check In!
🚀 Marketing News
📍 Instagram's Experimenting with a New 'Friend Map' Live Location Display
Instagram has officially confirmed its upcoming feature, the "Friend Map" display, similar to Snapchat's Snap Map. This new feature will allow your friends to see where you are and where you've been through tagged posts and Stories.
Users can choose who can see their map, and there will also be a Notes function for leaving comments in different locations. This opt-in functionality could greatly enhance in-app engagement and encourage real-life connections.
💡 Instagram's "Friend Map" feature could provide a powerful tool for hotels and restaurants to drive footfall by tapping into the network effects of social media and the trust inherent in personal recommendations.
As users can tag their locations in posts and Stories, hotels and restaurants will receive free, organic promotion to a wider, highly targeted audience. This aligns perfectly with experience-driven dining and travel trends, where friends are key decision influencers.
Learn more: Instagram Community Management Sources: Social Media Today
🎵 TikTok's Stand-Off with Universal Music Could See More Tracks Pulled
The recent failed licensing negotiations between Universal Music Group (UMG) and TikTok have caused a ripple effect that could affect various industries, especially the hospitality industry. UMG has pulled its songs from TikTok and demanded the removal of music by its songwriters due to a disagreement over licensing terms.
This disagreement is not just a contractual issue. It could become a significant moment which could reshape the future of music licensing. UMG's firm stance might encourage other music publishers to seek better terms in their negotiations with TikTok and other social platforms.
The implications are significant for the hospitality industry, which increasingly uses social media platforms like TikTok to engage customers and enhance experiences. Music is crucial for setting the right tone and creating engaging content for promotions, events, and general customer engagement.
💡 With the app potentially having to mute up to 80% of all music due to contributions from Universal artists, hotels, and restaurants that rely on TikTok for marketing, it may significantly impact their reach and engagement. Review your videos to see if there has been an impact on engagement, collaborate with local artists, or curate royalty-free music that is suitable for your brand personality.
Learn more: Gen Z Consumer Fact Sheet Sources: Fast Company
🔒 Yelp Releases 2023 Trust & Safety Report
Yelp has published its 2023 Trust & Safety Report, which outlines its commitment to ensuring the trustworthiness and quality of its platform. In 2023, the platform saw 287 million users turning to Yelp for business. Users opened the Yelp map 55 million times and checked out menus nearly 13 million times.
Yelp has implemented several measures to tackle suspicious activity on the platform, including an automated tool that evaluates reviews based on hundreds of quality signals, reliability, and user activity. This software helps to surface the most helpful and trustworthy content for consumers and prevent the recommendation of potentially biased or unreliable reviews.
💡 Establishing and maintaining transparency with customers by responding to both positive and negative reviews constructively and respectfully is essential. Businesses should also ensure that their listings are up-to-date with accurate information regarding hours of operation, location, and services offered. As the saying goes, "Trust takes years to build, seconds to break, and forever to repair."
Learn more: Reputation Management for Hotels Sources: Yelp Yelp Press
🔍 Google Upgrades Its AI-Generated Performance Max Ads
Google recently announced an update that will change how hotels and restaurants approach paid advertising. The latest update to Google Ads integrates generative AI elements into Performance Max ad campaigns. These ads are powered by Gemini LLM (formerly Bard), allowing users to generate headlines and copy automatically.
With Google's AI technology, businesses can create ads in a range of formats, such as Text, Video and Image and distribute them across multiple channels, including Google Maps, Search, and YouTube.
💡 Having a deep understanding of your target customer segments enables the creation of more personalised, relevant and powerful advertisements using AI. It's about delivering the right message to the right person at the right time and in the most appealing format. On Google, people are searching with intent; this means they either need information, are browsing or are ready to buy. On YouTube people want information, entertainment and inspiration.
Learn more: Generative AI for Hospitality Sources: Google
🔗 LinkedIn Algorithm Change Could Promote Your Best Posts for Months
LinkedIn is making significant changes to its platform to help users connect with targeted audiences and increase engagement. A recent interview with company leaders revealed that LinkedIn is developing a new "suggested post" feature to promote relevant content to specific audiences months or even years after it was initially shared. This marks a major algorithm shift for the platform and aims to keep valuable content alive and visible for longer. - I’ve personally noticed this with users engaging with older editions of my newsletters.
💡 For individuals and businesses in the hospitality and food service industries, incorporating fresh and evergreen content into their posts on LinkedIn will be essential for achieving optimal reach and engagement.
Evergreen content remains relevant and valuable over time, regardless of current events or seasonal changes. This content typically addresses core topics, provides useful tips, or answers frequently asked questions that crop up regularly.
By balancing this timeless content with updates that reflect the latest trends and news within the industry, your LinkedIn strategy can sustain interest and interaction, ensuring your posts continue to attract and engage viewers well into the future.
Learn more: Hospitality Leader Personal Brand Strategy Sources: Search Engine Journal
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🍽️ Restaurant News
🍔 How Wendy's Used Comedy and Creativity to Drive Brand Awareness
The Burger Files Podcast from Wendy’s in the UK is a spoof true crime series with a comedic twist, investigating real-life bad burger stories “to seek truth and justice.”
By blending Wendy's brand messages of uncompromising quality and experience with the humorous approach, the podcast engaged Wendy's advertising-sceptical audience through captivating storytelling, reinforcing Wendy's reputation as a bold challenger brand.
💡 This initiative is a fantastic example of the importance of authentic storytelling, humour, and creativity in captivating modern consumers, particularly younger demographics.
Restaurants can use Wendy's lessons from Wendy's innovative approach by embracing unconventional formats such as podcasts and blending entertainment with brand messaging to differentiate themselves.
Gen Z's digital habits offer a roadmap to untapped marketing territories for hotels and restaurants. While mainstream brands have extensively explored platforms like YouTube, Instagram, and TikTok, emerging digital channels and strategies offer fresh marketing opportunities yet to be fully utilised by many in the hospitality industry.
Platforms like Discord and Twitch, traditionally associated with gaming, have shown significant crossover potential for community building. These platforms facilitate real-time, engaging experiences tailored to virtually host events, Q&A sessions with chefs or hotel staff, or sneak peeks behind the scenes in a kitchen or luxury suite.
Given the gaming industry's massive popularity among Gen Z, hotels and restaurants can collaborate with popular streamers or create their own channels to showcase their offerings, engage with potential young customers in a comfortable space, and build brand loyalty.
Learn more: Hospitality Buyer Personas Sources: Campaign Live
🍕 Domino's Makes a Comeback with Refreshed Loyalty Program
Domino's Pizza has seen a resurgence in its delivery sales thanks to its "Hungry for More" marketing strategy.
The pizza chain reported a 2.8% increase in same-store sales in the fourth quarter of 2023, driven by growth in delivery and takeaway orders. This success is partially attributed to its partnership with Uber Eats, which has allowed Domino's to tap into the aggregator marketplace and reach new customers.
With a 3% sales mix of Uber orders expected by the end of 2024, Domino's proves that innovation and customer-centric strategies can lead to success in the competitive restaurant industry. The company's new loyalty program has also contributed to its comeback.
💡 The campaign's strengths lie in reaching new customers and incentivising loyalty. However, a potential weakness could be the reliance on third-party delivery platforms, which might erode profit margins. Customer response has been positive, which is reflected in the sales uptick.
Embracing customer-centric strategies and technology is key to success in today's competitive restaurant landscape, as demonstrated by Domino's. Launching a successful loyalty campaign for your restaurant starts with truly understanding your customer's needs and preferences and ensuring the rewards offered hit the mark.
The sign-up process should be straightforward and accessible, using technology like social media and mobile apps for convenience. Rewards, such as discounts, exclusive deals, or freebies, must be compelling and varied to encourage repeat visits. Equally important is promoting your program effectively across all available channels, including social media, email, and in-store signage, to ensure maximum participation.
Regularly update your offerings based on customer feedback and data insights to keep your loyalty program engaging. By making customers feel valued and appreciated, you're incentivising repeat business and fostering a community of loyal patrons, which is instrumental in driving long-term success for your restaurant.
Learn more: Hospitality Marketing Trends 2024 Sources: NRN
🍽️ Diners are Trading Down: What It Means for Fast Casuals and QSR
As diners continue to tighten their budgets, many are opting for more affordable options when it comes to eating out. This trend has led to a shift in consumer behaviour, with people trading down from casual and fast-casual restaurants to quick-service establishments.
Leading brands like Taco Bell, Dunkin', Arby's, and Pizza Hut already implement this strategy by revamping their value menus and promotions. However, with the market becoming increasingly saturated, simply launching a new value menu or deal won't cut it. Marketers must find ways to stand out and reach customers at the right time with the right message.
💡 Effective restaurant marketing strategies in 2024 must prioritise connecting with target audiences, attracting new customers, increasing visit frequency, and fostering loyalty.
You need to make sure that your value proposition shines through every digital touchpoint, providing customers with compelling reasons to choose your brand for their dining needs.
Learn more: Restaurant Marketing Audit Sources: QSR Magazine
💲 Wendy's Confirms No Price Hikes During Busier Periods
Wendy's is stepping back from their plan to implement dynamic pricing. After receiving backlash from the media, the fast-food chain clarified that they have no intention of raising prices during peak hours.
Senator Elizabeth Warren responded on X, tweeting, “Surge pricing means you could pay more for your lunch, even if the cost to Wendy’s stays exactly the same.”
The company explained that their digital menu board investment would allow for more pricing flexibility, but any potential test would be focused on improving the customer experience and offering value and discounts during slower times of the day.
"Wendy's didn't handle this well," says Vicki Morwitz, a professor at Columbia Business School. "It seems they didn't think sufficiently about how consumers would react or about the best way to use dynamic pricing."
Burger King responded quickly, offering customers a free Whopper or Impossible Whopper in a 48-hour time frame, saying "Surge pricing? Well, that's new. Good thing the only thing surging at BK is our flame!"
💡 As the restaurant industry continues to evolve and embrace technology and payments, businesses must strategise carefully to ensure that innovations benefit customers and the bottom line. And as Burger King demonstrates, try some newsjacking when the opportunity arises!
Learn more: Analysing Campaign Performance a Comprehensive Guide Sources: Restaurant Business Online Axios USA Today
💯 Calories on Menus in Pubs and Restaurants Could Save 9,000 Lives
A recent study by the University of Liverpool has found that extending the policy of displaying calories on menus to all food outlets in England could prevent over 9,000 heart disease-related deaths over the next two decades.
Obesity and cardiovascular disease have become alarming health concerns in recent years. To address this, restaurants can help their patrons make healthier choices by providing calorie information on their menus. By doing so, diners can make informed choices and potentially reduce the risks of these health conditions.
In the Middle East, Saudi Arabia has introduced mandatory calorie labels on menus to combat obesity as part of its Vision 2030 health initiatives. This policy aims to help consumers make more informed choices about their food intake. Some larger chain restaurants and international franchises operating in the UAE have voluntarily started to provide calorie information on menus. However, mandatory measures are not currently in place.
💡 To adapt to evolving consumer preferences, restaurants and pubs should consider incorporating health and wellness into their marketing strategies. This approach can not only enhance the well-being of their patrons but also allure health-conscious clientele. Establishing trust in a restaurant's ability to offer both delicious and nutritious meals can significantly increase the likelihood of becoming a staple in the daily routines of Generation Z.
Learn more: Psychology in Hospitality Marketing Sources: Evening Standard The National Khaleej Times
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🛎️ Hotel and Travel News
🐾 Japan Hotels Luxury Packages for Dogs
Japanese hotels are setting a new standard in luxury travel for pet owners and their furry friends, providing an array of pampering amenities and accommodations tailored to ensure a comfortable and enjoyable stay for all.
From the serene, ryokan-inspired villas of Hiramatsu Karuizawa Miyota with their private gardens and pet essentials to the bustling heart of Tokyo at the Kimpton Shinjuku, where pets are greeted with special treats and cosy beds, these establishments understand the importance of catering to our four-legged family members. The Peninsula Tokyo takes luxury to another level with pet spas and designer accessories, while The Square Hotel Ginza offers stylish, budget-friendly options in the upscale Ginza district, ensuring pets have their own comfy beds and bowls.
💡 The commitment to providing memorable experiences for pets and their owners alike highlights a growing trend in the hospitality industry, where the needs of all guests, regardless of species, are met with exceptional care and consideration.
To engage with the #petfriendly community on Instagram, search for posts with the hashtags #pets, #pet, #dogs, #petsofinstagram, and #dogsofinstagram, which are widely used across posts featuring furry friends.
Learn more: Why Your Hotel Needs to be Pet Friendly Sources: Nikkei Asia Trip Booking
🏨 Marriott Bonvoy Reaches 200 Million Hotel Loyalty Members
Marriott Bonvoy, the hotel rewards program, recently hit a significant milestone by enrolling 200 million members. The company is determined to maintain its position as the largest loyalty program in the world. However, Hilton Honors is making rapid progress and may surpass Marriott in size within a year.
Despite this competition, Marriott Bonvoy remains focused on providing quality experiences for its members. According to Peggy Roe, executive vice president of Marriott, it's not about the numbers but the value they provide to their customers.
Marriott Bonvoy membership offers tiered benefits, including exclusive rates, free Wi-Fi, and app-based room access. Members earn points on stays and spending, redeemable for stays, flights, and more. Elite tiers offer bonus points, room upgrades, late checkout, and hotel merchandise. Lifetime status grants perpetual elite benefits such as breakfast in bed and special recognition.
💡 Hotels have an opportunity to integrate their brands into customers' lifestyles through thoughtful and creative loyalty programs and can learn valuable lessons from the success of Marriott Bonvoy.
Prioritise offering tiered benefits, multi-faceted earning and redemption options, elite status recognition, and a focus on member experience to drive long-term engagement and loyalty.
Implementing an effective loyalty program requires clearly defining the target audience, personalising the experience for each segment, offering unique rewards based on each segment's interests, investing in technology to manage the scheme, and maintaining clear communication to nurture customer relationships and drive sustained engagement.
Learn more: Improving Your Hotel Marketing Strategy Sources: Skift Marriott Bonvoy
🚀 New Space Travel Company Unveils Luxury Passenger Capsule
Space Perspective, a relatively new player in space tourism, is gearing up to offer a unique way for thrill-seekers to experience the edge of Earth's upper atmosphere via a high-altitude balloon. Unlike its competitors, Virgin Galactic and Blue Origin, guests won’t have to contend with G-force or zero gravity.
Spaceship Neptune is designed to ascend gently to the edge of space at a a maximum altitude of 30km, offering passengers a serene and prolonged experience. Complete with a fully stocked bar, the luxury capsule will provide 360-degree views of Earth through its large, panoramic windows.
Space tourism is a growing industry for UHNWIs. Seats on a Virgin Galactic flight cost $450,000 each, while the trip on Space Perspective is $100,000 each.
💡 Space tourism is taking off 🚀 (pun intended!) in a big way, and it's not just one or two companies steering the ship. Numerous players are venturing into this final frontier, each with their unique approach, aiming to make space more accessible.
Founded by Jeff Bezos, Blue Origin offers suborbital flights, giving passengers a few minutes of weightlessness and breathtaking views of Earth. Virgin Galactic's SpaceShipTwo is designed to take passengers on a supersonic trip to the edge of space. They've already conducted successful test flights and are working towards commercial operations. While it's known for its ambitious Mars colonisation plans, SpaceX also plans to offer space tourism trips. With the Crew Dragon spacecraft, they're looking at sending tourists on orbital voyages. Imagine having your holiday dinner with a view of the entire planet!
This is an exciting period for space enthusiasts and those passionate about space exploration. The sky is not the limit anymore; it's just the beginning! 🌌
Learn more: Everything You Need to Know About the Experiential Traveller Sources: The Telegraph Blue Origin SpaceX
🏖️ Capital One Travel Launches Vacation Rentals
With key partnerships, Capital One Travel, the OTA backed by financial heavyweight Capital One, has expanded its offerings to luxury vacation rental in a strategic move to increase its appeal to travellers looking for convenience and rewards in one place.
Capital One Travel's partnership with Boutiq and AvantStay marks its entry into the luxury vacation rental space. Boutiq is known for its high-end and unique property listings, which provide discerning travellers with a luxurious experience that differs from conventional hotels. AvantStay bridges the gap between hotel comfort and vacation rental privacy by offering professionally managed properties equipped with hotel-like amenities.
Capital One Travel plans to expand its inventory further by incorporating Inspirato and Key.co. Inspirato offers an innovative subscription-based model to the luxury vacation rental market, providing affluent travellers exclusive access to a curated portfolio of high-end vacation homes worldwide. Key.co, on the other hand, focuses on high-end, professionally designed properties that appeal to those with a keen eye for aesthetics and luxury.
💡 This strategy prompts a reevaluation of pricing strategies and encourages partnerships and technological advancements to attract luxury travellers. However, it faces challenges such as standing out in a competitive luxury market and managing the complexity of multiple new partnerships.
Learn more: Hospitality Trends 2024 Sources: PhocusWire Capital One
🏕️ Hilton Partners with AutoCamp to Expand into Outdoor Hospitality
Hilton has joined forces with AutoCamp to venture into outdoor hospitality, allowing guests to reserve unique 'Airstreams', cabins, and luxury tents in national parks through Hilton's direct booking channels. The collaboration grants Hilton Honors loyalty members the opportunity to earn and redeem points on stays, along with exclusive benefits at AutoCamp locations across picturesque destinations.
AutoCamp aims to blend outdoor experiences with boutique hotel hospitality, offering custom-designed Airstreams and luxury accommodations accompanied by amenities like communal fire pits, swimming pools, and group meeting spaces.
💡 By offering unconventional outdoor lodging through a recognised hospitality brand, this collaboration may attract a broader audience, appealing to those who want unique and immersive experiences in the great outdoors while maintaining the high-quality service standards associated with Hilton.
Learn more: How to Conduct a Hotel Marketing Audit Sources: Boutique Hotel News
Food & Beverage News
🌱 France Revokes "Meaty" Terminology from Plant-Based Labeling (FIF)
🍲 Trends in Age-Reversing Foods (Forbes)
☕ Dunkin Expands Spiked Coffee Range (Biz)
🌸 2024 Hanami Drinks (TH)
🍸 Travel Retail: Has Gin Reached Its Peak? (TSB)
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That’s a wrap for the week! I'd love to hear your feedback and suggestions for future topics.
Here's to Your Success 🥂
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