SUMMIT HOTELS & RESORTS RATE AND RESERVATION LEVELS RECOVERING

Luxury international brand Summit Hotels & Resorts announced hotel booking levels were showing signs of recovery after the recent downturn in world travel. Reservation volumes, tracked on a week by week basis since September 11th, were gradually rising to within 75% of Summit ’s normal projected levels for the October/November period. Rate levels continued to be affected but were starting to improve as cancellations were rebooked and business travellers returned.

Summit credited the early launch of its 2002 special rate programme Summit Exclusives, as a key element in reviving bookings. Tailored to appeal to a nervous travel market, Summit Exclusives has been exceptionally successful as a single programme generating 15% of new business week on week to Summit hotel members.

Geoff Andrew, Summit Hotels & Resorts managing director said “It is very encouraging to see signs of recovery, especially since we are now entering the holiday season, traditionally a quieter booking period for Summit. The success of the Summit Exclusives programme in driving business back to our hotels shows Summit has correctly judged and adapted to rapid changes in the market. It demonstrates how a strong brand like Summit can support independent hotels, particularly in times of economic recession.”

Mr Andrew paid tribute to Summit hotel members’ creative marketing approach and flexibility in adapting to a rapidly changed market. He said this had helped attract back guests, who were benefiting from wider choice and better value for money than ever before in high-demand destinations.

It is part of a portfolio of programs targeted at restoring pre-September 11th business levels for Summit’s 160-plus independent hotel members in 125 cities and resorts worldwide.

Summit Hotelier Survey - Hoteliers agree on key points but say don’t cut rates

Post September 11th, Summit continues to track bookings progress week on week. A Summit hotelier survey in October asked hoteliers their recommendations for rebuilding business. Responses varied depending on how much the tourism downturn had affected a hotel’s particular location, but hoteliers agreed on three key points. Those were:

· Stay in close touch with regular customers;

· Show greater creativity and flexibility in pricing and sales promotions;

· Concentrate on local or regional markets to attract short-distance travelers.

In New York, hoteliers were determined not to give in to terrorism. Michael Blackman, general manager at The Michelangelo said he had introduced cost savings and increased sales activities. Lucile Noel, sales manager at The Kitano New York said “Business is picking up. Our regular guests are booking again. We want people to come and see us and see that New York is still a great city to visit.”

In Vermont, Linda Seville, Marketing Director at the Inn at Essex, renowned for its gourmet food and world famous chef school, said the hotel had offered a package featuring frequent driver miles, picking up guest’s gas bills for the journey to the hotel. In fact, more guests were attracted by the hotel’s image as a secluded retreat in peaceful Vermont, considered a ‘safe’ state by New Yorkers and Bostonians looking for a break.

In Europe, hotels reported that travelers were adopting a “wait and see” approach. Brian Clarke, sales and marketing manager at The Fitzwilliam Hotel in Dublin, Ireland said however their approach was “business as usual though with a more flexible and aggressive pricing strategy”.

Asia Pacific’s regional traffic was less dramatically affected. In Hong Kong, Nigel Roberts, general manager of The Great Eagle said the hotel was keeping in close touch with regular customers to assure them of their support, but added “We are NOT reducing our prices!” Also in Hong Kong, Hans Heyligers, general manager at the Harbour Plaza Hong Kong said the hotel was focusing on stronger source markets such as China, Taiwan and Korea. The hotel had also had success with packages for the domestic audience including the October 1st Hong Kong National Day weekend package, which sold to 439 people in a 3-day period.

Geoff Andrew, Summit’s managing director, concluded: “Summit will continue to work with our hotels to offer guests an attractive range of choice at some of the world’s finest hotels round the world”.