Christine Lawson
Kimpton Hotels and Restaurants vice president of sales Christine Lawson last week spoke with Management.travelabout client trends, environmental sustainability, e-folio and the growth of "big-brand" boutique hotels. An excerpt of the talk follows.
What are you seeing in terms of business travel volumes with corporate accounts?
Our business is still strong and we are doing well with our accounts, but we are hearing that there is trepidation in the market, especially in certain sectors, such as investment banking. A lot of companies are really focusing on essential travel. Where they might have sent multiple people, they are looking to have only those who need to be there.
How is the negotiating season looking?
We haven't really gotten into the 2009 process. In terms of whether it will be a buyer or seller's market, every year it gets that title one way or another. You could say that for 2009 it will be a buyer's market with the economy being very dynamic, but a better way of looking at it is to come together on a case-by-case basis to create a strong working relationship for both parties. It is still up in the air, but both communities are going to come together to really try and figure this out so that both benefit.
Are there any plans to implement hotel electronic folio data feedsfor customers?
That is something we are trying to work on with our accounting department. It has been a big topic in the industry. It is pretty complex for both sides, but for the hotel community it is complex in making sure that the technology is there and that all of our systems are there so we can communicate. Also, there is a lot of information that we need to be sensitive about from a confidentiality perspective. It's not something we are looking to implement in 2009, but it is something that our accounting department continues to explore.
Have you seen an increase in green-related questions in requests for proposals?
We are seeing a lot more questions through the standard format, and there are a lot more questions coming forward about environmental policies, such as "Do you recycle," or "Do you use chemical-free cleaning products?" In 2009, there will be some companies that make decisions not solely based on the environment but will use that as a part of a metric in terms of deciding who to work with. Probably by 2010 there will be a much more consistent decision path as it relates to how travel managers decide on which hotels to make preferred. There will be some criteria set up in which a hotel needs to meet these three points from an environmental perspective to even be considered for a preferred program. We are definitely on our way, and the travel management community is savvy and has really embraced this whole movement. The personal case is understandable, but what sometimes gets forgotten about is that there is a great business case for a lot of the initiatives and eco-focused efforts.
What are some other challenges that you face?
The biggest challenge is the tremendous growth in the boutique hotel segment. For the longest time, you had a few players that were really the experts in the boutique hotel industry, and then you had the larger brands and there was a true distinction. What we are seeing now is that, over the past several years, pretty much every large brand is working on either a sub-brand that speaks to the travelerwho is interested in a boutique experience. So you have the big brands partnering with other players that are used to running boutique hotels, and now, where we used to not compete where it related to design and style and size, we have our large-chain competitors that are entering the market with a boutique offering. The big brands are becoming more aggressive in that if they don't have that offering, they create one and introduce one to break into that market to gain share from that segment.