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JD Power's ratings for airlines are out and surprise, surprise, customer satisfaction is down. It suggests airlines invest in people, but with a 72% increase in jet fuel price and the inability to pass this on to consumers, where does the money come from.

"Across the airline experience, from check-in, to the flight, to deplaning, passengers are being affected by the ramifications of carriers making staff cutbacks and have expressed that performance and attitudes of airline staff are suffering. In this unstable industry environment, it is critical that airlines invest in their employees as a means to enhance the customer experience, as there is a strong connection between employee satisfaction and customer satisfaction. Those airlines that focus on keeping their employees informed and motivated will be better able to change negative consumer sentiment and truly differentiate themselves."


Sam Thanawalla, Director of the global
Hospitality and Travel practice at J.D. Power and Associates.

Posted by Ed Cotton

Brian Eno talks about what inspired him to create Music for Airports, the album that gave birth to the ambient movement






Posted by Ed Cotton A few days ago we did a story on the new capsule hotel brand, YOTEL.  As a follow up to this, we asked Jo Berrington, who runs marketing for the fledgling brand, a couple of quick questions.

1. What social and consumer trends do you feel inspired the creation of Yotel?

Consumers - quite rightly, are demanding access to great value for money products without compromises on quality and service.  Time and money are ever more precious for both business and leisure customers and with ever increasing challenges for transport - convenience of location is critical.
 
2.What plans do you have to expand the brand globally?

We are focused on expanding into Europe and the US markets initially. We are looking for sites at large transfer hub airports and amazing city centre locations. At least one or two shortly to be announced as soon as deals are signed.
 
3. What brands out there do you admire and why?
 
My favorite has to be 'MINI"- they've managed to stay true to their core values but have re-invented themselves time after time to remain visionary in everything they do. It packs a bigger punch than its size and if I can make that happen for YOTEL then I'll be very happy!
 
And... I'm biased  but I spent over 5 years as Head of Marketing at British Airways London Eye from launch and watched it grown into a global  icon not just for London but for the UK. It was an incredibly brave investment by BA at the time amongst the negative press of the Millennium activity but proved a fantastic success and one I was incredibly proud to be involved in.
 


Posted by Ed Cotton yotel (51.507460346127864 , -0.1215362548828125) YOTEL, the revolutionary cross between luxury airline travel and Japanese capsule hotels, has finally made its much-anticipated arrival in Gatwick Airport, London.  Founder Simon Woodroffe named it after his other successful venture, YO! Sushi and made it his aim to provide travelers with a taste of the future, described by him as “luxury that is available to everybody at the right cost.”

The “pod” hotel style has before now only been prevalent in Japan, but it makes so much sense to let the rest of the world have a try.

First it plays off the unfortunate state of the airline industry being at an all-time high of cancelled and/or delayed flights and lowered customer satisfaction. People can book a Yotel cabin while they find themselves waiting (expectedly or otherwise) and relax in quarters other than the stiff, sticky chairs available at the gate.

More importantly, if marks the official arrival of the low cost luxury era. Whether it’s the airlines themselves (Song, Jet Blue) or online travel sites enabling us to book 4-star hotels at 2-star prices, or Target, HEMA (Holland), Muji (Japan) and Costco and Trader Joe’s in the supermarket sector, it’s certain that luxury for cheap is here in full effect.

The trend doesn’t stop at offering top quality products for lower prices. It also encompasses an appreciation for design and/or superior customer service, which is exactly what the Yotel is – rooms range from 55 to 80 pounds overnight and everything (and more than what) you’d expect from a first class hotel experience.

What does this mean for the U.S.? Expansion plans so far do not include us.  Was it a strategic decision?  There are surely barriers to entry like our strict airport security, as well as competition from the well-known hotels that have populated airport areas since the beginning of time.

But the U.S. now more than ever is abandoning traditional status symbols and embracing the new cheap-chic. Furthermore, other cultures are spreading like wildfire in our d�cor, cuisine, and fashion. If the country of chicken nuggets and grilled cheese grew obsessed with slabs of raw fish and balls of sticky rice, why wouldn’t it embrace other elements of Japanese culture too?

Obviously the minds behind the brand new Pod Hotel in Midtown Manhattan could think of no good reason.

Hurry, Woodroffe!
 

Posted by katie facada Hotel giant Marriott has finally woken up to the changed world and wants to capitalize on the consumer's desire for unique experiences. Ian Schrager, who's spent a good part of his life pushing against the grain of conformity, will be Marriott's partner and guiding light in this new venture.

The press release announcing the deal, says many of the right things.

"The brand, the brainchild of the new partners, responds to new cultural and social imperatives that Mr. Schrager says have emerged. This brand will reflect these changing lifestyles and cater to a vast underserved market of guests expecting and in turn demanding a unique experience not merely a place to sleep. “Together Marriott and I have a new vision and plan to radically rethink and catapult the lifestyle boutique hotel into the present by capturing the spirit of the times,” said Mr. Schrager.

“People today are sophisticated and they understand good design, quality, originality and commitment to excellence. They will not accept something derivative and they want the ethos and soul of a hotel to be authentic and have character.  They also expect and deserve impeccable, modern and gracious personalized service that is at the same time luxurious yet down to earth. It is the ultimate balancing act of these apparent contradictions to create a hotel that is simultaneously specific and customized yet universal. We intend to make this type of lodging widely accessible and available for the first time in the key lodging destinations across the globe and to everybody around the world who wants it.”

Schrager is the father of the boutique hotel concept, which in recent years has become ubiquitous. Starwood took or "stole" Schrager's DNA, turning into the W chain, that it built into a global brand. 

Don't be mistaken in thinking that this concept will be a "W by Schrager and Marriott",
Schrager has moved on. In an October 2006, interview with Travel and Leisure magazine he defined his new philosophy.

 "The idea I had is—forget about doing something subversive to the status quo, forget about trying to do something hip or underground. There is no more underground. There is no more hip. It's impossible to do it because everything is instantly out there. I wanted to do something that was an alternative, something personal."

It remains to be seen if Marriott can get anywhere close to delivering something like this. It will be a significant cultural challenge.

However, we won't have to wait long to find out, the plan is to open 5 hotels by the end of the year and 100 in total.




Posted by Ed Cotton