EXECUTIVE INSIGHTS


Nayan Peshkar
SVP, Digital, Distribution & Revenue Strategy Millennium Hotels & Resorts
Does Millennium Hotels & Resorts incorporate tourism into its strategy for attracting customers?
Inbound tourism to the regions where we have hotels is directly linked to revenue, and therefore focusing on tourism to increase occupancy rates is one of the key strategic measures for MHR. Mobile and digital technology have ensured that global travel is no longer limited. The smartphone, and the on demand, always-on capabilities it gives tourists has empowered them with higher levels of freedom, flexibility and choice than ever before. The adoption of smartphones and smart technology in general is increasing and we have adapted our content to recognise this. Our digital platforms have a lot of destination content to assist in the dreaming and research phases of the customer journey and we actively encourage new visitors to our destinations and hotels through our marketing activity as well as collaborations with tourism bodies.
How does tourism impact your growth strategy?
MHR’s customers comprise a good measure of both leisure and business travelers. The industry was founded on people travelling for pleasure, and MHR is aligned with what we see as the continued industry trend of the leisure traveler being a very important audience. Thus, the current surge in tourism in general has a positive impact on our performance. If, historically, tourism depended on a variety of trends including seasonality, changes in trends, governmental policies, such as visa restrictions, now travelers seek more control in how they travel with easy access of information. This change in behavior is now leading to a sustained demand for accommodation globally, and our portfolio of hotels is expanding at a rapid pace in line with the demand; but, of course, this varies by geography. The Middle East is the second biggest region in terms of growth in tourist numbers after South East Asia according to World Travel and Tourism Council and this is reflected in our own approach to growing our brand’s exposure and footprint. Overall, tourism certainly plays an important role in MHR’s growth strategy.
What are the top tourist destinations in United Kingdom or London, and how are you playing those up to drive increased engagement with your brand?
Within the UK, London is one of our top tourist destinations followed by Manchester, Birmingham, Glasgow and Liverpool. The tourist’s travel intent for each of these destinations is varied. While London is one of the world’s leading tourist destinations and attracts tourists internationally, other UK cities attract plenty of domestic and European tourists. We also pay attention to the duration of visitors’ stays. For example, non-London tourist destinations attract visitors for short breaks while European destinations show a “daisy chain” pattern in the way well-travelled consumers hop between the travel hotspots.
With more and more people using social media as a catalyst for tourism, how does this impact Millennium Hotels & Resorts’ marketing strategy?
Social media has evolved considerably over the last few years. From social interaction and community management, the platforms have grown to provide a mode of communication between brands and the audience. It has also evolved to become not just a platform for creating awareness, but also for generating revenue and acquiring new users. From a travel perspective, social media has a significant impact on influencing travel behavior based on the audience’s learning from the travel experiences of their influencer network. Social platforms offer the ability to take brand communication to the audience rather than the audience seeking to learn about the brand, making it one of the simplest forms of targeted marketing. For Millennium Hotels & Resorts, social channels have positively contributed to how we interact with our guests and team members. MHR has consistently increased its spend and revenue earnings from these channels in line with their own evolution into marketing ready platforms.
What measures and metrics are you focusing on to determine your marketing effectiveness?
We are very focused on digital, and in this respect, mobile technology is a perfect fit for travel and tourism. However, digital journeys can be complicated when consumers have to go through multiple touch points before, during and after they make their purchasing decisions. Journeys can be also stretched across multiple channels, potentially causing delays in each step. Because of this, we need to ensure that our investment in digital marketing is appropriately measured and there is no duplication on how we attribute revenue. Attribution management is one of the challenges the industry is still working on as we gear up our digital transformation. A solution to attribution may be soft metrics. Awareness and engagement, traffic volumes, retention, loyalty members, engagement rate and a host of other soft metrics are good indicators. However, the key measures for marketing effectiveness MHR pays attention to are conversion rates, bounce rates, return on ad spend, cost of sale, cost per acquisition etc.
In your opinion, what are the most important triggers that prompt travelers to book a trip to United Kingdom or London right away?
Social influence and emotions are the biggest triggers for travelers to book travel to any destination and the same applies to the UK and London as well. In addition to this, seasonality and prominent events also lead to travel bookings. For example, sporting and cultural events drive bookings and we have an abundance of these in the UK. Within the hotels sector, a recent study from Trust You indicates that travelers are conscious about hotel cleanliness, location, services and amenities as some of the key triggers before making a travel booking. The industry is very aware of what our guests expect from us and is also proactive in adapting to changing trends.
How do you feel Millennium Hotels & Resorts is perceived globally?
MHR is perceived as a collection of 4 & 5-star hotels with premium locations in prominent gateway cities, from Broadway in NYC to Chelsea and Kensington in London, Orchard Road in Singapore to the Opera in Paris. In addition, we offer top quality accommodation with excellent amenities and services which are often reflected in the positive feedback we get from our guests. We know that our hotels are not just a place to sleep, but part of what creates memorable experiences for our guests. We put in a lot of effort to deliver the details right – be that ample charging points around the room or great coffee at our restaurants. We genuinely look after our guests, and this is why our loyal base is so engaged with us and growing at a steady rate. Our guests perceive us as old school hoteliers where we do not look at a playbook, but genuinely put all our efforts into providing what they need. MHR’s history since its founding has been about consistently delivering the best to our guests, and we carry the brand heritage to this day when accompanying our guests throughout their journey.