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To discuss these challenges and more, USA TODAY assembled five of the industry"s top executives at the Americas Lodging Investment Summit in Los Angeles last month. Today"s travelers are placing new demands on hotels, especially as rates climb. Guests increasingly seek better Wi-Fi, spaces that fit their lifestyle and more relevant loyalty rewards. To discuss these challenges and more, USA TODAY assembled five of the industry"s top executives at the Americas Lodging Investment Summit in Los Angeles last month. Participating in our second annual roundtable, held at the JW Marriott at LA Live, were: Mike Depatie, Kimpton Hotels CEO; David Kong, Best Western CEO; Jim Abrahamson, Interstate Hotels CEO; Eric Danziger, CEO of Wyndham Hotel Group, and Thorsten Kirschke, COO, Carlson Hotels. USA TODAY"s Barbara DeLollis moderated the discussion. The discussion also covered topics such as rates, design and security. The text has been edited for clarity and length. Q. Will hotel rates rise this year, and if so, should consumers expect more for their money? BEST WESTERN: In gateway locations where demand is very high, like in New York City, Chicago and San Francisco, the rates are going to go up. But in locations where there"s a lot of supply and where demand hasn"t yet recovered, those rates are not coming back yet. KIMPTON: As rates go up, we feel like we need to keep providing more value. We do things like we have a free hosted wine hour every night ... provide bikes in our lobby now that people can borrow ... free Wi-Fi for all our (loyalty) members. WYNDHAM: Consumers will make their choice not just on the rate, but on the value for the rate too, so ... you"d better have Internet, it better work, it better be fast — those sorts of things. The consumer will go next door if you don"t have what they want for what they"re paying. INTERSTATE: At the end of the day, we as business people are going to see our average rate go up, but the customer has more choices than ever before. They"re packaging their stays, and combining it with other things. There are ways to buy low rates: You book in advance; you pay in advance; you get a no-frills stay. LOS ANGELES - Five leading hotel CEOs join USA TODAY"s Barb DeLollis for a roundtable discussion on Jan. 23, 2013. From left to right, Wyndham Hotels" Eric Danziger; Carlson Rezidor"s Thorsten Kirschke; Best Western"s David Kong; Interstate"s Jim Abrahamson, and Kimpton"s Mike Depatie. (Photo: By Dan MacMedan, USA TODAY) Q. One of the top demands guests want is in-room Wi-Fi. How are hotels handling the demand for access and quality service?
BEST WESTERN: The demand on the wireless infrastructure is so taxing for the hotel industry that a lot of us have to upgrade our wireless infrastructure. People are not just streaming video onto their computer. It"s the multiple devices they bring into the room. And whether it"s iPhone or iPad, they don"t have as strong an antenna or as strong a signal that they send out, so the wireless access points need to be upgraded. INTERSTATE: Wi-Fi is going to be the price of entry. The next battleground is going to be speed and quality of service — not just free — because now we have customers bringing their own movies and programs. |
