📌 Hospitality Highlights: 6th May 2024

Discover how to tap into the latest hospitality marketing innovations, from Chipotle’s 40M+ Loyalty Members to Trivago’s Marketing Setback, how to evoke nostalgia and more!

May 06, 2024

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I’m Dawn Gribble, your host. I'm an independent hospitality marketing strategist with over 20 years of international experience. I scan over 10,000 headlines, social posts, forum threads, industry reports, academic studies, and newsletters every week. My mission is to bring you the latest actionable insights to help you Delight Guests and Drive Growth.

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🚀 Marketing News

❤️ Instagram Updates Feed Algorithm to Boost Original Creators

Instagram has changed its ranking systems to highlight content from smaller, original creators on the social network. The platform, has acknowledged that in the past, creators with large followings and those who share reposted content have received the most reach. Instagram will implement changes over the next few months to level the playing field.
As part of the changes, Instagram will replace reposted content with original content in recommendations, add labels to reposts, and remove content aggregators from recommendations. The platform has also developed a new ranking system that will give all creators an equal chance of reaching audiences by gradually increasing the distribution of their content based on engagement. (TC)

💡 An aggregator account compiles and reposts content from other users without creating original content themselves. This change is excellent news for Instagram creators and influencers because it shifts the focus towards authenticity and originality, giving smaller creators a fair chance to reach wider audiences. Hotels and restaurants could benefit from increased visibility and improved influencer campaigns.

🎉 Instagram Adds Four Fresh Stickers for Engaging Stories

Instagram has announced the launch of new stickers for Stories. The new stickers let users add their favourite song of the day (Add Your Music) to posts and can discover their friends' top tunes.
Frames turn any photo into a ‘polaroid’. To reveal the content inside, followers will have to shake their phones to “develop” the image.
The Reveal sticker allows you to post a hidden story for your followers to uncover. The only way for them to see the content is to send you a DM.
Users can now create their custom stickers using photos or videos using the Cutout sticker. (IN)

💡 These are certainly fun additions to the platform, by adding more immersive and entertaining options, Instagram hopes to keep people on the app (that’s the objective for all social media channels) Frames taps into nostalgia, while the Reveal sticker could be fantastic for lead generation and creating a sense of exclusivity. Cutouts could be a great way to communicate your brand personality. On any social media platform I always advice using their trending tunes (where appropriate) to get in front of a wider audience.

🎮 Roblox Introduces In-Platform Video Ads

Roblox, a popular gaming platform, has recently announced the availability of video ads for all advertisers. This follows a successful testing period with select brands that began in November. These video ads will join the platform's static billboard images and portal ads.
Advertisers have the option to choose between automatic or click-to-play video ads. This move aims to make advertising on Roblox more accessible and immersive for brands without requiring them to have a game on the platform. A recent study by Roblox and Latitude showed that 75% of respondents were likelier to notice brands advertising on Roblox than other platforms. (CL)

💡 Roblox is a highly popular gaming platform famous for its user-generated content and diverse virtual experiences. The platform's user base mainly consists of gamers of all ages who play games created by other users.
With the introduction of in-platform video ads, restaurants and hotels can increase their brand awareness and reach a vast and engaged audience within the Roblox community.

📹 Twitch Unveils TikTok-esque Discovery Feed

Twitch, the social streaming site, has recently launched a discovery feed that is similar to TikTok. This feature provides personalised short-form content to users. It is available to all users and aims to assist viewers and streamers by offering a scrollable feed of previews without pre-roll ads. Users can also vote on their content preferences, which adjusts their feed experience. (RW)

💡 Twitch is a popular social streaming platform primarily used for live video game streaming. It also features streams related to music, art, and other creative content. Its user base consists mainly of gamers and enthusiasts interested in gaming culture. Introducing a TikTok-esque discovery feed could allow restaurants and hotels to engage with a potentially vast and diverse audience, especially if they can create content that aligns with Twitch's community and interests, which revolve around video games, esports, creative arts, learning new skills, chatting and music.

💬 WhatsApp Introduces Community Events for Enhanced Interaction

WhatsApp has recently introduced updates to its "Communities" feature, allowing users to connect through group chats based on topics and interests, such as locations and sports teams.
One of the new updates is the addition of Community Events. This feature enables members to highlight upcoming gatherings and functions within the group chat. Additionally, the events will be displayed on the group's information page, providing an easy way for members to keep track of upcoming functions. Members who register to attend will receive a notification when the event approaches. (FB)

💡 WhatsApp can support hotel and restaurant guests throughout the buyer journey by offering timely and personalised communication, such as reservation confirmations, booking updates, and special promotions.
Community Events is well suited for the retention phase by allowing establishments to organise exclusive events or promotions for loyal customers within WhatsApp groups, nurturing your brand community and encouraging repeat visits. Hotels and restaurants can integrate WhatsApp into their marketing mix by promoting group chats and Community Events through their social media channels, website, and email newsletters, inviting guests to join and participate in engaging conversations and activities.

🍽️ Restaurant News

🎯 Game-Changing Trends for Restaurants

A recent report found that nearly four in ten social media users who are also QSR brand consumers spend more time playing mobile games than on social media. This is significantly higher than the average for all social media users. According to the report, if QSR brands had effectively reached this Mobile Gaming-First segment, they could have increased their reach across the entire QSR audience by 18%. The report highlights the need for a deeper understanding of media engagement and its impact on effective advertising reach. (MRM)

💡 Here's how restaurants can target the mobile-gaming-first segment:

Use in-game advertising to place ads directly within popular mobile games, your choice of game will depend on your customer interests, the game's genre and player demographics.
Sponsor in-game events, offer exclusive rewards for players, or even integrate the restaurant brand into the game itself.
Collaborate with gaming influencers and streamers to promote offers and build brand awareness within this audience.

🌟 Chipotle's Rewards Programme Surpasses 40 Million Members

Chipotle's remarkable sales growth of 14%, amounting to $2.7 billion, occurred during the first quarter of 2024. This growth was driven by a 7% increase in stores open for over a year. In-store sales increased 19% compared to the previous year, while digital sales accounted for 37% of the total sales. The brand also opened 47 new restaurants, including 43 Chipotlanes, its digital drive-thrus.
The loyalty program has also been enrolled by more than 40 million customers. CEO Niccol attributed the sales growth to the brand's focus on improving throughput in its restaurants and successful marketing campaigns. He also mentioned the company's exploration of technology tools to enhance team member productivity and overall customer experience. (HT)

💡 One of the best ways to keep customers coming back and strengthen your customer base is to have a loyalty program in place. By balancing digital and traditional media, you can expand your brand's reach. Younger generations, are more inclined to brands that share their values so make sure you communicate these on landing pages, emails and ads. Keeping your menu innovative and collaborating with others can help keep things interesting while maintaining your brand's identity.

📉 McDonald's Warns of Consumer Squeeze Amid Inflation

A major concern for American corporations is the impact of rising prices on their customers due to inflation. This has been a dominant topic for the past few years, especially after the pandemic and government stimulus efforts. While inflation has slowed since the Federal Reserve's actions in 2022, consumers are still feeling the effects and being more cautious with their spending.
McDonald's CEO Chris Kempczinski acknowledged the pressure on consumers and their tendency to be more selective with their spending. The persisting inflation has also affected the public's perception of the economy, with consumer confidence at its lowest level since April 2022. (CNBC)

💡 The exact duration of these market conditions is difficult to predict; but marketing can play a crucial role by understanding how consumer behaviour changes and adjusting strategies accordingly.

Focus messaging on affordability and promotions to appeal to price-sensitive consumers and communicate value.
Be upfront about price changes and the reasons behind them to foster trust.
Stay agile and prepare to adapt messaging and offers quickly in response to shifting market conditions.

💰 Value Messaging Takes Centre Stage in Restaurant Marketing Tactics

One example of how restaurants adapt to the economic environment is Chili's, which recently introduced a new burger, the Big Smasher, marketed as a direct competitor to McDonald's Big Mac. Industry expert Heather Lalley said that Chilli's is engaging in the "street fighting" tactics that McDonald's CFO Ian Borden recognised would be necessary to compete in this difficult environment. "All of this is potentially good news for deal-hunting diners. But it's going to be a challenge for restaurant marketers to communicate value, value, value. They just may want to take a page out of Chili's playbook." (RBO)

💡 Chili's marketing strategy offers a valuable lesson for other restaurants. By tapping into the powerful emotions of nostalgia, they've successfully targeted the large millennial demographic. Chilli's is not fighting for your taste buds; they're fighting for your heart.
Restaurants should turn to their brand's history to evoke nostalgia. From classic jingles to decor, find iconic elements that spark childhood memories. Updating these elements with a modern twist creates a sense of familiarity while still catering to contemporary tastes.

🍔 Shake Shack Boosts Marketing Efforts to Retain Customers Amid Market Shifts

In Q1, Shake Shack witnessed a 1.6% rise in same-store sales but experienced a 2.1% decline in traffic. To counter the impact of the challenging economic climate, the company has revealed plans to strengthen its marketing efforts to increase brand awareness. Shake Shack has also observed regional variations in traffic, with the Southeast exhibiting a mid-single-digit growth in traffic. (RB)

💡 When restaurants face a decline in traffic and economic challenges, it is imperative to conduct a thorough analysis before launching any new marketing efforts. You should assess the sales data, website traffic, and customer feedback to identify trends and how they relate to broader economic conditions.
To ensure that your messaging aligns with your evolving target audience, you should conduct a competitor audit and adjust your approach as necessary. To boost your marketing, consider highlighting value-driven offerings, increasing targeted advertising, seeking strategic partnerships, and prioritising customer experience to encourage positive recommendations.

🛎️ Hotel and Travel News

🏨 Impact of Social Media on Transforming Travel Search Landscape

Methods for finding the perfect hotel have evolved. While traditional methods such as consulting travel agencies and searching on Google are still popular, a recent report suggests a shift towards social media platforms. This is particularly true for Gen Z consumers (aged 18-24), who turn to visually oriented platforms like Instagram and TikTok for their travel searches. These platforms offer a more immersive experience, showcasing a hotel's amenities and surroundings through eye-catching photos and videos. (HN)

💡 This means you should take an SEO approach to your social media posts. Ensure your posts contain keywords that people might search for, include Alt Tags, and provide detailed information about your offers. Use this tactic for your Instagram grid posts.
Use Reels and Stories to raise brand awareness and direct people to your profile, where they can find more information.

❌ Trivago Diverts Marketing Investments from Latin America After Brand Campaign Setback

Trivago has decided to decrease its marketing investments in Latin America. Instead, the company aims to focus more on its presence in Developed Europe, North America, and the Rest of the World segments. This decision was made after Trivago's first TV ad incorporating AI technology did not perform well in Latin America.
Trivago's CEO, Johannes Thomas, stated that while the company is still well-known in Latin America, they have decided to shift their brand budgets to markets with higher brand marketing potential. However, Trivago has clarified that they have not entirely exited the Latin America markets and will continue to run tests and adjust their efforts accordingly. (SK)

💡 If a marketing campaign doesn't go as planned, keep calm! The key is to approach the situation methodically so that you can understand and address any issues that may have arisen. Firstly, analyse the campaign data carefully to pinpoint where things went wrong - poor targeting, unappealing messaging, or an unsuitable channel. It's also a good idea to conduct market research and gather feedback from your intended audience. Once you've done this, review your goals and ensure they align with your marketing strategy.
Lastly, create a revised plan that focuses on refining your messaging, targeting the right audience, and selecting the most effective channels to communicate your message. Remember, continuous testing and adjustments are vital to achieving long-term marketing success.

🏠 Airbnb Unveils 'Icons' Category for Unique Homes and Experiences

Airbnb has recently launched a new category of experiences and stays called Icons, featuring celebrity-driven activities and accommodations. These experiences, available through the Airbnb app, include hanging out with Kevin Hart in his "secret speakeasy" and spending a night in Prince's Purple Rain House.
Other experiences include staying at the Ferrari Museum and attending the opening ceremonies of the 2024 Paris Olympics from the Musée d'Orsay's terrace. There are also opportunities to enjoy performances from Grammy award winner Doja Cat and go on a week-long tour with Reggaeton star Reid. (SK)

💡Consider smaller-scale collaborations with local influencers or celebrities who align with your hotel's brand to create authentic experiences. If that isn't an option, hotel marketers should focus on differentiating their establishment from others. Focus messaging on consistent service, amenities, and location.
Offering personalised experiences through concierge services and partnerships with local businesses and guides can significantly enhance the guest's stay.

💪 World of Hyatt and Peloton Collaborate to Reward Wellbeing-oriented Members

Hyatt's partnership with Peloton makes it the first global hospitality loyalty program to reward members for using Peloton equipment at Hyatt properties. The collaboration will offer members opportunities to earn World of Hyatt points towards future bookings, upgrades, and experiences by investing in their well-being while travelling.
This partnership will outfit over 800 Hyatt properties with Peloton equipment and provide access to Peloton classes on guestroom TVs at nearly 400 properties. Travellers can expect a focus on health and wellness amenities through this collaboration. (IE)

💡 The Hyatt-Peloton partnership has a strong foundation, capitalising on the wellness trend and enhancing its loyalty program. There's an opportunity for expansion with further wellness partnerships and personalised travel packages. The initiative's success will depend on staying on top of evolving fitness trends and potential competition from other hotel brands offering similar amenities. If the high cost prohibits your venue from providing a similar package, focus on other wellness aspects like mental health, spa treatments, or nature-based experiences.

🛏️ Pillow Fort Hotel Retreats: An Escape to Remember

Emma is launching a new sleep retreat for adults, the Pillow Fort Hotel. This innovative hotel features a bed made from hundreds of pillows, to offer unparalleled comfort. Aimed at evoking childhood memories, the hotel provides amenities like warm milk, lullabies, bedtime stories, and cuddly toys to promote peaceful sleep.
This initiative taps into trends like luxury nostalgia retreats, sleep science innovations, and experiential hospitality concepts, offering the hospitality industry and sleep technology companies new avenues for collaboration. (TH)

💡 In 2024, the focus will be on personalised sleep experiences and dedicated sleep retreats that cater to individual needs. Hotels can get ahead of the competition by partnering with sleep-focused brands and integrating wellness programs. Upgraded amenities featuring premium sleep products and specialised sleep rooms with customisable environments will be vital to providing guests with a truly restful experience.

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