stock repurchase announcements: a test of market ... - Asbbs.org

Mills
definition; a scalable solution that will grow and expand with hotel needs; customizability to
create a personalized viewing experience for your guest; quality services that delivers the highest
quality signal, security, and. stability from an experienced provider. As the year 2005 emerged,
so did an innovative technology for hotel guests (H & MM, Guestroom Connectivity, 2005).
Technology’s pivotal role in improving business is more than a necessary cost of doing
business in today’s market. Many owners and operators acknowledge that there are inherent risks
in making significant technology investments because it is a moving target. This applies to the
“back of the house” with an effort to achieve a seamless, converged platform of operation. Many
of the advancements are guest driven, such as the flat screen televisions, video-on-demand and
self service kiosks. However, the decision to incorporate these innovations is ultimately made by
the brands. Higher end properties and a more refined customer initiates the changes made within
the industry (Hotel Business, 2007).
According to Hotels special report, Smith Travel Research and Price-Waterhouse
Coopers, the demand slowdown that started in 2006 will carry over into this year. This
phenomenon was discussed by Jan Willem Den Ridder, Marriott International;’s London based
regional vice president says that Marriott projects average RevPAR gains of 6% to 8%; Mark
Wells, InterContinental Hotels Group’s HG senior vice president of brand management, foresees
decent performance for 2007, not as good as 2006, but still good by most standards. Den Ridder
shares this optimism: “Supply is slow to come to market in the luxury and full-service categories.
So, these sectors should do well as demand increases” (Scoviak, 2007).
Hard-working, full-service hotels with abundant meeting space could be among 2007’s
winners. Another feature that is gaining popularity is “Go Green” which influences many
environmentally sensitive customers. Going green will have a marketing bonus that crosses from
the leisure to the urban segments, says Benjamin Graves, president, Minneapolis-based Graves
Hotels Resorts. Health issues in food and beverage and spas are the new initiatives for managers
and guests. The next major topic for yield managers will be distribution costs, using all in
ASBBS E-Journal, Volume 4, No.1, 2008 154