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Hotels in Gateway Markets Look To Maximize International Demand

Unique Experiences, Destination Marketing Boost Interest

The hotel has increased its digital ads to target inbound international markets. (JW Marriott Washington, D.C.)
The hotel has increased its digital ads to target inbound international markets. (JW Marriott Washington, D.C.)

With hopes that international travelers could once again return to the United States, hotels in markets that attract these guests have been preparing.

Gateway markets such as New York City, Miami, Los Angeles and Washington, D.C., are planning to entice these travelers away from the competition with various new package offerings, wellness amenities and creative food-and-beverage selections.

In November, the number of inbound international visitors to the U.S. was 83% of 2019 levels, with the largest shortfall coming from the Asia-Pacific region, where inbound international demand to the U.S. was just 69% of 2019 levels, said Rachael Rothman, head of hotels research and data analytics at CBRE.

Some markets are stronger than others, with Washington, D.C. having made a nearly full recovery, while San Francisco is at just 73% of 2019 demand levels, Rothman said. Given the more delayed recovery in inbound international travel from the Asia-Pacific, San Francisco and Los Angeles are two markets that stand to benefit the most from recovery in long-haul travel, she said. Assuming a full recovery to 2019 levels, those markets could see an occupancy lift of between 6% to 7% over the next few years.

"We expect it to take at least two more years — through 2024 and 2025 — to see a full recovery in inbound international visitation," Rothman said. "International travelers are looking for cultural attractions, shows, entertainment, sporting events, great dining, unique and local experiences and retail options, ease of access, walk-ability, and, of course, comfort and safety at a price the guest can afford."

Jose De Jesus Angulo, general manager at the Kimpton Hotel Palomar South Beach in Florida, agreed that international travelers who visit Miami are looking for creative options.

“With Miami being an epicenter of cultural diversity, Kimpton Hotel Palomar South Beach has placed a renewed focus on collaborating with local partners and institutions to bring innovative programming to our guests, particularly in the area of wellness," he said.

"International bookings typically equate to longer lengths of stay, so we’ve made it a priority to extend diverse wellness and fitness offerings to keep guests healthy away from home — whether that be a complimentary breath work, yoga, or ice bath session on our rooftop or a private in-room Reiki experience.”

To be ready for changes in travel habits, the Westin Washington D.C. Downtown partners with Destination DC, said Jessica Gross, director of sales & marketing at the hotel. Destination DC is a private, nonprofit corporation with a membership of more than 1,000 businesses and organizations that support the city's travel and tourism sector.

The hotel holds regular meetings and calls with the organization, so that it receives consistent updates on what is happening in the city and what opportunities are coming its way, Gross said. Leaders from the property also travel with Destination DC on some of its missions to other countries to solicit business and build relationships to help uncover new opportunities in international markets.

“We are also launching bookable experiences through [tour operators] to offer an array of activities whether it be fitness classes, sunset yoga or bourbon tasting and other interesting offerings in our outlets," she said. "We want to be a hotel where international travelers have an opportunity to not only stay, but also connect with other guests and enjoy the destination while at our hotel.”

Providing unique experiences, while still being culturally sensitive, is a major element to help bring in international guests, this hotel's general manager noted. (CoStar)

Jeff Krauthamer, general manager at InterContinental New York Times Square, said that hotels are looking into source-market targeting through promotions and messaging. They are also providing preferential pricing in larger booking windows and length of stays to target guests that would be staying for longer and planning their trips well in advance.

"Hotels are also looking at partnerships and offerings in order to cater to different markets or try to build a local experience to not just be a bed but an integral part of the trip," he said. "It is important to provide unique experiences that are true to the local destination, while also being culturally sensitive and accommodating to the visitors as well."

To attract international travelers, the JW Marriott Washington, D.C., has increased its digital advertising to target key inbound international markets, said General Manager Matt Felix.

The property also is well-equipped to handle multicultural groups and leisure travelers, he said. For instance, the hotel has enlisted associates from over 90 countries who are multilingual and speak over 30 languages fluently.

"With the groups, as well as individual travelers, the hotel will provide specialty food items, such as cup of noodles and a tea kettle with a variety of teas for the hotel’s Asian guests," he said. "The hotel also has the capabilities to set aside meeting space for prayer rooms and can accommodate various international cuisines for groups who require them, such as creating a distinctive menu for Indian weddings."

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