Cultural Diversity - A World of Opportunity

By Andrew Freeman President, Andrew Freeman & Company | November 19, 2010

Cultural diversity is no longer a lofty idea for the future and wishful thinking. Nor is it something regional affecting select sections of the country. From vendors to guests, staff to neighbors, cultural diversity is here, it is now, it is universal. Revisiting existing strategies and tactics and implementing new ones to accommodate true cultural diversity and inclusion in your hotel is not only socially responsible, it is just good business.

You may be in a place where cultural diversity is taken for granted or where it hasn't yet become prevalent. Recent statistics should give you some idea of the changing make-up in the United States' population. Based on the 2000 U.S. Census, numbers show that whites made up 69% of the American population, Latinos and African Americans each made up 13%, and Asian Americans accounted for the remaining 4%. By the year 2050, predictions indicate whites will make up only 50% of the population, while Latinos will grow to 24%, African Americans will increase to 15%, and Asian American will double to 8% of the population.

These numbers are made all the more significant when the same predictions indicate that the U.S. population will grow from 280 million in 2000 to 420 million people by 2050, with women continuing to outnumber men. Immigration plays a major factor in this growth, especially in the Latino and Asian American populations, contributing 35% and 60% to their communities' growth respectively.

It has also been long recognized that Americans are getting older. By 2030, it is anticipated that one in five Americans will be 65 or older. This remains about the same as it is today for white/non-Latinos, but the projections show a much lower ratio for African Americans (one in seven), Asian Americans (one in six) and Latinos (one in ten).

The years 2030 and 2050 seem a long way off, so how do these statistics affect your hotel's operations and marketing efforts today? They are already affected: As a point of comparison, the 1950 U.S. Census showed that whites made up almost 89% of the population, African Americans accounted for almost 11% and all other races were less than 1%. The rapid change in the make-up of the American population is clearly a steady trend and looks to continue what is already well underway, which means that the typical "one size fits all" way of operating and marketing a business is no longer an effective way of running a business.

Simultaneous to these rapid population shifts are the equally steady changes in technology and communications. Fortunately, today's increasingly sophisticated technology and the widening spread of Internet use make it easier to research information about potential markets, organize and share information in a way that's useful and effective, and then confidently target a very select group of customers in a much more personal way. You may find you efforts are focused on a select population of customers, but they are much more qualified and loyal, generating greater revenue for you at a lesser cost.

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Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.