Return to our Home page Search
Click here for the hotel and hospitality news from around the globe Hotel, Travel and Hospitality Articles Videos and in-depth Interviews
Read more now
Read more now
Read more now
Divining Consumer Intent: Reading Tea Leaves?
By Vijay Dandapani
Thursday, 1st September 2011

Major property damage, thousands of canceled flights and some opportunistic price-gouging by a few merchants including hotels in the wake of Hurricane Irene all likely did nothing for consumer confidence.

Yesterday's Wall Street Journal report noted that "on Friday, a monthly survey of consumer sentiment put out by the University of Michigan showed confidence among consumers is at its lowest point since November 2008—the depths of the recent recession." 

The Journal article goes on to grimly note that "two-thirds of those surveyed said the economy is deteriorating; many were putting off plans to buy cars and other big-ticket items." Also being shafted are discretionary expenses like cruise trips and hotel stays with one interviewee in the article choosing to stage a large family reunion at home instead instead of a cruise.

Nevertheless, the WSJ article does quote economists as saying that many of those "fears are overblown and note that how consumers actually behave doesn't always match how they say they feel.

Employers have added workers for 10 consecutive months through July and wages have been rising gradually. (Further) orders for long-lasting goods such as cars and airplanes have been picking up. The recent drop in oil prices should provide a boost to both consumers and businesses."

Along those lines another report  quotes the Direct Marketing Association (DMA) which recently released its Quarterly Business Review (QBR) for the second quarter of 2011.

DMA partnered with Winterberry Group on the report, a leading strategic management consulting firm that helps advertising and marketing companies build shareholder value.  econd quarter of 2011, marketers reported moderate growth in spending, sales, profits and staffing, compared with the previous quarter (Q1 2011) and same quarter last year (Q2 2010).

Among the positive signals to be gleaned from the DMA's quarterly review is news of investment in direct/digital marketing activity growing or remaining steady compared to the previous quarter and over one third of marketers surveyed (35.6 percent) indicated that profitability increased as compared to the last quarter.

Regardless, the semiotics (study of signs) of consumer behavior is one thing but inferring economic intent from that is quite another particularly in a see-saw post-08 economy. All of wihch makes setting '12 budgets a daunting task.

Vijay is Chief Operating Officer and part-founder of Apple Core Hotels- a chain of 5 midtown Manhattan hotels offering value and comfort in the heart of the city.Member of the board of Directors - Hotel Association of New York.

Advertise with ...[Click for More]

~ Important Notice ~
Articles appearing here contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.

Learn more about DigiJames - in room technology
 Related Articles  (Click title to read)
Cookies on Steroids: Caveat Emptor for Consumers?
Bad Times are Always Good Times - for Someone.
Use QR Codes as a Hotel Marketing or Guest Service Tool.
Reaching Wealthy Consumers.
 Latest News  (Click title to read article)
QANTAS boosts services to the US and South America
Saturday, 23rd August 2014

Taiwan wins our hearts among all Asia-Pacific countries
Saturday, 23rd August 2014

Inadequate compliance with human rights
Saturday, 23rd August 2014

TripAdvisor adds Uber to app
Friday, 22nd August 2014

Majority of Americans say they would vacation without staying connected
Friday, 22nd August 2014
 Latest Articles  (Click title to read)
The Unsung Heroes of Hospitality - Executive Housekeepers
Saturday, 23rd August 2014

Winning The Race for Guest Loyalty
Friday, 22nd August 2014

The Smart Hotelier's Guide to 2015 Digital Marketing Budget Planning
Friday, 22nd August 2014

Whatever Floats Your Boat: Accommodation Alternatives in Paris
Friday, 22nd August 2014

How to Quickly Shift Your Target Markets: Lessons on Crisis Marketing Management
Friday, 22nd August 2014

© Copyright 4Hoteliers 2001-2014 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here

Use of this web site is subject to our
terms & conditions of service and privacy policy