Tracking Consumer Sentiment on the Impact of COVID-19 & Hospitality: Supplementary Report

6th May 2020: Week 6 (GBR), Week 2 (USA) Introduction

At BVA BDRC and Alligator Digital we are tracking consumer reaction to the COVID- If you want us to look at specific topics, either for your own private consumption or 19 crisis to support our clients and followers. It’s been a fascinating activity for all inclusion in a main or sector report please do get in touch. The core report remains of us involved in the project. Now in Week 6, we are starting to see the emergence free, while for specific inclusion we need a small contribution towards the of longitudinal trends and patterns. additional costs.

This supplementary report builds on the main report from week 6, released on You can sign up for our free reports at https://www.bva- Friday 1st May, and focuses more on the hospitality sector in a little more detail. bdrc.com/products/tracking-consumer-sentiment-on-the-impact-of-covid-19/ This includes slightly deeper consideration of a couple of questions on the main report, as well as two areas that particularly interested us. Stay safe!

This time, we look at:

• The Word on the Street? What was the impact on brand reputation of a high-profile PR own goal scored by a large UK chain?

• Does Loyalty Pay? What is the point of a frequency programme? Might Gift Vouchers be a cash generation option? James Bland Director, Head of Hotels We also have a summary of the week 6 report by Dr Cris Tarrant, BVA BDRC CEO and BVA BDRC some insights from our US Tracker regarding what US travellers will need to see in place before they’ll again visit hotels or homestay accommodation. Contents

Page No.

Hospitality Sector Summary 04 A Dr Cris Tarrant

Recap: 05-09 B1 The mood of the nation

Recap: 10-13 B2 Holidays and accommodation

Further Analysis: 15-17 C When respondents feel comfortable planning and booking holidays or hotels and what cleanliness standards will be needed

The Word on the Street 20-29 D A look at how recent media coverage could have impacted online brand reputation

Does Loyalty Pay? 30-34 E Considering the role that loyalty programmes and gift vouchers may have to pay

F Appendix 35-37 Hospitality Sector Summary: Week 6 Summary of Great Britain Week 6 report by Dr Cris Tarrant – CEO BVA BDRC

The mood of the nation has stabilized as we are in a ‘wait and see’ position about the easing of the lockdown. There is a real sense the country is getting through this crisis but, expectations for when we will travel on holiday and stay in hotels are again being pushed back as the country absorbs the realisation that social distancing regulations are likely to be in force for many months to come.

Confidence in HM Government’s handling of the crisis remains supportive by a ratio of While thoughts are turning to when life will return to normal, the time frame for this is nearly 2:1, with once again almost two thirds confident and rather over a third not being extended and any expectations of a swift recovery are receding. Only 28% of confident, suggesting toleration with the lockdown is still largely holding consumers, down 5 points in a week, think this will be by August, while the proportion thinking this will not be until 2021 or later has been rising from just 14% three weeks ago to 32% currently. Increasingly the assumption is that recovery is going to be a long Within the country there is a real sense that we are getting through the peak of the slog – there is not going to be a light switch moment covid-19 disease with another large shift in perception this week. Now just 29% think the worst is still to come in the coronavirus crisis. Approaching half (46%) think things will stay the same for now, sensing we are still at a plateau phase of the curve, but Yet again fewer people are planning to proceed with current bookings and more are already 24%, up from 18% a week ago, believe the worst has now passed saying they have been cancelled and they have not committed to re-booking. Week by week the prospects for the summer tourism season are softening, definitely for international travel, and now even for domestic travel The position in the UK is now in contrast to France, where the trend towards more positive perceptions has been halted and on some metrics even reversed. Are we being overly optimistic in the UK about how soon we will be through this? Perhaps in the absence of government milestones for lockdown release we are assuming too much Reflecting concerns over their own health and the need for social distancing, it is rural about the speed of progress against the disease? With reference to the longer term locations, coast or countryside, with low volumes of people that are the much the most impact, hopes of this being a V-shaped event increasingly are giving way to the appealing for a domestic summer holiday this year. prospect of a U-shaped or even a more protracted bath-shaped recovery

In similar vein, expectations of when consumers will make a booking again once more continue to be pushed out. With holiday and hotel planning and booking But with reference to the longer term impact, hopes of this being a V-shaped event horizons on average being around 6 months from now, we continue to foresee increasingly are giving way to the prospect of a U-shaped or even a more protracted considerable demand from UK consumers for winter sun holidays in the 2020/21 bath-shaped recovery season

With the prospect of ‘stay local’ becoming a likely post-lockdown theme we would recommend hotels within the UK think of promoting themselves within their own local areas at this time – after all it will be the fact of getting away from home at all as much as where this happens that will be appealing for many consumers. This can also be coupled with a message about staying locally to support a local hospitality business RECAP: The mood of the nation (GBR) Slides from the Week 6 report For the first time in 4 weeks there is no improvement in the UK’s average mood – if anything it edges downwards, perhaps reflecting the fact that we are now in a holding position ahead of the lifting of lockdown.

27-28 April Average mood week-on-week 27-28 April 2020 14 Average mood

6.7 6.6 58% 6.5 6.6 45 7-10 ratings 6.1 6 6.2

27 42% 0-6 ratings 15 23-24 30-31 6-7 April 14-15 April 20-22 April 27-28 April March March 9-10 ratings 7-8 ratings 5-6 ratings 0-4 ratings

Q5: How would you rate, between 0 and 10, your mood today? (%) For the 5th consecutive week, we are significantly more optimistic about the outlook: almost as many people now say that the worst has passed as those who feel the worst is still to come. For several weeks, our trend in the UK appeared to mirror that which our BVA colleagues recorded for France – just a few days behind. However, the trend in France has stalled in recent days, with the % believing that the worst is still to come climbing to just over half the population again.

The worst is still to come 87 COVID 19 situation in France – French respondents* 81 Things are going to stay the same 78 The worst has passed 84 81 79 78 77 60 71 65 55 54 44 46 51 51 51 51 53 52 47 48 49 44 43 38 40 41 39 37 34 37 35 36 34 29 29 32 32 33 30 27 18 20 15 16 16 17 18 19 16 16 17 13 11 24 13 13 12 14 14 12 14 15 16 14 14 5 6 9 9 1 3 3 4 4 4

23-24 Mar 30-31 Mar 6-7 Apr 14-15 Apr 20-22 Apr 27-28 Apr

23-Mar25-Mar27-Mar29-Mar31-Mar 02-Apr 04-Apr 06-Apr 08-Apr 10-Apr 12-Apr 14-Apr 16-Apr 18-Apr 20-Apr 22-Apr 24-Apr 26-Apr 28-Apr 30-Apr

Q7: Regarding the situation of Coronavirus in the UK and the way it is going to change in the coming month, which of the following best describes your opinion? (%) *BVA daily tracker on how the situation is changing in France. More info, contact Adélaïde ZULFIKARPASIC ([email protected]) From week to week, we see only modest shifts in financial mindsets but the proportion of us who consider themselves to have been impacted to some extent climbs to a new high of 45%.

20-28 April Personal feeling about own current situation – segments The worst is Things are going The worst still to come to stay the same has passed I’m one of the lucky ones – I’m actually better off 7 I’m one of the lucky ones – I’m than before 7 5% 8% 9% actually better off than before 7

I’m alrightI’m alright– the coronavirus– the coronavirus pandemic has not 29 really affected me and I’m pretty confident that it pandemic has not really affected me 34 26% 34% 31% won’t 31 and I’m pretty confident that it won’t 20 I’m cautiousI’m just- I’mnaturally just naturally cautious with money 19 14% 16% 22% cautious with money 17 Both - I’m naturally cautious with money but I’ve become even more cautious during the 29 I’m cautious - impacted 26 coronavirus pandemic + I’m not naturally cautious 29 30% 30% 27% with money, although I have become cautious … I’ve been hit hard – I’ve got no option but to really cut back on my spending + Although I’ve been hit 15 6-15 April I’ve been hit hard 13 hard and perhaps should cut back, I’d rather carry 16 26% 12% 10% on20-22 spending April today and let tomorrow look af 27-28 April

Q17: If you had to choose, which ONE of the following statements would best describe your feelings about your own situation, right now? Q18: Some people are just naturally cautious with money. Others have become cautious, because of their financial situation during the coronavirus pandemic. Which one of the following best describes you? Despite our growing optimism about the crisis in general, forecasts of when life will return to normal are edging backwards every week. Now, only 1 in 5 expect a return to normality by the end of July, down from 1 in 3 just two weeks ago.

This year Next year 25% 22% A further 5% shift their expectation1.4of normality into next year. Now, almost a third of us are in that camp 20% 18% 1.2 16% 99% 100% 1 15% 96% 84% 12% 11% 0.8 This week (6) cumulative % 68% 10% 8% 0.6 7% Week 5 cumulative % 46% 0.4 Week 4 cumulative %2 5% 28% 3% 1% 20% 1% 0.2 Week 3 cumulative % 8% 0% 1% 0

Jul-20 Never May-20 Jun-20 Aug-20 Sep-20 Later 2021 Oct-Dec 2020 Jan-Mar 2021 2022 or later

July 2020 This year Never

Total % 86% 81% 73% 68% Expecting 33% Normality by… 30% 25% 20% 1% 1% 2% 1%

Week 3 Week 4 Week 5 Week 6 Week 3 Week 4 Week 5 Week 6 Week 3 Week 4 Week 5 Week 6

Q16: Given what you know today, when do you think life will return to something close to normal? RECAP: Holidays and accommodation Slides from the Week 6 Great Britain report and Week 2 USA report When do respondents expect to book hotel accommodation again?

• As the proportion expecting to book hotel accommodation within the next three months declines back to the level of two weeks ago, so the proportion expecting not to book until 6-12 months increases again to its highest point since week one. • Looking from start to finish by comparing week 6 with week 1, 5% more are planning to stay in hotels and 1% more within the next three months, a stubbornly slow rate of increase. The average time has lengthened since last week, and has now reached six Not planning on doing it months.

Book hotel accommodation Planning on doing it but don’t know when

Total planning Within the next 6 to 12 months This week to do the activity 87 86 88 88 83 85 23 25 27 33 29 Within the next 3 to 6 months 6.0 months 31 Average time before the activity 24 24 Within the next month to 3 months 15 21 28

33 22 27 23 Within the next month 23 23 11 11 11 6 9 8 8 4 6 3 3 4 3 23-24 March 30-31 March 6-7 April 14-15 April 20-22 April 27-28 April

Q11. Which the following are you intending to do in the next 2 weeks combined with Q12. Given what you know today, when do you anticipate doing the following? Base all *https://www.bbc.co.uk/news/uk-politics-52389285 Only 1 in 7 anticipate planning a UK holiday before the summer holidays

The UK tourism industry will be hoping for guidance around the lifting of lockdown measures sooner rather than later. Clarity on the types of public and commercial spaces that will be open and the restrictions that will need to be put in place - as well as guidance on overseas travel restrictions - will enable the public to decide the types of trip (if any) they would like to take. This clarity will also provide UK tourism organisations with an idea of demand, and the ability to plan and react accordingly.

Plan a UK holiday Book a UK holiday

Total planning Total planning 85 85 84 This week to do the 82 82 This week to do the 81 83 81 83 activity 78 81 activity 79 23 22 25 26 26 26 28 27 28 30 30 30 5.6 months 5.7 months 20 22 24 20 Average time before 17 18 Average time before 17 25 24 the activity the activity 18 28 32 21 21 24 21 23 22 24 24 20 19 9 9 11 10 8 13 11 9 9 8 6 8 12 12 5 7 6 7 4 4 3 6 5 3 2 2 23-24 30-31 6-7 April 14-15 20-22 27-28 23-24 30-31 6-7 April 14-15 20-22 27-28 March March April April April March March April April April

Planning on doing it but don’t know when Within the next 6 to 12 months Within the next 3 to 6 months

Not planning on doing it Within the next month to 3 months Within the next month Q11. Which the following are you intending to do in the next 2 weeks combined with Q12. Given what you know today, when do you anticipate doing the following? Base all Expectations of summer overseas travel continues to drop, only 1 in 10 expecting to plan a trip before the summer – a fall for the 4th consecutive week Online search results demonstrate that the proportion ‘dreaming’ of overseas holidays is high - long-term, international travel remains a priority for the British public. However, in the short- term the outlook is more negative. The proportion planning a trip before August has dropped for the 4th consecutive week, suggesting that most Britons are shelving ideas of jetting off anywhere this summer. Our research took place before TUI extended the cancellation of package trips, Ryanair announced job cuts, and BA suggested they would not re-open at Gatwick. Together this news suggests Britons will be even more pessimistic in future weeks of research.

Plan an overseas holiday Book an overseas holiday

Total planning Total planning to do the to do the activity This week 80 This week activity 79 77 79 79 79 78 78 79 77 79 77 24 27 32 29 30 26 35 36 31 31 31 29 5.9 months 6.0 months Average time before 20 Average time before the activity 20 18 the activity 23 25 23 19 21 24 22 28 28 20 19 18 17 20 13 16 15 14 17 9 7 6 8 8 5 8 7 6 8 7 7 6 5 3 6 7 5 4 3 3 4 3 2 3 3 23-24 30-31 6-7 April 14-15 20-22 27-28 23-24 30-31 6-7 April 14-15 20-22 27-28 March March April April April March March April April April

Planning on doing it but don’t know when Within the next 6 to 12 months Within the next 3 to 6 months

Not planning on doing it Within the next month to 3 months Within the next month Q11. Which the following are you intending to do in the next 2 weeks combined with Q12. Given what you know today, when do you anticipate doing the following? Base all Americans are inching towards traveling again. The most recent results show a large increase in intent to book hotel accommodations in late April, with one third expecting to book within the next three months. Intent to plan an international vacation and to book a flight also increased noticeably in late April. From USA Tracker, Week 2

Expected timeline of leisure travel activities: within the next 3 months 'April 15 'April 29

31% 29% 28% 27% 26% 26% 25% 23% 24% 24% 23% 12% 21% 19% 27%

Book hotel accommodation Plan a US vacation Book a flight Book a US vacation Plan an international Book an international vacation vacation

Q. Given what you know today, when do you anticipate doing the following? Among those who intend to engage in the leisure activity. Results from April 15 through 22 aggregated. Sample size base n=1000. FURTHER ANALYSIS: Comfort levels Slides from the Week 6 Great Britain report and Week 2 USA report At what stage would you feel comfortable doing the following again?

As soon as the travel confinement is over Week 4 data • Booking flights, planning holidays and booking accommodation show the largest increases Not until a treatment or vaccine is available (NET 4 thru 7)* shown in grey in the percentage who feel they need to wait for a treatment to be available before they’d Net Change in Net be comfortable doing them again.

Going to the gym 20% 22% • A shopping trip aside, it’s only using a bus or train that sees a decrease in those who need -2% -11% 28% 19% to wait for a vaccine Going on a shopping trip / to a shopping 22% 19% mall 25% 20% 3% -2% • These movements are perhaps indicative of a greater understanding of what social distancing may look like. Staying in a hotel can have relatively few points of social Taking the bus 29% 21% 25% 21% 8% 5% interaction, yet clearly those that remain are quite important aspects. Extensive media discussion about what distancing on a flight might look like has clearly not provided the Taking the train 25% 19% 6% 6% hoped-for reassurance to the most cautious of travellers, which now represents almost 1 in 23% 23% 3 respondents. Going to a restaurant 17% 22% 21% 19% -4% -6% • Going to the gym, to a visitor attraction and to a restaurant see a drop in those comfortable to do the activity as soon as the confinement is over. There are slight increases for planning Going on a day out to a visitor attraction 15% 24% 20% 21% -9% -9% and booking holidays

Planning a UK holiday 20% 23% 18% 20% -3% -1% 1 As soon as the travel confinement is over Booking a flight 18% 32% 18% 23% -14% -9% Not until a few weeks after the confinement is over, assuming 2 no second wave ensues Booking an overseas holiday 18% 30% -12% -6% Not until a few months after the confinement is over, assuming 15% 22% 3 no second wave ensues Planning an overseas holiday 19% 30% Not until a proven hospital treatment for COVID 19 symptoms is -11% 0% 15% 25% 4 found Going to the cinema 16% 25% 5 Not until a vaccine for the coronavirus is discovered 15% 21% -9% -2% Not until a significant proportion of the population has been Booking hotel accommodation 16% 25% 6 vaccinated 14% 16% -10% -8% 7 Not until my family and I have been vaccinated Booking a UK holiday 17% 24% 14% 21% -8% -1%

Q34 – At what stage would you feel comfortable doing the following? 1. Coronavirus: Significant social distancing needed 'until vaccine found‘ Base: Those intending to do activity again at some point https://www.bbc.co.uk/news/uk-52308201 At what stage would you feel comfortable doing the following again?

The increases seen for the holiday/accommodation activities have 43% 40% 27% been driven by those needing a treatment 14% 16% 19% or vaccine to be present. The proportions 11% 7% 5% Booking hotel accommodation 4% 3% 4% 4% 3% requiring vaccination of their family to have taken place or widespread vaccination to have occurred change has changed little in two weeks – dropping a touch, if anything. 41% 34% 20% 15% 19% 17% 16% In all cases there are slight increases in 10% 3% 9% 5% 7% Planning an overseas holiday 3% 2% those comfortable as soon as confinement is over, and in all cases the majority (more than 50%) will be comfortable without a 41% 37% treatment being present, so long as no 24% second wave ensures – it’s just a question 15% 18% 14% 7% 12% 13% of whether they’ll wait weeks or months. Booking an overseas holiday 5% 4% 4% 6% 2% It is the ‘fencesitters’ (those who’ll wait by weeks or months) that decline across the board though – by about 6% for planning 36% 40% 27% or booking UK holidays, by 10% for 18% 20% 16% 10% 10% planning an overseas holiday, by 12% for Planning a UK holiday 3% 8% 5% 2% 2% 3% booking one and by 11% for booking hotel accommodation.

As the weeks progress and understanding 35% 39% 30% develops, those travellers will have to 17% 20% 14% 11% 10% 10% Booking a UK holiday 2% 4% 3% 4% 1% decide the level of risk acceptable to them. The marketing challenge for providers in As soon as the travel Not until a few weeks Not until a few Not until a proven Not until a vaccine for Not until a significant Not until my family that time is to provide reassurance of co nfinement is over after the confinement mo nth s after the hos pital treatment for the coronavirus is proportion of the and I have been safety. is over, assuming no co nfinement is over, COVID 19 symptoms discovered population has been vaccinated second wave ensues assuming no second is found vaccinated wave ensues Week 4 Week 6 Q34 – At what stage would you feel comfortable doing the following? Base: Those intending to do activity again at some point Similar to results for the re-opening of museums, consumers expect hotels to make sanitizing hand gel available throughout the property. Hotel brand cleanliness standards followed by enhanced cleaning regimes represent at least half of past hotel guest expectations for their post Covid-19 hotel stay.

Hotel guest expectations before next stay From USA Tracker, Week 2

Sanitizing hand gel or wipes throughout the hotel 57% Hotel brand cleanliness standard 53% Enhanced cleaning regimes 49% Staff to wear face masks 44% Enforced social distancing 38% Daily staff health checks 37% Controlled numbers in each area of the hotel 35% Government or other institutionally verified cleanliness standard 35% Reduced maximum capacity 34% Guests to wear face masks 33% Visitor temperature checks 32% Measures in place to prompt social distancing (e.g. signage, staff) 32% Using your own device as a room key 20% Using your own device to control in-room amenities 16% Only one in ten past hotel guests (US) say I won’t stay in a hotel until a vaccine or cure is found they will wait for a vaccine or cue before 13% staying at a hotel I’m happy to stay in a hotel without any changes from before 7%

Q. Which, if any, of these conditions would need to be met before you personally would consider staying at a hotel after the lockdown has been lifted? Among consumers who had stayed in paid hotel accommodations in the last 2 years. Although past homestay guests (e.g. Airbnb, VRBO) expect the availability of sanitizing hand gel and some form of cleanliness verification from the host and/or property owner and brand standards, one quarter say they won’t use a homestay accommodation again until a vaccine or cure is found, more than twice the rate of past hotel guests. Homestay guest expectations before next stay From USA Tracker, Week 2

Sanitizing hand gel or wipes at property entrance/exit 53%

Host/property owner verification of cleanliness 46%

Homestay company (e.g. Airbnb, VRBO) cleanliness standard 46%

I won’t stay in homestay accommodation until a vaccine or cure is found 27% One in four past homestay guests say they will wait for a vaccine or cue before staying at a homestay accommodation again. I’m happy to stay in homestay accommodation without any changes 5%

Q. Which, if any, of these conditions would need to be met before you personally would consider using homestay (e.g. Airbnb, VRBO)? Among consumers who had stayed in homestay accommodations in the last 2 years. THE WORD ON THE STREET (Or what passes for a street these days) What was the impact on Britannia Hotels’ reputation? Jan 2019 – Jan 2020 (inclusive) March 2020 - Present

The social media fallout from Britannia Hotels’ letter terminating and evicting staff at its Passion Coylumbridge hotel is apparent from the impact on the volume and sentiment of 36214 comments tracked online. Britannia Hotels blamed the letters on an administrative error. See https://www.theguardian.com/uk-news/2020/mar/21/scottish-hotel-admin-error-sacking-staff-covid-19 4769

From March 1st 2020 to April 24th 2020, our software detected 36,214 posts mentioning Britannia Hotels on social media. For context, that’s approximately 13 times the volume generated in the << Negative Net Sentiment Positive >> thirteen months prior. As a monthly average, it’s a 6,481% increase but when you consider that the story only broke three weeks into March, it featuring on mainstream media channels probably But, not only was the amount of discussion hugely increased, the net sentiment of that discussion increased the per-month-equivalent level of conversation 100-fold and made Britannia Hotels took a sharp turn for the worse. The Britannia Hotels brand was already in a net-negative comfortably the most talked-about hotel brand on UK social media. position, but that shifted to the point where the comments were pretty much all negative. Also, the strength of that negativity (measured on the ‘passion’ axis) increased dramatically.

13 months - Jan 2019 to Jan 2020 1.5 months (March to mid-April Approximate Of course, it wasn’t just Britannia Hotels affected by this. was quick to come to (inclusive) 2020) Monthly Uplift the assistance of the stricken ex-employees by offering accommodation at their nearby Aviemore Total Average Total Average Resort. Their positive sentiment only increased slightly, and it didn’t generate a lot of extra Britannia Hotels 4769 367 36214 24143 6481% passion, but it did result in a significant increase (relatively speaking) in the amount of Travelodge 65378 5029 9852 5630 12% conversation. However, it will come as no surprise that bad news travels faster and further than 36633 2818 5882 3921 39% good news. 13747 1057 5624 3749 255% 42994 3307 3989 2659 -20% Passion Marriott 34322 2640 3342 2228 -16% 2914

Hilton 46225 3556 3103 2069 -42% 4336 Macdonald Hotels 4336 334 2914 1943 482% IHG 28547 2196 2822 1881 -14% 25608 1970 1405 937 -52% << Negative Net Sentiment Positive >> 17131 1318 909 606 -54% Jan 2019 – Jan 2020 (inclusive) March 2020 - Present For the most part large hotel chains don’t tend to have large shifts in sentiment or passion – when the base of comments is large, it takes a lot more to cause a shift. Passion Passion 3342 Two notable exceptions in the time period 9852 34322 tracked are Travelodge and Marriott, both 65378 of whom experienced negative press of their own. << Negative Positive >> << Negative Positive >> Travelodge came under fire when a story broke accusing them of giving homeless Passion Passion families two hours’ notice ahead of hotel closures1. Again, positive news stories 3103 5882 46225 seem to get less exposure, with coverage 36633 of Travelodge hotels open to welcome homeless guests seemingly limited to local press2. If you want to get onto Cheshire << Negative Positive >> << Negative Positive >> Live, do something good. Aiming for the BBC? Perhaps reconsider. Passion Passion Marriott’s online chatter seems to have 3989 42994 been affected by a second data breach, 13747 news of which broke at the end of March3. 5624 This one potentially affected 5m customers (1% of the one announced in 2018), so << Negative Positive >> << Negative Positive >> coverage seems to be limited to IT trade press. If it had hit mainstream media, the impact might have been greater

1 https://metro.co.uk/2020/03/25/travelodge-gives-homeless-families-two-hours-notice-leave-despite-put-councils-12455054/ 2 https://www.cheshire-live.co.uk/news/chester-cheshire-news/cheshire-travelodge-now-being-used-18056881 3 https://www.computerweekly.com/news/252480903/Marriott-International-hotel-chain-in-second-data-breach Emoji analysis – Britannia Hotels Two time periods for comparison January 2019 – January 2020 March 2020 – present day 4966 mentions 36669 mentions

@BritanniaLtd you must be so proud. Understandable that business has dropped due to the current situation. BUT .... you have now made this ex employee homeless. Have some compassion! �

@BritanniaLtd The shower standard at your This is disgusting, kicking people hotel.... when they are down. Also this is Great to see @BritanniaLtd not the governments advice. Another business that needs getting some much You can’t beat the Britannia boycotting. � deserved attention. Stayed hotel in #wolves in their Gatwick Europa airport hotel last year and Boycott Britannia Hotels the room and the food was Disgusting dirty Treating their Staff in a despicable way Sentiment drivers and topics – Britannia Hotels January 19 – January 20

Sentiment drivers Gym equipment from You know that when your hotel Associated brands the 1990’s tatty room brand can't outperform a shoddy hotel and very , it's probably time rude uncaring staff I will to try something different. � never stay in a Britannia Britannia Hotels rated worst hotel ever again. chain in Britain:

Britannia Hotels named worst UK hotel chain for seventh year running

*** @BritanniaLtd you should be so ashamed. 5 hours waiting on a room we had prebooked #gotyourback was brilliant tonight. Pretty clear they could make a whole series on the shortcomings in customer service at #britanniahotels and then another on @Pontins too! Looking forward to next weeks episode! Sentiment drivers and topics – Britannia Hotels March 2020 – present day Sentiment drivers #Hashtags Absolutely despicable way to treat

****** people #BoycottBritanniaHotels *** Utterly disgraceful

*** of @BritanniaLtd Hotels. Time to Be very ashamed. boycott @BritanniaLtd Let's make them realise that decisions like this are much much worse for business than #Coronavirus

*** Associated brands *** These firms need to pay. #BoycottBritanniaHotels # BoycottWetherspoons #Boyco ttLBC

The list of companies to boycott when this is all over continues to get bigger. Off the It is possible that the story was given extra oxygen by those who enjoy using top of my head I have: - social media to criticise brands. It is interesting to see Wetherspoons high up on the list of associated brands/commentary, as well as Sports Direct – two Britannia Hotels - brands adept at enraging the Twitterati. It is also interesting that, more often Wetherspoons - Bannatynes - than not, Macdonald’s positive contribution to this saga was omitted from the Sports Direct - Wren Kitchens content, despite their speedy response. Emoji analysis – Marriott Two time periods for comparison

January 2019 – January 2020 March 2020 – present day 40124 mentions 4136 mentions Devastated for my close friend, dedicated breakfast Chef for @Marrio but on zero hours contract - dismissed without furlough despite all the government support funds Brilliant & what a welcome available � � @Marriott

This is the second major #databreach Marriott has reported in the last two years �

Tea anyone? ��☕��✨ Would do anything to be in Marriott Hotels wrote to over 1,000 casual workers saying they #aernoontea # Tuscany drinking wine right were ‘yet to determine their position’ on furloughed. The #instapic @ London Marrio now tbh... bit.ly/31iCCl8 workers unionised - stood strong - & won! Their massive victory Hotel Park Lane �@Marriott means 1,500 workers will now be on the job retention scheme. Well done @FairHospitality � Sentiment drivers and topics – Marriott January 19 – January 20

@MarriottIntl has announced plans to open #Hashtags more than 30 new luxury properties across Senment drivers the globe in 2020, through its portfolio of high- end brands, in response to the growing trend of ‘transformative travel’. #EDGEvenues #eventprofs

We had a great stay at the Marriott, very satisfied of our choice.

We had a fantastic experience at the Marriott Hotel. Beds were amazingly comfy and the staff were fantastic!

Beautiful rooms, great staff, super breakfast and excellent location. We highly recommend Marriott Canary Wharf.

@MoxyHotels @Edinburghairport looking pretty in #pink! Love the flash of on #brand pink with #fun balls of #Buxus to welcome guests. The plants look perfect nestled in amongst the pink #flamingos too! #atthemoxy #hoteldecor #design #Scotla nd #marriott #travel #hotel Senment drivers and topics – Marrio March 2020 – present day #Hashtags Senment drivers

Another? When will large corporations learn the value of an effective protective security strategy? #pcidss #cybersecur ity #informationsecurity #busin ess

Marriott suffers a second data breach. Given the amount of valuable information at hand, hospitality organizations can no longer afford to ignore their vulnerabilities. mysupport.marriott.com #databreach Of course, the impact of things like this data breach is exacerbated by the #CyberSecurity #hospitalityindustry Not again. Hotel chain confirms it has absence of the regular flow of positive comments that the Marriott brand @Marriott @MarriottIntl suffered a second data breach that affects typically gets for the experiences it provides. Under normal circumstances, a approximately 5.2 million guests around data breach receiving the muted coverage this did may not have been as the world prominent in the commentary. (The 2018 breach was covered, extensively, by mainstream media) It may be of some comfort, though, that today’s online news is tomorrow’s online chip paper (or whatever the digital equivalent of chip paper is). Menon meline Mentions in April (to date) look to have returned to more ‘normal’ levels. Even the Britannia Hotels spike lasted just a few days, it seems. Time will tell, of course, if the sentiment and passion will revert back quickly. Even more January 2019 - Now time will then tell how (or, indeed, if) any of this impacts on other brand metrics (awareness, preference, consideration). Somewhat harder to determine will be the commercial impacts, since they will likely be dwarfed by the impact of the COVID-19 crisis itself

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Britannia Hotels Hilton Holiday Inn Macdonald Hotels 35000 Premier Inn Travelodge Marriott 30000

25000 February 2020: John Manley sentenced to five years in jail 20000 January 2019: Disgruntled individual, John Manley drives digger into the entrance of the Travelodge , causing nearly half a million pounds’ 15000 worth of damage

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0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2019 2020 DOES LOYALTY PAY? A driver of choice?

The first queson to address, of course, is whether “loyalty” is the correct term. A loyal customer is one who, forsaking all others, will choose your brand and would even be prepared to pay more for the privilege. A reward hunter, perhaps belonging to more than one compeng programme, is perhaps beer described as “frequent”.

Forsaking all others?

BVA BDRC’s 2019 Hotel Guest Survey shows that members of Hotel ‘Loyalty’ programmes are broadly split down the middle. Half of the 56% of business travellers who belong to “at least” one programme do actually belong to only one. As many as 16%, though, belong to three or more – Choice a trait more prevalent among frequent and internaonal travellers. And these programmes do have a reasonable amount of influence. In 2017, HGS found that (of This means that as well as the desirability of having a those belonging to programmes) three fifths of frequency programme, there is also an element of danger business travellers and two fifths of leisure in not having one – parcularly in a market where many travellers had at least one of their stays in the others do. prior twelve months influenced by their membership. (Bear in mind, too, that the mechanics of hotel distribution and availability make 100% practically impossible, even for the largest chains) A driver of price premium?

As a general rule, members of a loyalty programme assign a higher price BVA BDRC Brand Margin® by frequency programme membership premium to a brand than non-members. This does, however, vary by the er of hotel brand, with those in what’s known as the “upper full Great Britain 2019 service” er (think Hilton, Marrio, Crowne Plaza and suchlike) actually Members Non-Members showing a marginally lower upli among members than non-members. Luxury Tier Average $73.18 $64.71 This suggests that the rewards a programme offers have value to UFS Tier Average $37.20 $38.17 customers – although that is, of course, determined by the benefits that can be acquired by those points. Mid-market Average $15.06 $13.43 Economy Average $5.66 $4.53 In the hotel sector, the recent trend has been to put loyalty programmes front and centre of markeng efforts. This also solves a problem as brands have become more widespread and fragmented – the programme becomes a dy umbrella under which brands of all shapes What’s the point? Hilton Honors Accor Live Limitless Marriott Bonvoy Moments and sizes can sit. Marrio and Accor are perhaps the biggest examples of programmes leading from the front. Not only is Accor Live Limitless (ALL) With the expansion of these Get VIP access to concerts, dining, “Get ready for the spectacular” “Start Dreaming” the shirront sponsor of PSG, a visit to accorhotels.com is now met with programmes such that they sporting events, and more with a message telling you that… your Points. We roll out the red carpet to bring Redeem for experiences: Rock out have to appeal to the likely you handpicked, once-in-a- at a show. Score tickets to games. quite different users of brands Use Points to pay for rides with lifetime experiences, unique to Meet a celebrity chef and more! as diverse as and Fairmont, our exclusive rideshare partner, you. Lyft. Terms Apply. Earn points for takeout and has come the imperave to Share your passion and access delivery from your favorite offer more than just the ability Shop with Points on everyday some of the world's most restaurants with Eat Around Town. to secure a discount of sorts, purchases at Amazon.com and our prestigious sporting events. …while the logo displayed on Marrio.com is no online mall. usually unspecified and subject longer the group’s corporate badge, rather that of We bring the exceptional to you to availability, against a future Redeem your Points for car rentals with luxury packages, exclusively their Bonvoy programme – the strapline on which stay. with Alamo, National and for members of the ALL lifestyle leads us nicely to the next key point. Enterprise. loyalty programme. What about the commercials?

There’s no denying that loyalty programmes have brought tension between hotel brands and owners, with many of the latter pointing that – on top of franchise fees, marketing fees and suchlike, the cost of participating in a loyalty programme can make ‘direct’ bookings potentially less attractive than those through intermediaries. Managing the relationship between their corporate interests and those of their franchisees is a challenge for those brands that largely operate on that model. This is particularly the case at hotels more often used for ‘burning’ points than ‘earning’ them.

In response, of course, those brand owners can point to the benefits of increased recognition, propensity to choose and (in most cases) the potential financial uplift (although that more often manifests as a defence against downward price pressure than it does as a driver of increase).

There are also two other very powerful examples of the corporate benefits a strong programme https://www.bloomberg.com/news/articles/2020-04-16/hilton-selling-1-billion-in-loyalty-points-to-american- can bring: express

Hilton’s cashpoint

In April, Hilton was able to bolster its cash reserves by a cool billion with a pre- sale of points to its credit card partner, AMEX. Of course, with a billion quid comes potentially a billion quo, as our head of Hotels pointed out in industry media: https://www.hospitalityinsights.com/content/value-loyalty-questioned

SPG - Starwood’s price grew

hps://hotelanalyst.co.uk/2016/04/12/marrio-starwood-look-to-loyalty-lever/ When Marriott acquired Starwood in the hotel sector’s most recent mega- merger, the appeal of Starwood’s loyalty programme, SPG, was a key driver of value. The transaction ultimately cost Marriott in excess of $13bn Those without Loyalty Points to sell might look to other ways of raising cash now

Q37: If hotels were to make vouchers available to be redeemed Q38: Would you consider purchasing them as a gift? against future stays, would you consider purchasing now for your own personal use in the future

I've already done so 4% I've already done so 2% No No Yes Yes 30% 44% 52% 15% For a specific hotel only 10% For a specific hotel only 67% 7% Both/either 17% Both/either

22% For a hotel brand/chain (only) 4% For a hotel brand/chain (only)

Data from week 5 of our COVID-19 attitude tracker suggest that roughly half of Britons are at least open to the idea of buying hotel vouchers for their own use in some form or another, whether for a single property or a brand. Q39: Would any of the following Q40: Would any of the make you reconsider? following put you off?

It drops to a third who would consider buying them as a gift, but half (or more) of those No, none of the above 8% No, none of the above 37% would be put off by a validity period of 12 months or less, a further third by restrictions Restrictions on “participating hotels” 25% No restrictions on available dates 32% applying to peak dates and a quarter by restrictions on ‘participating hotels’. Restrictions on anticipated peak… 36% Two year validity period 25% Conversely, between a third and a quarter of the two thirds who wouldn’t consider Validity period of twelve months 50% Two nights for the price of one 33% purchasing as a gift could potentially be swayed by significant discounts and very few Validity period restricted to 2020 58% Significant discount (10% or more) 26% restrictions applying. Appendix Methodology This sector-focus reports draws on our weekly COVID-19 Attitude Tracker, which generally operates as below…

Quantitative survey Social media Online survey amongst people who have done two of the following With customers increasingly communicating directly with since the beginning of the year (01 Jan 2020): organisations and their peers through online channels, these 1. Used one of the following transport mode: plane, train or bus conversations cannot be ignored in the assessment of the COVID-19 crisis on brands. 2. Went on a day out to a visitor attraction Our social analytics tool gets closer to the conversations happening in 3. Stayed in paid for accommodation the online space, by listening to how brands are talked about across The survey covers all parts of the UK and is nationally representative on social media and how brands’ reactions to the situation is viewed gender, age and regions. online. The social media analytics cover all three sectors in the UK and The questionnaire focuses on understanding people’s views on the rigorous content cleaning and checks are set and regularly reviewed coronavirus situation and the impact it has on their engagement with to ensure data quality. The analysis looks at conversations around the the transport, leisure and hospitality sectors. coronavirus for the past week.

This is a weekly survey capturing 500 respondents per wave*. Remember that there is also an opportunity for you and your organisation to add specific questions or to increase the number of respondents targeting your customers or specific segments. To do so, please get it touch! &

*The first and second week had n=200 each. Subsequent weeks may have boosts Contacts

Ma Cosn Suzy Hassan James Bland Managing Director Managing Director Director

07875 685 838 07795 662 548 07772 605 303 [email protected] [email protected] [email protected]

Tim Sander Matthew Petrie Alice Wells Director President, BVA BDRC (US) Research Executive

07989 165 658 202 841 5855 0207 490 9130 [email protected] [email protected] [email protected]

Thomas Folque Scott Brill Dr Cris Tarrant Associate Director SVP Market Development, PRS IN VIVO Global CEO 0207 490 9139 201 346 1600 0207 400 1000 [email protected] [email protected] [email protected]