Summer 2014
Destination Shopping: Hotel Gift Shops Stay Ahead By Becky Tyre

Industry Trends

Pampered Pooches

CostadEsteBeachResort&SpaVeroBeachFloridaAmericans spent an all-time high of $55.7 billion on their pets in 2013 and spending will be close to $60 billion this year. “Pets across America live like little humans these days – and as long as people treat them that way, pet spending should keep climbing,” said Bob Vetere, the president and CEO of the American Pet Products Association. According to the latest report from the Travel Industry Association of America, 14 percent of all U.S. adults say they have traveled with a pet on a trip of 50 miles or more in the past three years and 29 percent of people traveling with pets stay at a hotel. Well-stocked hotel gift shops are getting a share of this pet revenue by selling dog toys, treats and supplies.

Courting the locals

standardhighMany hotels are uniquely equipped and expertly prepared to host events, so holding a retail-focused event is an ideal way to attract local customers to hotel stores.

During New York Fashion Week, The Shop at The Standard High Line hosted the collaboration of Del Toro Shoes and Snarkitecture attracting many local shoppers. Located just beyond the front desk and lobby, The Shop offers basic sundries as well as a unique selection of gift items, art books, periodicals, accessories and limited-edition artist collaborations.

The Demise of the mini bar?

milenorthMini-bar sales dropped 28 percent between 2007 and 2012, according to a study from PKF Hospitality Research, which collects data from thousands of U.S. hotels. At the same time, lobby sales are on the increase and hotels without traditional gift shops are adding grab-and-go market areas to the lobby. “There’s this generational desire to be in the lobby, gathered in a public place, drinking wine and taking advantage of the Internet,” states Robert Mandelbaum, director of research information services at PKF. The mini bars won’t likely be missed by many, as they were ranked as the least important hotel amenity, in a recent survey released by Trip Advisor, a travel website that features advice and reviews from real travelers. Today’s travelers prefer good WiFi.

Splurge brands

MadonnaInnSanLuisObispoCAUpscaleFull-service hotels and resorts tend to have “high season” when affluent guests are in town and “off season” when young families and local staycationers arrive. Hotel gift shop buyers that know their customer base well can time deliveries to have more recognizable luxury, upscale brands in the shop.

Display trend: beyond the store walls

LoewsDonCeSarHotelStPeteFloridaUpscaleThe Naples Beach Hotel & Resort features pottery by local artist Jim Rice throughout the resort and it is strongly represented in the gift shop. Photographs of the Everglades by local artist, Clyde Butcher are another top-seller.

Hotel lobbies and other high-traffic common areas are ideal for product placement and well-merchandised vignettes serve as an enticing preview of what’s available in the hotel gift shop.

“Put it on my tab.”

LoewsDonCeSarHotelStPeteFloridaWedding1Cashless payments are nothing new to the hotel industry. Hotel restaurants and bar tabs commonly show up on guest folios at checkout. Hoteliers know that offering convenience to guests is a priority and some properties are finding success with cashless key card purchase options. Not only does this make it more convenient for the traveler to make purchases in hotel gift shops, increasing retail sales, it is a benefit for the hotel with savings on credit card interchange fees for multiple card purchases by the same hotel guest, according to Bob Carr, CEO, Heartland Payment Systems.

Becky Tyre

Becky Tyre is the senior trends editor for GIFT SHOP Magazine and the owner of the Retail Details blog.




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