Social Media WIN!

When your Twitter account is followed by a sex-toy retailer:

Voluntary Liquidation for Check-in.com.au

Oh dear!

My advice to any motelier that cares to listen, is to make the most of mainstream OTAs (Online Travel Agents) and use their influence to expose yourself to the world...

The news that Australian accommodation website Check-in.com.au has been placed in voluntary liquidation doesn't change my view - but it does make you wary and is a heads-up that even established OTAs are volatile in an environment of rising business costs, increasingly aggressive competition and customers' rapidly changing whims.

"Popular Australian accommodation website Check-in.com.au – which claims to have taken one million bookings since it was founded in 2002 – was today placed in voluntary liquidation and is no longer processing new bookings.

An email sent to the industry said there'll be a creditor's meeting in June and told hoteliers that if they are holding "future bookings to please contact the guest to arrange direct booking and payment.
"For a refund to be issued, please advise the guest to submit a claim to their credit card provider," the email said.

"If their credit card provider is unable to assist in providing the guest with a refund, the guest should contact the liquidator, Holzman Associates for further assistance."

Liquidator Manfred Holzman said he'd been only given the job today and declined to comment on the number and nature of creditors.

Check-in.com.au was founded by Managing Director Simon Isaacs 11 years ago.
The site has historically performed well in terms of traffic with Mr Isaacs telling TravelTrends.biz in 2010 that it was attracting 450,000 unique visitors a month.

However, at the time he said rising search engine marketing costs had become a major challenge for the business.

As result, Check-in.com.au increased commission to 15% to give it the extra funds it needed to better compete with the multi-national online travel agencies.

Mr Isaacs was contacted for comment but has not yet responded."

Source: Click HERE

Yet Another New Accommodation Sector

As Kiwi accommodation businesses enter the dreaded Winter season, the majority of motels situated away from the popular ski areas are hunkering down contemplating low-demand-survival.

With an ongoing squeeze on the domestic leisure market, motel operators are becoming increasingly wary of competing with the latest consumer trend of booking private homes for overnight stays.

Well known Kiwi hero-websites that are providing a platform and legitimacy for the emerging holiday home market are AA's Bookabach and TradeMe's Holiday Houses. These sites consistently feature in the top-10 most popular Kiwi websites and attract huge traffic flows from domestic travellers contemplating alternative short-term accommodation options.

And punters are spoiled for choice with an over abundance of Ma and Pa owners of surplus residential accommodation that crave to get some short-term rental action.

The market of available short term rentals is surprisingly huge with reselling sites, Bookabach claiming to have over 6,500 listings and Holiday Houses over 8,000. Not only are these fee collecting websites very successful, they are also providing convenient happy hunting grounds for the IRD;-)

Although guest nights for short term rentals of private homes are not recorded on the Statistics NZ's official accommodation survey, we reckon that holiday rentals while operating below the radar are New Zealand's fastest growing accommodation sector.

While we applaud any free market that brings willing sellers and buyers together, we have to wonder if the minimal rentals received by private property owners is worth the numerous risks of allowing the general public loose, unsupervised for a short-stay. For many property owners, the appeal of a quick-buck from short-term rental is soon tarnished after cleaning up after self-entitled-fee-paying-customers, shelling out for damage, increased wear-and-tear and the hassle of accounting for GST and other tax obligations - they pay tax don't they? 

Generally, short-term residential rentals aren't covered by commercial insurance, commercial WOF requirements and the public require a leap in faith when dealing with folksy residential building owners that apply varying degrees of contract agreement commitment, quality and cleaning standards.

As a motel operator, I struggle to understand, why some consumers would wish to negotiate around the landmines prevalent in the alternative accommodation sector that includes Guest Houses, B and Bs AND privately owned holiday homes.

Some time ago, I tripped across a new spin on alternative accommodation that has bewildered me with its apparent success. This involves the concept of renting out spare bedrooms within private residences - Ewww!

The new "rent-my-spare-room" accommodation sector seems to be a clarion call for crazy old ladies to invite strangers into their musty homes to show off their ballooning cat collection!

San Francisco based, Airbnb has been around since 2008 and has been the main innovator of this new subset of the alternative accommodation sector by providing an online service that commoditises spare rooms and other potentially dodgy short-term lodging for sale to a growing consumer base.

Airbnb claim to have over 300,000 listings in 33,000 cities and 192 countries. There is an embedded social aspect that gives this accommodation reselling platform a point of difference with mainstream accommodation sites. All listings are associated with a host (usually the occupier) whose profile includes recommendations by other users, reviews by previous guests, as well as a response rating and private messaging system.

So just how popular is Airbnb in New Zealand?

Go to their mobile/desktop website or download their easy to use app and you may be surprised at the motley swarm of empty bedrooms, sleep-outs etc available for rent in residential locations near you...

More Motel Discrimination

We've been closely following the evolving story of GK, the sex worker from the Gold Coast that habitually uses motels to conduct her trade.

In a landmark legal decision earlier this year, it was determined that motel operators across Australia, could find themselves in breach of the anti-discrimination laws that exist in every state if they try to turn away prostitutes.

The decision in GK's favour was based upon the simple premise that sex workers using a motel bed to conduct trade should be treated no differently from other guests (ie sales reps etc) that may conduct business in a motel room by using the telephone or internet.

In (hopefully) the last chapter of this story, the beleaguered operators of the Drovers Rest Motel at Moranbah have finally won their landmark case, overturning last year's tribunal decision.

Although the decision was greatly assisted by a rushed amendment to Queenland's Anti-Discrimination Act, it is pleasing that this supports "business owners' ability to decide about what does or does not occur on their premises."

Although discrimination laws in Australia and New Zealand are based on a similar premise, it would probably be a long-shot if a sex worker plying trade from a motel guest room in this country could successfully claim discrimination after being asked to leave. It would take very good legal representation acting for a "victimised sex worker to squeeze a result from our well established Human Rights Act.

It has to be kept in mind that when hurt feelings, entitlement and legal aid is involved, it's not inconceivable that any "undesirable" motel guest could construct case against a hapless Kiwi motel after enduring the humiliation of being refused entry or being tossed out. It's not unknown for courts and tribunals to interpret laws for the benefit of the individual over businesses.

Moteliers in order to protect their business and the peaceful enjoyment of the majority of their guests are required to turn away trade from time to time. Generally the best way for moteliers to manage this is to set tariff at a reasonable level in order to detract an undesirable element.

Although there are legal remidies that the public can persue for alledged discriminatory practices by accommodaqtion providers, probably the biggest consequence is the exposure from trial by media.

We've posted before about the "outrage" that followed the story in the media about accommodation providers in Myrtle Beach South Carolina, that have a location-based "discriminatory" policy of not accepting locals at their establishments. From an accommodation providers' point of view, we can see a sound logic to this policy.

Probably the most memorable local story of  discrimination based on location was the media frenzy that followed  the hapless Palmerston North motelier that directed his wrath upon all residents of Wainuiomata by announcing a ban upon anyone from the town that attempted to to stay at his motel. While the blanket ban was bizarre, extreme and probably bad for business, we defended the motelier's right to operate his business under this policy.

And we have also more recently posted on the lodge owners in Whangarei that exposed their naive bigotry tendencies by insisting that gay couples sleep twin beds. Clearly these zealots are in the wrong business!

Within the accommodation industry, sometimes it is necessary to discriminate in order to maximise returns and ensure happy returning guests. And by discrimination I don't mean turning business away based on race, religion, marital status, religious beliefs, sexual orientation etc - This type of discrimination is clearly a no-go zone!

However for good reason, some accommodation providers may have a policy of not accepting reservations from guests that: only want one-night over a long weekend, sports groups, wedding parties, school ball attendees, stag parties, working girls, locals etc. And this is acceptable...

Accommodation providers that have legitimate discriminatory guest policies should NEVER communicate these with the public. The public have an antenna for any perceived inequity and are quick to play victim with media that are more than willing to ramp up the angst. They will never understand why they could be denied and will always believe that they have a god-given "entitlement" to your services - They do not!

Motel Car Pool

There is something inherently funny about a car that ends up in a swimming pool - particually a motel swimming pool.

The Camry’s driver, who suffered injuries that were possibly life-threatening - not so funny...

Check out the dramatic incident caught on cam.

Patel-No-Tell-Motel

Taking yet another trip over on the dark side of motel-world, we came across, The California Inn. Located in Modesto California, nestled between a busy freeway and a baron industrial park, the motel seems to be typical example of a Patel-No-Tell-Motel that has seen better days.

A  fly-over using Google Maps reveals a classic U-shaped motel with a swimming pool that has been boarded-up, an unsightly shipping container strategically placed near the motel entrance and unkempt grounds.

  TripAdvisor pulls no punches:

This week, the motel has appeared on Fox News after a 14 day voyeuristic investigation into prostitution that is openly sold from the motel's guest rooms, Amsterdam style.

This is a sad indictment and reinforces the stereotype of seedy motels in America.

There are many reasons why New Zealand's motel industry isn't going down this pathway to Hell. Motels in this country offer relatively good value and quality standards. Our economic environment simply dictates that offering seedy, unkempt accommodation facilities is unsustainable (Housing New Zealand seems to have this covered;-)).

And maybe more liberal laws in this country such as legalising prostitution is another reason why The California Inn wouldn't last long in New Zealand.

It is gratifying that we need to look overseas in order to get our regular fix of the dark side of motelling ;-)

Motel Granny Flats?

Here's something a little different...

Generally a motel that is past its best use is demolished to make way for a new-use development that can pay its way and make good of well located land.

Before this occurs, often the motel owners will bide their time and rent the guest rooms on a weekly basis to locals, while others push this theme a little further and unit-title the guest rooms to individually flog them off.

The transition of a motel providing overnight accommodation to the travelling public, to a commercial housing development that accommodates permanent residents is a rocky road that often doesn't turn out well. Unless a lot of money is tipped into the project, a converted motel accommodating permanent residents has a tendency to quickly turn into a ghetto of social rejects.

I see that the Kiwi Motel in Alexandra after falling on tough times, have refurbished their motel in bold funky tones and are planning to market the guest rooms to the local aged community as permanent rentals.

I wonder how that will work out?

"Mature Alexandra residents struggling to find suitable housing could soon have some relief.

Kiwi Motel owners Janet and Philip Lucas have applied to the Central Otago District Council to have the motel's land-use consent changed to allow the units at the motel to become permanent rentals.
There were seven units in total, three with two bedrooms and four with one bedroom, which were used for travellers' accommodation.

However, because of a shift in the motel industry in Alexandra with other businesses expanding and clientele bases being lost, it was proving uneconomical to run a motel with fewer then 12 units, Mrs Lucas said.

''This is the time of the year when occupancy drops and everyone is scrabbling to fill their places,'' she said.

After speaking with real estate agents she found there was a ''gap in the market'' for mature people's accommodation and realised the units would be prefect for someone looking to down-size and not have the responsibility of maintenance.

About 25 per cent of Alexandra's population were over the age of 65, higher than the national average.

The units, which had undergone a stylish upgrade during the past 18 months, were fully self-contained, apart from a shared laundry; fully furnished; had managed grounds, and were close to amenities.

Council planning team leader Ann Rodgers said in the district plan a multi-unit development needed to have 250sqm per residential unit.

Kiwi Motels were over that code.

Council was considering the application"

The Budget - What's In It For Me?

Oh dear, it's Budget day...The day when media pimp a precession of "average" Kiwi battlers that whinge that the government isn't redistributing enough cash their way...

Tourism Hero

Travel is about excitement, fun and sex - it's important that the public feel good about the journey and the car that is used for travellers to arrive at their destination can play a big part.

Bland, insipid new car models do nothing to inspire travel, however cars that evoke passion can turn commuters into travellers.

The release of a car manufacturer's hero model is significant, as the DNA and passion can be filtered down the model range.

I see that Holden's outsourced hero brand, HSV has released their new GEN-F range in Australia with a video below that was made public at midnight last night.

New styling aside, the HSV GTS flagship model is fitted with the most powerful engine ever fitted to an Australian manufactured vehicle - a 430kW & 740Nm power-plant. If that doesn't get your blood pumping - nothing will!

With the Australian government gifting corporate welfare to Holden (and Ford) due to being unable to produce cars efficiently to meet required consumer demands, sadly we all know how the Australian car industry is going to end.

While Australia's car industry may be on its knees, let's enjoy while we can a great story about a niche brand that many consumers admire, but end up purchasing something else.

"Free" Convention Centre Finally Announced

So the SkyCity convention centre deal looks to be done and dusted.

Nothing much has changed from our views on this deal when I posted about this in April last year. The build cost has risen from $350 million to $402 million, the increased gambling concessions of 230 more pokies and 40 additional gaming tables are less than what has been reported in the past...

The Greens have again outflanked Labour by claiming the extreme outraged left and are threatening further economic sabotage by legislative change. Hopefully the mandatory petition that the Greens will be commencing, won't cost the taxpayer as much as their last failed attempt:

"I've been following the SkyCity convention centre story with some interest.

Armchair experts, including the Tourism Industry Association have been long-time cheerleaders of the myth that New Zealand was missing out on substantial tourism dollars by not having the facilities to host large conventions.

Up until recently, there has been a will and expectation that public funding will be required to erect a "nice to have" edifice and ironically this has been blindly supported by various tourism industry groups.

The announcement by SkyCity that they will risk their own capital with plans to build a $350 million convention centre in Auckland's CBD seemed to be good news for hapless Auckland ratepayers and central government taxpayers that were being lined up as reluctant investors in the dynamic loss-making convention industry.

SkyCity's deal with the government is dependent upon an agreement to increase its capped number of gaming tables and machines and extend its licence beyond 2021. It is expected that this will generate sufficient income to compensate for a convention centre that even a wildly optimistic mayor Len Brown claims will only break-even.

And as for the alleged social cost, I'll leave the hand-wringing to the pinkos to worry about the consequences of a small element of the public that are unable to cope with the responsibility of personal choice. Gambling is a legal and legitimate activity and as far as I'm concerned the less regulation and controls for all businesses, the better.

While increasing consumer entertainment choice and relaxing regulation has to be seen as positive, the concept of a government adopting crony capitalism by picking winners is harder to accept.

So should Sky City shareholders be worried? "Brokerage Goldman Sachs last month estimated SkyCity would need 350 to 500 extra machines to profit from the deal, generating as much as $46m of revenue in the first full year of operation."

In order for SkyCity to extract an acceptable return on their $350 million investment and cover possible operational losses of a convention centre, they will need to rely upon their new gambling facilities to perform. And the new convention centre will also need to generate extra traffic through their hotels, bars, restaurants and existing casino facilities.

The  consequences of  the government giving special favours to a private company will be interesting to gauge as SkyCity distort the New Zealand market by building an entity that a free market would not normally allow. On the plus side there will be new inbound business that are attracted to a new facility, however a large share of additional income will come from cannibalising existing domestic conference and gambling/entertainment trade.

SkyCity will need to work its new facility hard in order to minimise losses and this will have unintended consequences for competing businesses throughout New Zealand.

Maybe the tourism industry should have been more careful what they wish for?"