Saturday, January 29, 2011

Marriot Says No To Adult Movies in New Hotels


Marriot Says No to Adult Movies in New Hotels

Summary:

One of the nation’s leading hotel groups, Marriot, has stated they will be removing access to in room adult movies in the next several years.  The decision that was made corresponds with the new in-room entertainment technology for their new hotels.

Marriot is replacing their old menu based selection videos, along with the adult content videos to an internet-based video-on-demand. Technology in the hospitality industry is rapidly changing the decision was based after years of many discussions. The two main topics that were discussed was whether the availability of profitable adult films in guest rooms is appropriate and whether safeguards exists to prevent children from seeing it.

Studies have shown in recent years that revenue from in-room pay-per-view movies has shrunk. The study also implied that the business traveler was chinking into the hotel with their own entertainment; netflix, ipad, laptop, or slingbox.

According to Colliers PKF Hospitality Research, “found that hotels collect 39% fewer pay-per-view movie rentals than they did a decade ago.”

In room movie rentals is becoming a declining source of income for hotels. Researchers think that by providing the family friendly image of the hotel will help create a positive image of the brand. Omni brand hotels have been adult film free since 1999 the ownership made a stance and stated, “That is not how we want to make our money.”

Reflection:

I really found this article intriguing. I thought that pay-per-view was a good source of additional revenue per room.  I know that with the rapid rate in technology becoming mobile, the in room technology is dying. I really recognized it after I read this article and the statistics from the Collier PKF Hospitality Research.

I think by implementing the new web based video on demand will be the new face of in-room entertainment. Even though we are able to bring these small devices to watch our own movies on I think that guest would spare a few bucks to watch it on a 32’ flat screen. 

The idea of going porn-free with Marriot is a great idea. I think that promoting a family friendly image would be quite more profitable. I also think it is another marketing approach that Marriot could take.  If you really think about it there are no hotels that market to their audience that they have in-room adult entertainment. I think you could really market the family friendly environment and play off that.

I think that Marriot is making a good decision to remove adult film in room pay-per-view. I think they could profit greatly just by remarketing the new on-demand video they will be providing.

http://www.usatoday.com/money/industries/travel/2011-01-21-hotelporn21_ST_N.htm

9 comments:

  1. I strongly agree with your opinion about in-room entertainment. In the past pay-per-view movies were the way to go, although everyone now brings their own entertainment. If I visit a hotel I usually have my laptop and an HDMI cord. If the room has a new flat panel TV I can hook it up and watch movies straight from my laptop that are saved on the hard drive and if internet is free I log onto Netflix and watch TV episodes and movies. Marketing hotels towards family friendly places is great and will eventually benefit the hotel more than pay-per-view movies. With technology growing at a rapid pace hotels are lagging behind in the entertainment sector. One idea that hotels could consider is signing a deal with Netflix that guest can pay by the day to access all the movies they want off of Netflix’s online streaming database. Marketing this idea would be great for enticing families and great brand recognition for the hotel and Netflix.

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  2. I really like the topic you chose for this blog Alexis. It is a tough question if the in-room entertainment should be removed from Marriot Hotels. I do agree that Marriot is a brand that is highly visited by business people and making this brand more family friendly by removing on-demand adult movies, would result in revenue growth.
    In my opinion it is a good idea to remove the in-room adult movies from good brand hotels because there is not many people left that watch them. Most guests bring their own laptops with their own movies and they don’t even bother to turn on the TV in the hotel.

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  3. I think that this is a very interesting topic as well. I have two opinions on it. As the company and as it relates to profits, if they revenue is decreasing as the study shows then removing it makes sense only if it costing them to have it. Now on the other hand you want to provide the best service and the most amenities possible for your guest. There are many ways from making sure kids don’t watch it, one simple one is having to put in a code like the last 4 digits of the credit card used to check in. Also instead of getting rid of it completely make is more selective. Do not remove it in Vegas but maybe Seattle. It is all about guest service and the market you are in.

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  4. This article about Marriot taking adult movies out of new hotels is very interesting. It is cool to see part of the thought that goes into a company changing its image. Marriott is trying to go from a company that catered to adults to more of a family-friendly place where families can go for vacation and allow their children to watch television without accidently coming across or purchasing an adult film. I also think it is a good idea that Marriott is finally updating their in room options. In the last few years technology has really been upgraded with things like the iPod and iPad being able to rent and show movies so the in room entertainment needs to have all these same types of options for more than just a movie rental. Hopefully the options Marriott gives its customers will be enough to make them want to buy and the technology will have the option to be upgraded so the Marriott does not end up with technology that is stagnant for ten years until they go for a big upgrade again.

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  5. Alexis, your article choice about the Marriott recently announcing the removal of porn was very interesting to read because I work at the Marriott. I believe the removal from the in-room pay per viewing of porn is an amazing decision. The brand is known for its prestige image and getting rid of porn will only support their company values even further. The Marriot, as well as other hotels, constantly are looking for ways to become more family friendly. I believe this will be a large boost in helping the company properly advertize to that target market.
    It was interesting to also read that pay-per-view in the rooms are a declining source of revenue in hotels. Whenever my family stays at a hotel we always rent a movie from the television, because it’s part of the “vacation experience” for us. I do always remember passing things to buy with promiscuous names and wondering what was when I was younger. Getting rid of these options as well as preventing children from accessing anything like that will help the company dramatically. I completely support the decision the Marriott is making, and I hope other hotels will soon as well.

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  6. Alexis Alexander’s Blog

    This was a very unique topic to discuss and an outstanding choice on your part. I am very shocked that the revenue is so low from in room movie rentals. I must commend Marriot for taking the bold step of going porn free in tandem with a technology conversion that is difficult enough. They give us a clear view of how technological advances can be a benefit and a curse to the hospitality industry. I do believe they will see an increase in movie rentals if the possibility of a mistaken movie selection is gone and kids of all ages can freely browse.

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  7. I also agree with what Marriot is trying to implement. There’s no real way of making sure that young children don’t watch adult content movies. The only way is to get rid of them completely. Plus the market for family friendly hotels is much larger than hotels for “the other kind” of market. I also think that pay per view movies will continue to lose interest as devices like iPhones and iPads continue to be released and paired with companies like Netflix, making it more cost effective and less costly for consumers. I personally would not buy a nine dollar pay per view when I can get it for three quarters of that price.

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  8. Adult movies in a hotel are a declining source of revenue. Most hotels are becoming more family oriented and friendly. The revenue from adult pay per view movies has declined over the years since the more prolific uses of mobile media applications. Traveling families almost certainly do not watch adult movies and business travelers are required to turn in detailed hotel account records to their employer for their stay. I would say that adult movie revenue is almost nonexistent that is why hotels are deciding to get rid of them. Movies in a hotel are so expensive, regular movies are $5 dollars or higher, adult movies cost more than that. Most people travel with a laptop where they can find free movies or movies that are significantly cheaper. If I were a General Manager I would get rid of adult movies on pay per view.

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  9. I for one am glad that Marriot decided not to continue with pay per view adult entertainment. All folios in a hotel itemize the charges. How embarrassing would it be for the business traveler to turn in an expense report for reimbursement with an adult movie on the folio. That is probably why there is a decline in pay per view movies at least for the business traveler. I am not shocked that there is not a lot of revenue on the pay per view movie system. I am sure there are better ways to bring additional revenue with less overhead than pay per view movies.

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