Twice a week, nearly every week of the year, the parade field at the National Infantry Museum in Columbus, Ga., is taken over by the latest batch of graduating basic trainees from nearby Fort Benning. Across the street from the museum stands the Hampton Inn Fort Benning Georgia, which generates 90 percent of its business from servicemen and women and their families.
For hotels that, like the Hampton Inn Fort Benning, are located near a base or a training facility, the military market can be extremely lucrative. According to the U.S. Department of Defense, more than 54,000 new active recruits joined the U.S. armed forces in the last year. All of these recruits must undergo basic training, which means that these soon-to-be soldiers and their families provide a steady stream of business to hotels located near a base.
One major hotel company has already taken notice of the business potential in military lodging—InterContinental Hotels Group (IHG) currently has 77 hotels located “on-base” across the United States through its PAL program. Even with IHG’s stake in military lodging, this is still largely an untapped market. There are nearly 150 military bases in the United States, many of which offer on-site lodging for families of new recruits. These properties may not be up to the standards of a typical guest, however, because they are government owned and operated. This gives hotels located near military bases an opportunity to capture business from visiting families and tour groups.
Guests in the military market are savvy shoppers. There are military-family-run websites that review and rate hotels located near bases based on both amenities and the programs and discounts available for those in the armed forces. TripAdvisor also plays a big role in guests’ decision-making processes. The Hampton Inn Fort Benning, which is owned by Valley Hospitality Services, is currently rated the best hotel in the area on TripAdvisor. According to Valley Hospitality’s president, Brian Plemmons, that helps drive a lot of business. “TripAdvisor is one of the key drivers of the military market,” he explains.
Once hoteliers capture the attention of the military market, those looking to succeed in this space need to be aware of the factors that can influence military guest dollars. According to Carlys Lemler, director of hotel operations at the Historic Thayer Hotel at West Point in West Point, N.Y., best practices when serving this demographic involve ensuring that soldiers are treated with the proper respect and appreciation. “Our staff learn the different ranks of the Army so that they can address soldiers appropriately, and we offer special rates for servicemen and servicewomen when they come to visit,” Lemler, a West Point graduate of the class of 2001 and a veteran, explains.
Showing military guests special appreciation is also imperative. Larry Horwitz, executive director of Historic Hotels of America and Historic Hotels Worldwide, says many of the hotels in the Historic Hotels network offer benefits for soldiers staying at their properties. “It differs slightly from hotel to hotel, but common perks include special rates, free parking, Wi-Fi, and other incidentals that you would typically be paying for,” he says. Horwitz also explains that hotels need to be aggressive in promoting special packages for service members. “The fact is, people look for these extras when they’re making travel plans. Publicizing that you have special deals for people in the military will draw them to your business.”
Beyond offering good deals and special perks, Plemmons says one of the most important things hoteliers who see a lot of military business can do is be cognizant of guests’ mind-sets. “What we’ve learned is that while graduation is a happy moment for a lot of families, it is also bittersweet. Parents don’t know where their sons and daughters will be deployed, so we have to not only provide an atmosphere of celebration for the graduates but also try to give guests a shoulder for families to lean on if they need to,” he says.
However lucrative these guests may be, the military market can also be fickle. Lemler explains that hoteliers who cater to a military market can be vulnerable to situations in which government funding is cut or military demand decreases. “There are situations where cuts in government spending, or incidents like the government shutdown in 2013, can significantly impact your business,” she explains. In order to achieve a balance, Lemler suggests that hotels in this marketplace learn to leverage other drivers in the area. “Forming partnerships with local attractions can help bring in a wave of guests who wouldn’t have before stayed at your property,” she says.
The appropriate balance between military guests and other demand drivers can differ from hotel to hotel. However, once that balance is achieved, and military guest needs are met and exceeded, pursuing a military market can be extremely profitable.
