Global Update
thedisruptors the disruptors addresses issues ranging from the impact of emerging booking channels and metamediaries to how to best implement new strategies related to mobile technologies and social media .
Airbnb ' s staying power
Airbnb recently confirmed its latest round of funding — US $ 1.5 billion — and the alternative accommodation provider is now valued at more than US $ 25 billion . That ’ s US $ 15 billion more than the market caps of Wyndham and IHG , US $ 3 billion more than Hilton and just under the combined market caps of Marriott and Starwood .
Airbnb isn ’ t going anywhere and with more than two million listings in 190-plus countries and 34,000 cities , it ’ s hard to imagine that it isn ’ t competing for hotel consumers in many markets .
Yet I still hear industry leaders questioning whether Airbnb is friend or foe , if it is real competition or something that could be stopped . I understand and agree with the efforts to make sure the company plays by the same rules as hotels , but those issues will be resolved over time and Airbnb will still be standing . Consumers love what
With more than tWo million listings in 190-plus countries and 34,000 cities , it ’ s hard to imagine that airbnb isn ’ t competing for the same consumers in many markets .
the peer-to-peer platform provides — a unique , personalized and truly authentic experience .
The industry can ’ t make the same mistakes it did with online travel agencies a decade ago . Rather than ignore disruption , hoteliers must embrace it and learn from it .
The company has built a community and communication between host and traveler starts long before the stay . Consumers have direct access to their hosts through the mediums we all use : social media , apps and even text messaging . The communication isn ’ t scripted — it ’ s genuine .
Hospitality can ’ t start when your guests reach the front door of your hotel . It must begin during the shopping and discovery phase and continue beyond check-out . Patrick Bosworth , DUETTO , San Francisco bAttles for europe ’ s hoteliers
Several issues face today ' s hoteliers in Europe . While not all these topics are new , the nuances to which each has evolved and the implications to the hotel industry are significant .
Rising channel costs : Increasing cost is a significant pain point for many companies . While a debate exists about how to accurately calculate the cost of customer acquisition , hotel companies that operate with a decentralized management structure need to ensure that their managers understand the short- and long-term implications of being too dependent on channels for all of their guests .
Technology : Consumers want to search and book on any the new chief marketing offer is one similar to a
“ fivelegged sheep .”
device . They expect us to anticipate their needs and provide a personalized experience though all the “ big ” data we have captured on them , and they expect ample bandwidth during their stay for all of their devices . The ability to anticipate and meet customer expectations today requires a strategic focus and investment from the top of any hotel organization .
Brand value : There continues to be a blurring between booking brands and stay brands . This pushes all hotel companies to better focus on the customer experience regardless of the channel through which the customer arrived . The marketing challenge is to influence the decision process .
Pricing relative to loyalty : The European hotel industry may be facing a pivotal moment with the recent passage of a French law that cancels rate parity in contracts between hotels and online travel agencies . As other countries follow , companies will have to make independent decisions about how to manage the relationship between price and customer loyalty .
Allocation of talent : The new chief marketing officer is one similar to a “ fivelegged sheep .” One must must have the legacy skills of sales , marketing and revenue management but also the savvy of a consumer behaviorist to understand how to leverage big data and technology to create customer loyalty .
Education of the industry : There is a need to have an educational focus for associates at all levels of an organization . Education is vital to stay abreast of the quickly changing landscape and industry trends . Bob Gilbert , HSMAI , McLean , Virginia
20 HOTELS January / February 2016 www . hotelsmag . com