Global Update technology is not a question of “ or ,” but “ and .” If you think about the smartphone , it is enabling human interactions that wouldn ’ t exist otherwise . Technology should be so helpful it should almost not be noticed but make it possible for individuals to deliver better service and more personalized service — not the other way around . H : What do you see as the role of social media ? FVP : The ability to have one-on-one conversations with consumers , hear what people are saying , be able to understand and segment people by virtue of how they behave on different websites . The ability for us to have ratings and reviews on our own sites is incredibly powerful , and it completely changes the game of where and how you allocate marketing resources .
Today , using social media and different platforms to engage very specifically with people you want to talk to is a very efficient way of marketing . We have essentially already moved all of our media spending to some form of digital . H : What will be the next hot thing in operations ? FVP : One of the real opportunities is leveraging our loyalty program with relationshipbased marketing and social media to bring more local people to our F & B operations . In Asia and the Middle East , it has been tradition for people to go to local hotels for F & B . Having the strength of our loyalty program , knowing who they are and being able to market directly to them is a real lever to improve F & B performance and create value and recognition for the same people we want to take care of when they are on the road .
H : How would you explain Element ’ s slow ramp-up ?
FVP : Element , with its focus on 100 % LEED certification along with its format and design , makes it a new-build concept . The best place to launch a new brand is North America , but it hasn ’ t been a market with a lot of new building as of late .
The timing of the launch six years ago probably was not ideal . On the other hand , it has given us an opportunity to refine and perfect the economic model . In the dark days of 2009 when we didn ’ t have too many Elements it would have been easy to say it was a brand we should jettison , but the customer and guest reactions , RevPAR performance and qualitative and quantitative feedback has been so overwhelmingly strong that in many respects if this brand has been slow to ramp up it is because it was ahead of its time . This is a brand in the coming years that is going to build traction . H : Does Starwood treat Millennials differently ? FVP : We are careful not to create a brand with specific people or geography in mind . We are more focused on meeting different human needs that we know will be timeless . Westin is focusing on the rising interest in wellness and life balance , and while it may be a Millennial trait , it is a trait in all of us .
H : What do you make of AirBnB and the sharing economy ’ s impact on the hotel business ?
FVP : Airbnb is a very interesting and important phenomenon , but one that has to be seen in a broader context of what is happening . So many more young people are traveling , and there are so many ways to encourage travel , and the sharing economy is one way to bring more people into the world of travel . Also , things that are timeless — like feeling special , recognized and having service and sense of place — will always make hotels attractive to a lot of people . H : Where are we in the industry ’ s cycle ? FVP : We might have gotten ourselves into the second half now . There are two ways cycles end : economies overheat , central banks raise rates and slow things down . We are not in a lot of danger of that for some time to come . The second is an external shock , and that is always possible , but there is nothing on the horizon today that looks too concerning . That said , the last two cycles ended with bolts out of the blue . So we try to stay conservative with our balance sheet and cost base , but aggressive with growth and investment in technology to acquire great guests .
Technology should be so helpful iT should almosT noT be noTiced but make it possible for individuals to deliver better service and more personalized service — not the other way around .
– Frits van Paasschen
www . hotelsmag . com July / August 2014 HOTELS 11