LIZATION
THE NEW HOLY GRAIL
Hoteliers know a better way to compete for mindshare and market share , but activating systems to create personalized experiences is a work in progress .
By JEFF WEINSTEIN , EDITOR IN CHIEF
Discounted rates via direct bookings are nice , but they aren ’ t a very personal approach in an increasingly depersonalized world , nor are they differentiators for hotel companies in their battles to own their customers .
What hoteliers are learning to do , not without serious growing pains , is create distinct guest experiences . They are personalizing communication with direct messaging and content on mobile platforms , training for service moments that make or break relationships , creating more sophisticated apps that relieve pain points , and slowly developing systems that better interpret the reams of data often housed in disparate systems . But despite miniscule budgets in comparison to OTAs and other disruptive competitors , hoteliers can say
“ game on ” as they start to employ more data scientists and seize every opportunity to personalize the guest experience , which many consider the new holy grail of loyalty .
“ Hotel brands have had data scientists working on pricing optimization , and now they are mining their loyalty profiles ,” says Cindy Estis Green , CEO of Kalibri Labs , Washington , D . C ., which consults on distribution strategy , revenue management and big data . But it ’ s hard to mine data when property management systems ( PMS ) don ’ t connect with the legacy central reservation systems ( CRS ).
SYSTEMS ISSUES “ The core problem is fulfillment systems ,” says Marco Benvenuti , co-founder of Las Vegas-based Duetto , a revenue strategy consultancy . “ Systems need to go the extra mile so that records can handle personalization . Right now , PMS and CRS are structured around rate plans and codes and would need an infinite amount of flexibility to personalize . So today it ’ s still predominantly one-promotion-fitsall , which is not personalization . Hotel companies have smart marketers , but when they see the reality of their fulfillment systems they are handcuffed . There is no engine to personalize .”
Those handcuffs , at least in the near term , benefit small hotel companies with smaller databases and greater opportunity to create more human interactions . They tend to know who their customers are and what they want . In those cases , people can supply what technology can ’ t , but it ’ s not feasible on a larger scale .
The long-term answer for bigger hotel
March 2017 hotelsmag . com 23