SALES & MARKETING
BEACONS ' POTENTIAL
By BRITTANY FARB GRUBER , ASSOCIATE EDITOR
With the fear of missing out on anything becoming more widespread , hotel marketers are working harder to keep customers in the know , while at the same time promoting their brands . One way to achieve this is via beacons , which ABI Research says approximately 400 million will be active worldwide by 2020 .
Although millennials are more likely to adopt new technology , affluent baby boomers are increasingly using the new tools and toys , too .
“ Both personalization and convenience are mega trends concerning any industry , and beacon technology is an enabler for them both ,” explains Brian Cliette , an instructor of hospitality management at Pennsylvania State University .
A personalized message from Hilton ' s Fun Finder based on a guest ' s location
FUN FINDER , LOCAL PERKS In September , Hilton Worldwide launched Fun Finder , an interactive feature offered through the Hilton HHonors app that shares personalized recommendations , “ insider ” resort information and other special offers that aim to provide guests with “ exceptional experiences .” Currently available at Hilton Hawaiian Village Waikiki Beach Resort in Honolulu and Hilton Anatole in Dallas with plans to expand to additional Hilton resorts , Fun Finder delivers targeted notifications when a guest is nearby , such as a restaurant or the spa , to let them know that they are close to a deal . In addition to serving resort guests , Fun Finder also hopes to attract business travelers with notifications for happy hour deals , exercise classes and more .
“ The goal is to provide our guests with the information they want , when they need it most and put it in the palm of their hands ,” explains Rich DiStefano , senior director of mobile products at Hilton , adding that Fun Finder took about 12 to 18 months to develop . “ Technology of this kind is extremely complex because there is a need for strong alignment between the technology , day-to-day hotel operations , addressing guest preferences , connecting to activity reservation systems in real-time and a number of other factors .”
Other hotel companies , including Marriott International , IHG and several independent groups have started experimenting with beacon programs over the past several years , offering guests similar location-exclusive offers .
“ Beacons tell you exactly what not to miss ,” says Loren Gray , founder of Dallas-based internet marketing agency Hospitality Digital Marketing . “ Within 18 months , beacons or location-based enhancements like beacons , are going to be pervasive everywhere .”
QUALITY OVER QUANITY For beacons to be most successful , avoiding information overload and irritating notifications is key .
“ People don ’ t complain about something until it ’ s being abused ,” Gray says . “ As long as it ’ s not invasive or overused and they see the value once you go through the door , that ’ s an enhancement . If you are walking around the hotel and every corner you turn you are pushed a notification , it would turn invasive based on frequency .”
Although the cost of having beacons is inconsequential , the development cost of integrating them into a platform to make them useful can add up . This is where Google and Facebook , Gray explains , have the upper hand with products like Google Trips and Facebook ' s Location Services over hotels , as people are more likely to have those platforms constantly on their mobile devices .
“ Effective beacons marketing requires a dedicated app ,” says Cliette of Pennsylvania State University . “ Typically , beacon manufacturers have a ( software development kit ) that integrates into the branded app . This integration is pretty seamless and not costly , but the high cost of implementation comes from the development of the branded app where I ’ ve seen price tags reaching the upwards of low six figures .”
56 hotelsmag . com November 2016