Disruptors
The fact that customer data can be used creatively doesn ’ t intrinsically mean that it creates value . When a company remembers my details , on its own it rarely transforms a mediocre experience into a great one . I bet if you offered most people the same service with no recognition but for US $ 20 less , they ’ d take the discount .
Ranque : The recent push of direct loyalty member rates available only on a brand site . This strategy asks a consumer to search multiple sites for the best price , which sets the industry back 20 years and takes away a convenient , transparent and consistent way to shop . The OTAs have helped travelers discover , book and experience travel in an efficient way , and those chains are denying consumers a service that they have voted for over the years .
Reid : Hyper focus on millennials has created marketing and hotel product development ( as well as PIPs ) that are stereotypical , too broad and miss on key target markets . Millennials are quite different behaviorally across their age group — not to mention that other generations represent a massive market . Millennials are tastemakers and represent the largest age cohort , but the group is influencing too many broad industry decisions . Understanding niche behaviors that go beyond generalizations allow more informed operations . When you operate just for millennials , you ’ ve missed the mark .
H : What should hoteliers stop doing and do instead ?
MaRsH : City travel used to be challenging : Get the right currency , master a foreign dialect , navigate local idiosyncrasies . In the old paradigm , the hotel was a sanctuary from chaos and complexity . Now that we travel with a smartphone , we are at home everywhere , so we seek something different from
our accommodation . We want immersion , not insulation . Hotels need to turn themselves inside out to embrace this . Expose customers to the city ; don ’ t protect them from it .
Ranque : It doesn ' t make much sense anymore to talk about owning the customer when the majority of consumers shop across brands , and devices , and belong to a variety of loyalty programs . Consumer needs vary dramatically depending on whether they are traveling for business , leisure , in a group , with a family or as a couple . The solution is to provide a variety of flexible options .
Reid : Softer demand is coming eventually ( we think in late 2018 ). But loyalty programs and newly available
It doesn ’ t make much sense anymore to talk about owning the customer when the majority of consumers shop across brands , and devices , and belong to a variety of loyalty programs .
— Cyril raNque
data will allow hotel operators to stop giving away so much inventory and rate margin to third parties . Instead , brands should focus on direct channel discounting and relevant guest offer structures that sit outside OTA agreements . As our industry faces headwinds , the historical supplier approach has been reliance on others to solve demand slack . Today , it ’ s a problem that should be managed with more self-discipline .
KaRen TeppeR , vice president mobile , Priceline . com , Norwalk , Connecticut : Hoteliers should stop thinking about mobile as only being able to deliver last-minute reservations . We see our customers using our mobile website and apps in their research and planning stages as well . Hotels can use mobile as a way to build base business by offering exclusive discounts for non-same-day reservations .
H : What ’ s the one trend you are watching ? Why ?
MaRsH : The same smartphone that distracts and entertains us is also a remote control for our lives . In our homes , we are increasingly spoiled by the ubiquity of on-demand lifestyle services such as Uber . We demand the same level of instant gratification wherever we are in the world . So what is really the role of a full-service hotel when I have every hotel service in my pocket 24 / 7 ?
Reid : The way in which marketers attribute revenue to marketing investment is evolving quickly and allows hotel operators more insight into shopping and booking behavior . This has implications for how supplier brands spend in categories such as search , programmatic and paid social media and even offline advertising . Multi-touch attribution is re-shaping hotel marketing .
36 hotelsmag . com September 2016