Technology
It ’ s about being inclusive and focusing on anyone , of any age , who gets why digital is cool and relevant , and who wouldn ’ t dream of picking up a telephone to book .
for hotels is that an OTA cost of sale can be hidden in reduced ADR and isn ’ t necessarily instantly visible in the P & L . Today ’ s revenue managers can happily pass large quantities of inventory to OTAs to drive occupancy , but this comes with reduced profits . Hospitality needs “ commercial managers ”— not the revenue managers — driving profitability . In all aspects of digital marketing , costs are transparent and digital managers have to be on their toes to prove ROI and contribution to the top line .
For smaller chains like YOTEL to succeed , they must target specific segments through multi-channels and go all out to win direct traffic . For us , that segment is “ digital naturals ,” which is a mindset , not a
— Fergus Boyd
demographic . It isn ’ t about just targeting younger customers . Millennials and “ digital natives ” are so last year !
This target audience includes technologically savvy , design-aware travelers of any age who value a unique experience . The customer experience has changed to a BYOD ( bring your own device ) model . It ’ s not about crazy frills controlled through an app like window blinds , heating , lighting , toilet flush , etc . But it is about large TVs that can act as screens with super-fast , reliable WiFi so that guests can stream their own content .
It ’ s about being inclusive and focusing on anyone , of any age , who gets why digital is cool and relevant , and who wouldn ’ t dream of picking up a telephone to book . It ’ s about a great product ( smartly designed rooms / cabins and co-working , shared public spaces ), gelled with a great online proposition that makes selling and servicing easy and natural . It ’ s about being obsessive about the online journey , constantly testing and tuning a fast , responsive mobile-friendly website , and keeping cost of sale low .
Mobile apps are great for in-hotel concierge servicing . In reality , some apps are developed for vanity , but responsive sites are sanity . Let ’ s be realistic : Few guests want to keep a hotel app on their device beyond the duration of their stay . Responsive sites drive low-cost sales and servicing . It ’ s not cross-channel or omni-channel , it ’ s just “ customer channel ,” which means direct digital .
1980s
Rate Revolution
Hotel reservations systems have gone from spreadsheet to science — thanks to an encounter between American Airlines ’ Robert Crandall , whose company was using yield management — and Bill Marriott . That conversation sparked a revolution : revenue management . It was “ the creation of an entire discipline that didn ’ t exist prior to the early 1980s ,” says Robert Cross , chairman of Revenue Analytics .
Marriott created a department headed by Stephen Weisz , now CEO of Marriott Vacations Worldwide , to create a Demand Forecasting System that automated a process that required massive amounts of data .
The principle is true today . “ If you have someone who will pay you more and stay longer , you will wait for them ,” says Rich Hanks , a Marriott veteran and consultant .
52 hotelsmag . com September 2016