The Battle of Disruptive Lodging Models and Technologies

The Battle of Disruptive LodgingModels and Technologies

HTNG – North American ConferenceMarch 5, 2014 | Rancho Bernardo, CA

Image Credit: Brian Wilkins | Flickr (cc)

Introducing The Combatants• Traveler (Demand)

– Consumers Want Value• Faster | Cheaper | Better

– Disruptive Forces• Technology | Relationships | Loyalty

• Lodging Provider (Supply)– Businesses Want Profit

• Revenue Up | Costs Down | Earnings Growth

– Disruptive Forces• Competition | Efficiency | Guest Engagement

• Channel (Marketing)– Marketers Want

• Traffic Growth | Strong Conversion | High Margins

– Bridge Supply & Demand• Online Travel Agencies | Meta-search | Supplier Direct

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 1Image Credit: kagey_b | Flickr (cc)

What’s Not On Today’s Agenda• Outbound Travel from China

– 100 Million Outbound Travelers

• Wearables (Google Glass)– Context Aware | Voice Interface | Beats 2 Second Rule

• Big Data– Too Much, Fast, or Weird to Fit in a Database

• Apple iTravel Patents– Integrating Travel Services in a Single Application

• Semantic Web– How Various Data Entities Relate to Create Meaning

• Near-Orbital Regional Internet– Use of Drones or Balloons as Internet Relay Stations

• Nanobots (Kurzweil’s Brain-Cloud Interface)– Samantha (OS in “Her”) Becomes Visual & Tactile

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 2Image Credit: gsz | Flickr (cc)

The Multiple Persona Traveler

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 3Image Credit: Greything | Flickr (cc)

Weather Delay

WeddingAnniversary

College Trip

Family Visit

Industry Conference

Getaway with Friends

Client Visit

RomanticWeekend

Family Vacation

Traveler (Demand) Disruptive Forces

• Technology

• Relationships

• Loyalty

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 4Image Credit: laverrue| Flickr (cc)

Traveler – Technology

• Dealing with Multiple Devices

– The Power of Mobile – A Constant Companion

– Telephone (Voice) Still Important

– Solution: Cross-Device / Channel Tracking

• Social Network Integration

– Extensive Preference & Behavioral Personalization

– Links Individuals to Friends + Deep Targeting Data

– Solution: Short URL / Campaign Tag Social Links

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 5Image Credit: laverrue| Flickr (cc)

Traveler - Relationships

• Authentic Engagement

– Relevant Context – Focus on Guest Needs

– Respect – Traditional Spirit of Hospitality

– Solution: Training & Tools for Face to Face/Online

• Life Enhancing Experience

– Stress Reduction – Simplify Lives

– Create Positive Memories – Create Referrals

– Solution: Know Trip Purpose | Processes for Goals

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 6Image Credit: laverrue| Flickr (cc)

Traveler - Loyalty

• Rewards Program Participation

– Points & Discounts are Transactions, Not Loyalty

– Reduction in Reward Richness Undermines Loyalty

– Solution: Measure Profitability & Sentiment

• Customer Lifetime Value

– Loyalty is Paying Extra for Something That is Loved

– Value Drives Transactions | Values Drive Loyalty

– Solution: Track Sentiment/Performance Over Time

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 7Image Credit: laverrue| Flickr (cc)

The New 5 P’s of Marketing

The Old 5 P’s (Traditional)

• Product

• Price

• Packaging

• Place

• Promotion

• (People)

The New 5 P’s (Disruptive)

• Paradox– Creates Differentiation

• Perspective– Only Customer’s Matters

• Paradigm– Who & What You Are

• Persuasion– Speaker | Message | Audience

• Passion– Eagerly Seeking a Goal

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 8Image Credit: NASA Goddard Photo and Video | Flickr (cc)

Lodging (Supply) Disruptive Forces

• Competition

• Efficiency

• Guest Engagement

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 9Image Credit: Roadsidepictures | Flickr (cc)

Lodging - Competition

• New Competitors

– Sharing Economy – HomeAway / Airbnb / Breather

– Unique Selling Proposition & Key Differentiators

– Solution: Guest-centric Focus Personalizes Stay

• Changing Service Profiles

– Hotels Less Control – F&B / Concierge Outsourced

– Sharing Economy Hosts Moving Other Direction

– Solution: Integrate Support Resources & Empower

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 10Image Credit: Roadsidepictures | Flickr (cc)

Lodging – Efficiency

• Guest Devices Now Part of That Person

– Want Netflix / Uverse Access While Traveling

– Want Wireless Access to Avoid Carrier Data Fees

– Solution: Easy Interfacing (a la Chromecast)

• Property-wide Interactive Guest Engagement

– Seamless Arrival/Room Access/Payments/Offers

– Bluetooth LE/Beacon: Who/Where/When Context

– Solution: Bluetooth LE Devices + Interactivity

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 11Image Credit: Roadsidepictures | Flickr (cc)

Lodging – Guest Engagement

• Relevance is King

– Right Message/Guest/Time/Place/Channel/Price

– Precision v. Privacy (Guest Draws Creepy Line)

– Solution: Test Extensively | Seek Feedback

• Contextual Engagement

– Real-time / Situational / Segmented / Geo - Offers

– Facilitated by Social Relationships / Active Apps

– Example: Targeted Facebook Dark Posts for Offers

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 12Image Credit: Roadsidepictures | Flickr (cc)

7-Step Travel Process

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 13

PLANNING(How)

VALIDATION(Who)

BOOKING(When)

TRAVEL(What)

SHARING(Wow)

RESEARCH(Where)

INSPIRATION(Why)

Image Credit: paul bica, Greything, | Flickr (cc)

Channel (Marketing) Disruptive Forces

• Online Travel Agencies

• Meta-search

• Supplier Direct

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 14Image Credit: williamcho | Flickr (cc)

Channel – Online Travel Agencies

• Weaponized Discounting

– Merchant Model (Tax Shaving) & Comm. Rebates

– UK/EU Resale Price Maintenance & Rate Parity

– Solution: Total Revenue Management & GOPPAR

• Value-Added Cross Selling

– Supplier Discounts Not Creating Consumer Benefit

– Discounts Frequently Getting Absorbed as Margin

– Solution: Supplier- Centric Dynamic Packaging

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 15Image Credit: williamcho | Flickr (cc)

Channel – Meta-search

• Search Seeking Context

– Content Aggregation / Reviews Provide Freshness

– Defining Relevant Product & Preference Linkage

– Solution: Relentless Semantic & Local Tagging

• Channel Management Rising

– Challenging Traditional PMS/IBE/CRS/Switch

– Booking Messages Well Established

– Solution: Ensure Technology Partners Are Nimble

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 16Image Credit: williamcho | Flickr (cc)

Channel – Supplier Direct

• Fluid Website Architecture

– Responsive Design Based on Screen Dimensions

– Adaptive Content Based on Personalized Context

– Solution: Site Design & Experience Optimization

• Mobile Apps Grow Up

– Intermediary Apps Dominating Hotel Brands

– Utility Focus – Download Useless if Never Used

– Solution: Link Loyalty/Booking/Dest. Experience

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 17Image Credit: williamcho | Flickr (cc)

Review of Disruptive Forces

• Travelers (Demand)– Technology– Relationships– Loyalty

• Lodging (Supply)– Competitive Landscape– Creating Efficiencies– Guest Engagement

• Channel (Marketing)– Online Travel Agencies– Meta-search– Supplier Direct

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 18Image Credit: PhOtOnQuAnTiQuE | Flickr (cc)

Will Hoteliers Be Disruptors or Disrupted?

• Disruption is Inevitable

– Lodging Is a Highly Fragmented Marketplace

– As Herd is Thinned, Who Gets Culled First?

• Competitive Advantage Kills Legacy Methods

– Platforms | Partners | Processes – Are All Evolving

– Enterprise & Highly Interoperable Solutions Win

• As Complexity Grows, Simplicity Gains Value

– A Strategic Touchstone Should be Hospitality

– Life is Service & The Guest Is Always Right

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 19Image Credit: HJ Media Studios | Flickr (cc)

The Battle of Disruptive LodgingModels and Technologies

Thank You

Robert Cole

phone: +1.262.309.9560

social media: @robertkcole

email: robert@rockcheetah.com

HTNG North American Conference Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 20Image Credit: Ed Koren / The New Yorker | (All Rights Reserved))