FIU VLR SIN 2015 White Paper - English.FINAL

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    Visionary Leaders Roundtable

    Singapore November 17, 2015

    DRIVING FUTURE GROWTH &

    PROFITABILITY 2020

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    1 DRIVING FUTURE GROWTH & PROFITABILITY 2020

    Global events, market disruptors, and new industry alliances are all issues that are requiring

    travel industry executives to constantly re-evaluate their plans to manage during uncertainty and

    plan appropriately in preparation for future global tourism demand.

    The Institute for Hospitality and Tourism Education and Research (IHTER), a division of the

    Chaplin School of Hospitality and Tourism Management at Florida International University

    (FIU) set its sights on addressing key issues faced by the hospitality industry by organizing the

    3rd Edition of the Visionary Leaders Forum in Singapore.

    Held on November 17, 2015 at Pan Pacific Singapore, this exclusive invitation-only event

    brought together senior hospitality leaders to speak candidly about the persistent issues that have

    profound impact on their ability to stay current, competitive and profitable.

    A unique aspect of the Visionary Leaders Roundtable (VLR) is the way in which participants are

    engaged to help shape the agenda by identifying the topics for discussion. This collaborative

    approach ensures that focus is placed on key industry issues of high interest to our participants

    and the industry at large.

    Coming together to brainstorm ideas for Revenue Optimization, the executives were separated

    into three investigative groups. Each group was in turn tasked with exploring one of the three

    assigned topics while guided by a moderator:

    Topic 1: Driving Growth through Better Customer Insight and Analytics, moderated by

    Jameson Wong, Director of Business Development, Asia Pacific ForwardKeys

    Topic 2: Direct Distribution vs. Third-Party Options - The Battle for Direct Sales,

    moderated by Mike Hampton, Dean - Chaplin School of Hospitality and Tourism

    Management, Florida International University

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    2 DRIVING FUTURE GROWTH & PROFITABILITY 2020

    Topic 3: Optimizing Profits from Total Revenue Management, moderated by Patrick

    Andres, Managing Director, Asia Pacific - Rainmaker

    This white paper delivers key outcomes on the issues and opportunities discussed within the

    robust forum created through the Visionary Leaders Roundtable.

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    3 DRIVING FUTURE GROWTH & PROFITABILITY 2020

    Driving Growth through Better Customer Insight and Analytics

    The timing of the Fall 2015 Visionary Leaders Roundtable happened to coincide with the

    announcement that Marriott International would be acquiring Starwood Hotels and Resorts and

    the ensuing speculation about what such a merger would mean to Starwoods robust loyalty

    program, which undoubtedly brings with it a vast amount of data on its membership.

    The leaders brought together to explore the topic of Driving Growth through Better Customer

    Insight and Analytics came from a cross-section of areas within the industry hotels, resorts,

    cruise, and gaming. Facilitated by Jameson Wong, Director of Business Development, Asia

    Pacific, ForwardKeys, the groups conversation started with the simple question - Do you think

    one can shift to a proactive stance when it comes to using data? The answer was not quite as

    simple.

    Key Issues and Opportunities Its not just about the competition, trying to keep up with ever changing consumer expectation is

    a real challenge. Consumers are not static, they are always changing as is their behavior, making

    it hard to predict and anticipate. Imagine having customer data that can detect a behavior pattern

    and predict future booking, buying and spending behavior. Or customer insight and data that

    helps to predict future demand to enable pricing decisions irrespective of capacity.

    Having deep customer insight that the hospitality and tourism industry can act on today and use

    for forward planning is crucial. However, whereas the executives of this roundtable group

    acknowledged both the access to and value of consumer data within their respective companies,

    much of the concern came from the shared sentiment that they are not necessarily using all the

    data they have available across the different departments, and that departments are not looking at

    data in the same way. The roundtable group agreed that the use of analytics is not being

    embraced as it could be.

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    4 DRIVING FUTURE GROWTH & PROFITABILITY 2020

    The executives in fact posed several questions among themselves as they delved into the topic,

    including:

    How do we demonstrate what insights and analytics can do for the industry or for my

    company?

    How do we get a grip on so many moving parts in order to have an integrated and holistic

    view of the customer?

    Where within the organization should the management of such data reside?

    Overcoming Silos and Mindsets?

    The general trend has been to collect and analyze data to try to

    make sense of past history and patterns. Access to real-time data

    across multiple interactions including customer call centers,

    emails, surveys, website visits, social media, mobile apps and

    guest feedback has enabled analysts to gain insight and

    understand the customer enough to build predictive models that

    forecast the needs and behaviors of their guests.

    However, one of the challenges the group identified is getting

    organizational buy-in in order to optimize such analytics and insight.

    The group explored three recommendations for communicating how critical such buy-in would be:

    1) Involve the operations team and engage non-revenue staff.

    2) Build a business case for the units to understand what it is worth to the company.

    3) Provide user-friendly tools and appropriate training.

    An example involving housekeeping illustrated how different experiences can be tracked and delivered.

    Operational teams, strongly supported by training, demonstrate and impart their importance to the

    organization. Emphasis on integration within the operations team would require the use of tools and

    avoidance of any a manual process in order to make such data collection and/or delivered customer

    experience one of ease.

    Its not clear what we are wanting to do with

    all this data

    Figuring that out is a start .

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    5 DRIVING FUTURE GROWTH & PROFITABILITY 2020

    The need for acceptance and training among department heads and leaders was also highlighted. One of

    the participants shared a best practice in that member of the senior management team within his/her

    particular organization have to be advocates in a demonstrated effort to break the silos.

    Complexity of Data and Making Sense of It While working with credit card companies to drill down to identify high spenders, one of the executives

    noted that with so much data at hand, it is now difficult to determine what data is useful and how to use it.

    Given the design of the roundtable, it is not surprising to find such openness among participants.

    Very basic data was identified

    as important to collect; these

    include:

    Quality email addresses of people who have opted in, plus the related value and date of

    contact

    Geographic location/city of guests

    Total value of the guest.

    In identifying the most valuable data and to understand who the most profitable target customer segments are for the organization, you first determine the desired

    business outcome, define where the revenue is coming from, and then work ones way from there.

    Even as organizations grapple to identify how best to mange and use data they own, the group was not hesitant to share that they still lack data on their own guest who

    book through traditional and online travel agencies (OTAs). To drive onboard revenue, cruise lines extend targeted offers onboard in the jewelry, liquor, clothing, and sundries shops. The opportunity exists for them to start shaping the experience of the guests

    trip before he/she is onboard thereby making it a more personalized experience. When travel agents have booked the guests, cruise lines do not have key data points and

    are unable to utilize this information. Hoteliers have also identified similar shortcomings when guest book through OTAs.

  • Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University

    6 DRIVING FUTURE GROWTH & PROF