The Battle of Disruptive Lodging Models and Technologies

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An overview of the perfect storm of disruptive business models and technologies impacting the global hotel business by Robert Cole of RockCheetah. The presentation for the Hotel Technology Next Generation 2014 North American Conference held Wednesday, March 5, 2014 at the Rancho Bernardo Inn in San Diego, California.

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The Battle of Disruptive Lodging Models and Technologies

  1. 1. The Battle of Disruptive Lodging Models and Technologies HTNG – North American Conference March 5, 2014 | Rancho Bernardo, CA Image Credit: Brian Wilkins | Flickr (cc)
  2. 2. 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 Image Credit: kagey_b | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 1
  3. 3. 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 Image Credit: gsz | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 2
  4. 4. The Multiple Persona Traveler College Trip Client Visit Industry Conference Weather Delay Family Visit Romantic Weekend Family Vacation HTNG North American Conference Image Credit: Greything | Flickr (cc) Getaway with Friends Battle of Disruptive Lodging Models and Technology Wedding Anniversary Robert Cole ● RockCheetah | 3
  5. 5. Traveler (Demand) Disruptive Forces • Technology • Relationships • Loyalty HTNG North American Conference Image Credit: laverrue| Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 4
  6. 6. 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 Image Credit: laverrue| Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 5
  7. 7. 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 Image Credit: laverrue| Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 6
  8. 8. 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 Image Credit: laverrue| Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 7
  9. 9. The New 5 P’s of Marketing The Old 5 P’s (Traditional) • Product The New 5 P’s (Disruptive) • Paradox – Creates Differentiation • Price • Perspective – Only Customer’s Matters • Packaging • Paradigm – Who & What You Are • Place • Persuasion – Speaker | Message | Audience • Promotion • Passion – Eagerly Seeking a Goal • (People) HTNG North American Conference Battle of Disruptive Lodging Models and Technology Image Credit: NASA Goddard Photo and Video | Flickr (cc) Robert Cole ● RockCheetah | 8
  10. 10. Lodging (Supply) Disruptive Forces • Competition • Efficiency • Guest Engagement HTNG North American Conference Image Credit: Roadsidepictures | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 9
  11. 11. 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 Image Credit: Roadsidepictures | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 10
  12. 12. 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 Image Credit: Roadsidepictures | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 11
  13. 13. 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 Image Credit: Roadsidepictures | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 12
  14. 14. 7-Step Travel Process INSPIRATION (Why) SHARING RESEARCH (Wow) (Where) TRAVEL PLANNING (What) (How) BOOKING (When) HTNG North American Conference Image Credit: paul bica, Greything, | Flickr (cc) VALIDATION (Who) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 13
  15. 15. Channel (Marketing) Disruptive Forces • Online Travel Agencies • Meta-search • Supplier Direct HTNG North American Conference Image Credit: williamcho | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 14
  16. 16. 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 Image Credit: williamcho | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 15
  17. 17. 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 Image Credit: williamcho | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 16
  18. 18. 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 Image Credit: williamcho | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 17
  19. 19. 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 Image Credit: PhOtOnQuAnTiQuE | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 18
  20. 20. 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 Image Credit: HJ Media Studios | Flickr (cc) Battle of Disruptive Lodging Models and Technology Robert Cole ● RockCheetah | 19
  21. 21. The Battle of Disruptive Lodging Models 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 Image Credit: Ed Koren / The New Yorker | (All Rights Reserved)) Robert Cole ● RockCheetah | 20

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