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Media+hospitality final

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How Media works with the Hospitality Industry

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Media+hospitality final

  1. 1. AComprehensivestudy on howdifferent Mediaeffect theHospitalityIndustry
  2. 2. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY is an . Raghav Lalvani WGSHA 24th CourseWGSHA DISSERTATION 2013 2
  3. 3. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY This project would not have been possible without the support and guidance of each and every one of my Professors, each of my Friends, my Parents and my Sister …..all of whom kept encouraging me to create the Original. Raghav Lalvani WGSHA 24th CourseWGSHA DISSERTATION 2013 3
  4. 4. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media + Hospitality To establish a perspective an understanding of the Hospitality and Media Industry is important. Hospitality is a broad classification of a group of industries that are grouped within the service industry. Some of these Industries can be classified into: Hotels, Pubs & restaurants, Theme parks, Airlines Cruise line Travel & Tourism Facilities Management And more, which today also include HospitalsWGSHA DISSERTATION 2013 4
  5. 5. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality This article in the Educations Times by Jayanti Ghose, a special supplement of The Times of India gives us an explanation of the Hospitality Industry more in detail. Jayanti Ghose is a Career & Education Consultant. Her research in the area of career counseling and guidance spans almost three decades.WGSHA DISSERTATION 2013 5
  6. 6. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Delving deeper into the concept of Hospitality, it can be explained as the experience that a visitor, a customer or a guest undergoes when he/she comes into contact with any aspect of the service that they have decided to engage with i.e., visiting a Hotel or Restaurant or using a Airline or going on a cruise. It can also be linked to the experience of a private dinner party or the courtesy/service extended at a hotel chain; it is basically the same thing but on a different scale. Hospitality can also be defined as the act of being hospitable. In other words, welcoming the guest, being helpful and providing a service to someone who is visiting the restaurant, the hotel or even the country. This extends in todays world to Multibrand Retail outlets. Extending a extremely high level of Hospitality is the single most important factor in tourism, travel and leisure industry as it is what differentiates. From the time a guest lands at the Hotel, the Club or even the country till the time he/she leaves – each experience that they undergo in that timeframe they are in contact with the service reflects on the level of Hospitality.WGSHA DISSERTATION 2013 6
  7. 7. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Media can be best explained as forms of Communication through which visual & auditory messages can be passed. These messages can take different forms like News, Entertainment, Education, Public Interest or Promotional messages. In current day, these Visual & auditory messages can be transmitted through various mediums . Media today can be classified into eight broad segments like books, newspapers, magazines, audio & video recordings, radio, movies, television and the internet. The rapid growth of various digital based technologies like broadband, internet and have also led to social media platforms that are today also considered as Media – this media being created exclusively by consumers. With the proliferation of Technology in our everyday lives today every Individual is also a form of Media.WGSHA DISSERTATION 2013 7
  8. 8. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality The Different Types of Media that can be categorized are: 1. Print 2. Radio 3. Television 4. Film 5. Out-of-Home 6. Internet 7. Mobiles There are a lot more forms that can be categorized as Media, but the ones mentioned are the primary ones. These categorization of Media has come about since the 1900s to what we see in its current form. Each form of Media has its own form of content, its own unique form of presentation supported by different expertise, and its own business models. To take an example, the Internet consists of a Website, Hyperlinks, RSS Feeds, Blogs and podcasts which are supported by Web Designers, HTML Experts, Bloggers and Creative Designers and content distribution is through news feeds and social media platforms.WGSHA DISSERTATION 2013 8
  9. 9. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Media has evolved over a period of time into its current form today. The timeframes when the introduction of various media came about is represented Graphically below: Image Courtesy - http://digc202makedonka.files.wordpress.com/2012/08/convergent-media.jpg To fully appreciate the various forms of Media and the bearing it brings on the Environment in which we live can be better understood if we understand the various types of Media that is available today.WGSHA DISSERTATION 2013 9
  10. 10. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality The Media Industry has undergone a evolution over the last few dozen years, and this evolution has been greatly influenced by the changing Customer preferences. Customer preferences have moved from being generic content to niche content and digital delivery platforms. The Media Industry has also undergone a change due to the evolution of business models, hyper-local competition due to entry of local and global players, and changing regulations. Print This form of Media as the term “Print” itself signifies, stands for communication that is Printed on Paper in the form of Newspapers, Magazines, Books, Periodicals , Pamphlets or journals. Print Media provides very tangible and in-depth analytics and information about an event, a product, a service or life defining moment. It also give detailed information about products or services that businesses want to communicate about to its readers.WGSHA DISSERTATION 2013 10
  11. 11. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Depending on the reach, power and credibility of the Print product it can be a very effective medium to build up the credibility of a product or service or even an individual. Today the Hospitality Industry very effectively uses Print Media to promote their various services. Some examples of Print Media usage by Hospitality companies are: Tenders & Public Notices have to be released in Print Media Artistic Creatives’ to attract reader eyeballs – A campaign created by Westin HotelsWGSHA DISSERTATION 2013 11
  12. 12. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Various Print Ads and News in Print Media which help in building the popularity of the Hospitality Brand.WGSHA DISSERTATION 2013 12
  13. 13. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Some Old Hotel Ads in Print Media – as in earlier days before the advent of TV & Radio, Magazines & Newspapers were the only freely available form of MediaWGSHA DISSERTATION 2013 13
  14. 14. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Magazines dedicated to the Hospitality IndustryWGSHA DISSERTATION 2013 14
  15. 15. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Radio This form of Media can be termed as the first “Digital” Media where signals are transmitted through space by electromagnetic radiation. The frequency of such transmissions range between 30Khz – 300Ghz. These transmissions are called Radio Waves. Today Radio takes many forms, including wireless networks, mobile communications and radio broadcasting. Before Television became a widespread phenomena, radio broadcasting included the airing of mainly news and music. Over a period of time this was expanded to include the voice dramatized versions of popular dramas and popular plays as well many other forms of entertainment. This period lasted for nearly 30 years and was called the Golden Era of Radio. Even today Radio is a very popular form of communication for to prospective consumers for Restaurants and Hotels and also for the Travel & Tourism Industry which also gets included in the Hospitality Industry.WGSHA DISSERTATION 2013 15
  16. 16. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Hotels & Restaurants and other Hospitality companies use Radio to promote and run contests for prospective consumers . They would typically ask some trivia questions and then based on random number of callers / winners award free couple meal vouchers for a restaurant. Some examples of Radio to promote Restaurants Radio Jingle (Los Magueyes): This Radio Jingle was made for a Mexican Restaurant. Client was looking for a happy Mariachi feel to help portray the feeling of being in Mexico. The Cherry Shed, Australia is famous for growing their own produce and using Cherries as a part of every meal that they serve. • Pork and Cherry sausages • Cherry Shed Pancakes: served warm with our own cherry ice-cream, • Cherry compote • Chunky Beef and Cherry Wine Pie: • Cherry wine • Cherry and Apple Pie Audio Files on this Page will play in Full screen mode when the speaker icon is clicked.WGSHA DISSERTATION 2013 16
  17. 17. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Television In the 1950s with the advent of Television right down to the individual home level, the media industry underwent a complete transformation and the concept of moving images changed our lives. In todays scenario, the reach of Television across a wide spectrum of audiences makes it a powerful and attractive medium for advertisers. Most television networks and stations sell blocks of broadcast time to advertisers ("sponsors") in order to fund their programming. These block are used by the Hospitality Industry to communicate the Product and services that they offer – Cuisine, Rooms, Experience and more.WGSHA DISSERTATION 2013 17
  18. 18. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Over the recent years, having a dedicated infomercial extolling the service have become common. These infomercials are usually 30 minutes or one hour and could be presented by a well known celebrity. Various examples of these shows are today available - Masterchef, Top Chef, Andrew Zimmermann Bizarre Foods, Man Vs. Food and more. Media has also created a hype around the Hospitality Industry by creating Awards & TV shows around Food, Hotels and Airlines.WGSHA DISSERTATION 2013 18
  19. 19. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Masterchef Video Nigella Kitchen Video Hell’s Kitchen Video Video Files on this Page will play in Full screen mode when you click the image. All Videos are courtesy YouTubeWGSHA DISSERTATION 2013 19
  20. 20. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Internet Wikipedia defines the Internet is a global system of interconnected computer networks that use the standard Internet protocol suite (TCP/IP) to serve billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless and optical networking technologies.WGSHA DISSERTATION 2013 20
  21. 21. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality The internet has had a deep impact on the media consumption habits of consumers’. In addition the number of devices that are using the connectivity of the Internet is altering traditional media and entertainment consumption behavior. Internet TV, Internet Radio and Online News are instant and interactive mediums which allow active consumption as against the traditional media which offers passive consumption, new media facilitates interactivity. This is driving audiences instant gratification of their ‘taste spaces’ as it becomes available.WGSHA DISSERTATION 2013 21
  22. 22. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality The internet also creates instant access for News as it happens and there are today specialized channels which provide news related to the Hospitality Industry. The news below in The Economic Times is available first on the Internet, followed by news on the Television and then in-depth analysis is shared the next day in the Newspaper.WGSHA DISSERTATION 2013 22
  23. 23. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Media & Hospitality Some Examples of how Instant Gratification for a Holiday gets addressed by Websites dedicated to the Hospitality IndustryWGSHA DISSERTATION 2013 23
  24. 24. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics Going forward, having seem the number of Media platforms that are available for the Hospitality Industry to reach out to prospective customers, it does become important to see the reach that each of these different Media have. I have used various research data from leading Media research houses like KPMG, International Newspaper Marketing Association, Audit Bureau of Circulation, Comscore Data, Alexia and more. Because this data has to be used in its entirety and there is very less opportunity to interpret this data, I have used it as it is presented.WGSHA DISSERTATION 2013 24
  25. 25. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics Data & Research Courtesy for this chapterWGSHA DISSERTATION 2013 25
  26. 26. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics The overall M&E market in India is expected to grow at a compounded annual growth rate of 15 percent per annum over the next five years, to reach INR 1.4 trillion in 2016. The potential for increase in media penetration, growing importance of regional markets, increasing consumption in tier 2 and 3 cities, impact of regulatory changes, more focused consumer research, innovation in content, marketing and delivery platforms to serve different niches, increasing device penetration like mobiles, tablets, PCs etc., all point towards a very positive future for the industry. The Indian M&E industry grew from INR 652 billion in 2010 to INR 728 billion in 2011, registering an overall growth of 12 percent. Backed by strong consumption in Tier 2 and 3 cities, continued growth of regional media and fast increasing new media businesses, the industry is estimated to achieve a growth of 13 percent in 2012 to touch INR 823 billion. Going forward, the sector is projected to grow at a healthy CAGR of 14.9 percent to reach INR 1,457 billion by 2016.WGSHA DISSERTATION 2013 26
  27. 27. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics While television continues to be the dominant medium, sectors such as animation and VFX, digital advertising and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate. Print, while witnessing a decline in growth rate, will still continue to be the second largest medium in the Indian M&E industry. Overall M&E industry size & Estimates into 2016WGSHA DISSERTATION 2013 27
  28. 28. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics The media industry is an ad dependent business and the revenues that each of the Media platforms have over the years is detailed in the table below. With various advertisers using different Media platforms to communicate their message, it is no surprise that the revenues that each of the media platforms have made over the years have constantly grown. Key Themes and trends going forward Growth drivers for multiplex exhibitors Digital technology continues to revolutionize media distribution – be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition – and has enabled wider and cost effective Overall M&E industry Revenues into 2016WGSHA DISSERTATION 2013 28
  29. 29. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics reach across diverse and regional markets, and the development of targeted media content. There has been increased proliferation and consumption of digital media content – be it newspapers and magazines, digital film prints, and online video and music or entirely new categories such as social media. For example, the print players are increasing becomingly available on the digital platforms in order to establish a connect with current readers as well as to establish a relationship with new readers. Accordingly, online advertising spends have seen a spurt in growth vis a vis spends on traditional media. At the same time, the ability to develop models that get consumers to pay for online content is still limited. Currently, advertising is the primary source of revenue online but we expect new revenue models to emerge as the payment infrastructure develops and consumers begin to pay for content.WGSHA DISSERTATION 2013 29
  30. 30. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics Further, understanding and tracking online media behavior of consumers would enable companies to progress to the next level of their online strategy and monetization. Change is also being brought about by the proliferation of screens – making media consumption more personal than ever. Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage. This is gradually impacting the way content is being created and distributed. Multiple media including TV, films, news, radio, music etc are being impacted with this change. For example, radio listenership has increased largely due to out of home mobile listenership. The number of internet users is expected to cross 546 million users by 2016, increasingly driven by wireless connections. The increase in tablet penetration in future can have a big impact on internet usage and in particular, video consumption, as its large screen allow consumption of more detailed and interactive content.WGSHA DISSERTATION 2013 30
  31. 31. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics Some Statistics on the various Media Going forward, the adoption of 3G and 4G services will further fuel broadband penetration and offer opportunities for scaling digital media businesses. This move will have a direct impact on the Hospitality Industry as it will allow users to instantly upload data or comment on their experiences.WGSHA DISSERTATION 2013 31
  32. 32. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics The Hospitality Industry will require a re-look at how they promote themselves with a focus on creating a more user friendly experience for the increasingly savvy and ‘new age’ consumers . The Media Mix will require a rethink and also how Media is used away from the traditional pure play Advertising. As consumers evolve and with India’s growing young population, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences. An example of a very successful 360 degree marketing campaign was in the marketing of ‘RA One’, which had one of the longest and the most elaborate marketing campaigns in order to build audience anticipation. It effectively used traditional and new media in the form of unveiling its first look on a popular social networking website. In addition, the campaign also leveraged digital and merchandising platforms to its advantage. This surround experience is “Activation’. Activation in the Media Industry has become a key service now provided by many media companies.WGSHA DISSERTATION 2013 32
  33. 33. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics Players in the print and radio industry have been building a strong value proposition in customizing campaigns for advertisers which include marketing across multiple media platforms, including organizing events for them. India is a young nation and in many ways the youth is driving change in terms of strategies of media players in the industry due to their different media consumption habits and preferences. Since youth is an important target segment for a large number of heavy advertising sectors like Hospitality, Telecom, Financial Services etc., media players are trying to engage with young audiences in innovative ways in order to grab attention and build stickiness. Print players across the world are exploring new ways to revamp their readership as the young generation looks to social media, television and online channels for its dose of daily news rather than wait for the next day. Not only are they breaking news and promoting their brands and shows on portals, search engines and social media, They are also organizing events and promotions especially targeting the youth, for example, Dainik Bhaskar launched The Brain Hunt 2012 across 13 states with an aim to develop reading habits among school students.WGSHA DISSERTATION 2013 33
  34. 34. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics The chart below explain the various content that users connect with across the world in a 60 sec time frame. People are constantly in touch through the Internet and for the Hospitality Industry a single “Tweet” is enough to create or break a brand – an example of this is the United Airlines case “United breaks Guitar” – more details in the Chapter on Case studies on Page 44.WGSHA DISSERTATION 2013 34
  35. 35. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics This chart explains what products and services are being sold across the world in 60 seconds. With this amount of connected products being sold every 60 seconds, todays consumer is engaging with stuff that they can co-create.WGSHA DISSERTATION 2013 35
  36. 36. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics In addition to the growth in incomes and consumption in the main Metro Centers, growth in disposable income in regional markets is forcing National advertisers to re-think their Media Strategy for Tier-II & Tier-III markets. These markets are the next consumption hubs. In order to tap the increasing regional budgets of the national advertisers and growing interests of local advertisers, media players are in expansion mode to increase their footprint in these regions. From a Hospitality perspective some important Trends about the Hospitality Industry are detailed in the following pages. I am not making any changes in this content as it is IPR Content. I am reproducing the extract of a interview released by Deloitte - An interview with Adam Weissenberg, vice chairman and U.S. THL leader, Deloitte LLP, shares his perspective on the Global Trends to look for in the Travel, hospitality and leisure (THL), as well as some thoughts around managing and innovating in the face of strategic issues such as heightened competition and eroding consumer loyalty. THL industry companies may have reason to be optimistic for renewed growth and for the power of technology to transform the consumer experience and for the opportunity to capitalize on emerging market growth.WGSHA DISSERTATION 2013 36
  37. 37. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics 2013 Outlook on Travel, Hospitality and Leisure, Interview with Adam Weissenberg – Vice Chairman, Deloitte, USA What are some of the key issues facing the THL sector in 2013? Heightened competition in a multi-channel environment, the pressing need for brand differentiation, and emerging market opportunities and challenges highlight strategic considerations that companies in the THL sector face in the evolving marketplace. 1. Heightened domestic and global competition: Sector players face a fierce level of competition. And, existing firms face the prospect of even higher competition given the relative ease with which new players may enter the marketplace. 2. Differentiation through the ‘upturn’: Businesses competing fiercely for market share may be forced to incur expenses to differentiate their offerings. If the economic recovery is less than robust, customer pushback may induce pricing pressures. The result may be a greater likelihood of declining revenue and lower profits. 3. Global expansion and growth in emerging markets: Business climate improvements in established markets appear positive for industry players. Still, many THLWGSHA DISSERTATION 2013 37
  38. 38. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics 2013 Outlook on Travel, Hospitality and Leisure, Interview with Adam Weissenberg – Vice Chairman, Deloitte, USA companies continue to focus on increasing their presence in less saturated, faster growing emerging markets to expand customer reach. As broadband connections and credit card penetration grow in these developing markets, online travel bookings are likely to increase, driving the need to access consumers in these new markets through online branding and marketing. What are some steps THL companies can take to manage through the current climate of economic uncertainty? 1. Attack business complexities to improve cost structure amid heightened competition: Many companies have reduced their operational costs through a combination of shared services, offshoring and outsourcing. But to cut costs further, THL companies should also consider simplifying the underlying organizational, portfolio, process and information infrastructure complexities. 2. Enhance the consumer experience and build true loyalty: A weaker job market will likely lead to lower consumer spending. Greater transparency means the consumer can research and book directly through suppliers, search engines, comparison sites, affiliates, agents and more. The increasing availability of online gaming is likely to siphon offWGSHA DISSERTATION 2013 38
  39. 39. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics 2013 Outlook on Travel, Hospitality and Leisure, Interview with Adam Weissenberg – Vice Chairman, Deloitte, USA some demand from physical facilities. But delivering a better customer experience will likely continue to be a key differentiator. Companies may need to have an efficient multi-channel distribution strategy and focus on consumer loyalty to sustain their top-lines through a valued customer experience despite a less-attractive location or higher price. 3. Realize the growth potential of new markets and market opportunities: Emerging markets —such as those in Asia and South America — will likely experience greater inbound travel. This is especially the case in heretofore closed or underutilized markets such as Burma, Cambodia, Vietnam and Belize. Companies should consider planning their market entry strategies as new markets open up. Additionally, new market opportunities in legalized gambling may be taking place in countries such as Japan and Vietnam. Should such opportunities materialize, companies should consider adopting strategies to build out the appropriate infrastructure. 4. Harness technology to improve operations: Successful industry operators may adopt new technologies for the purpose of information, promotions, bookings and reservations, and general management-control systems. Technical innovations can ease the business process andWGSHA DISSERTATION 2013 39
  40. 40. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Statistics 2013 Outlook on Travel, Hospitality and Leisure, Interview with Adam Weissenberg – Vice Chairman, Deloitte, USA increase hassle-free experiences for the customers. Digital innovations and social media play an increasingly important role as tools to attract travelers. What are high-performing companies doing to foster innovation and growth? In the current challenging economic environment, leading THL companies are leveraging social media and business analytic platforms to gain insight into customer preferences and drivers of customer loyalty. A number of THL companies are using their cash balances toward consolidation to improve their market share and sustain profits. Sustainability is gaining increased importance — while airlines are working toward fuel efficiency, many hotels and restaurants are re-engineering their menus to focus on organic, low-calorie food to build consumer confidence and reinforce their brand image. These innovation and growth strategies are likely compelling THL companies to examine their legacy structures and processes in the evolving marketplaceWGSHA DISSERTATION 2013 40
  41. 41. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Problem Statement With the new Media Environment having established itself in every household, the challenges that the Hospitality Industry faces are that of the “ALWAYS ON” consumer and also the “ALWAYS ON” Media Environment. Keeping track of “ALWAYS ON” becomes very important . “User Experiences” if Positive are very good for the product, but if the experiences are negative and they are shared by the consumer the damage can be quite devastating. There are various examples of how the “ALWAYS ON” consumer have helped establish or damage the reputation of a Hospitality brand. A lot of specific relations between the Media and the Hospitality Industry are discussed in Chapter 4.WGSHA DISSERTATION 2013 41
  42. 42. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies In this Chapter we will look at a few cases of how the relationships between various Media platforms have helped establish or eroded the positioning of a Hospitality brand. This relationship is every so important in today’s environment as we are dealing with the “ALWAYS ON” consumer whose basic requirement of to achieve instant gratification with very little room for any adjustments. The “Taste Spaces” of consumers and the availability of substitutes is forcing the Hospitality Industry be constantly alert to any deficiency in “Hospitality” levels. Media companies have establish Consumer choice Awards like – Times Food Awards, NDTV Good Food Awards, Skytrax World Airline Awards Freddie Awards and lots more to keep the Hospitality Industry on their toes.WGSHA DISSERTATION 2013 42
  43. 43. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 43
  44. 44. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 44
  45. 45. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies Environment Awards Event Youtube ChannelWGSHA DISSERTATION 2013 45
  46. 46. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 46
  47. 47. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies United Airlines had broken Daves guitar in checked luggage. After eight months of pestering the company for compensation, he turned to his best tool—songwriting— and vowed to create a YouTube video about the incident that he hoped would garner a million views in one year. Four days after its launching, the first million people had watched “United Breaks Guitars.” United stock went down 10 percent, shedding $180 million in value; Dave appeared on outlets as diverse as CNN and The View. United relented. And throughout the business world, people began to realize that “efficient” but inhuman customer-service policies had an unseen cost— brand destruction by frustrated, creative, and socially connected customers.WGSHA DISSERTATION 2013 47
  48. 48. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies “United Breaks Guitars” has become a textbook example of the new relationship between companies and their customers, and has demonstrated the power of one voice in the age of social media. It has become a benchmark in the customer-service and music industries, as well as branding and social-media circles. Today, more than 150 million people are familiar with this story. Now Dave has written a book in which you can read about how Dave developed the “just do it” philosophy that made him the ideal man to take on a big corporation, what it felt like to be in the center of the media frenzy, and how hes taken his talents and become a sought-after songwriter and public speaker. And businesspeople will learn how companies should change their policies and address social-media uprisings.WGSHA DISSERTATION 2013 48
  49. 49. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 49
  50. 50. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 50
  51. 51. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 51
  52. 52. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 52
  53. 53. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies Mahindra Holidays & Resorts India Ltd., (MHRIL) is a part of the Leisure and Hospitality sector of the Mahindra Group and brings to the industry values such as Reliability, Trust and Customer Satisfaction. Club Mahindra today has a fast growing customer base of over 150,000 members and 40 beautiful resorts at some of the most exotic locations in India and abroad and they use a Multi-Media platform strategy to reach out to existing members and also for reaching out to new members. The turn around time to handle “Hospitality” issues has a very clear escalation process and every complaint is handled like clockwork and a call back gets made every time a customer cannot get a resolution.WGSHA DISSERTATION 2013 53
  54. 54. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case Studies Club Mahindra uses a Multi-Media platform strategy to reach out to existing members and also for reaching out to new members. Platforms like Print – Magazines & Newspapers, TV, Social Media form a integral part of the Communication Strategy. They engage very effectively across platformsWGSHA DISSERTATION 2013 54
  55. 55. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesEditorial based Magazine dedicated tothe Resort with a collection of Articlesranging from Recipes to Camping andholiday planning guides.Members also write their reviews aboutthe resorts which are used astestimonials. Print AdsWGSHA DISSERTATION 2013 55
  56. 56. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Case StudiesWGSHA DISSERTATION 2013 56
  57. 57. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Conclusion Entire companies became involved in any marketing effort. There are cross media platform & cross product collaborations that come into play due to the complexity of Media + Hospitality interactions. If strategized well the dividends are immense as can be seen from some of the case studies. Used with low sensitivity, it can be a disaster – like the United Airlines case study. Or it could be more active, where different staff members participate in producing content. Your concierge team, for example, has a wealth of local knowledge and insider tips that can make compelling digital material – whether this is shared in a blog, on YouTube, through Twitter or on Foursquare.WGSHA DISSERTATION 2013 57
  58. 58. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Conclusion Lastly, apart from the shifts in consumer preferences, player strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted regulations on digitization for cable. The companies which will be able to adapt and use these changes to their best advantage will survive and flourish, whereas the rest might find it difficult to keep pace with the dynamic environment. It will be vital for players to continuously keep pace with preferences and behavior across customer segments, (including regional, hyper local communities, youth) and tailor the business models accordingly across content creation, distribution and price points.WGSHA DISSERTATION 2013 58
  59. 59. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Conclusion Drawing on some of the Learnings from the past chapters, it is now time to look at some of the case studies of how various Hospitality Companies have used different Media platforms to promote their product offering and profitability grow their business. Some Organizations have used Sustainability as a unique (ITC Hotels) and some have used something as simple as Sleep (The Westin). Airlines, Tourism Boards and Hotels all have used different approaches. In the complex, connected and “ALWAYS ON” world the business of Hospitality is be redefined – by the Consumer!!! Thank You!WGSHA DISSERTATION 2013 59
  60. 60. A COMPREHENSIVE STUDY ON HOW DIFFERENT MEDIA EFFECT THE HOSPITALITY INDUSTRY Courtesy & Acknowledgements REFERENCE COURTESY Dr.Bhaskar Das, Group CEO – Zee Entertainment Mr.Rajdeep Lalvani – Vice President – The Times of India The Education Times, The Times of India http://www.ehow.com/about_7221638_definition-print-media_.html http://www.hospitalitynet.org/news/4058659.html http://www.forbes.com http://www.picasa.com http://www.flickr.com http://www.globalization101.org/uploads/Image/Media/media-convergence.JPG http://digc202makedonka.files.wordpress.com/2012/08/convergent-media.jpg http://www.coloribus.com/adsarchive/prints/ghengis-khan-mongolian-restaurant-heart- 1682955/ http://www.google.com http://jingles.ivmmusic.com/music-jingles/ http://www.youtube.comWGSHA DISSERTATION 2013 60
  61. 61. RAGHAV LALVANI 24th Course

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