Mastering the digital revolution in the lodging industry


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Accenture leads the way in Mobilizing the Hospitality, Travel & Lodging Industry!

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Mastering the digital revolution in the lodging industry

  1. 1. Keeping Upwith MobilityMastering the digital revolutionin the lodging industry The new concierge
  2. 2. Hoteliers find themselves preparing strategies for a new era—one ofoptimistic global growth but also one of unprecedented change in theglobal economy and the technology landscape. Now is the time forhoteliers to evolve their technology strategies and take advantage of theimpact technological advances can make on the business. As part of ourseries, Mastering The Digital Revolution in the Lodging Industry, Accentureexamines how keeping up with mobility can truly engage and convert the“now consumer”—a highly mobile, always-connected individualist.More than one billion of the world’s more than four billion mobile address mobility holistically to determine ways to effectivelyphones are now smartphones, and three billion are SMS enabled.1 integrate both guest and employee demands into their enterpriseThere are now 1.2 billion mobile Web users worldwide.2 And it architecture and across the guest life projected that by 2014, mobile Internet usage will overtake Lodging companies are already making inroads with incorporatingdesktop Internet usage. Already, more than 50 percent of all mobility at varying points across the guest life cycle. A lodging“local” searches are done from a mobile device.3 study conducted by Hotel Technology magazine showed that theMobility is pervasive in everything we do, and the way people majority of hoteliers surveyed currently provide, or have plans touse mobile technology is changing dramatically, with customers provide, guest-facing mobile apps for check-in and on-propertyleading the change faster than hoteliers. Today mobile plays an experience management.4 Many hotel companies have releasedintegral role in how people interact and buy. To find and buy mobile apps enabling users to search and explore hotels usingwhat they want, today’s digital consumers are better informed, location-based technology, and to book/modify their reservations.super connected and fully engaged across all channels—from Mobile apps also offer loyalty account integration, propertysmartphone, PC, stores, tablet, social networking and more. concierge and pre-arrival check-in services. A mobile user inThese trends will continue as technology becomes more New York City, for example, can receive a message to make asophisticated. Customers expect to use mobile devices to interact reservation at a hotel with location-specific offers. Separately,with products or services in new ways; employees look for mobile mobile phones are using smart technology to become multipurposesolutions to improve their productivity. Hoteliers will need to devices that can be used as digital keys to guest rooms. The new room key 1 statistics-stats-facts-marketing-infographic/. 2 ibid. 3 ibid. 4 “Lodging Technology Study: Hotel Technology in 2012,” Supplement to Hospitality Technology magazine, ❘ Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry
  3. 3. Many companies, particularly in the retail and consumer goodsindustries, are already reaping the benefit of an enhancedrelationship with the consumer through mobile technology.Accenture believes that hotel companies can use mobility solutionsto deliver benefits to guests in three key areas: Better guest experience that aims to increase revenue per available room (RevPAR) • Deliver mobile solutions that can manage/connect the guest throughout the entire stay life cycle • Provide point interaction-relevant services and information • Drive innovation through guest empowerment (e.g., self check-in, mobile room key, virtual concierge, point-of-experience surveying, etc.) • Enable “Georelevance” and location-based intelligence • Improve guest experience relevant to preferences and location • Enable mobile guest analytics “Smart” ancillary offers intended to enhance guest satisfaction index (GSI) and loyalty • Deliver personalized, location-based promotions on property for the guest or non-guest • Track what was redeemed, by whom, when and where • Incentivize intelligently based on loyalty preferences and prior usage history, to drive non-room revenue • Create real-time digital marketplace • Discover new avenues for promotions and offers Point-as-a-currency and mobile payments to help expand payment options while lowering operational costs • Enable digital payment and other offer redemption seamlessly as near-field communication $ (NFC)/mobile payment goes mainstream • Strengthen loyalty points by enabling spend for non-room items with points • Remove paper couponing • Strengthen payments and conversion of offers Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry ❘ 3
  4. 4. Mobile challenges and Guest mobile applications of platforms and toolsets, they can target their gueststechnology gaps Hoteliers have all taken consistency and reuse of better throughout the life enterprise services, and security. cycle of their stay. With digitalHoteliers have an opportunity different paths to serve their It is important to determine couponing on the verge ofto create additional value guest to achieve bookings, what key components make being huge to all industries,and lower operating costs by ancillary spend, loyalty, and up an enterprise mobility as lodging companies consideradopting mobile technology in some cases, on-property architecture solution. A plug- how it will play into loyaltysolutions. Given the relatively integration. They now need and-play approach needs to programs they will also needearly days and rapid evolution to determine the best feature drive a standards-based mobile to contemplate how theyof the mobility domain, set to offer guests via mobile architecture that enables will track digital couponhowever, it is not surprising applications, whether there is a hoteliers to innovate and redemption—who is redeeming,that most hoteliers’ plans single or multiple app solution, onboard third parties quickly. when are they redeeming andto implement solutions are and examine what competitors does it drive additional spend?disjointed. are doing and what results are Digital couponing will also addTo enable the guest benefits they achieving. Mobile couponing a new channel to harvest datathat mobility can offer, and loyalty for the analytics engine.Accenture believes hoteliers Mobility architecture Business-to-guest mobilityneed to address four key strategy and governance has become the new norm forchallenges: Guest mobile reaching a guest at all points of Mobile testingapplications, mobility Mobile architecture will need their stay. Hoteliers will want The testing of mobile solutionsarchitecture and governance, to serve both enterprise and to look at how to differentiate and Web presented onmobile couponing and loyalty, consumer-based solutions their loyalty program from mobile solutions is growingand mobile testing. and foster standardization their competitors and how in complexity with multipleWhat is top of mind among hotel executives regarding mobility?Accenture polled key industry functions via mobile devices? If so, what are mobility road map? the top three?executives on four questions 1. Developing something that is platform The following are the top on-property functions: independent with changing technologyaround mobility. Here is a 1. Advance check-in functionality and bypass the • Choosing platforms to develop (e.g., Android,summary of how they responded: front desk and use mobile device as digital key Apple, BlackBerry, etc.), choosing between smartphone, tablets; gaining biggest market share1. Do you have a strategy for implementing 2. Check-out functionality • User interaction variations per devicemobile websites for existing Web-based 3. Location-based services – Send guest messages(desktop) applications? 2. Security around PCI compliance and capturing based on where they are in the hotel credit card payments• Main work has been done around providing • Recognize guest arrived at the hotelaccessibility to Web content via mobile • Interactive offers based on guest location (e.g., 3.Integration – Enabling legacy systems towebsites. spa service while at gym, offers for drinks while work with the mobile devices in a secure and• For those lodging companies that have or are at pool/bar, etc.) structured wayconsidering mobile applications the main focus 4. Self-service concierge services: 4. Investing in features that are going to be theis around: • Order room service most valuable to the guest• Planning functionality – hotel/room search • Order food/drinks at the pool 5. Speed to market to ensure by the time a• Reservation/booking functionality • Set up wake-up calls function is deployed it is not obsolete• Loyalty functions • Request parking valet service • Information about the hotel, local attractions, 6. Bandwidth impacts to be able to support2. Where do you see the biggest application local restaurants, etc. demandof mobility in your organization? Additional on-property functions raised: • Guests now bring multiple mobile devices and• Most important is guest-facing – the complete want to interact with on-property devices (e.g., • Using guest mobile devices for entertainment/life cycle TV, stereo system, etc.) Download own movies and music to in-room devices• Prior – Search for hotels and book room • When outsource service to phone company • Electronic/digital currency – Purchase of• In-house – On-property services now, have security issues and data sharing on services and products using mobile devices• Post-stay – Marketing feeds carrier side on top of bandwidth issues 4. What are the key issues that you focus on3. Do you see a demand from your guest as you seek to develop and implement yourpopulation to enable additional on-property4 ❘ Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry
  5. 5. platforms, networks and success, hoteliers should take to those as the Web or other to leverage it to enable newdevices. The key questions to an end-to-end view of the key enterprise solutions. With business models. Accentureask here are: What do I test? guest life cycle and evaluate the proliferation of platforms finds the best approach is toHow do I test? Can I do it at how a single application and integration needed with evaluate the highest-value areasscale? or mobile experience can network operators, device of focus from both businessAs hoteliers respond to serve as a tool for the guest, manufacturers, business and technology perspectives,these challenges, they face a from booking to checkout partners, and application determine how to solve thefragmented industry landscape and everything in between. developers, the world of technical challenges, and “sell”in terms of incorporating Otherwise, lodging companies mobility can be overwhelming. the programs internally. Basedmobility apps. For some areas are losing the guest at the most To move forward with a clear on each hotelier’s enterprisein the guest life cycle well- critical point of the lifecycle— direction, hoteliers must begin and current mobile capabilities,established solutions exist; on property (the stay). with an overarching mobility the areas of focus and priorityfor other areas, solutions are strategy. Strategy development will vary as will the plans tolimited or nonexistent. In our should evaluate the entire implement them. Shaping strategiesexperience, however, we do not enterprise’s landscape of Too often the decisions aroundsee any solutions that enable As hoteliers look to serve guests functions and subsequently mobility focus on technology.a hotelier to manage the guest with mobile capabilities, they prioritize a hotelier’s areas In our experience, a hotelier’sexperience through the entire need to develop strategies of focus particularly along strategy and plan need to startstay life cycle. In our opinion, that look at engaging guests three lines: 1) where to adopt with a clear understandingwe see the industry falling short across the guest visit life cycle mobility to stay relevant in the of the value drivers desiredin leveraging the full power in new and compelling ways. industry, 2) how to apply it to and the strategic goals theof current marketplace mobile The mobility domain, however, gain a strategic advantage over organization wants to achievecapabilities. To maximize presents challenges similar the competition, and 3) how with its guests and employees. Hotel check-in from the airport Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry ❘ 5
  6. 6. The new room service menuThe breadth of what is possible understanding and use of A clear mobile strategy can help of integrating mobility withwith mobile is immense and analytics. And key to analytics, hoteliers achieve the potential property management systemsthus a company’s mobility scope in our view, is the need to business and productivity (PMS) and various points of saleneeds to be carefully planned look at what is feeding a benefits while minimizing need to be addressed early onto grow as the organization hotelier’s “analytic data store,” the challenges inherent to to avoid creating roadblocksmatures in its mobile enterprise that is, the warehouse, and any mobility endeavor—from later on.structure and capabilities. By to build an analytics toolset security and deployment to The world of the mobile guestdefining the business objectives on top that can interoperate manageability and cost control. continues to progress. As morefor mobile, the organization the stored data. What mobile From there, the organization and more industries respondcan understand what can be brings to analytics is to enable can implement and continually and adapt to the mobileaddressed based on the current new sets of guest data that a adjust its strategy as needs consumer, lodging companiesenterprise structure and what hotelier may have never had change and mobile technology will find themselves urgentlyneeds to be revamped or (e.g., location-based info from evolves. The good news is that keeping up with consumercreated from new. mobile, where is the guest the industry is in a position to expectations. Hoteliers who areIdeally, mobility is one of three interacting with your services, take advantage of third-party able to innovate and deliver akey elements of an overall what have they redeemed from ideas, use plug-and-play and differentiated experience viadigital strategy along with their phone [digital couponing], industry-specific applications, mobility will build better branda hotelier’s Web and social etc.). These mobile avenues build platforms that enable vs. loyalty and trust, surpassingmedia activities. Underpinning enable a “new intelligence” for inhibit, and reduce complexity competitors.the digital strategy is the analytics. and innovate quickly with fast speed to market. The challenges6 ❘ Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry
  7. 7. Breakfast in one clickKeeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry ❘ 7
  8. 8. For more information on getting personalwith guests:Visit:Please use QR scanner on your mobile BoushkaLodging Lead North Americamichael.e.boushka@accenture.comBob HerschChief Technology Officer Accenture’s Products Operating Groupdale.r.hersch@accenture.comDavid Rutkowskidavid.e.rutkowski@accenture.comLead – North America Sales, Products Operating GroupAccenture Mobility About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 249,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successfulCopyright © 2012 Accenture companies, Accenture collaboratesAll rights reserved. with clients to help them becomeAccenture, its Signature, and high-performance businesses andHigh Performance Deliveredare trademarks of Accenture. governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is ❘ Keeping Up with Mobility: Mastering the Digital Revolution in the Lodging Industry