The document discusses how data, pricing, and hospitality are becoming increasingly personalized. It notes that personalized data involves collecting extensive data on individuals from various sources and using that data for personalized pricing, personalized recommendations, and predictive analytics. Personalized pricing involves dynamic pricing that adjusts based on customer attributes and situational factors. Personalized hospitality focuses on providing authentic, local experiences through services like Airbnb that offer non-standard accommodations tailored to individual needs. The document argues that personalization will be a key competency for hospitality companies to remain competitive in the face of increasing disruption.

1. Disruption Gets Personal
Hospitality Financial and Technology
Professionals – HITEC Conference
June 24, 2014 | Los Angeles, California
Image Credit: WorldIslandInfo.com | flickr (cc)

2. The Crazy Ones Think Different
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Video Credit: Apple Computer (Unreleased Edit)

3. Disruption Gets Personal - Overview
• Personalized Data
– No Behavior Gets Overlooked
• Personalized Pricing
– Who Gets the Best Available Rate?
• Personalized Hospitality
– Selling Experiences, Not Just Rooms
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Image Credit: Sean McGrath | flickr (cc)

4. Personalized Data – Big Data
Big Data Doesn’t Fit Traditional Databases
• Volume
– Kayak: +40 Million Rows into 43 Fact Tables Daily
• Variety
– Facebook: 350M Photos | 4.5B Likes | 10B Msgs / Day
• Velocity
– Sabre: Processes 85,000 Transactions/Second
• Veracity
– 1/3 of Business Leaders Don’t Trust Their Information
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Image Credit: jesuscm| flickr (cc)

5. Personalized Data – Universal Analytics
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Image Credit: jesuscm| flickr (cc)
Not Tracking Visits – Tracking Visitors
• Anonymous Data Joined Using Customer ID
– Google, Apple, Facebook, Microsoft – UserID/IDFA
• Cross-Device/Offline Campaign Tracking
– Website, Mobile Apps, Call Center, On-site Actions
• Death of 3rd Party Cookie – Blocked by Default
– 1st Party Data Insights = Competitive Advantage

6. Personalized Data – Predictive Analytics
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Image Credit: jesuscm| flickr (cc)
Know Answer Before Question Gets Asked
• Customization Changes User Experience
– Search, Sort, Filter, Selection – Produces Response
• Personalization Changes Content
– Target Stores – Recognize 2nd Trimester Pregnancy
• Intense Testing Support
– Kayak: 30 to 50% Daily Visitors Involved in Tests
– Other: More Tests in 1 Year Than Company History

7. Personalized Pricing – Rate Parity?
UK/EU Outlaws Resale Price Maintenance
• Undermines Basis for Best Rate Guarantee
– Allows Discount on Wholesale | Rebate on Retail
• Rate Parity OK for General Public
– Unregistered Visitors & 1st-time Guests (Strangers)
• Outlawed for Returning Guests
– Existing Guest Registration & Previous Booking
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Image Credit: Ahmad Hashim | flickr (cc)

8. Personalized Pricing – Dynamic Pricing
True Rules-based Pricing Still Elusive
• New Segmentation & Conversion Analytics
– Starts with Sale Works Back to Identify Attributes
• Situational Pricing Adjustments
– Factors Conversion Opportunity / Weather / Time
• User Interface Offers Best Eligible Rate
– Eliminates Need for Guest to Know Codes
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Image Credit: Ahmad Hashim | flickr (cc)

9. Personalized Pricing – How to Compete?
Retail Pricing Versus Rebates & Discounts
• Advantage to Intermediary
– Multi-Brand | Better Data | Better Algorithms
• Limited Defensive Options
– Align Price / Demand / Conversion / Ad Bidding
• Who Ultimately Wins Customer Loyalty?
– Battle for Returning Visitor & Lifetime Value
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Image Credit: Ahmad Hashim | flickr (cc)

10. Personalized Hospitality – New Supply
“Location, Location, Location”
• Top Sharing Economy Lodging Websites
– Airbnb|600,000 Listings|34,000 Cities|190 Countries
– HomeAway/VRBO | 952,000 Listings | 190 Countries
– Xiaozhu | 20,600 Listings | 160 Cities | China
• Inverts Standardized Product & Market Segment
– Find Best Property to Match Individual Guest Needs
• Increased Regulation Inevitable
– Room Occupancy Taxes | Unit Usage | Life Safety
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Image Credit: Justin Brown | flickr (cc)

11. Personalized Hospitality – Value Creation
“Life is Service”
• Authentic / Highly Personalized Experiences
– Chip Conley | Training Hosts | 9 Service Standards
• Local Experience Focus
– Airbnb Neighborhoods | Lounges Hubs | 10 SFO
– HomeAway | Gogobot | Insider Local Guides
• No Nickel & Diming
– No Resort Fees | Free Internet | True Value Adds
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12. Personalized Hospitality
“The Guest is Always Right”
• Personalization is Core Business Competency
– Right Host + Right Traveler = Right Experience
• Model Rewards Highest Quality Service
– eBay-style Voting Supports Engaged Community
• Ease of Use & Discovery Biggest Challenges
– Mobile is Future - 26% of Business via Mobile
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13. Disruption Gets Personal - Recap
Turn Hotel Stays Into Travel Experiences
• Personalized Data
– Create Relevant Offers Appealing to Individuals
• Personalized Pricing
– Base Pricing on Guest Lifetime Value
• Personalized Hospitality
– Produce High Value Memorable Experiences
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Image Credit: Barry Bland| All Rights Reserved

14. Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: robert@rockcheetah.com
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Image Credit: Edward Koren | The New Yorker
Disruption Gets Personal