HOTEL BUSINESS REVIEW

January FOCUS: Mobile Technology

 
January, 2015

Mobile Technology: The Relentless Pace of Change Continues

As the relentless pace of change in Mobile Technology continues unabated, the entire hotel industry is challenged to adapt and evolve in order to keep up. Every aspect of hotel operations is affected by advancements in mobile communications - from the front desk to room service, from marketing to maintenance, from housekeeping to food and beverage - and everywhere in between. Hotel guests now predominantly research and book their reservations on a mobile device and soon, if current trials are successful, they will also be able to self check-in, use their smart phone as their room key, order food and beverages from anywhere on the property, and link their own mobile devices to in-room entertainment centers so they can access and enjoy their own content. This mobile-powered behavior presents tremendous opportunities for in-location marketing. In-location marketing - which includes tactics such as geo-targeting and geo-fencing, proximity and beacon technology - uses varying location-aware capabilities that reside within mobile devices (think GPS, WiFi, Bluetooth and NFC) to reach guests directly on their mobile devices with marketing or customer service-focused messages and alerts - inside or near a hotel?s location. Location-focused strategies can be used in a number of new and exciting ways to attract guests to hotel properties, especially as technologies evolve and become more widely adopted by hotels and their guests alike. Hotels must make the necessary investments in their own internal communications infrastructure, not only to meet their guests? expectations but to update and streamline hotel operations. The January Hotel Business Review will examine which mobile strategies some operators have adopted in order to meet these challenges, and will report on the solutions that are proving to be most advantageous for both companies and their guests.

This month's feature articles...

Matt Carrier

The mobile eCommerce space in the hotel industry is growing and changing rapidly. With the massive influx of new distribution apps and mobile sites, it is vitally important that hoteliers stay educated and able to make informed decisions about their hotel participating (or not) in these new channels. Hoteliers must be able to take a pragmatic view of both their hotel(s) and these channels, with their specific customer profiles and compensation structures, to determine if they will be able to benefit from their participation. READ MORE

Mark Heymann

In today's lean hotel industry, managers can't afford to be desk-bound. They need mobile tools that allow them to manage operational issues immediately and efficiently from any location as they engage with guests and staff. Other factors that will drive demand for mobile in 2015 are regulatory compliance and the rise of app-savvy millennials as a key and growing segment of the labor force. The tech world is responding with mobile solutions that promise to transform the way hotels manage their employees while empowering those employees with the tools to better control their own schedules. READ MORE

Bernard Ellis

According to a recent study by Deloitte entitled Hospitality 2015: Game changers or spectators? , mobile applications will be a key area for technological development in the industry over the next year. As more consumers than ever before are equipped with smart phones and tablets to aid in booking travel, hoteliers are finding new ways to interact with guests and build brand awareness via mobile devices. READ MORE

Mehmet Erdem

Digital beacons in hospitality continue to guide travelers through an ever-increasing maze of travel challenges. These technologies are ever more deployed in hotels to assist though various stages of the guest-life cycle. Hoteliers are facing challenges as well as opportunities. It is imperative to offer an attractive value-proposition for the guests so that they are encouraged and motivated to engage with such technology-based services. Hoteliers are tasked with utilizing science along with the art of hospitality and determining the best way to engage guests in an era defined by social, mobile, cloud and analytics. No different than the bright lights that guided ships across the ocean in the night, or the radio waves that assisted planes in the sky, digital beacons will guide hotel guests throughout their stay and engage them in a way they will want to return again. READ MORE

Ted Horner

Consider these facts: According to Criteo's Travel Flash Report, the first half of 2014 saw: Mobile bookings on travel websites are growing faster than desktop, at 20 percent versus 2 percent Smartphones and tablets account for 21 percent of hotel bookings In-app bookings account for 12 percent of total mobile bookings made on travel websites Also worth considering is that there are now more than 6.5 billion smart phone in the world today and most people are traveling with up to 3 devices. READ MORE

Jon Black

As more and more hospitality marketers have begun to struggle with the omnipotent presence of social data and how it affects their brand, they have begun to question the very issue of branding itself. Only through Omni-channel listening - what some may call data blending - of data of all forms (ie. survey, Social, call-centers, emails, etc.) can we truly understand the volume, sentiment and impact that the voice of the customer has on our continued efforts to drive brand loyalty, guest satisfaction and profits. READ MORE

Marc Stephen Shuster

Hotel affiliates hold a myriad amount of customer personal information and a data breach suffered by an affiliate may impact the hotel's entire brand. One way to mitigate the risk of a data breach is to enter into a joint cyber security defense agreement. READ MORE

David Hogan

Hilton Worldwide recently announced that it plans on rolling out mobile room keys during 2015 as part of its effort to revolutionize the hotel experience by allowing guests to completely customize their experience through mobile devices. By 2016, hotel guests will be able to check-in and check-out, choose their room and purchase upgrades on a smartphone or tablet. The restaurant and retail industries have already begun using mobile technologies to better service their customers, but the hotel industry has been slower to catch up, with good reason. READ MORE

Marcus Robinson

I recently overheard my team prioritize “mobile” hospitality over every other guest communication method. I realized that through our association to a physical phone, we had limited our reach and would eventually become irrelevant in the industry. Using the term “mobile” is comparable to using the word “laptop” when attributing benefits of wireless capabilities. The real value lies in what “mobile” can do - the empowerment and choices the technology behind the device offers. Hotels should whole-heartedly actualize mobile technology, but stop picturing the concept as simply investing in a mobile application. What you should be thinking about is, “How do I truly communicate and connect with my guest?” READ MORE

Tom Moore

In today's fast-paced world of the hotel industry, guests are demanding that they have the ability to engage on property with their smartphones. What if you knew when a particular guest was arriving as he or she walked in? What if guests had the option to skip the check-in line and go right to their rooms? And what if you could send personalized messages to guests based on their loyalty program data and previous behavior? Beacon technology can now make all of this possible, and it will enable the next generation of guest engagement and a much deeper level of personalized interaction with guests than ever before. With a blend of Bluetooth® Smart and Wi-Fi indoor locationing technologies, hoteliers can provide every guest with the ultimate in personalized service from the moment they walk into the hotel to the moment they walk out. READ MORE

Nur Hassan

We are living in a native app age. The apps downloaded have become native to our productivity [native apps] leading to have the same impact in today's businesses as websites did in 90's. Surveys have shown that users prefer native apps over mobile apps or websites; according to a survey by Flurry in 2014, “Time spent on a mobile device by the average US consumer has risen to 2 hrs and 42 minutes per day”. As the trends continue, every business is trying to leverage native app technology to their organization's success. READ MORE

Gerry Samuels

The digital customer is not yet fully served by the hotel industry and the opportunity for a hotel to fully leverage mobile to capture this customer has now arrived. In order for a hotel to become truly customer-centric they need to explore how off-property hospitality can address the customer's pain points and enhance the customer's experience by developing engaging mobile apps. In this article we explore how leveraging “Big Data” in a mobile strategy is beneficial but limiting, and why hotels must also leverage the “Small Data” and digital interactions to provide “delight” to customers. READ MORE

Mariana Mechoso Safer

The on-property guest experience represents the fourth-screen in digital marketing. Savvy hoteliers recognize the value of providing a Guest Portal in terms of customer service and revenue potential. It is a practical way to push unique content to guests staying at the hotel and visiting the lobby. Managing and pushing content to a Guest Portal is easy and cost efficient. The main benefit to a Guest Portal is an improved experience for guests. Additionally, the hotel will experience a boost in revenues from on-site amenities such as their restaurant, spa and any on-property promotions. Serving the same experience to guests, regardless of whether they have made the booking or are currently staying at the hotel, is not an effective way to communicate with or make your guests happy. By serving a fourth-screen, or Guest Portal experience, any hotel can offer an improved guest experience which in turn leads to higher review ratings, increased guest satisfaction and repeat bookings. READ MORE

David Adelson

Mobile technology has empowered the hospitality industry to connect with and get to know travelers in an entirely new way, and as of recent, mobile features that enable collection of location related data are among the most popular ways to maximize a mobile strategy. This article discusses the specific trend of geo-fencing and how it can improve a brand or hotel's relationship with guests. READ MORE

Duane Hepditch

This year, 106.3 million people will actually book travel online, and a third of them will book via mobile. This is a powerful statistic that will only continue to grow, and it makes total sense. Travel is a completely mobile experience and it should continue to be. Whether it's using your phone to check for directions, researching dining in the neighborhood or even looking up a local telephone number, the mobile device is always by our sides when we're on the move. This, combined with the increasing number of travelers out there who expect more and more from their travel experiences, is why we work in Guest Relationship Management. Marrying these two together to provide the guest with a travel experience that starts as soon as they've booked and goes on well after check-out is what we do and is what's driving growth in the travel industry. READ MORE

Katerina Berezina

As we witnessed different technologies, such as telephones, cameras, and GPSs, converge into one smart mobile device, what did this convergence bring to the hotel industry? The speed of mobile technology penetration is fascinating, and provides important implications for the lodging industry and the society at large. According to the Pew Research Center, by the beginning of 2014 90% of American adults had a cell phone, and 58% of American adults had a smartphone. Moreover, 63% of adults use their mobile devices to go online, and for 34% of them mobile device is a primarily way of accessing the Internet. Cisco estimated that in 2013 mobile data traffic grew by about 80% over the 2012 mobile data usage, and 18 times exceeded the overall web traffic generated in 2000. READ MORE

David Tossell

Your customers' behaviors and expectations are changing -- and, unless you react, this is costing you money. You expect customers to pick up the phone, go and thumb-thru an (perhaps) outdated guest services book. Fewer and fewer customers conform to this behavior. This drives customers to pick up their mobile device and browse for information. And once on their mobile devices, the hotelier loses control over the guest experience. But, now you can fight back READ MORE

Vanessa Horwell

What is emerging as the biggest mobile-powered technology opportunity for the hotel industry in 2015? To borrow a phrase from the real estate world, it's "location, location, location." Hotels -- by their very nature - are about location. And location within the context of hotel marketing today is increasingly defined by the mobile device: a smartphone or tablet (and increasingly both) that now always accompany a traveler or guest into a property or resort. Free to email, text, chat, shop, search, snap or even sketch from almost anywhere through their mobile device, today's travelers and hotel guests expect the places they visit - including hotels - to reciprocate. READ MORE

Tom O'Rourke

A hotel mobile app can be a powerful tool that impacts your hotel's bottom line and your guest experience, but some hoteliers may have a difficult time understanding just how an app can be applied to their property. In this article, I'll cover the different scenarios for which a hotel app can be used and what I think are the best ways to use a hotel app. I hope to provide you with some great insights and ideas as to how an app can be applied to your property. READ MORE

Michelle Wohl

With the prevalence of smartphones, travelers are increasingly using their mobile devices to not only research and make reservations, but also to book services on the road and to share their experiences. Hoteliers need to examine how they can leverage mobile technologies to reach guests on their chosen platform in order to improve guest experiences before, during and after their stays. In this article, I will discuss new technologies that are enabling smarter engagement between businesses and mobile travelers, and how hoteliers should be thinking about servicing a whole new generation of guests who prefer to engage via their mobile devices. READ MORE

Janet Gerhard

What is the most important question hoteliers should be asking themselves as they weigh how to differentiate in a sea of sameness? Most would think it's about customer satisfaction. Many would drill down into issues related to their NPS (net promoter score). But new research from CEB has shown that the key question to ask is: How effortless is it to do business with your hotel? The predictive power of customer effort has proven to be strong. CEB found that of the customers who reported low effort, 94% expressed an intention to repurchase, and 88% said they would increase their spending. Only 1% said they would speak negatively about the company. Conversely, 81% of the customers who had a hard time solving their problems reported an intention to spread negative word of mouth. Today, effortless trumps “wow.” READ MORE

Marcus Nicolls

There is much said today about the importance of business savvy strategy—that constant stream of new platforms, plans, and programs. Well strategy is certainly important, but as Peter Drucker said, “Culture will eat strategy for lunch.” We believe the right culture executing on the right strategy is what will deliver the key results organizations are chasing. It is culture that should take the lead. Culture that delivers strategy to your guests. And culture that produces results. In this piece we deal with that mandatory marriage of culture and strategy and how a consciously managed culture begins with leadership. READ MORE

Michael Koethner

In the past 20 or more years, the striving for an attainable and visible goal, or a successful career, as we know it, has been in decline. Humanity is on the verge of a huge awakening and psychological advancement. As result of this paradigm shift there is great change of the traditional work environment and fundamental adjustments on the economic landscape. This shift has affected the lives of millions of people, families and companies around the world. More and more people ask themselves why they should do what they currently do and what would the benefit of their doing be if the products they produced and the service they have offered will be no longer useful, applicable or required, by tomorrow. For most people this circumstance conditional change has become a struggle for identity. READ MORE

Michael Elkon

While defining a “hostile work environment” is generally commonplace for HR professionals, one new, emerging trend in the workplace is the filing by employees or their attorneys of assault and battery charges. The law regarding assault and battery in the civil context has existed for decades, but in recent years, lawyers representing employees have started to make use of these claims with increasing frequency. This article lists five primary reasons for this shift, along with enumerating six steps an employer should follow to protect his company against an assault and battery claim. READ MORE

Simon Hudson

A major cause of poorly perceived service is the difference between what a firm promises about a service, and what it actually delivers. To avoid broken promises companies must manage all communications to customers, so that inflated promises do not lead to overly high expectations. With hospitality examples from all over the world, this article discusses four strategies that are effective in managing service promises: creating effective services advertising; coordinating external communication; making realistic promises; and offering service guarantees. READ MORE

Marco Albarran

Do you ever wonder “how can we find ways that we can train and educate our employees using a continuous approach, which can also be different each time, and challenge our employees to think critically, as well as develop them into caring and solution orientated employees, especially when it comes to resolving issues with guests?” This article will explore the power of how simple, documented case studies, can be used in order to engage employees in such a manner that they will be able to be on their feet, caring, attentive and driven to resolve guest issues. READ MORE

Pamela Barnhill

While independents - which by nature have more personality and distinctiveness than corporate hotels - represent half of the world's lodging stock, they are still underserved. IBC and its corporate sibling, InnSuites Hospitality Trust, aim to expand the branding of independents through marketing and trademark services. In this column, we look at why striking the balance between rapidly changing, ever more affordable lodging technology and the human touch that still counts so much is key to an independent hotel's success. That balance is within reach. READ MORE

Eric Rahe

Millennials aren't just interested in having the latest tech gadgets, flexible work schedules and GMO-free foods, especially when it comes to their living arrangements. The following article by Michael R. Ytterberg, PhD., AIA of BLT Architects takes a look at the most important elements in building, design and amenities for this demographic. Whether it's a larger, brighter, more spacious living room and higher quality finishes such as granite and quartz included within the actual living space, or a grand lobby and Internet lounges within the apartment building itself, these trends cannot be overlooked when understanding what millennials what and how to attract them. READ MORE

Christopher Bolger

Serving liquor is risky business. According to the Centers for Disease Control and Prevention (CDC), there were 88,000 alcohol-related deaths each year from 2006 to 2010, and MADD reports 28 people die each day as a result of drunk driving accidents. Like all businesses that serve alcohol, the hospitality industry must be concerned about these trends and their liquor liability exposure. READ MORE

Judi Jarvis

As with most industries, there are myriad competing interests in the hospitality sector: developer vs. lender; franchisor vs. franchisee; operator vs. guest; owner vs. management company. The list, cynical as it may be, goes on. But there is one thing on which nearly all business people agree, and that unifies even the most divided of parties: lawyers kill deals. As a profession, we may have earned that reputation through negative comments about proposed transactions; advice based on theory and not practice; and a failure to put our clients ahead of ourselves. A good lawyer in the hands of a smart client, however, not only avoids killing deals but can be one of your best sales tools. READ MORE

Richard Takach, Jr.

A continued positive economy, with the 2008-2009 recession firmly in the rear view mirror; excellent levels of business travel; and consumer confidence have all contributed to a sustained strong hospitality marketplace. At the same time, a number of factors, including the ability to acquire existing hotels for below replacement cost, the preference of private and public entities to purchase existing properties with in-place cash flow and the difficulty to finance new hotel construction have, so far, constrained overall growth in supply. With that said, it is important to note that strong recent sales prices have helped encourage some additional supply, especially in strong markets. This is a trend that bears watching. READ MORE

Prentice Howe

What are you doing to tell your hotel's brand story in a way that deepens loyalty with existing guests? Are you leveraging every on-premise touch point? Are you maximizing digital properties in a way that delights the customer throughout every step of the purchase decision? Today, everything can be viewed as a communications channel, and the opportunities are endless to strengthen the bond between customer and brand. Respected marketer, Prentice Howe walks readers through best practices from industry leaders to learn creative tactics in a way that's ownable to your property's brand story. READ MORE

Paul van Meerendonk

Another year has come and gone, and hoteliers worldwide are already planning for the months and quarters ahead. Renovations, expansions and overall segment growth will continue to fuel the industry and will gain much attention throughout the year, but it will also be crucial to monitor the constant evolution of today's hotel management environment. Change is upon us, and the ways hoteliers operate more efficiently while driving better revenue is the newest frontier. Take revenue management for example: no longer dictated by gut instincts or stagnant spreadsheets, the practice of revenue management—and the technologies driving it—continues to incorporate new strategies for maximum profitability. Not only are hotel operations more tightly integrated with revenue management technology overall, but that technology is extending to other areas within hospitality as well, enabling hoteliers to take a more holistic revenue approach. But these are just some examples of what to look for in revenue management as we begin a new year. Let's explore a few more. READ MORE

Joseph Ricci

Of all the challenges facing hotel management teams, linen loss may sound minor. Yet wasted linen is a tangible problem that affects a hotel's bottom line. Left unchecked, it can waste hotel resources and create crises that leave guests dissatisfied and staff frustrated. If controlled, it can generate savings, both of money and staff time. When we talk about linen loss in hotels, we're talking about the approximately 15 to 20 percent of linen products that are lost or discarded before the end of their useful life. That adds up. At approximately $250 per room for a four par of basic sheets and towels, linen purchases cost the hospitality industry $1.25 billion per year. If we factor in premium items like duvet covers, pillow shams and bath robes, that estimate goes up to $350 per room or $1.75 billion. That means the cost of replacing lost linen is between $50 and $70 per room, or between $2.5 million and $3.5 million industry-wide. READ MORE

Bonnie Knutson

I read somewhere that anyone can tell you to exercise more. But matching it to travelers' lifestyles and making it fun forever is hard. That is both the challenge and opportunity for every hotel everywhere in 2014 and beyond. We all want to live longer and better. And with rising health care costs, more of the responsibility to do so falls on our individual shoulders. That's why the media, the government, and business are admonishing us to eat healthier and exercise more. Hotels can be an integral partner in helping their guests maintain fitness as part of their traveling lifestyle. In this article, you'll read about five fabulous fitness trends for your hotel which I call the Fab Fitness Five. READ MORE

Sherry Heyl

Now that everyone has the ability to be an online publisher and reviewer, the story of one person's experience is no longer limited to who they know. Stories can grow into worldwide Internet sensations. There are also no shortages of sites where a guest can express their opinions to other travelers. TripAdvisor leads the pack, but there's also Priceline,Orbitz, Expedia, hotels.com, booking.com, and many other smaller players, not to mention the reviews that pop up on Facebook pages, Google plus, and within Twitter and Instagram streams. READ MORE

Ken Hutcheson

Choosing a landscape company can be a daunting task for property managers and owners, and knowing when it's time to switch can be even trickier. But choosing a contractor that can help you make a great first impression to your guests is a mission-critical task. Your landscape is an extension of your brand, so you must identify a landscaper who understands your vision, and quickly part with those who don't. READ MORE

Kelly McGuire

It's a great time to be in revenue management! Demand is up, rates are raising, and the revenue management discipline is getting attention at the highest levels in the organization. After five years of economic growth, organizations are feeling comfortable enough to invest in people and resources to improve decision making. Revenue management has always been at the center of data and technology investment in hotels. In 2015, revenue management has the opportunity to guide organizations to the processes and investments that will make the most impact on revenue and profits. READ MORE

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