HOTEL BUSINESS REVIEW

February FOCUS: Mobile Technology

 
February, 2011

Mobile Technology: A New Dimension in Hotel Marketing

Already the most widely used digital device on the planet, mobile technology is currently booming! This issue will explore how mobile technology affects the way guests interact with your hotel brand, the multiple uses Mobile Technology has, from locating properties, managing bookings, replacing room keys, guest check-in, loyalty prog rams, mobile-only promotions... the list continues to grow. Hoteliers are looking to educate themselves and learn to better market to travelers on the go. The February issue will provide insights into different ways mobile can help you cut costs and generate revenue.

This month's feature articles...

Pascal Metivier

For years it was assumed that hotel guests wanted staff interaction at the front desk. Today's reality is clearly different. Findings from a recent Harvard Business Review survey on Self-Service (conducted in cooperation with the Corporate Executive Board, a leading research and advisory services company) concludes that businesses need to "stop trying to delight [their] customers." Rather than creating more nuisances (disguised as guest services) that require guests to stop by the front desk, the study shows that "customers want [to take] control over how and when they interact with companies." Anything less, analysts say, can result in "major competitive disadvantages, irreversible brand damage, and a loss of key revenue opportunities." READ MORE

Vanessa  Horwell

Hotel marketing has gone mobile.  Mobile marketing offers a cost-effective way for hotels to reach customers, whenever and wherever they are, driving business and bookings. Has your property harnessed the incredible marketing opportunity that mobile has to offer?  If not, then this article is a must-read as it describes four ways that hotels can 'go mobile' today. READ MORE

Marcio Avillez

Hotel guests are not just accessing the internet via laptop computers; they are increasingly accessing the internet via mobile devices such as smartphones and tablets, which have no wired connection ports and so the need for Wi-Fi in hotels is increasing. While globally, smartphone penetration among business travelers (69 percent) has outpaced the consumer market there is still a strong push from the consumer market for these devices too. The reality is that today's traveler, whether business or pleasure now carries a device stack consisting of a smartphone, a tablet and a laptop. Hotels will continued to be challenged by the travelling public to support a seamless user experience across all these form factors. READ MORE

Norm Rose

We are well in the midst of a mobile revolution. Mobile devices are not simply an additional guest touch point, but a new platform for customer interaction. This distinction is significant as a platform implies new applications and capabilities that were not possible on prior devices. Nielsen Research predicts that smartphones will overtake feature phones in the U.S. by Q3 of this year! In addition, over the next six months the market with be flooded with close to 100 different tablets. Forrester Research predicts that tablet sales in the U.S. will reach 44 million units per year, compared to 10.3 million in 2010. By 2015, 82 million people will be using the devices. The hospitality industry is particularly well positioned to use mobile technology to enhance the guest experience, promote onsite and local services and improve operational efficiency. READ MORE

Mike  Murray

The real mobile question is not if, but how you utilize this channel. This should be guided by your overall mobile strategy and which options meet you and your guest's needs. If you don't have a mobile strategy - you need one. There are almost endless possibilities for communicating with mobile guests, but your business needs to adopt a strategy to be successful. It goes beyond simply identifying all possible revenue and service touch points. You need to understand guest preferences for interacting with your brand and what they expect in return. Mobile guests are maturing quickly and have high expectations. So the longer you wait, the greater the chance someone else will fulfill their needs. READ MORE

Olivier Dombey

The global smartphone market is projected to grow by 24% CAGR and reach 619 million units by the year 2015. We as travel industry professionals are obviously dazzled by the very viable and possibly amazing opportunities for growth through mobile devices. Be it location based applications, pushed SMS; it's all there for the taking. Or are we all wearing blinders? Have we paused to consider the increasingly possible pervasive effects of getting guests so focused on themselves? Meanwhile are we unknowingly fulfilling a core CRM financial principle namely, pushing client servicing costs onto the clients themselves? Are they organizing their myriad of self-servicing mobile nitty-gritty 'bits' rather than appreciating the sensorial value of the services you so dearly hope to sell them? READ MORE

Des O'Mahony

By reacting too slowly to the development of the web, hotels largely lost the opportunity for direct selling online in the late nineties, ceding control to aggressive third party channels that now dominate online booking and extract high commissions. Only recently are hotels recovering that lost ground online through the use of online marketing and social media to reach the guest directly and lower their cost of acquisition. If hotels learn from the past and react quickly now to the explosive growth in the mobile market, they can avoid a repetition of the same mistake and begin serving their customers directly on mobile. READ MORE

Holly Zoba

Location-based games like Foursquare, Facebook's Places, and IMGuest are growing in popularity and evolving into more social venues daily. There are more than five million Foursquare users today and that number is growing daily. Hotels have a unique opportunity to benefit from this new channel. Find out how claiming your venue can help you drive more traffic to your restaurant, sell more weddings or create more employee engagement. It's simple and for now, it's free. READ MORE

Tom O'Rourke

There is a common misconception among smaller independent properties that a mobile app is expensive and only useful for larger hotel brands. In this article I explain why this isn't true and discuss how a hotel app can be a powerful marketing tool for hotels of any size and star rating. This article also provides an overview of the mobile market today, and outlines what your hotel needs to do to meet your mobile guests' increased expectations. READ MORE

Josiah MacKenzie

Since mobile devices are always with us, our sensitivity to privacy is much higher. Mobile messaging done incorrectly will likely be seen as abusive and damaging to your brand. There must be a coordinated effort to deliver the right information at the right time - and only with the recipient's explicit permission. For these reasons, the biggest opportunity I see in mobile communications is using it as a service channel - not as a direct sales or marketing medium. Let's examine how mobile messaging can be used for service. READ MORE

Brenda Fields

Contending with today's powerfully evolving mobile landscape, small chains to independent hoteliers are faced with a new challenge of quickly acquiring expertise in a 24/7 marketing environment, created by the rapid evolution of technology and the never-ending opportunities to deliver higher levels of customer-centric initiatives with more efficiently generated revenues. Now with the new year, it is apparent that a paradigm shift is happening in consumer-direct marketing, eCRM and alternative "hand held" distribution channels, due primarily to the immense popularity of smartphones. READ MORE

Zia Shiekh

The key to success is in leveraging mobile technology to create highly targeted and customized messages for 1-on-1 personalized marketing, which the guests truly appreciate and value as thoughtful and meaningful, making their life easier and simpler. Any hotel company that is able to master this would emerge as a sure-shot winner with highly interactive relationships with their customers, resulting in deeper and more profitable engagements. The ringing phone with a telemarketer at the other end is passe. READ MORE

William A. Brewer III

As the hospitality industry continues to emerge from the economic recession, there is little doubt that this year will bring both opportunities and unexpected challenges. Last year, we witnessed the opening of a number of new hotels and resorts worldwide, including a dozen new hotels in New York City alone. Many new management deals were also announced in 2010. On the other hand, the recent recession has left us with a considerable number of disputes between owners and operators. Those controversies serve as a reminder that, in good times and especially in bad, owners and operators need to understand their respective rights and responsibilities in the hotel management agreements they enter into. Because it is better to identify potential problems before they occur, this article briefly explores how owners and hotel operators may address legal and economic issues in hotel management agreements for major development deals. READ MORE

Brandon Edwards

There are two ways to increase profits - raising revenue or lowering costs. Hospitality employers often miss opportunities to lower costs by missing valuable tax savings attributable to hiring incentives. The federal government provides businesses with tax credits for hiring members of disadvantaged groups. This often represents a larger share of a hotel's staff than one would imagine. A member of a targeted group can be as simple as someone who lives in a designated area to one of the 40 million plus recipients of food stamps. Overall, a hospitality employer can expect between 15% and 25% of new hires to qualify for tax credits. Here is a rundown of the major programs to look at for 2011... READ MORE

Lynn K. Cadwalader

Chinese Investment in the hospitality sector is increasing as capital needs and investment opportunities in the United States drive the "yearn for yuan." Investment has been through both government-sponsored funds such as Chinese Investment Corp. (CIC), China's $300 billion sovereign investment wealth fund, as well as private funds and companies. Learn from the lawyer who represents and structured the investments for Shenzhen New World Group, Ltd., one of the largest Chinese investors in the Lodging Industry. Get an inside view as to how these deals are being structured, what Chinese companies are looking for in making an investment, cultural differences to consider in doing business with the Chinese and the forecast for Chinese investment in the lodging industry for 2011. READ MORE

Vanessa  Horwell

As technology advances, more and more businesses are taking advantage of the large number of consumers who are using their mobile devices to surf the Web. Like all businesses, hotels can greatly benefit from mobile marketing of all forms - from SMS messaging to social media marketing and apps. Creating a strategic mobile marketing campaign is the first key step for hoteliers in tackling this new frontier. Is your hotel in-tune with the world of mobile marketing? Have you organized a strategic plan? If not, what are you waiting for? READ MORE

Drew Rosser

Booking Engine, In-House Communication to Guest, In-House Communication Guest to Hotel Staff, Access to CRS, Access to CRS Reports. The mobile device has changed how the world communicates. The freedom it has given and the always-connected attitude has been readily consumed, some would say to our detriment. However, with creative know-how and a conscious effort to respect one's privacy the device can be a valuable tool for the hotel and travel industry. READ MORE

Jamie Womack

Several trends are emerging as the economy improves and the hospitality sector begins to show signs of recovery in 2011. Increases in occupancy levels will help drive the need for additional staff, but it may take several months before hiring within the industry rebounds from the recent historically low levels. Hospitality employers express concerns ranging from keeping top talent to operating with less staff and few dollars to reward employees. Hospitality workers are feeling more optimistic and are open to new opportunities. See what else may unfold in this article... READ MORE

Roberta Nedry

You have arrived, your moment of anticipation is here, you are about to open the door to your sleeping chamber for the evening and your temporary living quarters. You are about to experience perhaps the strongest impression making moment of your hotel stay. You have activated your contribution to the REVPAR of that property. You are entering - The Bedroom. What makes the guest room experience memorable? What are the dos and don'ts of bedroom service and how does each department/role of the hotel impact that intimate space? What kind of service will you experience in the bedroom? Read on... READ MORE

Paul West

Now that budget season has concluded for most operations and a plan has been made for the 2011 year, there is still much to consider for those who wish to prosper in this otherwise rather fragile economy. Having created a blueprint for the annual business in the budget, it is now important to work to stay in sync with that defined budget plan as well as the ongoing forecast on a day by day basis. What then should a property expect in daily operations information that can be reviewed in such a useful report? What is the information that Hotel Managers at all levels should utilize to make proper daily business decisions that are in line with the more detailed established budget plan for each week, month and remainder of the year? READ MORE

Eric Blanc

There's no getting around it-social media is here to stay. The question is: How can our industry use these powerful new tools to achieve our communications and marketing goals? Perhaps Einstein, in his infinite wisdom, had the answer-long before anyone put the words "social" and "media" together. Imagination, he said, is more important than knowledge. In the online age, this concept means that people who know how to use social media creatively are destined to surge ahead of those who only have knowledge of the tools. Keeping that in mind, check out six innovative ways to make social media work for you. READ MORE

Nelson Migdal

The credit world is considered by many to be in turmoil. Real estate values as measured through investment sales are below the lofty heights of just months ago. Residential absorption is dismal in many markets. Nevertheless, the possibilities for mixed-use development, anchored by an imagination catching array of amenities, remain strong, both domestically and internationally. In such a climate, the hospitality industry is attracting interest from experienced developers, owners and operators to be sure. However, there are new players in the game who see the allure, but are less familiar with the rules. This article provides a brief overview, both historic and current, of the law relating to hotel management agreements. READ MORE

Ann Manion

Right now your employees are using social media to share what's happening, what they think, and where they've been. They're engaged for both their personal use, and in some cases for their job. This article looks at ways to chart your hotel's social media governance, shares a database of 163 policies from a leading social media consultant, and checks in with a Director of Digital Marketing from a well-known hotel to find out his thoughts on the matter. One thing is for sure, when it comes to hotel social media policies, one size does not fit all. READ MORE

Paolo Boni

It's a competitive market online for hotels these days. What can you do to attract online travel shoppers, set your property apart and produce more hotel bookings? The answer, as a growing number of hoteliers have found, is to tell your story in a unique and compelling way -- tell it with video and get that video in front of as many shoppers as possible. Considering that hotel shoppers are clearly demanding video and your competitors are jumping in with both feet, it may be time to begin incorporating video and video syndication into your own marketing and e-business strategies. Such moves can generate impressive returns. READ MORE

Rohit Verma

If your would-be customer has started her hotel search by typing in a query to Google, Bing, Kayak, or another search engine, you need to make sure that your hotel comes up near the top of the search engine's results page. As you probably can guess, the reason you need to be near the top of the results page is that searchers rarely scroll down the page. In fact, in a study of web searchers' eye movements, a team at Cornell University found that the "hot spot," where users focus most heavily, is an area in the upper left corner of the page-essentially the top two or three of the unpaid, or "organic" hits. READ MORE

Kathleen Pohlid

Hotel guest rooms are a critical area of focus under the Americans with Disabilities Act. Do not incorrectly assume your hotels are ADA compliant because they have designated "handicap accessible" rooms on a low floor with accessible showers. The standards for guest rooms are detailed and rooms that were formerly ADA compliant may have been rendered inaccessible due to alterations and renovations. Additionally, the new 2010 ADA regulations and standards impose significant requirements affecting guest rooms. Are your hotel rooms accessible and ADA compliant? READ MORE

Coming up in March 1970...