DISRUPTIVE TECHNOLOGIES IN HOSPITALITY
Over the recent few years, consumer behaviour has changed dramatically.
Easily available information coupled with the continued economic turmoil has made today’s consumers extremely discerning in their choices around travel. Hoteliers in turn, with access to the same data, have to fight harder to win customers’ loyalty. It is clear that this is a disrupted marketplace for hoteliers – the key question is “how does the hospitality industry adapt its go-to-market strategies to remain pro table?” The emerging technology trends in this industry provide an answer…
INVESTING IN MOBILITY
Knowing that the traveler of today is constantly connected, hotels are figuring out ways to harness technology to provide the ultimate customer experience. Smart phone apps allow customers to search, book and check into a hotel, and provide a key pass (much like mobile boarding passes) to enter their room. Imagine giving customers the ability to request additional services such as room service from their smart phone while still en route to the hotel. Or if you wanted feedback on their stay, you could send a push notification via smart phone as their taxi pulls away from the hotel – TripAdvisor- like ratings can be yours in quick order! Hotels have just begun to scratch the surface on mobility and this disruptive technology can harness significant customer goodwill and profitability in the years to come.
IN A DISRUPTED MARKETPLACE, HOTELIERS WILL DO WELL BY GOING BACK TO BASICS.
EMBRACING A SMARTER APPROACH TO PRICING
In order to become more competitive in today’s rollercoaster market, hotels must be smarter about pricing. It’s Business 101: when demand is robust, price aggressively; when demand is low, you need competitive pricing. This back-to-the-basics approach is what defines a rational pricing strategy, which involves understanding demand, customers’ willingness to pay, available inventory and overall market conditions. While disruptive technologies like social media and online travel agencies (OTAs) are here to stay, hoteliers would be remiss to lose sight of how important it is to make intelligent pricing decisions. And yes, augmenting these pricing decisions by leveraging social media Big Data is the next analytical step hotels should take.
RACE TO THE TOP
In a disrupted marketplace, hoteliers will do well by going back to basics. Know your customer better by harnessing Social Media data. Invest in Mobility and direct contact to connect better with your customer. Use dynamic pricing to keep up with the shifts in the market. The face of a hotel customer has changed and the industry has had a structural shift due to technology. Adapting to this new reality will mean the difference between success and failure and those agile enough to capitalize on these emerging trends will survive the race to the top.