Customer EXPECTATIONS HAVE CHANGED
People search for “Wow, I stayed in someone’s house near Venice Beach and I got a feel for what it’s like to live that life”, not “I’m staying in some tall building somewhere and I have to get a cab to go to the beach and it’s not fun by the time I get there”
Location + Comfort
Location + Comfort + Value
Location + Comfort + Value+ Service
Enter the sharing economy
Predator that the hotel sector wakes up sweating about … untold numbers of rooms, apartments, houses, yurts, treehouses, yachts, islands.
The sharing economy was never just about rooms; it was about redefining what hospitality is, what true service meant and realising that it was no longer wearing a white jacket with gilt buttons.
Homesharing came with the promise that you could feel at home while being away and learn more than you could when staying in a room that looks exactly the same. That you would be greeted with warmth, not the demand for your credit card.
Hotels and Airbnb are competing for the same customers
Clients have evolved, they are more picky, they want something more local, cheaper, unique, more experience driven. Airbnb is showing that these days guests are sick and tired of anything which is standardised, which has rooms that look like each other whether you are in Berlin or Sidney.
Customers want real experiences. They want to see what they are getting, they want something different, they want something unique, they want something that’s not run of the mill. They don’t want to feel like they’re just another number, just part of the system.
Hospitality needs innovation
Hospitality companies need to use the data more effectively and deploy predictive modelling to figure out what consumers want in real time.
Technology and customer data offer ways to do that better than a traditional innkeeper might have done years ago.
The combination of recognition and a good understanding of what individual preferences are is something that should be implemented systematically in order to win back customers from home sharing networks.
Those that FAIL
Holiday Inn Express. Five years ago, the best institutional hotel product to invest in was Holiday Inn Express. Today, it’s not even in the top 10. Why? Because Holiday Inn Express does not offer an experience.
Baymont Hotels. According to the customer satisfaction index, one of the worst customer ranked hotels in the USA. Has average amenities, average prices and average service. What it lacks? Memorable experiences worth sharing.
Those that SUCCEED
Hilton. Developed Honors rewards app, which included staff recommendations, on food, nightlife, shopping and activities, curated to appeal to a particular segments or customers.
Virgin Hotels. Launched ‘The Know’ – a preference program designed to create exceptional experiences. By filling in a questionnaire online, guests can choose what they’d like in their mini bar, discuss allergies, and even select a cocktail that will be waiting on arrival.
Kimpton Hotels. Guests receive personalized welcome gifts: favorite sweet and savory snacks, drink preferences, newspapers and more.
What is the common thread?
to get a free Room upgrade
SPA recommendation based on customer CRM % Web data
Present a menu that is in align with your guest's diet
Gift for a positive restaurant review