Destination: Connected Travel: 5 Big Ideas To Master Digital in Hospitality

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Destination:

Connected Travel
5 Big Ideas to Master Digital in Hospitality
Welcome to Connected Travel
The modern hospitality industry has weathered many changes through the years.
But nothing has transformed the industry as broadly or as swiftly as the digital
revolution has. Its impact is reinventing the entire customer lifecyclefrom
booking and the on-property experience to checkout and beyond.

Customers are in control like never before. From These are the players who make the digital business

peer-to-peer to metasearch and more, customers have case. They know that return on investment is not about

countless choices in how to search for and book a stay. the latest cool gadget. They see the bigger picture,

Information about properties, prices and performance is prioritizing digital investments to deliver business

at their fingertips on their mobile devices. Digital valueacquisition, retention and profitabilitywhile

technologies constantly push the boundaries of guest developing a flexible infrastructure and entrepreneurial

expectations. culture to stay ahead of change.

Disruption and disintermediation are everywhere. From Achieving this is a complex undertaking. But it does not

niche virtual hotel brands to some of the worlds most have to happen all at once. As traditional industry

powerful digital players, new entrants with inventive players set their digital itineraries, they must be willing

business models are vying for hospitality and travel to break from the status quo. What follows are five big

market shareand guest mindshare. It is an ideas to get started today.

unprecedented and evolving landscape.

Only the savviest players can win the battle for the

guest in this environment. They focus on the essence

of hospitalitythe guest experience. Nothing matters

more. Think of it as the evolution of white-glove service

for the digital age. Innovating with digital is not an end

itself. It is a means to transform the guest experience

and work more efficiently


Digital. Dynamic. Disrupted.
Check out the New Hospitality Landscape
The digital revolution has unleashed a convergence of forces that are transforming
hospitality fastfrom the moment people dream of a travel destination through their
stay on property to long after their trip is complete. Those who fail to adapt risk losing
out to both established and emerging competitors.

Fragmentation
More options > Less loyalty
Customers have many more options for
shopping, booking and managing their hotel
50%
of travelers consider
66%
of customers consider several
stays, and as such, are less likely to be loyal to shopping for a better hotel providers before booking.2
one brand, independent or OTA. deal important.1

Transparency
More information > Less control BOOK

From social media to price comparison apps,


customers can get a full picture of facilities,
49%
of travelers will not book a
93%
of travelers say their booking
customer service, inventory and rates before hotel room without a decisions are impacted by online
they even set foot on a property. review.3 reviews.4

New technology
More technology > Less excuses

82% 64%
From mobility to analytics and digital platforms,
emerging technology is continually extending the
art of the possible in hospitalityand customers of guests say that in room are satisfied with this service
know it. Wi-Fi is important today.5

72%
of guests say that free
55%
are satisfied with this service
property-wide connectivity today.6
is important

Disruption In June 2015, AirBnb closed a


More players > Less market security $1.5B funding round, and is
expected to top over $900M this
From mobility to analytics and digital platforms, year alone, with a $25.5B
emerging technology is continually extending valuation rivaling those of
Marriott and Hilton.7
the art of the possible in hospitalityand
customers know it. Market dominance is up for
In July 2015, Google began
grabs as business models evolve, deep-pockets
offering a direct booking
players like Google continue to make inroads service for some hotels on
into hospitality and travel, and existing players Google Search, Google Maps
such as Expedia, Priceline and Trip Advisor and Google +88
consolidate to shore up their positions.
5 Big Ideas
Stop being digitally disruptedand start becoming a digital disrupter.

1 2 3

PROPERTY WAYS OF WORKING OPERATIONS

Win the stay Use digital as an Raise the digital bar


with digital. efficiency multiplier. on the inside.

4 5

CORPORATE TRAVEL LOYALTY

Unleash digital to redefine Keep guests coming back


corporate travel. with digital.
1 PROPERTY
Win the stay with digital.

Digital is part of peoples daily lives at home and at Hotels must mix digital basics and digital cutting
work. So they expect digitally-powered customer edge for such unique and unified guest
experiences in room and on property during their experiences. At a minimum, travelers expect free
hotel stays, whether they are traveling for business access to a modern Wi-Fi network and in-room
or for pleasure. While guests digital appetites run technologies. Guests desire to bring their own
the gamut from digital-savvy to traditional, technologies and the warp speed that these
on-property digital options are increasingly technologies evolve up the ante on the high
non-negotiable and will become the norm sooner performance technology infrastructure. The quality
than many realize. Hotels will increasingly need to and availability of digital on-property options can
collaborate and integrate with an ecosystem of make or break future bookings. Good and bad
companies to provide guests with so much more experiences fuel the vast social media machine
than a traditional room stay. and can instantly damage brand reputation. Any
weakness is magnified a hundred times.

Hotel can take advantage of new technologies to enable a unified guest experience

Lighting devices
using IoT standards
controlled via the
Temperature controlled
device gateway with
via device gateway and
commands from
energy management
smartphone app
with commands from
smartphone app
Alarm clock controlled
via device gateway with
commands from
smartphone app
Room devices are accessed from
TV controlled via device
the guests smartphone, using the
gateway using
device gateway and hotel digital
smartphone
hub, giving full control to
content personalized by
interaction in the room
smartphone app

Client smartphone is the Keyless entry with smartphone


primary interface to the connect communicating with lock and
room experience controlled via device gateway
2 WAYS OF WORKING

Digital tools on the property are not just for guests. But realizing new efficiencies from digital takes
Hotels can harness digital to make hotel associates more than distributing tools to on-property staff.
who serve guests more productive. There are Hotels cannot assume that all hotel associates are
opportunities at every corner of the property. For digital-savvy and must help them build their digital
instance, front desk associates can ease peak-time IQ. The right training can help hotels transform
bottlenecks by using tablets for remote guest hotel associates into digital ambassadors. This
check-in. Or housekeeping managers can send way, hotel associates build guest relationships by
mobile alerts to staff members when rooms are helping them make the most of all available
ready for cleaning after guests check out. on-property digital services.

Open the door to digital


Smart shift preparation

Mary, a housekeeper, arrives for She securely fixes it into her She touches her NFC-enabled Mary is then able to go straight
her shift, and collects an preferred accessory, a wrist employee badge and the device to her first task.
available SmartWorker device strap. downloads her current schedule.
from the docking station.

Dynamic scheduling eliminates the need for initial Dynamic scheduling enables flexible working
shift planning, enabling the supervisor to focus on patterns, reacting to the needs of both the property
higher value tasks. and workers.
Smart problem reporting

Mary notices a broken room She selects the type of report Maintenance automatically John in maintenance has
lamp. By pressing the report and attaches a short audio receives the report on their enough information to repair
key, she is able to create a recording. She continues with tablet via the PMS and can the lamp. The PMS ensures
damage report using her her work. listen to the audio at their the task is completed.
SmartWorker device. convenience.

Combined categorized, and Automatic report Task tracking ensures


verbal reporting, alongside processing reduces the the breakage isnt
location tracking reduces supervisors load and forgotten about,
risk for error in ensures completion. improving guest
housekeepers reporting. satisfaction.

Smart do not disturb rescheduling

Mary, a housekeeper, knocks She discretely reports that the Janine is notified by the PMS of Marys schedule is updated to
and enters a guests room to room is occupied and continues the schedule change and incorporate the earlier
find out that the room is to her next assigned task. Marys new location, via the her postponed task at the optimal
occupied. Management Portal. time.

The housekeepers The system dynamically


front-line knowledge is optimises the cleaning
fed into the PMS enabling schedule and minimises
real-time optimisations impact on guests with
minimal supervisor input

Smart early guest check-in

As a guest tries to check in During a room clean, Mary is Mary follows the change of Once completed, reception is
early, reception logs the discreetly notified that her next schedule and makes up the able to notify the guest that
request in the PMS. scheduled task has changed. waiting guests room. their room is ready.

Real-time communication and scheduling


enables reception to give an exact time
when their room will be ready, allowing
our guests to plan their day.
3 OPERATIONS
Raise the digital bar on the inside.

Digital evolves at the blink of an eyefrom the disruptorsand meet evolving customer
latest app to the development of an entire digital expectations. When enhanced to their fullest
ecosystem. Many companies in the hospitality potential, several operational, organizational and
industry are struggling to keep up with this analytic capabilities can drive competitive
rapid-fire change. When it comes to their internal advantage and grow revenue potential.
digital capabilities, they are often failing to meet
customers digital expectations.

Companies need to extend their digital capabilities


so that they can quickly and effectively strengthen
and defend their positions against external
Cross-channel customer experience optimization
Integrated commercial systems platform
Customer acquisition and campaign analytics capabilities
Content management strategy and simplification
Customer service and loyalty value and cost-to-serve analytics
Open the door to digital
Integrated online and offline customer relationship management

4 CORPORATE TRAVEL
Use digital to redefine corprate travel.

Business travelers are increasingly taking While digital is evolving the nature of business
advantage of the choices travel provides. From travel, digital can bridge all stakeholder needs and
booking a spa visit after hours to adding personal interests too. While it is challenging for hotels to
days to a business trip, business travelers want personalize individual travel at scale, it is often less
more ways to personalize their travel decisions. complex to personalize the corporate experience.
This expectation impacts hotels, OTAs, sharing Groups of travelers working for the same company
services and corporate travel managers too. They are likely to have common interests, which gives
must balance accommodating employee requests hotels a springboard to personalize on-property
while controlling costs and compliance. meeting and events experiences for starters. Digital
tools made just for corporate travel managers and
those approved for use by employees can limit
compliance challenges.

Mobile apps designed for corporate travel managers


Mobile apps for business traveler that track compliance
Technology integration with partner companies
Online bill review and distribution to ease expense reporting
Open the door to digital
Customized trip planning portals for large corporate clients
Open the door to digital

5 LOYALTY
Keep guests coming back with digital.
Break down the guest lifecycle at every stage
to provide the best options based on data input
and analysis of past preferences.
Expand capture and integration of a broader
set of guest preferences.
Loyalty today is being disrupted by digital. The Use analytics targeting engines and
proliferation of loyalty programs from suppliers, algorithms to suggest options to guests.
OTAs and others gives customers endless choices. Surprise and delight guests with targeted
Points are no longer the prime loyalty differentiator. offers, leaving them with the perception that
Guest experiences and personalization are.
they really know me.
Hotels or any third parties are not in the best
position to personalize the experience. Guests are.
It is simply too complex and costly for both hotels Accenture surveyed
and OTAs to consistently deliver significant 23,600 customers in
personalization either on property or in the booking 33 countries about their
processespecially as customers needs preferences, levels of
constantly change. But the industry can still meet satisfaction and
guests expectations for just-for-me experiences. switching rates in
They can use analytics to empower people to relation to hotel loyalty
personalize their own experiences. for leisure travel.

37%
stated they are very satisfied
with their providers

25%
participate in Loyalty programs

24%
do not feel loyal to their providers

Book Your Digital Future


What does the future look like in the era of connected travel? Explore some predictions of how
hospitality will continue to evolve in the next two to three years:

The digital war rages on. The digital property thrives.


The hospitality industry will see the digital war for Hotels today understand the digital imperative, and are
customers intensifyand there will be casualties. using pilots to roll out digital on-property options for guests.
Traditional hotel brands, online travel agents and even This hospitality industry momentum around digital
players from outside the industry such as Amazon, Apple on-property options will speed up. And it will only lead in
and Google will vie for digital supremacy, continually one direction. In the near future, being in the game will
raising the bar on the digital experience across the mean that the entire property is digital.
customer lifecycle. There is no end to disruption. In fact, it
will likely increase and become even more significant
when the next inevitable downturn hits the industry.

Digital investment is hyper focused.


With the next downturn looming, it will be critical to demonstrate return on investment from desired digital marketing
investment to leaders who hold the purse strings and make spending decisions. Providers will need to deliver digital
marketing efficiently and effectively, focusing on ouatcomes, not just activities. Doing this means targeting digital
marketing strategies and tools to increase traffic, conversion and retain loyal members. It also requires incorporating
agile platforms to develop and deliver digital content fast, at scale and at the right cost.
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more than
358,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the worlds most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. The company generated
net revenues of US$31.0 billion for
the fiscal year ended Aug. 31, 2015. Its
home page is www.accenture.com.

1. Accenture Global Consumer Pulse Research 2014

2. Accenture Global Consumer Pulse Research 2014

3. http://www.statisticbrain.com/internet-travel-hotel-booking-statistics/

4.http://www.sabrehospitality.com/blog/2014-03-26/eye-opening-social-media-and-mobile-statistics-you-dont-want-to-miss

5. Accenture Millennial Hospitality Survey 2015

6. Accenture Millennial Hospitality Survey 2015

7.http://www.slate.com/articles/business/moneybox/2015/07/air-
bnb_disrupting_hotels_it_hasn_t_happened_yet_and_both_are_thriving_what.html

8. http://skift.com/2015/07/13/and-then-the-earth-shook-google-enters-travel-booking/

Copyright 2015 Accenture


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High Performance Delivered
are trademarks of Accenture.

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