Briefing: In the Clouds – Changing IT systems in hospitality

The latest data from Cisco suggests that by 2019, more than four-fifths (86%) of workloads will be processed by cloud data centres and only 14% will be processed by traditional data centres. Cloud has been a game changer in all businesses, but in hospitality there has also been widespread upgrading of PMS and the introduction of customer relationship management (CRM) systems.

In these videos our experts discuss how the right technology systems can really make a difference:

Cisco’s statistics show that global cloud IP traffic will more than quadruple (4.1-fold) over the next 5 years. In the digital economy data use is rising fast. Cisco report that the workload for cloud data centres are already higher than traditional data centres, and this is increasing. Cisco say that “the workload density (that is, workloads per physical server) for cloud data centres was 5.1 in 2014 and will grow to 8.4 by 2019.”

A separate report by Fruition Partners suggests that switching to the cloud requires careful management. It revealed a fear in “85% of CIOs in the UK and US that cloud is reducing their organisations’ control over IT.” Using cloud systems and teaming up with technology partners with specific expertise is worthwhile part of modern business, but as with any change it should be carefully thought through to ensure it gets maximum results.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Convenience now key to customer loyalty

According to research from J.D. Power, 41% of loyalty members chose a program that was most convenient for the locations they travel to. The report also found that satisfaction with loyalty programs is highest among Gen Y members. However, in a separate survey Software Advice found that only 14% of Gen Y (18-34 year olds) participate in a hotel loyalty program. The industry is now finding new ways to define and encourage loyalty.

In these videos experts discuss how loyalty fits it into hospitality today:

Digital disruption has meant that loyalty is now lacking across many industries, not just hospitality. According to Accenture we now live in a “switching economy” that accounts for an estimated $6.2 trillion in revenue opportunity for providers across 17 key markets today.

Loyalty programs are still popular where the purchase is part of everyday routine i.e grocery shopping. Rewards that can be used routinely are also more popular. According to an Excentus consumer survey 37% of consumers prefer fuel saving rewards. Whereas only 17% prefer Airline miles and 14% prefer hotel points.

Staff communication is still driving much of loyalty participation in hotels. The J.D. Power 2015 Hotel Loyalty/Rewards Program Satisfaction Report found that 41% of members learned of their rewards program from a hotel employee during check-in/check-out.

Software Advice’s survey found that 51% of millennials who do participate in loyalty programs use their rewards on free or discounted stays. 51% said they would find a loyalty app useful, although 49% of respondents say they prefer to learn about their loyalty points via email.

The Switchfly Hotel Reward Payback Survey conducted by IdeaWorksCompany looked at “rewards payback”, reward value returned for every dollar spent on hotel rates. It looked at Starwood SPG, IHG Rewards, Hilton Hhonors and Marriott Rewards and found that Marriott Rewards had the highest average rewards payback at 9.4%. Value did vary depending on location and dates of the stay, and the highest payback result found in the survey was 24% for a stay in Hilton Beijing in February.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: New entrants keep industry in flux

Last year Amazon entered and left the hotel booking sphere in a matter of months. The hospitality industry is in flux with new players of all kinds entering the hospitality industry at different angles.

Google has also made several ventures into hospitality with its now defunct hotel finder page, and more recently added hotel booking function on Google Maps.

When companies from outside the industry enter hospitality, this brings new challenges and opportunities. In these videos hospitality experts share their reactions to new entrants:

In April 2015 Amazon opened its amazon.com/destinations page, on which customers could browse and book accommodation form a variety of brands. However, this service was stopped just six months layer on 13 October 2015. No reason was given but a message was placed on the website and booking that had already been made where honoured. This was not the only change in Amazon’s business last year, in December Amazon Local also stopped its daily deals.

Google has made several ventures into hospitality with its hotel finder, and Google Hotel Ads through which hospitality companies can buy ad space that appears globally on google.com and Google Maps, wherever customers look for hotels.

A search for a hotel on Google Maps brings up a list of hotel and price estimates, in the side bar and on the map. An extra search bar allows the user to select holiday dates and then click through to a hotel site to complete the booking.

With these frequent changes, and more sure to come from big digital players, the industry must continue to keep its eyes open and be ready to adapt.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Uniting systems for smooth service

A good hotel should run like a well-oiled machine. And of course machines, data systems, and digital platforms are a key part of successful modern businesses. According to a report by Accenture, “77% of executives think that within three years companies will need to focus on training their machines as much as they do on training their people.”

Integration between multiple systems is vital to achieving a seamless consumer experience. In these videos our experts discuss the technology systems used in different areas of hospitality business:

Accenture conducted a survey for its Technology Vision 2015. 2,000 business and IT executives across nine countries and 10 industries were surveyed to gather insights into the adoption of emerging technologies.

The report states that: “81% believe that in the future, industry boundaries will dramatically blur as platforms reshape industries into interconnected ecosystems.”

Industry specific technology platforms are now available to many industries. According to Accenture; “39% of executives say they are now using these industry platforms to integrate data and applications with digital business partners and collaborate, while 35% are currently experimenting with them.”

The report also found that: “81% place the personalized customer experience in their top three priorities for their organization.” This is certainly a key issue in the hospitality industry. In order to achieve this technology need to work seamlessly in real time, and information need to be shared consistently across platforms. One complication is that this may involve passing data to technology business partners and would need to be accepted by the customer. Accenture say that: “67% of individuals are willing to share data with companies, but that percentage drops to 27% if the business is sharing data with a third party.”

People are the centre of any hospitality business. Whilst hardworking technology is vital behind the scenes to be able to offer the services that we need to give, staff will always be needed to connect with guests on a personal level. One final statistic to mention from Accenture’s report is that: “78% believe successful businesses will manage employees alongside intelligent machines— ensuring collaboration between the two.”

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hotels struggle to follow trend for personalisation

Companies using personalised marketing have experienced an average uplift in sales of 19% according to research. Personal customer service has always been key in hospitality; ‘A warm and sincere greeting using the guest’s name’ is step one of the Ritz Carlton’s three steps to service. With the increase in data that is being collected from guests, hotels should be able to recognise guests from previous stays and personalise service towards them, but it is not easy. Figures from UNWTO show that there were 1087 million international tourists in 2013 and 6 billion domestic tourists worldwide. With so many different faces passing through the doors it is hard for hoteliers to distinguish individual customer profiles as our experts discuss in this week’s briefing:

Many hotel brands have loyalty programs, which can help them keep a profile of each guest but even within this there are many people to keep track of. Hilton HHonors is Hilton Worldwide’s loyalty programme, which has 42 million members. IHG has 161 million guests nights per annum and its reward club has 82.4 million members globally.

Research shows that 78% of consumers feel that personalised marketing content leads to a deeper relationship with a brand. Personalisation is also used in online retail. 60% of consumers prefer it when online store remembers their contact details and purchase information. In a survey by Oracle 54% of retail consumers said personalisation was important. With customer service becoming more personalised across the board this will continue to be a challenge for hospitality to figure out.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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