State of The Art Hospitality
State of The Art Hospitality
State of The Art Hospitality
What’s not so readily apparent is how guests and other hospitality customers are
constantly changing their definition of what constitutes an excellent experience. Equally
elusive is to know precisely what your company can do to ensure it changes fast enough
to keep pace with changing customer expectations.
The proper strategy will inevitably involve how you treat your customers in the physical
world as well as the digital world. Every successful hospitality company has a good
understanding of how to deliver excellent customer service in the physical world. But
each year, the digital world takes on more importance. And now the two are intertwined.
Search engine
Website/e-commerce Search engines are the most popular area of the Internet
Personalized website experiences on average produce to visit in the latter stages of travel buying, according to
a 20% increase in sales but when a personalized call to the EyeforTravel study. Nine out of ten travel purchasers
action (CTA) is used the conversion rate is 42% higher than used a search engine in the 15 sites visited before making
with generic CTAs.26 Something as simple as recognizing a purchase. In the US and UK, more than 90% of people
customers by name can improve sales. who booked a hotel room or purchased an airline ticket
Advanced tools are available to combine and apply customer online used a search engine immediately before making
data from all channels, track recent interactions with the purchase. Travel companies are investing huge sums in
individual customers, and base offers on buying patterns of search engine marketing. The report noted that Priceline
similarly profiled customers. Many automated systems can spent $2.7 billion on search engine advertising from January
change offers in real-time in response to recent guest through September 2016, a 26% increase over the same
online activities. period a year earlier.30
Email Mobile
Email has come a long way from the days of “segment, batch, From more mobile-friendly websites to specific guest
and send.” And email marketing still has more marketing experience apps designed for mobile devices, the industry is
impact than social media, in part because email usage is responding to strong and steady growth in the use of mobile
ubiquitous. There are 2.6 billion email users worldwide, 91% devices. Research by Google revealed that hotel mobile
use their email daily, 77% prefer email for permission-based search queries increased 49% from 2015 to 2016.31
promotional messages, and 66% report making a purchase In response, some in the industry are launching innovative
based on a marketing message sent via email. The number new apps. For example, Journy launched an app offering
of email users is expected to grow to 2.9 billion by 2020.27 concierge-style service helping travelers customize their
The average ROI for email marketing across all industries is travel plans. Users answer questions about their tastes and
$38 for every $1 spent.28 Research also shows that hospitality preferences and the Journy staff creates a personalized
consumers respond favorably to emails that are personalized. itinerary for the trip and helps out with restaurant reservations
When a hotel sends a personalized welcome email to a guest and booking activities. With Journy, the app is free and cost
when they arrive, there is an 88% open rate and a 29% click of service is $25 per each day of travel.32
through rate. This is significantly better than welcome emails
sent in batches, which garner 52% open rates and 12% click
through rates.29
Perspectives: Customer Experience for Hospitality 7
Social media In October 2017, Marriott announced pilot program with
Alexa. According to Tony Stoeckl, global brand leader for
Social media is a powerful tool to generate awareness, nurture lifestyle brands at Marriott, “As a hotel brand, we’re in the
customer relationships and loyalty, and drive consumers to a experience business. This means (taking advantage of
brand’s website. Worldwide there are 2.8 billion social media technology that can) connect our consumers to the local
users, a number that grew by 482 million from 2015 to 2016.33 experience in the hotel or the neighborhood—as well as
Research shows 71% of consumers who have had a good removing some of the friction of transactions in hotels.
social media service experience with a brand are likely to The idea is that, as consumers have become increasingly
recommend it to others.34 comfortable with the technology, it’s now easier for a guest
Social media can also play a critical role in the booking to ask, ‘Alexa, what’s a good restaurant nearby?’ than to flip
process. According to the EyeforTravel report, one fifth of through a lengthy guidebook or call down to the concierge...
travel consumers visited a social media site among the 15 sites Having Alexa in the room lets you personalize the room
visited before a booking. Although research has suggested experience. The hotel chain is continuing to work with
that social media is most influential and utilized on travelers’ Amazon to ensure privacy.39
purchase decisions higher up the funnel, the high prevalence According to a recent survey of hotel executives, 74% plan
of social media visits indicates that it remains a useful to implement location-based technologies within a year.
marketing tool right up until the purchase.35 In a companion survey of hotel guests, 75% of guests were
It also plays an important role in marketing. Overt social willing to share personal information with hotels in exchange
media reviews can be a powerful marketing tool. Research by for tailored promotions, but 60% expressed concerns
Christopher Anderson at the Cornell University School of Hotel about privacy.40
Administration revealed that simply encouraging customer
reviews can boost a hotel’s ratings and revenues. Anderson
even found that consumers appreciate responses to negative Customer service
reviews more than those to positive reviews, with ratings rising Despite the growing preference for self-service, hospitality
more substantially in connection with constructive responses companies still must excel at traditional customer service
to negative comments than simple acknowledgment of interactions with guests. According to research published
positive comments.36 in eMarketer, the preferred service channel is largely a
Hospitality companies can use social marketing technology function of the type of request and the age of the person
for 24x7 social listening, monitoring, publishing, social profiling, making the request. People under 35 prefer digital customer
and social scoring to identify the best way to personalize service channels like social media and mobile apps, while
marketing offers. Many social marketing tools, when combined older people prefer the telephone or email. For billing and
with a CRM platform, also give hospitality marketers the ability payment questions, and for resolving problems, phone calls
to integrate social data with customer profiles. are the preferred channel for the majority of all consumers.41
Modern marketing technology gives customer service
representatives a complete view of the customer in real time
Geolocation and the same capabilities to optimize interactions to present
Geolocation has the potential to transform hospitality industry appropriate offers and help to resolve a problem.
marketing and service. Voice-activated device usage
jumped 130% from 2016 to 2017, according to eMarketer.37
Approximately 60.5 million U.S. consumers—20% of the
population—will use voice-enabled assistants monthly or more
often in 2017, and the heaviest usage occurs on voice-enabled
speakers powered by intelligent assistants, such as Amazon
Echo ™and Google Home™.38
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