For some time now, hotel companies have been trying to improve the type and quality of data they hold on their guests and customers. The question now is how can this data be maximised in the hotel distribution battle? EyeforTravel's Ritesh Gupta explores this with two senior distribution executives from Kempinski Hotels and InterContinental Hotels Group
Hotel companies have been focusing on customised offers and delivering a personalised experience for their quest to get more and more direct bookings. Increasingly, hotel companies are approaching this by digging deeper into the available customer data and then using it as effectively as possible.
As the data accumulated continues to deliver competitive benefit, hotel companies are recognising that the more detail they have, the better they can analyse digital marketing interactions.
A changing game
For distribution executives, information obtained from the web, mobiles and so on and other publicly available external sources, can create be very helpful. In fact, such data could be a catalyst in enabling hotels to get that much closer to their guests.
"I believe the next big game changer is the integration of guest profile and social behavioural data into distribution touch points," says Riko van Santen, vice -president of digital strategy and distribution at Kempinski Hotels.
According to van Santen, the industry has seen brands use guest data to a certain extent in personalising their brand site point-of-sale experience for guests, as well as in electronic marketing towards these guests. "Now we see third parties collecting personal data at their touch points, and looking to find means of leveraging this information to better engage with the guests through their channels to create a sense of loyalty to their brands."
What's more, he sees both hotels and their distribution partners (intermediaries) integrating guest information/interaction from third party sources such as the various social media networks and external loyalty programmes sucha as airlines to better understand and serve the guests.
What's on offer today?
It's great to know your customers, but it's equally important to make their purchasing experience an enjoyable one. Andrew Rubinacci, vice-president, distribution and intermediary sales, InterContinental Hotels Group, explains that customers want a customised selling experience. "They want what they want in a way that is easy and convenient. Technology will enable us to give them this experience and in the end better serve their needs."
It cannot be overstated that how hotel companies choose to approach selling is critical. Whether they are selling straightforward hotel facilities or upselling a luxury product – it matters.
In van Santen's opinion, the guest experience, especially in the luxury category, starts even before guests arrive at the property. So the first point of contact is through various digital touch points, and the reservation steps as well as pre and post arrival points of contact are critical in providing the guest the brand experience.
"During the stay we do emphasise the total guest experience, offering excellence in service and products which go beyond just offering rooms and suites. It's about how we can better anticipate the guests needs and desires, and efficiently respond to their concerns or requests. What would make it happen? I think it's happening already, but the way CRM solutions are getting better integrated into point of sale (distribution) and in house (operations) systems shows that there are new opportunities for seamless, guest focus and engagement."
Still scope for change
On moving from distribution to retailing, van Santen offers these thoughts: "Hotels offer a specific service, I think there are certain elements that can be tied into this but it should relate to the overall experience." Of course, there is a lot of potential within the distribution landscape where hotels can still evolve, and the focus should be on reaching the market and converting the ‘looks' to bookings. "So if ancillary offerings can help improve these indicators, then yes. If it would distract then probably not," he says.
The discussion around the selling experience is not restricted to rooms and seats. As Rubinacci points out hotels have always been in retailing, whether we realised it or not. "What is happening is we are all becoming more savvy about how we interact with customers, giving some real thought to enhancing the experience," he says, adding that everyone eventually will sell all they have at their property online. Typically the retailing of additional services at the hotel was only done on property. This is no longer what guests want and the technology is now there to allow us to meet the guests' needs.
Mobile is the future
Traffic is rising on the mobile, and this is critical to any viable distribution strategy. "Like many companies we have mobile distribution as a priority in our brand's digital strategy," says van Santen.
He goes on to point out that the challenge is to fine-tune the look-to-book ratio, and differentiate the booking funnel from full websites, or social media booking engines. Brands need to understand that the user behaviour on a tablet may be different on desktop, even though the tablet sizing is not that different from traditional screen. His question is this: "At what point should the site respond differently?"
It might be helpful to consider how mobile distribution is expected to settle down in the next couple of years.
Van Santen has this to say: "It will most definitely grow in share, with some sources predicting than in the next three to five years the world will have 10 billion mobile connected devices. Not sure about settling down though – with new emerging distribution models (Google Hotel Finder) and technology (augmented reality) the mobile distribution landscape will see exciting and challenging times ahead."
Mobile will undoubtedly become the dominant platform over the next few years, but, as Rubinacci has indicated, perhaps the general principles guiding distribution will not change.
Source: Eye for Travel
