amadeus hotel industry future

8/4/2019 Amadeus Hotel Industry Future

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Closing the gap between dreams and reality

The futureof the hotelindustryNext mnth, next year, next decade

- a blueprint fr the future f

the htel industry


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next month, next year, next decade . . .

Forew

or

d


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Next month, next year,next decadeIt doesnt do as much as we can dream.I dont know if well ever solve that one . . .

This is what one hotel senior executive recently told us when weasked how technology was constraining his business today.

We would love to speak to that executive a few years from now andhear that his technology platform does everything he could dream

of. Thats our aim and this report is a step towards closing the gapbetween dreams and reality.

As part of our ongoing quest to ensure we deliver future-prooftechnology, we commissioned research with Inspire Resources inthe second half of 2007 to nd out exactly what the industry wasdreaming about. They scoured the globe and asked a selection of thehotel industrys top executives, consultants and academics what theythink is driving the hotel industry over the short, medium and long-term. By understanding these drivers we aim to deliver technologythat will enable our customers to achieve their objectives. And to

shape the future of hotel technology.

Partnership is fundamental to the way Amadeus does business sowe also want to share this research. We hope you will nd in it someinteresting, surprising, and maybe reassuring insights into the futureof our industry. It would give us enormous satisfaction to nd thatthese insights had played an active role in helping you to create thefuture of our industry.

Happy reading,

Antoine Medawar,Managing Director,Hospitality Business Group,Amadeus IT Group


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As times change, so too does the terrain on which our

businesses are built. What is a top priority today may

not remain so tomorrow.

Section AThe short, medium and long-term drivers

1. Globalisation

2. Web 2.0/new technologies

3. Demanding/educated customers4. Price transparency

Short-term drivers

1

In 1987, respondents to a similar survey

would not have predicted the birth of theweb. Twenty years on, and it may be that

there is something equally revolutionary

just around the corner.

For now, all we can do is predict the future

as best we can while trying to prepare for

the unexpected. The tables reveal what our

panel of thought-leaders say the key

business drivers are likely to be over threetimeframes - the short term (i.e. the next

year or so), the medium term (three to ve

years) and the long term (from 2012

onwards). They are ranked in the order of

importance attributed to them by the

survey sample.


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It is signicant that the order of thepriorities changes, and how some of the

priorities disappear altogether as the

timeframe extends.

For example, web 2.0 is high up the agenda

today but in the medium- to long-term will

not be an issue. This is presumably because

businesses think they will be able to adapt to

its demands in the not too distant future.

But it is equally signicant how often thesame themes emerge. We shall look at three

of them the new breed of customer, new

technologies and globalisation in detail in

section B of the report.

Section C will briey look even further into

the future, and will summarise what our

respondents think the industry will look

like in 2012 and beyond.

a

1. Globalisation/emerging geographic markets

2. New technologies

3. Channel shift

4. Demanding/educated customers

1. Demanding/educated customers

2. New technologies

3. Hotel ownership

Medium-term drivers

Long-term drivers

2

3


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Two words cropped up time

and again when our panel

was asked to describe the

nature of the modern

traveller - demanding

and educated.

Whether business r leisure, budget r

luxury, he r she expects t feel special,

t have their expectatins met, t have

their experiences built arund them.

This is nt just abut the sft issues

f ensuring they have the right kind fpillw n their bed r can gain access

t the spa when they want it. It is als

t d with the run-f-the-mill, hygiene

factrs invlved in any htel stay.

As Chris Elam, vice president central

reservatins, Hyatt Htels, puts it: In

the past and even tday, we frce the

custmer t deal with us at regular

pints. Generally speaking thats

check-in, check-ut, wake-up calls,

rm service, things like that. Thefuture will see us interact with them

when they want us t. Whether they

want t check-in r check-ut r make

their reservatin electrnically r

nline, its ging t be n their terms.

I think everything is ging t evlve

int multiple tuch pints based n

custmer desire.

Mrever, this new breed f traveller

will knw what t expect befre they

arrive at their destinatin. They willhave dne their research. In a web

2.0 wrld, this will increasingly mean

reading what their peers had t say

abut the place theyve bked int.

Technlgy is f curse at the heart

f this. The demgraphic grup which

is appraching adulthd nw is

smetimes knwn as Generatin Y.

Like their Generatin X frebears, the

members f Gen Y have been raised in

a gadget-lled world of choice.

And theyre likely to be even moredemanding than their predecessors.

This is a theme picked up by Christine

Brsnahan, vice president distributin

and reservatins services at Carlsn

Htels Wrldwide. In my pinin,

the next generatin, Generatin Y, is

much mre demanding than the Baby

Bmer generatin, althugh I still

believe Baby Bmers have the biggest

market dllar t spend. But I think htel

cmpanies are ging t have t begin

t satisfy Generatin Y because their

expectatins are quicker, faster [they

are] mre self-centred.

Many Generatin Ys will expect yu t

conrm their booking via SMS. After all,

they get bank accunt statements thisway. Can yu deliver that?

They will expect bradband in their

rms, and may wish t dwnlad

music, vides and mvies ver the

htel netwrk. Culd yurs handle

the demand?

A yung Generatin Y business traveller

may want t reserve sme time in the

spa at the same time he bks his rm

nline. Are yur systems geared up

fr that?

Paulo Salvador, senior vice president,

internet relatinship market and

studies at Accr Hspitality Wrldwide,

pints ut that there is a lt f wrk t

be dne befre technlgy is truly part

f a htels DNA. He says: The htel

industrys gal culd be cmpared t

the airlines when it cmes t guest

interactin. Everything [in the airline

sectr] is dne nline research,ticket prices, seat and meal selectins.

The next cntact we have with the

air cmpany is t sit n the plane fr

departure. Yu dnt even have t tuch

the check-in peple Htels have nt

yet reached such a level f interactin.

N htel chain ffers the client a

cmplete nline experience. The client

still needs t bk, g t the htel fr

check-in, receive the rm key at the

frnt desk, pen the dr with the key

and rder rm service with the phneand s n.

Section B

1. Demanding/educatedcustomers

The three key drivers of change


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Why cant a htel send a barcde t a

guests mbile phne which will act as a

virtual key?

After all, the fd retail sectr is already using such

technlgy t give custmers discunts at the till. It may

turn ut that there is n demand fr such services in

ur industry as mst htel guests will always want thepersnal tuch that nly face t face interactin can

prvide. But these things shuld be up fr discussin nw.

The prblem is that histrically, the hspitality sectr has

not invested as much in IT as, say the retail or nancial

services sectrs. But this must change if the mdern

traveller is to be satised.

Hyatts Elam adds:The hspitality industrys channel

and cntent management is abslutely average if nt

belw average when cmpared t ther industries, like

nancial services. Customers dont compare one travel-related cmpany with anther; they cmpare yu, yur

website, yur cntent, yur distributin methdlgy,

with the best f the ther cmpanies they deal with in

their wrking day.

Many f thse cmpanies have becme adept at

persnalising the cntact they have with their custmer

base. Banks and supermarkets knw s much abut

us that they can tailr cmmunicatins and prduct

offerings to our individual proles.

The same cannt be said f mst hspitality businesses,

which d nt spend enugh time wrking ut hw they

can explit the data available t them. That mindset will

have t change ging frward, as will theenabling technlgy.

Cindy Estis Green, managing partner f the Estis Grup,

says. The relay and exchange f infrmatin between

peple n a persnal and cmmercial relatinship basis

is becming mre imprtant. The system will need t

becme smarter s that mre f what is knwn abut

peple is taken int accunt

If smene is lking fr travel infrmatin, instead f

getting 180,000 hits n Ggle, the system will knw thatthe persn lking nline is a teenage girl wh is int

fashin that search result will be different if a business

persn were ding the search.

She adds: In three to ve years, there will be much

mre f that type f searching ging n. We better have

technlgy that is able t handle it s that we knw abut

ur htel custmers and knw that they are a cllege

student r an executive wh is lking fr smething

different in a htel These are different peple and we

have t treat them differently every step alng the way.

They will expect that.

This is far frm being a trivial matter f curse. We are all

different peple at different times. Yu may be a business

traveller ne day and a leisure traveller the next. Yu may

be bth during the curse f ne htel visit. Hw can a

htels systems knw which versin f yu has cme t

the website via Ggle?

We are all different people at different times.

.

Chris Elam,

Vice President,

Central Reservatins,

Hyatt Htels

Cindy Estis Green,

Managing Partner,

Estis Grup


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Technology is likely to

provide the answer.

It is available now (or will

be very soon).

The trick is knowing how

to invest in it and use it.


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nCapturing and making use f custmer infrmatin is key

nMultiple tuch pints need technlgy t supprt all custmer

interactins, frm the cnsideratin and decisin-making prcessthrugh t the pst visit perid

nThe nature f that custmer interactin varies frm cuntry tcuntry, but the technlgy has t enable the cnversatin thappen regardless f lcatin r language

nCustmer engagement and persnalisatin is required acrssall tuch pints. This might need t be a tailred gift t a highvalue guest instead of loyalty points, or exible check-in andcheck-ut times

nThe industry must embrace cmmunities and scial netwrkingas they are set t grw in imprtance

nDistributin, channel and cntent management will becmemre cmplex

The demanding/educated customer.Business implications

The demanding/educated customer.

Technology requirementsnCentralised, comprehensive proles with CRM (customer

relatinship management) and lyalty integratin. Integratinis key htels need easy access t custmer infrmatin frmthe research stage thrugh t the pst-stay perid

nThe develpment f custmer-centric prcesses enablingpersnalised ffers and services thrughut all guestinteractin phases

nEmbed user-generated cntent cllectin, analysis and usein the search prcess

nDeliver cmprehensive search capabilities and cntent,including destinatin infrmatin

nEnable nline bking f rms, htel and destinatin services


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The back ofce systems used by companies

in the hospitality sector are, of course, crucial.

For example, integration was identied as a

top technology priority by many of the

survey respondents.

That should help deliver cross-channel

distribution, make it possible to yield the last

available room whatever the point of sale,

or enable the instant accrual or redemption

of loyalty points at any customer touchpoint

for example.

Anther tp pririty was ensuring that applicatins, databases

and netwrks culd interface mre easily with thers in the

future. There appears t be a strng demand fr pen systems.

Some of the challenges being faced today are more to do with

day to day operational efciency. This may be a less glamorous

tpic, but it is just as imprtant.

For example, Stuart Walters, chief information ofcer of

WoRLDHoTELs, says: Prcess is very imprtant in this picture.

We d have plans t include technlgy integratin fr ur

htels. It tends t be nline fcused. But we are als helping

our hotels to be more efcient. For example, with rate loading

and day-t-day wrk. There is a lt f grund t be gained in

terms of process efciency.

Whether t centralise r decentralise the IT infrastructure is

als exercising the minds f sme f ur survey respndents.

Heiko Siebert, vice president of distribution at Movenpick

Htels, explains: We denitely need to make a decision

whether t cntinue with ur current decentralised apprach

r t centralise mre. Bth have prs and cns. operatinally,

the mve t centralise the whle thing has advantages; n the

ther hand, we wuld like the cntent prductin t remain

n the side where the cntent knwledge is, which is typically

decentralised. Lng-term that is mre expensive. This is a

decisin we have t make in the next 12 mnths.

We are sure he is nt alne in that. It is als smething that

Riko VanSanten, the VP of distribution and IT at Golden Tulip

Hspitality Grup, is thinking abut. He says:I think

applicatins r usage f applicatins are becming mre

centralized, mre remte, mving away frm the srt f

traditinal PC r lcal server envirnment where yu wuld

run guest applications or back of ofce applications, to more

on-demand systems. So the internet becomes more your PC

rather than a lcal PC in the htel. Nw that translates behind

the scenes fr the htels peratins but it als translates t

the guests experience.

2. New Technologies

Stuart Walters,

Chief Information Ofcer,

WORLDHOTELS

Heiko Siebert,

Vice President Distributin,

Mvenpick Htels

Riko VanSanten,

Vice President f Distributin and IT,

Glden Tulip Hspitality Grup

The three key drivers of change

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For the rest of this section, we will focus on

the customer-facing operations of hotels

and hotel chains. One theme that emerged

strongly from the discussions with our survey

respondents was the growing importance of

the mobile channel.

Technlgy is getting smaller. The functinality that used t

be the preserve of the PC migrated rst onto laptops, then

PDAs and nw nt mbile phnes.

The use f these smaller devices fr bking travel is nt

yet cmmnplace but it will be. Nw that the brwser

technlgy built int them is s gd, and wireless

netwrk speed limitatins are nt really an issue anymre,

a cnsumer may want t bk a trip as sn as he r she

sees an ad n the bus. They wnt want t remember theURL and lk it up when they get hme. They will want t

conrm a booking via SMS.

The technlgy platfrms used by hspitality cmpanies

must supprt and enable all user interfaces, frm phne t

fax t PC t PDA t mbile. They must be able t adapt each

time withut the need fr data t be re-keyed r fr any

ther human interventin.

n

* Forrester Research believes that mobiledevices will have to support a number of

activities in the future, including coupons

or vouchers, SMS short codes for push

and pull marketing campaigns, mobile

search marketing, mobile advertising and

proximity based marketing.

These activities are easy to imagine today.

But the future may see us living in a Matrix-

like world. Face recognition software is

developing at a rapid rate, for example.

Sometime soon, we may nd that a frontdesk hotel representative will be wearing

glasses incorporating a camera and a tiny,

built-in screen that displays

information about a guest to her.

Or it may provide audio information via an

earpiece, reminding the representative when

the guest last stayed with the chain and at

which hotel. It may simply supply the name

and some basic information about him.

Forrester has also predicted that in threeto 10 years time, the technology to enlarge

the data content returned on mobile devices

will become commonplace. This could be a

exible liquid crystal display or a portable

holographic projector.

Think thats far-fetched? Maybe. But it is

worth considering that the web is only 13

years old, and look how far it has

come in that time.*

11


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It is easy to get carried away with thepotential of technology, but it shouldonly ever be deployed where its wantedand needed.

Henry Harteveldt at Frrester Research had these

wrds f wisdm fr anyne thinking f ging

verbard with IT. I d nt believe custmers will

necessarily be using kisks r the internet t check

int rms. There will be sme grwth in that

area but I dnt think that is necessarily what the

custmer wants. They value the persn-t-persn

interactin f checking int a htel. Technlgy will

be perating in the backgrund mre and mre, in

terms f custmer infrmatin, custmer preference,

custmer behaviur, helping t guide the htel staff

tward relevant suggestins f upsell and crss-sell

ffers.

Chice is the key thing. If a custmer wants t d

everything nline, let her. Ideally, let her d it in her

wn language. If she wants t use the phne, make

sure yur call centre staff have access t exactly

the same infrmatin she has nline. This srt f

thing sunds beguilingly simple, but is nt always

happening tday. Indeed all staff will need accesst a different kind f data if they are t deliver the

personalised, exible service tomorrows traveller will

demand.

Cindy Estis Green predicts that sftware will change

t meet this demand.The ld, linear versins f

CRM systems will becme multidimensinal. Yu

want t knw abut each individual cnsumer. Is she

travelling alne r with her family, is she n business?

There are many versins f each f us, and [htels]

need t respnd t the right ne The technlgy has

t enable this persnal relatinship

Getting to that point is not about lling in more

lines on a prole. It is about observing the consumers

behaviur while staying in htels, while searching

fr infrmatin, while talking abut her experiences.

There will be 100 times as many surces f

infrmatin because s much f it will happen nline.

It will be captured, and therefre available t us s we

can have a real relatinship with her.

The nal word on this should go to Hyatts Elam.

Thse wh can deliver n that persnalisatin,deliver dwn t the htel stay, nt just the

transactin, will tend t win ut in the lng run.

Technlgy is bund t be at the heart f that.

nCntent and shpping/bking capabilities must be available n mbile devices

nMre data will be stred yet access t it must be quicker and mre intelligent

nSystems used by consumers and staff must be intuitive

n online bking capabilities will need t imprve. There must be relevant

availability and prduct respnses based upn custmer intelligence

New technologies.Infrastructure requirements

Henry H. Harteveldt,

Vice President & Principal Analyst,

Frrester Research

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3. Globalisation

Globalisation was the third key driver

identifed by our survey participants

and its a complex one.

The rst thread to draw out from the

respondents answers is the impact ofemerging markets and how hotel companies

might expand into them. The markets most

frequently mentioned were Russia, India,

China and the Gulf.

There are pprtunities in all fur regins f curse but they

cannt be treated as a hmgenus blck.

This is something Stuart Cerullo, senior vice president of

business strategy and key initiatives, Wyndham, knws verywell.our stated grwth plans are internatinal and a

signicant proportion of that growth will be in Asia. They dont

have that many PCs in Asia. They d have an verwhelming

number f mbile phnes. We dnt d business that way s

that is just ne thing we are cnfrnted with frm a

technlgy standpint that we have t think thrugh

and plan fr.

That is yet anther argument in favur f building true crss-

channel distributin capabilities. It sunds easy, but legacy

technlgy means it is anything but.

Then there are cst factrs. one leading htel executive

explains hw his cmpany takes advantage f differing

labur verheads.We have t make sure were nimbleenugh t react t market pprtunities we have enugh

lcalisatin in the regins, but we als leverage ur scale. It is

lking at new lw-cst centres where we can d smething

that is extremely high quality ur ffshre call centre

conversions are higher than the US and UK for example and

is much less expensive. Take that mney and reinvest it in

ther high value things,he advises.

But the differences in the cst f the glbal wrkfrce d nt

always work in your favour. Take Shangri-La Hotels and

Resrts. It has a reputatin fr excellent custmer service. Itsprperties in Asia are extremely well-staffed, and, while it may

be a clich, many f the lcal ppulatins in that part f the

wrld are famed fr their hspitality.

When expanding into the US or Europe, it can be difcult for a

company such as Shangri-La to maintain those staff-to-guest

ratis and thse levels f hspitality.

As chief information ofcer Anand Rao asks: Hw d yu

transfer a Shangri-La experience from Singapore, Hong Kong

r Beijing t Chicag, Trnt, New Yrk r wherever? The csts

are different, the staff strengths are different, the staff trm ratis are different, but we need t make sure we are

delivering on the Shangri-La brand formula It is very easy to

get it wrng.

a

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Andrew Rubinacci at Intercontinental Hotel Group has

already seen the implications of this at work. There are

a lt f emerging markets and they are all different in

different ways. China is pretty much bypassing the GDS

altgether and is ging directly t the web. Pland is

three t fur times mre likely t bk n the web than

book through an ofine agent, but Russia is the opposite

because f the visa issues. Yu have t understand lcal

dynamics in each market.

Thats a theme picked up by Paulo Salvador at Accor

Hospitality Worldwide. I need t be in cmpliance with

the new and emerging markets in terms f delivering

value in the bking experience. Fr example, the client

wh is bking frm China will need t have a bkingexperience that is related t his values s I will need t

adapt my cntent. I will need t adapt my language, I

will need t adapt my perfrmance systems t the new

needs f the emerging markets Thse markets are nt

nly big, they are als different.

nBrand integrity: htels need t supplycnsistent service and supprt in aglbal envirnment, while adaptingservices t supprt custmers withnew cultural backgrunds andsensitivities in lcal markets

nStafng is the key challenge whena htel chain is expanding skills,training and intuitive technlgy areamng the critical success factrs

nHtels will need the ability t easilymanage prices and payment acrssmarkets, channels and segments

Globalisation.

Business implications

nCentralised management f cntent,rates, proles and channels

nBusiness rules t enfrce brandgovernance while enabling ne-tuningof controls to support the specic needsf lcal peratins

nMulti-lingual cntent and reservatincapabilities

nMulti-currency, exible taxes andrates management acrss markets andsegments

nMulti-lingual admin GUI (graphical userinterface), customisable workow,

e-learning (to help with staff training)

Globalisation.

Technology requirements

These are just a fewquotations that summarisethe rst globalisationthread the challenges ofmoving into new marketsand the vagaries of theglobal labour pool.

A second thread andarguably a more signicantone is the impact that thenumber of travellerscoming out of countriessuch as Russia, Poland andChina is having.

1


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Now its time to get the crystal ball out.

Section CThe long-term picture

As part of the survey, our interview subjects

were asked to look into the next decade and

beyond. We wanted to know what some of the

long-term drivers of change in our industry

might be. As we outlined in the table in section

A, they are the customer, new technologies

and hotel ownership.

Weve already covered off the rst two of these, while number

three is wrthy f its wn reprt. As the ultimate cnsumer f

a htels services wnt be much interested in whether the

htel theyre staying in is wned by a private equity cmpany

r an entrepreneur, we wnt g int it here.

What we thught we shuld d is sift thrugh the survey

responses and draw out one or two of the more signicant

lng-term trends.

The rst one we would like to highlight is a shift from

gegraphic t demgraphic and techngraphic markets. The

inuence of Generations X and Y has already been mentioned.

But the s-called Millennials will be jining the wrkfrce and

visiting htels befre lng, and sme experts believe yu

shuld lk beynd gegraphy altgether when planning

fr the future.

Henry Harteveldt at Frrester Research is ne such persn.

New emerging markets will always be there but I believe that

the emerging markets will shift frm being gegraphically

based t being demgraphically based, he says.

The Gen X and Y generatin are independent. Cmpanies are

ging t have t establish relatinships and prve t these

custmers why they are wrth being cnsidered. In the

meantime, these yunger generatins f travellers will be

doing their own research, will be more self-sufcient, will be

mre reliant n technlgy t learn abut destinatins, t

learn abut htels, t plan their trips - they will be mre

reliant n using technlgies that are mbile-based.

Gen Ys will want to ask you a question via SMS and will expect

an immediate respnse. This may mean that call centres will

have t handle text cmmunicatins as well as vice calls.

Indeed that may nt even be a lng-term gal,

but ne wrth aiming fr in the near future.

In some ways, the old demographic denitions will also need

to be redrawn. There is an association in the United States

which arranges travel discunts fr its members, wh are all

ver the age f 50. The generatin which is nw appraching

that milestne d nt cnsider 50 t be ld, and in any case

will nt want t be reminded f their age. They may appreciate

travel discunts, but they will want them based n wh they

are, nt hw ld they are.

n 1


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Anther innvatin that is likely t affect many in the industry

is the appearance f mre lw-end htels. This des nt mean

we shall see the rise of squalid, cramped, ea-ridden hotel

rms, but des mean new chains catering fr the less

afuent traveller will spring up.

As Ted Hrner explains:Yu are ging t see the rise f mre

low-end hotels as the low cost carrier (LCC) model takes offLCCs have allwed anther class f traveller t travel fr the

rst time and many of them dont have a lot of money. So

hw are we ging t accmmdate their requirements? Yu

are ging t see mre f these EZ htels. I still see a great

need for ve-star hotels, but in sheer numbers youre going to

see the mid- and lw-range marketplace start t becme mre

signicant.

That will create challenges fr htels because they will nt

want t spend as much mney n technlgy because the

room rates will be so much lower than in a ve-star hotel.

This is where ASP and web-based solutions really come into

their wn.

The second trend is to do with branding. This

is an issue which is at the forefront of most of

our respondents minds today, and will stay

there for years to come.

In a wrld f scial media, brands are ging t be crucial.

Chice is ne thing travellers are nt shrt f; a knwn brand

is a shrtcut t a cnsistent quality f service and reduces the

time it takes t bk a rm.

It has t be said that sme industry cmmentatrs believe thebrand will becme irrelevant; having read what ther guests

have had t say abut a htel, and having seen their pictures

and vides f it, wuld-be travellers will nt care what name is

hanging abve the drs f the htel in which they end up

bking a rm.

But if yu subscribe t the frmer pint f view and mst f

ur respndents d the brand will have t engage with the

target audience earlier in the decisin-making prcess.

Cindy Estis Green has an interesting take n that subject:It

used t be that there were marketing campaigns designed tbuild awareness and then anther set f campaigns designed

t target the pint f purchase. There is an interval between

awareness and selectin which includes the perid f research

and validatin by the cnsumer and htels have traditinally

dne little t engage the custmer in that part f the purchase

prcess.

Due t the transparency affrded by the cnsumers use f the

new scial media tls, htels can nw mre easily interact at

every pint in the purchase prcess: befre, during and after a

htel stay is experienced.

That is beginning t change, accrding t Estis Green, and will

be hugely signicant for all hotels in the future.

She also makes the point that hotels have in the past not been

great at what yu might call pst-stay cmmunicatin. They

need t get better at keeping in tuch with a guest with

relevant cmmunicatin. They need t wrk harder t

get that repeat bking.

This pst-stay perid will becme even mre crucial as

increasing numbers f peple g hme after their trip and

write reviews and share their thughts nline.

Brand differentiatin will als be a majr battlegrund f the

future, accrding t Peter oCnnr, directr f institute de

management htelier internatinal f the Essec Business

School in France. I think ne f the things that we are seeing

already is the develpment f mre niche prducts that

htel cmpanies which were trying t be the same befre are

trying t be different, trying t create sme srt f brand

identity, both ofine and online, he says.

Fr example, InterCntinental Htels & Resrts are trying t

sell the experience idea, Nvtel are trying t sell this whleidea f a sanctuary frm the business wrld. Theyre all trying

t psitin themselves in the mind f the cnsumer as nt just

anther chain htel.

This message has already hit hme with Christine Brsnahan

f Carlsn Htels Wrldwide: I wuld say that ur biggest

bjective is brand value [and] brand cnsistency. I believe

that if the htel cmpanies d nt cntinue t talk abut their

value prpsitins and hw t differentiate themselves frm

each ther, then we will becme a cmmdity and if we

becme a cmmdity then the way yu wuld distribute

yur inventry culd be substantially different.

So to me the [big question when it comes to] achieving our

business bjective is hw t keep urselves and ur industry

frm becming a cmmdity? I dnt want t be an airline. I

just dnt want t d that. And I think we are at risk f thathappening.

Peter oCnnr, PhD,

Academic Directr -

IMHI (Institute de Management Hotelier International)

Ted Hrner,

Managing Directr,

E Hrner & Assciates Pty Ltd

1


17/24

Cnsistency is a key wrd here. The brand has t cmmunicate

its values thrughut the purchase cycle and beynd. This

cycle includes the rst Google search, the consideration and

shrt-listing prcess, the stay itself and then n int the

pst-trip perid when reviews may be written and repeat

bkings cnsidered.

Bill Carroll at Cornell University sums this up nicely. Yur

capability nce yu interact with the custmer t prtect yur

brand and engage them creates an pprtunity t capture

that custmer fr current and future bkings. Hw htels d

this is ging t be essential t their success. In the case f

brands r chains, they must prtect their brand and engage

the custmer thrugh all the distributin channels and tuch

pints. This culd include search engines r Facebk r a

branded website. Htels must engage the custmer

hwever they can.

Anther lng-term threat t htels is the risk f new entrants

int their markets. Villa rental cmpanies fr example are

ften better than their htel cunterparts at marketing their

prtfli f prperties nline. Their use f pictures, vide and

lcal infrmatin ften utstrips that f htels, and as mreand mre peple bk nline that culd be a prblem. They

culd als start buying up htels f curse.

But its nt all dm and glm. There are likely t be new

pprtunities ut there. Fr example, many in the industry

believe that supplying sme srt f prvisin t the elderly

is a natural extensin f htel cmpanies current

business mdels.

Cindy Estis Green picks up on this theme. There will be a

blending where hspitality will start mving int hspital

and senir care. It will nt be clinical, but rather a recreatinal,

pampering, spa and health-riented directin.

That makes perfect sense. The Baby Bmers, and mst

certainly Generatin X and Y and the Millennials, will have

grwn up valuing experiences. It is nt just enugh t travel

in hpe any mre; what yu d n arrival is the thing. This

attitude is likely t extend int ther areas f their lives,

including retirement.

a

Bill Carroll, PhD, Senior Lecturer,

School of Hotel Administration,

Crnell University

1


18/24

ConclusionIf one message came through loud andclear from our survey, it is that we are

in a period of unprecedented change.

Customers are changing; technologyis changing; markets are changing.

This can feel overwhelming.

But this is also a period of unprecedented opportunity. The

new breed of customer can be catered for; new, future-

proofed technology is available; new markets are an

opportunity for growth.

This surely feels exciting.

We at Amadeus are certainly inspired by the possibilities.

We are committed to being at the forefront of these

changes - next month, next year and on into next decade.

1


19/24

A day in the life

of a futuretraveller

x

Its never easy t predict the future . . . but we are basing ur tale belw

on solid foundations. Indeed, some of the activities our ctional family

undertake are pssible tday.

This scenari is all abut capturing the latest trends that are turning travel int a self-

service and ut-f-the-bx experience. The guiding principles f this scenari are based

n three big hspitality trends:

Globalisation1Demanding/educated customers2New technologies

3 1


20/24

One day, a family sits down together to plan

their next holiday. Grandfather is 60 years old

(and therefore part of the baby boomer

generation). Mum and Dad are 40 and 41

respectively; as such, they fall into what is

often known as Generation X. Their children (a

son and daughter of 14 and 13) may not like

being branded as such but, demographically

speaking, are members of Generation Y.

As with any family, their wants, needs and patterns f

behaviur vary. This leads t sme heated discussin, but they

nally reach a consensus that the holiday should be in Europe.

The family members then agree t g away and investigate a

few specic holiday options. They plan to reconvene in a day or

tw t cmpare ntes.

Dad is n a train n his way hme after a stressful day at the

ofce. To cheer himself up he thinks about the holiday and

ges nline t begin his search fr the perfect place t visit. He

uses his iPhne t g t TripAdvisr.cm t check his inbx fr

the travel alerts he has set up, and also visits a travel-specic

search engine to get rough pricing information on ights and

htels. He als has a lk at eBays travel sectin and then

brwses thrugh sme phts n www.panrami.cm t get

a avour of a few potential destinations.

At hme, his daughter is n scial netwrking site Facebk,

chatting virtually t her friends and asking fr their pinins

n a few different lcatins.

Meanwhile Grandfather is having a real cnversatin with a

travel agent in an ofce on a high street near the family home.

They are exhibiting behaviur that is typical f their respective

generations. Mum, Dad and the kids (or generations X and Y)

are tech savvy, brand agnstic, deeply cynical and extremely

independent.

When it cmes t travel, these yunger generatins are ding

their wn research instead f relying n traditinal surces f

infrmatin. They use technlgy t learn abut destinatins,

t learn abut htels, t plan their itineraries. Increasingly, the

technlgy they use is becming wireless and mbile. They are

n lnger reliant n the wired desktp PC.

The fllwing day at breakfast, the family members sit dwn

tgether again and agree n a shrtlist f destinatins within

Europe. At length (and after some heated discussion), they

decide that Barcelona ts the bill.

And s they are ready t bk. Dad is always n the lkut fr

a deal and s shps arund n varius websites. He ends up n

a htel branded website as it prvides the best rates. It als

helps that it hsts cntent in his language and includes 3D

phts, virtual turs and 360 panramas.

And so, without further ado, onto our story . . .

Destination planningand search

0


21/24

The hotel branded website features a calendar

which clearly shows which rooms are available

when as well as an upsell panel, cross-sell

panel and multi-room booking functionality.

The family is unaware f the industry jargn f curse; all they

care about is that they can congure each room to their own

requirements and specify the additinal services they require.

The parents request a rm with a sea view and a king-sizedbed fr themselves, a duble rm with twin beds fr the kids

and a standard rm fr Grandfather. Using the upsell panel

Dad bks breakfast fr the duratin f the stay and als uses

the crss-sell panel t reserve a spa treatment fr Mum and

daughter. Son is lucky enough to get a Nintendo Wii in his

rm while Grandfather and Dad ensure they avid the

queues n the glf curse by bking a tee time n the htels

site. Dad als arranges airprt transprtatin t avid hassle

when arriving in Barcelna. Being a savvy traveller, he gives the

hotel the ight details during the booking process. He knows

this will help should, for example, the ight be delayed.

In addition, Dad lls out a complete customer prole for each

member f his family, including rm preferences and

hbbies. He knws that this infrmatin may be shared with

the airline, but is perfectly OK with that. Indeed he is more

than happy fr htel and airline t access each thers data

abut him and his family as bth parties will then be able t

deliver a mre persnalised service.

Once the booking is complete, Dad receives conrmation via

email and als has the ptin t retrieve mre infrmatin

frm the htel branded website.

A little while later an invitatin t becme a member f the

htels lyalty prgramme arrives in his email inbx. He is

offered 500 bonus points for being a rst time booker on the

website, which he gladly accepts.

Hotelbooking

Before long, Dads decision to ll in the

customer prole form pays off. The hotel

sends him an email about a jazz festival thats

taking place in Barcelona during his holiday.

As a jazz acionado (and one who likes to share his passion),

Dad bks tickets fr all three adults and cmpletes the

transactin using a third party destinatin services partner.

Again, he is unaware f the jargn the transactin is

transparent t him since a link is prvided in the htelsemail t facilitate the ticket purchase. As far as hes cncerned,

this is simply an example f exemplary custmer service frm

the htel.

Meanwhile, the kids are n Facebk lking fr things t

d during the vacatin. Friends highly recmmend ging t

Tibidabo Amusement Park. They tell Dad; again (without

thinking abut hw it all wrks) he purchases tickets

thrugh a third party destinatin services partner.

Time passes. Its nw the day f travel. As ur family d their

last-minute packing, Dad gets an SMS advising him of a ightdelay. He gets anther ne, infrming him that his htel

check-in times and airprt transfer have been adjusted

accrding t the new estimated time f arrival.

The family travels t Barcelna six hurs later than scheduled.

Its a bit f a pain, but it culd have been wrse. The htel has

sent a car fr them at the right time and they knw they need

nt wrry abut checking in late.

Pre-holidayexperience

1


22/24

The family arrives at the hotel. They could use

a kiosk by the main entrance to check-in but

Dad, being a bit of a traditionalist at heart,decides to register with the hotel front desk.

He wants t get hld f lcal maps and restaurant

infrmatin, which the frnt desk manager is happy t prvide

(having access to such things on his terminal) before pointing

out that his team can book event tickets, car rental and ights

fr the family at any time during their stay.

The manager als takes the pprtunity t review all f ur

familys requirements, such as extra pillws fr them all, htelrms lcated clse t a vending machine fr the kids and

rooms with a sea view on a higher oor for mum and dad. In

additin, he gives them a weather frecast in advance f Dad

and Grandfathers round of golf tomorrow. Stormy weather is

expected in the mrning, s they are advised t change their

tee time (which they do).

The family members then each receive a barcode via SMS to

use as a htel rm keycard.

Hotelcheck-in

As they are settling into their rooms Mum,

Dad and Grandfather receive another SMS

promoting happy hour at the pool bar at 6pm.The hotel offers the rst round on the house

as a welcome gesture.

The text message says that further drinks can be purchased

with lyalty pints directly at the bar. The kids als get a text

message this ne cntains infrmatin abut a rck

climbing cmpetitin fr the fllwing day.

They may nt knw it but during the stay each purchase made

by the family is lgged, which enriches the repsitry f guestinfrmatin held by the htel. This data can then be used by

the htel as the basis fr persnalised ffers in the future.

In additin, htel persnnel can make a recrd f any guest

preferences they becme aware f during their stay. This data

will be instantly viewable by guest relatins staff in all the

prperties f the chain which will enable it t prvide a mre

persnalised guest experience in the future.

Hotelstay


23/24

Sadly, the holiday comes to an end. Our family

has the option to carry out their ight check-in

at the hotel, either through the self-servicekiosk or at the reception desk.

They again chse t d it in-persn they want t thank the

staff fr their help during their stay, and especially fr the late

htel check-ut that was arranged fr them based n their

afternoon ight schedule.

During check-ut, Dad is advised f the ttal lyalty pints

earned. The family then leaves fr the airprt in their pre-

arranged taxi.

Hotelcheck-out

A few days after the holiday, Dad receives

an email from the hotel asking for feedback

on his stay. Having had such a good timeand having received such a personalised

service, he is more than happy to follow a

link to the hotel website and complete a

short questionnaire.

Mum als ges t TripAdvisr.cm t recmmend the htel

and t praise its staff, wh made their vacatin unfrgettable.

The kids g t Facebk t uplad their hliday pictures and

t share their experiences with their netwrk f friends.

The hliday may be ver, but the memries will live n just

as a recrd f their behaviur and preferences will live n in

the htels databases, enabling its staff t prvide an even

better experience fr them shuld they ever visit again.

Postholiday

The Amadeus IT Group commissioned Inspire Resourcesto conduct this hotel industry survey. The goal was toidentify the trends and the needs of the hotel industryfor the future.

A large variety of hotel industry executives wereinterviewed, including industry thought leaders such asconsultants, educators and researchers, as well assenior level executives from hotel companies ranging inposition from president and CEOs to experts in thedisciplines of IT, distribution, revenue management,marketing and sales.

A very special thanks goes out to all of these individuals

for taking time out of their busy schedules to allow us

to speak with them. Even if they are not quoted in the

report, their input was invaluable.

Appendix- Survey methodology


24/24

To fnd out more:

If you would like more information or

to set up a meeting, please email us at:

[email protected]

or contact us directly:

North America Annette Hoganemail: [email protected]

tel: +1 (0)

Europe Antoine Medawar

email: [email protected]

tel: + (0) 1

Asia Bruno Des Fontaines

email: [email protected]: + 0 1

amadeus hotel industry future

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