whla future lodging trends and emerging technologies robert k cole

Future Lodging Trends & Emerging Technologies

Wisconsin Hotel & Lodging Association Conference & Tradeshow

Green Bay, Wisconsin October 26, 2010

Robert Cole ● RockCheetah

Session Overview

• What’s Changing?

• Web 1.0 → Web 2.0 → Web 3.0

• Four Traveler Mandates

• Five New P’s of Marketing

• Six Business Impacts

• Seven Phases of Travel

October 26, 2010 ● Green Bay, WI WH&LA ● Future Lodging Trends & Emerging Technologies Robert Cole ● RockCheetah | 1

Everything is Changing

• Business

• Marketing

• Technology


Photo: ஆ ன ந் த ம் / a n a n d h a m (flickr)

Business is Changing – Occupancy


51.0%

56.0%

61.0%

66.0%

71.0%

76.0%

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

Occ

up

ancy

Pe

rce

nta

ge

Week

US Hotel Occupancy Comparison Weeks 24-42 | 2006 through 2010

2010

2009

2008

2007

2006

Data: Smith Travel Research Analysis: RockCheetah LLC

Business is Changing – Avg. Daily Rate


$91.00

$96.00

$101.00

$106.00

$111.00

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Ave

rage

Dai

ly R

ate

Week

US Hotel Average Rate Comparison Weeks 24-42 | 2006 through 2010

2010

2009

2008

2007

2006


Business is Changing – RevPAR


$49.00

$54.00

$59.00

$64.00

$69.00

$74.00

$79.00

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Re

ven

ue

Pe

r A

vaila

ble

Ro

om

Week

US Hotel RevPAR Comparison Weeks 24-42 | 2006 through 2010

2010

2009

2008

2007

2006


Marketing is Changing - Relevance

• People Don’t Like Advertising


Marketing is Changing - Quantity


Technology is Changing



New Traveler Mandates

• 1. Relevance

• 2. Mobility

• 3. Personalization

• 4. Community

Photo: Sprengben (flickr)


1. Relevance

Deep Search

vs.

The Splinternet

Photo: LuluP (flickr)


Relevance - Deep Search

Photo: g-na (flickr)

+

- $700 Million

=


Google using Microformats & RDFa

• Associate Reviews with Hotels • Specify Image Licensing • Drive Context-sensitive Ads

Relevance – The Semantic Web

Making Sense of Unstructured Data

Photo: Mr. Physics (flickr)


Relevance – Context Sensitivity

Video: Dapper.com


The Splinternet: Walled Gardens

Photo: SFB579 (flickr)

• Platform Challenges


The Splinternet: Walled Gardens

• Advertising Challenges


2. Mobility

Real-Time: Proximity:

Anytime Anywhere

Photo: atzu (flickr)


Why Mobile Can Not Be Ignored Smartphone use is on the rise. Mobile web adoption is ramping up

8x faster than Internet in the mid-90s.

In the Travel vertical, purchase intent on Mobile ads is 5x higher than on

desktop ads.

Mobile Travel bookings are projected to grow 700% in 2 years.

0

500

1000

1500

2000

Mobile travel searches

$20M 2008

$160M 2010 Projection

Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010

Apple iTravel: Works solely within

Apple Hardware &

Software Ecosystem

· Network

· Camera

· GPS

· RFID / NFC

· Phone

October 26, 2010 ● Green Bay, WI WH&LA ● Future Lodging Trends & Emerging Technologies Robert Cole ● RockCheetah | 18 Photo: gwgs (flickr)

Mobility – Anytime / Anywhere


3. Personalization

• Customization • Personas

Photo: Sergey Galyonkin (flickr)


Customization – Ask for Anything

Video: Google Android Voice Actions (YouTube)


Personalization - Personas

Photo: Greything (flickr)

Association SMERF

Wholesale

Leisure

Group Package

Corporate

Transient Convention


4. Community

Social Computing

versus

Privacy

Photo: ►Voj► (flickr)


Community – Social Computing

If You Want the Job Done Right…

Get Help.

Experts ● Friends ● Groups with Common Goals

Photo: 3[3] (flickr)


Community - Privacy

Photo: laverrue (flickr)

• Trustwave 2010 Global Security Report – Hotels Prime Target for Hackers

– Breaches Involving Hotels: 38%

– Breaches Involved Credit Card Numbers: 98%

– Average Days Between Breach & Detection: 156

– Many Franchisees – Only PCI Level 4 (Self Assessment)

• Insecure Passwords

– 8 character Password Cracked – Under 2 Hours

– Use of Identical Passwords Across Multiple Sites

New 5 P’s of Marketing

• Paradox

– Opportunity to Exploit Paradox and Create New Category

• Perspective

– What Consumer Need is Satisfied? / How Differentiated?

• Paradigm

– From Product (Features) to Brand (Who & What You Are)

• Persuasion

– Speaker Credibility/Message Content/Audience Involvement

• Passion

– Must Have Passion for What You Do Source: Tom Patty, President - TBWA/Chiat Day 1997


Photo: pfala (flickr)

Only Six Possible Business Impacts

• Improve Brand Engagement

• Attract Customers

• Retain Customers

• Grow Revenues

• Increase Margins

• Reduce Expenses

If Any Strategy Does Not Target One of These… Stop.


Photo: Mr. T in DC (flickr)


Photo: joguldi (flickr)

Seven Steps – Inspiration


New Media • Travel Writers • Journalists • Bloggers • Social Graph • Influencers

Seven Steps – Research


Semantic Travel Search Sites

Seven Steps – Planning


Seven Steps – Validation


Seven Steps – Booking


StayHip Mobile App by Mobiata for TravelClick

Seven Steps – Travel


Mobile Phone for Key Entry • Guests Register Online • No Stop at Front Desk • Supports All Cell Phones • Uses Existing Locks • Cards Keys Still Work • Code Change – 12 Seconds • More Secure than Cards • Support for Future NFC

Uses Unique Sound Patterns

Seven Steps – Sharing


• Images • Videos • Property/Destination

Where Do I Start?

What Should I Do?


Everything Is More Difficult

• Challenging Business Environment

• New Search/Interface/Technologies

• More Platforms & Walled Garden Sites

• Must Be Relevant/Mobile/Personal/Social

• Market Segmentation is Getting Personal

• Marketing Must Differentiate Product Offering

• Multiple Methods to Impact Business

• Multiple Phases of Travel Process to Consider


Photo: Sam Cockman (flickr)

How to Manage the Future

• Unyielding Focus on Customer Needs – Guests Want Honesty / Transparency / Respect

• Strategic Business Objectives Define Actions – Avoid Activities if Strategic Benefit is Missing

• Marketing Must Break Through Clutter – Paradox/Perspective/Paradigm/Persuasion/Passion

• Technology is Only a Tool to Support Strategy – Get Past the Hype - Select the Right Tool for the Job

• Fix Guest Experience Before Using Social Media – Communicate on Guests’ Preferred Terms & Channels

• Target Personas for Travel Itinerary & Travel Process Step – Easier Task to Target Family Leisure Travelers Planning Phase


Thank You for Your Attention

Questions? Copies of the Presentation?

Comments? Robert Cole mail: [email protected] phone: +1.262.309.9560 skype: robertkcole twitter: @robertkcole web: www.rockcheetah.com/blog/


whla future lodging trends and emerging technologies robert k cole

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