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8/4/2019 Amadeus Hotel Industry Future
1/24
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
8/4/2019 Amadeus Hotel Industry Future
4/24
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.
8/4/2019 Amadeus Hotel Industry Future
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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
10
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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
1
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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
1
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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
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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
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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.
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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
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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
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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
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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
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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
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To fnd out more:
If you would like more information or
to set up a meeting, please email us at:
hospitalitymarketing@amadeus.com
or contact us directly:
North America Annette Hoganemail: ahogan@amadeus.com
tel: +1 (0)
Europe Antoine Medawar
email: amedawar@amadeus.com
tel: + (0) 1
Asia Bruno Des Fontaines
email: bdesfontaines@amadeus.comtel: + 0 1
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