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Appealing
to Next-Gen Travelers
Generation Z (those born between 1995 and 2000 depending on which source you use) are coming up hot on the Millennial’s heels when it comes to desire for changes in travel. While both generations share many similarities, one key difference between Gen Zers and Millennials is their desire for security. Having grown up during the Great Recession, Generation Z tends to be more pragmatic and fiscally responsible when it comes to travel. Hotels can attract more Generation Y and Z customers in 2019 by offering off-the-beaten-path activities and opportunities to interact with locals, all the while incorporating incentives and discounts that appeal to their budgets. When it comes to F&B, both generations favor communal dining tables and organic, locally sourced dishes over fancy fare. And they’re connected 24/7, with technology influencing how they shop and pay for travel. So, conveniences like mobile check-in and chatbots that provide instant answers to questions are increasingly important. Personalization
2.0
Despite this however, the demand for greater personalization, or hyper-personalization, is increasing. With the vast majority of travelers willing to share personal information and preferences in return for greater convenience and personal touches. And many are willing to pay a premium for those personalized services. A survey by IBM Global Business Services revealed that more than 70 percent of hotel guests report positive experiences with personalization. To achieve hyper-personalization, hotels must devote resources to harnessing the power of data, collecting and analyzing information at every customer touchpoint from your proprietary website to social media. Cloud-based solutions unify that information across technology platforms, giving you actionable insights into ways you can tailor individual guest experiences that will drive repeat business and increase revenues. As an example, perhaps a repeat business traveler routinely declines your parking option. Advanced systems can detect this behavior pattern and replace it with a more relevant offer, such as round-trip shuttle service or a drink voucher in the hotel lounge. Reinvented
Loyalty Programs
You
can increase guest satisfaction and on-property spend by making points
liquid and spendable anywhere within your brand experience. This may include
guests using points for a spa treatment, restaurant meal, or in the gift
shop. Reimagined programs are also offering experiential rewards, such
as tickets to live events, wine tastings, or exclusive activities. A deep
understanding of your customers will help you determine which rewards speak
most effectively to them, allowing you to forge deeper connections and
adding greater value to their stays.
Integration over Isolation In the past, revenue strategy, sales, and marketing have functioned in isolation. Each with their own goals, technology solutions, and customer databases. Their efforts were rarely aligned, with each using different data sets to develop marketing strategies and make key pricing decisions. The result was missed revenue opportunities, less effective direct marketing, and lower profitability. Throughout 2019, we’ll see a convergence of revenue strategy, sales, and marketing into one cohesive revenue-generation team, working in coordination to acquire, engage, and retain guests. Integrated technology solutions, particularly those utilizing artificial intelligence (AI) to analyze Big Data, will help increase hotel profitability by enabling cross-functional alignment and generating a single customer profile. One that takes into account detailed information like past preferences, reason for travel, length of stay, and booking behavior. Total
Revenue Optimization
Social
Media Matters
Reputation management and having an active social media presence are crucial for your business success in 2019, with 49 percent of leisure guests, and 43 percent of business guests,12 regularly sharing views about their most recent travel experiences on social media. Hotels can engage with guests on social media, obtaining a gold mine of guest preference information and post-trip feedback. In addition, effective and free advertising in the form of user-generated content (UGC) will continue to grow. Hotels are even creating “Instagram-worthy” scenes on property to encourage photographs. Sharing
Economy Impact
Brands seeking to compete effectively with alternative accommodation sites are updating room décor with distinctive, local touches. And transforming lobbies into relaxing coffee shop-style settings that speak to the desires of today’s travelers for combination co-working/socializing spaces. Furthermore, on the revenue strategy side, hotel managers are capturing more market share by accessing granular data and leveraging analytics in order to understand market penetration, pricing, and the dynamics around elasticity associated with these platforms. This year is poised to be an action-packed one for the hotel industry, filled with new challenges and changes. By understanding and embracing these trends that are steadily transforming the industry – and putting the right tools and systems in place – you’ll improve guest experiences, enhance your reputation, and optimize your revenue in 2019 and beyond. Tammy
Farley, President & Co-Founder, The Rainmaker Group
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