Managing the Guest Experience: High Tech or High Touch? Ideas for hotels and destinations
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- Jeremy Nicholson
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1 VSTM Managementseminar Managing the Guest Experience: High Tech or High Touch? Ideas for hotels and destinations Carlo Fontana, GM 1
2 Agenda Who am I The 5 (or more) stages of travel The importance of UGC and the impact on revenues CRM: a guest centric approach Hospitality trends: where are we now? Focusing on Guest Experience through Staff Empowerment Ideas for DMOs Your reactions and conclusions
3 Hotel Lugano Dante 87 rooms, 40 Staff members Awards Swiss Quality Hotels Excellent Guest Satisfaction 2012 IFITT 2012 Tripadvisor 2013 Outstanding industry contribution Award Top 25 hotels for Service 2014: 1st place Switzerland Tourism Most welcoming City Hotels 2013 HTNG 2013 EMEA «Hotel Technology Innovators» Award 2013 Tripadvisor 2014 HSMAI Europe 2014 Top 25 hotels for Service 2014: 3rd place Best in class Technology: Revenue Management Honourable mention 3
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5 11/1/2015
6 The five stages of travel 7
7 The stages of travel 8
8 The stages of travel 9
9 Google The 2014 Traveler s Road to Decision 11
10 Google The 2014 Traveler s Road to Decision 12
11 Google The 2014 Traveler s Road to Decision 13
12 Google The 2014 Traveler s Road to Decision 14
13 Google The 2014 Traveler s Road to Decision 15
14 Reputation = Revenue 16
15 92% of travelers indicate that their decisions are highly influenced by reviews & other user generated content (e-tailing group) 20 the average number of websites travelers visit before booking a trip (Expedia Media Solutions/Compete) 53% of consumers say they won t book a hotel if it has zero reviews (Phocuswright) 33% of travelers changed their primary choice during the booking process after using social media and review sites (World Travel & Tourism Council) 38% additional amount consumers are prepared to pay or a hotel with a 5/5 rating than for a hotel with a rating of 4/5 (Comescore) 17
16 ReviewPro RJ Friedlander, (CEO) 18
17 Consumer decision making process Pricing in a Social World Kelly McGuire & Breffni Noone 19
18 Price & non price information at the point of purchase Pricing in a Social World Kelly McGuire & Breffni Noone 20
19 Assessing price: how do consumers choose? Pricing in a Social World Kelly McGuire & Breffni Noone 21
20 Attribute importance Pricing in a Social World Kelly McGuire & Breffni Noone 22
21 Value by attribute: leisure traveler REVIEW VALENCE* PRICE [$195 - $235]* PRICE [$235 - $295]* RATING [ ] RATING [ ]* RANKING [LOW - MID] RANKING [MID - HIGH]* BRAND* REVIEW CONTENT REVIEW LANGUAGE Pricing in a Social World Kelly McGuire & Breffni Noone 23
22 Assessing value: leisure traveler Pricing in a Social World Kelly McGuire & Breffni Noone 24
23 Leisure traveler vs business traveler Pricing in a Social World Kelly McGuire & Breffni Noone 25
24 Key Takeaways 1. Reviews and price are the most important influencers of choice. 2. Negative reviews remove you from the choice set. 3. Lower price or higher ratings do not overcome the impact of negative reviews. 4. Consumers prefer to pay a lower price. 5. Consumers only notice high ratings and rankings. 26
25 CRM: a Guest centric approach 27
26 CRM Customer Relationship Management CRM is a core business strategy that integrates internal processes and functions, and external networks, in order to create and deliver value to customers. It is grounded on high quality customers data and enabled by information technology.
27 What are we talking about? Customers Acquisition Retention Development
28 Misunderstandings about what is not CRM 1. CRM is a database marketing 2. CRM is a marketing process 3. CRM is a IT issue 4. CRM is all about loyalty 5. CRM can be implemented by any company
29 The pilars 1. Leadership & Culture 2. People 3. Process 4. Data 5. Information Technology
30 CRM value chain 1. Customer portfolio analysis 2. Customer intimacy 3. Creating and managing networks 4. Creating value for customers 5. Managing the customers lifecycle
31 What is value? Value has several meanings for different customers. Low price: the lowest price is the best value. Getting what I want from a product or service: the benefits I receive rather than the price I pay. The quality I get for the price I pay: trade-off between price and service experience. All I get for all I sacrifice: a relationship between every benefit in purchase, ownership use, consumption and the various sacrifes.
32 What is value? Value is the balance between benefits received and sacrifices made to experience those benefits. Value = Benefits Sacrifices 1. Money 2. Search costs: serching for solutions, alternatives, time 3. Psychic costs and perceived risks
33 Lets have a look into the past 40
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37 1984?
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39 1984
40 Late 80s 47
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45 Hotel of the future?
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51 58
52 Lets have a look into the present 59
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56 The future trends 63
57 Trends globalisation localisation personalisation Creating moments of trust by IHG 65
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71 But the way we communicate 79
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81 Hospitality: where are we now? 89
82 Is this the future? 90
83 Or this? 91
84 The risk: If hotels look all alike, guests will mainly take their decision solely on price... NEED TO STAY OUT OF THE CROWD 92
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87 The challenge: In the era of commoditization, there s a dramatic need to improve Guest Satisfaction and grow Customer Loyalty
88 The answer Guest Experience constitutes today a very important factor when choosing a hotel, often before location and price. Focus on Guest Experience! 96
89 The impact of Social Media on Lodging performance Transactional data from Travelocity illustrate that if a hotel increases its review scores by 1 point on a 5 point scale (e.g., from 3.3 to 4.3), the hotel can increase its price by 11.2 % and still maintain the same occupancy or market share. Cornell University The Center for Hospitality Research
90 Not forgetting the basics of customer satisfaction The four key performance indicators: 1. reservation was accurate 2. check-in in less than five minutes 3. no problems occurred during the stay 4. no billing errors Cornell University The Center for Hospitality Research
91 People will forget what you said, people will forget what you did, but people will never forget how you made them feel. Maya Angelou
92 So, it all about SERVICE!
93 What is customer Service? 101
94 Customer service is a voluntary act that demonstrates a genuine desire to satisfy, if not delight, a customer.
95 Customer Service Guest Experience - begins already with a great welcome with different colors 103
96 Guest and Staff are always on stage
97 Guest Experience is really positive only when it exceeds expectations, involving all senses and offering emotions There are only two colors of emotions: positive negative 105
98 Surprise and Delight 106
99 Rage, Fear, Disgust, Suffering 107
100 In most of the cases, our guest may have insignificant experiences 108
101 So what? 109
102 Guest Experience is made by hundreds of thousands of interactions 110
103 Guest Experience happens: anytime anywhere anyway with no precise rules and even only one single service failure can 111
104 Reservations Reception Maintenance Housekeeping Welcome Breakfast Sales & Revenue Marketing Bar 112
105 Experience + We had to go back to PEOPLE AND PROCESS, developing a work system that brings staff and guest together so that they can engage in value co-creation 113
106 All the information provided by the Guest and the Staff are recorded seamless, easily used in all touch points, stored and analysed for the next stay of the customer. 114
107 Hotel operations: where are we now? 115
108 Does it look familiar? 116
109 Does it look familiar? 117
110 Does it look familiar? 118
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112 From the Reservation to the Guest Relationship. 121
113 Guest Experience It starts much time before the arrival Be different Customize the experience Create expectations And deliver the promise 122
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125 In-house operations 135
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130 La lista de guasti
131 La lista di controllo delle camere
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133 Concierge 143
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137 Information of the day - dashboard
138 Concierge diary 148
139 Guest information, loyalty card, baggage label, etc.
140 Parking 150
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142 Ideas for DMOs 152
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144 Analysing BIG DATA The case study of Lugano 154
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146 Another case study 156
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148 Can technology help increase guest satisfaction, brand reputation, loyalty and revenues? 158
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150 Yes but non instead of service but to enhance it!
151 Your reactions and conclusions 161