What will the hotel landscape look like in 2020 February 2, Donato Colamartino Business Unit Manager Hotel Division, Oracle Hospitality Italia
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1 What will the hotel landscape look like in 2020 February 2, 2016 Donato Colamartino Business Unit Manager Hotel Division, Oracle Hospitality Italia
2 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle Corporation. Copyright 2016, Oracle and/or its affiliates. All rights reserved.
3 TM & 2014 WARNER BROS. ENTERTAINMENT INC. - TUTTI I DIRITTI RISERVATI 3
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5 How millennials will change travel by 2020 Millennials will outspend boomers on hotels, predicts Jason Dorsey. By 2017 Mobile devices will become the sole point of contact between hoteliers and their millennial customers. Loyalty programs will change to adapt to the shorter attention span of millennial guests. 5
6 Why millennials? 2013 Expedia report finds that people under age 30 travel 4.7 times per year on business versus 3.6 times per year for 30 to 45-year-olds and 4.2 times per year for 46-to-65 year-olds. The same report found that millennials take 4.2 leisure trips a year, more than those age 31-to-35 (2.9 trips) and those 46-to-65 (3.2 trips). 6
7 How Millennials do their travel business 61% of them go to the hotel web site 81% of organizers desire real-time inventory and pricing 83% want self service 46% a mobile check in/out using a mobile device would motivate a return stay 7
8 Engagement strategies Hilton has introduced a digital check-in service for smartphones, which allows guests to select a room on a map. Hilton and Hyatt have concierge accounts on Twitter Marriott's Rewards app lets guests choose from a list of services InterContinental's Concierge Insider Guides app offers video tours and recommendations Starwood Hotels & Resorts' app lets guests FaceTime with staff at any hour of the day. 8
9 An example to the future engagement 9
10 Online Behavior Data Explosion Mobility Expectations Convergence 9 Billion Internet Devices in % Created Within Last Two Years 6 Billion Mobile Subscribers Guest Driving Experience New Competitors Emerging 50 Billion by x Growth by % of the Global Population has a Mobile Mobile Data Growing 78% CAGR 10
11 Global travel by the numbers 11
12 Projected Market Share by Region 12
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14 Where experts see certain aspects of the hotel industry By 2020, the independently branded hotel segment (will) double in size. The volume of research on the value of brands will exponentially increase, raising awareness of the independent options available. Loyalty will be much less driven by points and much more by experiences, memories and service When millennials become senior leaders, their approaches will be more encompassing and apply more criteria and considerations as they make decisions and function as leaders. The implications are for greater inclusiveness, concern for environmental issues and social responsibility, as well as their views of how they fit into both their personal social and business environments. From the planner perspective, hotels will see greater pressure to provide more amenities and services geared towards the tech-savvy consumer. There will also be more convergence between face-to-face and virtual meetings 14
15 Experts share their hotel design predictions for 2020 Energy conservation will start to drive the hospitality industry in a direction that encourages more awareness of the problem Technology is expected to be a major influencer, and play a chief role, in the way trends are applied Brands today integrate storytelling into every aspect of the property, from the public spaces to the guest rooms. This will continue to be important moving forward. The disappearing front desk: we ll be seeing how brands accommodate guests that want a human touch vs. those that want a tech-friendly check-in. The changing guestroom desk: guests want flexibility and multiple perch points to work everywhere from the bed to a chaise lounge, or chair. Evolution of F&B: this will continue to change, with more and more brands discontinuing or changing the traditional room service experience ordering made on the in-room ipad 15
16 In 2020 Hotel Branding will not be about expressing luxury but about bespoke experiences need to be even more specific and transparent so as to effectively put forth or sell the promise and proposition of a flag. be incredibly creative. The new generation of traveler wants experiences and convenience. Brands will need to learn how to bend the rules to fit each guest be as important as it is today it might look and be achieved differently be far more customized, and while hoteliers will continue to strive for a strong international presence, they must be aware of the challenges in ensuring the brand remains consistent across various markets, all the while respecting and acknowledging the local culture and interpretation of each destination 16
17 Consolidation cooking in distribution space Expedia and Priceline will retain their dominance, and it could be that Expedia outright acquires Travelocity The smaller online travel agencies will remain and fight for relevancy We ll see metasearch engines playing a larger role in accommodation bookings Google / Tripadvisor entered in the distribution mix. What s next? OTAs will have to compete with online retailers. We all know with the amount of information Google has on us as consumers, and the amount of money there is to be made in the OTA world, it would be shocking that Google doesn t become a meaningful player in that world Sales for private accommodations are predicted to be $1.6 billion in 2018 in the U.S., according to Euromonitor. 17
18 Enrich the guest experience, increase operating efficiency, and improve productivity. Create a platform for growth and innovation, while reducing IT complexity and costs.
19 Innovation Focus Mobile Oracle Hospitality OPERA Cloud provides users the ability to process guest check-in and check-out from a mobile device, and allows housekeeping & maintenance to have real time room status updates providing seamless customer service Simplicity Oracle Hospitality OPERA Cloud is designed to reduce the complexity of every day tasks, allowing hotel staff to concentrate on delivering excellent customer service Modular By using a mixture of functions and parameters, Oracle Hospitality OPERA Cloud is designed to be as flexible and customizable as a hotel requires. Only using those elements of the product relevant to the hotel s operation
20 Modular Key Features Loyalty Revenue Management Mobile Personal Dashboards Groups & Reservations Reporting Profile Management
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