Mr. Rose

Mobile Technology

How Hoteliers Can Profit From the Mobile Revolution

By Norm Rose, President, Travel Tech Consulting, Inc.

Mobile Hits the Mainstream

We are well in the midst of a mobile revolution. Mobile devices are not simply an additional guest touch point, but a new platform for customer interaction. This distinction is significant as a platform implies new applications and capabilities that were not possible on prior devices. Nielsen Research predicts that smartphones will overtake feature phones in the U.S. by Q3 of this year!

In addition, over the next six months the market with be flooded with close to 100 different tablets. Forrester Research predicts that tablet sales in the U.S. will reach 44 million units per year, compared to 10.3 million in 2010. By 2015, 82 million people will be using the devices. The hospitality industry is particularly well positioned to use mobile technology to enhance the guest experience, promote onsite and local services and improve operational efficiency.

The basics are already well underway with mobile booking, check-in and check-out common applications available through the Mobile Web or branded downloadable (native) apps. Mobile concierge applications are a natural for the hotel industry shifting the physical concierge costs to a location-sensitive personalized guide to local restaurants and attractions. Marketing through upgrades, spa reservations, add-ons, and mobile coupons can help hoteliers promote on property services, restaurants and local merchants. Ancillary purchases can be facilitated through mobile payment capabilities. Companies such as OpenWays are pioneering electronic room entry via mobile phones.

Does every hotelier need a mobile app? How will tablets impact both the guest experience and hotel operations? What do you need to do today to insure that your hotel is competitive?

Hotels Need a Holistic Mobile Strategy

Gaining management support for any technology initiative can be challenging. Given the vast variety of mobile operating systems (OS) and mobile devices, how can an hotelier navigate the mobile eco-system to deliver services that help differentiate the property, build brand loyalty and promote property and local merchant services? There is no easy answer to this question, but the first step is to understand your customer base, their mobile use, and how all aspects of your hotel’s products and services need to be integrated into a mobile offering.

The first question many hotels often ask, do I need a native (downloadable) app for my property? The mobile app store phenomenon begun by Apple’s iTunes and now offered by device manufacturers and third party sites has ushered in a new era of device computing. That being said, what capabilities are possible through a downloadable app that may not be available via a mobile Web app? The issue is around accessing phone core functions. There is much debate in the industry on the emerging HTML5 standard equalizing the playing field between Web apps and native apps. The Figure below describes planned capabilities of HTML5 in respect to core phone functions.

The reality is at this point in time, HTML5 is not yet mature enough to access and integrate all the core smartphone functions (e.g. contacts, accelerometer, and files). Therefore despite HTML5 advancements, native apps will still be the primary delivery mechanism for mobile computing over the next 4-5 years. Whether a hotel decides to invest in a native app, it is essential that any hotel with a Website reformat that Website to fit the mobile Web. Navigating traditional Web content on even the most advanced smartphones can be a frustrating experience.

The majority of chains have already created native apps for a variety of platforms. Small independent hotel properties need not invest in native apps unless value is achieved by promoting on-property services or significantly improving the efficiency of the traveler. This may be more appropriate for independent resorts rather than full service hotels. To fully determine the value of the native app development, the hotelier needs to understand what functions can be automated and the value it gives the target guest segment for the hotel. If the guests are primarily business travelers, capabilities such as capture of the hotel folio receipt via the mobile device may be more important than promoting hotel services. Leisure guests are more apt to benefit from mobile concierge applications. So like any technology initiative, the types of services delivered through a mobile native app should marry the needs of the guest segments serviced by the hotel. Booking is important, especially for last minute reservations, but promoting property-based and local merchant services combined with navigational assistance truly takes advantage of the new platform’s ability to deliver location-based, personalized, context sensitive services to particular guest segments.

Tablets will become a standard traveler companion. Tablets present a more immersive experience than the smartphone and thus designing specific apps for the iPad or Google Android based tablets makes sense if the app can integrate multiple media sources (incorporating things like video) along with social networking capabilities. Advanced technology such as the use of augmented reality will become more powerful on tablet computers. Exploring a city using a Tablet device that contains augmented reality applications will become common place over the next 2-3 years.

Tablets can also play a role in hotel operations. IHG is already equipping their concierge’s with iPads.

Source: IHG

Using tablets to enable front desk personnel to room the queue to relieve lobby congestion during peak times is another logical use. Providing tablets to guests or roaming restaurant employees can help automate the ordering of food and beverage while poolside. Equipping maintenance staff or housekeepers with tablets may help improve coordination of these services. Providing tablets for meeting planners is also an area being explored by some hoteliers.

Summary

We are the start of this mobile revolution and it promises to change hotel guest management as radically as the Internet itself. Hospitality managers must keep these top three things in mind when deploying a mobile strategy: (1) Include all departments of the hotel when building a mobile app. This includes F &B, housekeeping and guest services. (2) The company’s Website must be reformatted for the mobile Web (3) A downloadable app should be created on a platform that corresponds to the hotel’s primary market segment. Fortunately there are a growing number of third party developers who specialize in mobile travel apps reducing the need for unique development efforts and allowing all hoteliers to benefit from new mobile capabilities.

For nearly two decades, Norm Rose has been an analyst and consultant focused on emerging technologies and how they impact business practices in the travel industry. He has an extensive background in online, corporate, hospitality and leisure travel-related technology. Mr. Rose is renowned for his travel technology expertise, particularly his analysis of the impact of emerging trends such mobile and social media. Mr. Rose leads Travel Tech Consulting, Inc., a firm that specializes in developing e-commerce and procurement strategies for all types of travel related technology. Mr. Rose can be contacted at 650-345-8510 or norm@traveltechnology.com Extended Bio...

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