The Devil is in the Details

Are Your Distribution Agreements Working for You?

By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | April 30, 2017

There’s arguably no other four-lettered word that has made quicker—and more impactful—moves in the hospitality industry than “data” has. With the ascension of the Internet igniting a brisk evolution of big data, the hospitality industry now orbits within an increasingly interconnected and technologically-savvy world. Keeping ahead of the curve in the midst of the Internet of Things (IoT) means hotels are not only evolving in how they meaningfully connect with their guests, but they also have to develop short- and long-term revenue strategies to capitalize on the new industry data and insights available to them.

Growing tremendously over the past few decades, today’s hotel booking dynamics rely heavily on the Internet, social media and a burgeoning collection of smartphone apps to strengthen their digital guest relationships. With a reported 76% of Internet users across 40 countries using social sites such as Facebook and Twitter in 2015 alone, hotel brands have felt pressure to expand their social marketing presence. They have also had to look for opportunities to employ newer types of industry data—such as online reviews and travel intent data—to help them make more meaningful sales, marketing and revenue decisions (Pew Research Center, 2015).

According to a Pew Research Center survey, roughly 77% of Americans own a smartphone, and ownership rates in emerging and developing nations are rising at extraordinary rates – up from a median of 21% in 2013 to 37% in 2015. Almost every nation surveyed also revealed that overwhelming majorities of individuals own some form of mobile device, even if it wasn’t technically considered a smartphone. This rise in mobility and a resulting expectation for quick, on-the-go availability of goods and services drastically changes how today’s hotels market to, and connect with, their guests.

All of these changes in technology mean that today’s hotel booking process is starkly different to what it was just ten years ago. With the Internet came a meteoric rise of online travel agencies (OTAs), and the increased popularity and consolidation of industry channels—such as Expedia, C-Trip and—has forced many hotels to reevaluate how to find a profitable online footing against their frequently-described “Goliath” in the distribution space.

The spectacular growth of both online and mobile industry dynamics, and the market intelligence data being driven by these sources, leads many hotels left wondering what details in the distribution space they should be evaluating, planning for and capitalizing on. One answer is the industry technology and unfolding data sources that give hotels fresh perspectives for profitable distribution opportunities within the revenue management and strategic marketing arenas of a hotel organization.

Futurecasting for Long-Term Distribution Strategy

Hotel Newswire Headlines Feed  

Coming up in April 2018...

Guest Service: Empowering People

Excellent customer service is vitally important in all businesses but it is especially important for hotels where customer service is the lifeblood of the business. Outstanding customer service is essential in creating new customers, retaining existing customers, and cultivating referrals for future customers. Employees who meet and exceed guest expectations are critical to a hotel's success, and it begins with the hiring process. It is imperative for HR personnel to screen for and hire people who inherently possess customer-friendly traits - empathy, warmth and conscientiousness - which allow them to serve guests naturally and authentically. Trait-based hiring means considering more than just a candidate's technical skills and background; it means looking for and selecting employees who naturally desire to take care of people, who derive satisfaction and pleasure from fulfilling guests' needs, and who don't consider customer service to be a chore. Without the presence of these specific traits and attributes, it is difficult for an employee to provide genuine hospitality. Once that kind of employee has been hired, it is necessary to empower them. Some forward-thinking hotels empower their employees to proactively fix customer problems without having to wait for management approval. This employee empowerment—the permission to be creative, and even having the authority to spend money on a customer's behalf - is a resourceful way to resolve guest problems quickly and efficiently. When management places their faith in an employee's good judgment, it inspires a sense of trust and provides a sense of higher purpose beyond a simple paycheck. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.