Is Personalization Travel's New Super Power?

By Pamela Whitby Editor, EyeforTravel Ltd | July 16, 2017

For successful tech companies building a solid and loyal customer base is far less about trusting your gut than having the right data and testing and learning from it. Flattened company hierarchies are also seen as important in getting the best from teams and, as a result, building more successful customer relationships based on personal preferences. So in a turbulent and highly competitive market, should hotels should start thinking more like tech companies to take back control?

Is "Challenging Assumptions" the key to cracking customer experience? Booking.com thinks so and others do too. Love them or hate them - and yes hotels over the years have had a pretty tetchy relationship with booking.com – but few could dispute how successful a company the Amsterdam upstart has been.

After being acquired in 2005 by Priceline for $135m in cash, booking.com helped catapult its US parent from a $10m company to one worth over a billion dollars. This booking.com acquisition, along with others like Agoda, Kayak and more, was, as Priceline CEO Glenn Fogel outlined at a recent EyeforTravel conference, part of a strategic push to go global. “We found companies that knew how to sell the way people in Europe [and other parts of the world] wanted to

A decade on and in 2016, booking.com was responsible for 80% of Priceline’s annual revenues. Great news for Priceline! Not such great news for hotels, which over the years have lost control of inventory and forked out commissions of anything between 15 and 30% for privilege of a presence on OTA websites.

But with eroding margins and regulatory pressure brought to bear on OTA bully boy tactics in the US and Europe, the fight back has begun. Recently, we’ve seen some hotels taking back control by innovating with loyalty programs, technology and more, and even entering what are perceived to be fairer deals with Google (that is another story).

Although there is still some way to go, there is a growing recognition that OTAs, if managed correctly, can play a valuable role. But as Brian Harniman, a former Priceline executive and founder of strategy advisory firm Brand New Matter, puts it hotels need to “partner wisely”. Other advice includes using data to shift from cost per booking to cost-per-customer, providing real value (such as upgrades, free drinks and so on) and never ever allowing anybody to dictate RM practices.

Coming up in March 2018...

Human Resources: Value Creation

Businesses must evolve to stay competitive and this is also true of employment positions within those organizations. In the hotel industry, for example, the role that HR professionals perform continues to broaden and expand. Today, they are generally responsible for five key areas - government compliance; payroll and benefits; employee acquisition and retention; training and development; and organizational structure and culture. In this enlarged capacity, HR professionals are no longer seen as part of an administrative cost center, but rather as a member of the leadership team that creates strategic value within their organization. HR professionals help to define company policies and plans; enact and enforce systems of accountability; and utilize definable metrics to measure and justify outcomes. Of course, there are always new issues for HR professionals to address. Though seemingly safe for the moment, will the Affordable Care Act ultimately be repealed and replaced and, if so, what will the ramifications be? There are issues pertaining to Millennials in the workforce and women in leadership roles, as well as determining the appropriate use of social media within the organization. There are new onboarding processes and e-learning training platforms to evaluate, in addition to keeping abreast of political issues like the minimum wage hike movement, or the re-evaluation of overtime rules. Finally, there are genuine immigration and deportation issues that affect HR professionals, especially if they are located in Dreamer Cities, or employ a workforce that could be adversely impacted by federal government policies. The March Hotel Business Review will take a look at some of the issues, strategies and techniques that HR professionals are employing to create and sustain value in their organization.