HOTEL BUSINESS REVIEW

JANUARY FOCUS: Mobile Technology

 

Making Size Work For Mobile

By Robert McDowell Senior Vice President, Global Distribution, Choice Hotels International | January 2013

When Choice Hotels became the first major hotel company to launch a global application for iPhones in 2009, it was making a statement that technology is central to the company's mission. In a competitive arena like hospitality - and with technology transforming the industry at lightning speed -maintaining that model of leadership can be a challenge. However, Choice sees it as an opportunity. And that perspective has enabled the company to remain at the forefront, developing innovative and smart solutions that meet the ever-changing needs of franchisees and their guests. The fact that the company's revenue from mobile bookings has been growing at a clip of more than 200 percent annually reflects our ongoing focus on the mobile platform - which involves relentlessly deploying products and updating them. Choice is uniquely positioned to take advantage of the mobile revolution for several reasons: - **Global Coverage** - With 6,200 properties worldwide, we are located wherever our potential guests are - and mobile makes our nearest property easy to find. - **Product** - Offering brands that appeal to different segments of the market - from economy to midscale, upscale and extended stay - helps ensure that the right accommodations are available. - **Proprietary Technology** - Choice develops its technology in-house. As a result, we maintain control and set priorities to quickly deliver the solutions franchisees and their guests require. The year 2012 was the inflection point for mobile, when the technology came into its own as a preferred consumer tool for, among many other tasks, planning and booking travel. Today, 600 million consumers around the world are using iPad, iPhone and Android devices. In the first quarter of 2012, 51 percent of smartphone owners used their devices to search for travel-related products. One in five used mobile devices to compare hotel rates and availability - and then to book a room. When I talk about mobile apps, I'm speaking in the broad sense of mobile websites, mobile apps and tablets. Since the launch of our first mobile app, Choice has been successful in maintaining its leadership position. For example: - We marked the one-millionth download of our app in September of 2011. Our mobile apps have been downloaded/updated more than 2 million times since launch. - Our iPhone app generates thousands of reservations every month. - More than 2,000 consumers use our apps daily. - Last August, Choice launched the Android version of its app. - In September 2011, we rolled out a redesign of our mobile website based on extensive feedback from guests and franchisees. Enhancements include more photos, GPS-based search, and one touch calling. - We introduced our iPad app last May. - Our existing iPhone and Android apps were upgraded this year too, making Choice Hotels instantly accessible to millions of travelers worldwide. **Keeping Up With Consumers** Our guests are constantly changing the way they shop for and book hotels. Choice is right there alongside them, committed to assisting customers who are embracing new mobile platforms as they evolve. We go the great lengths to ensure that no matter what device a consumer is using, the experience is seamless. Although the lines are blurring between the kinds of functions consumers accomplish on their devices, some general trends are apparent. For example, we're finding that travelers are doing research on their tablets, booking on their desktops and confirming reservations on their mobile phones. And it is the same consumer who is now using all three categories of portable devices, in effect becoming a three-screen customer. It's a top priority for Choice to convert mobile searches to bookings, and so we have continued to evolve quickly along with the technology. In 2012, we released a new iPad app, as well as enhancements geared to new mobile phone products. The company can't let up in these efforts. That's why we have developed strong working relationships with technology companies that provide the platforms for our content. These close relationships enable us to familiarize ourselves with new technologies early on to continually stay ahead of the curve. The breadth of our lodging product domestically and globally enables travelers to find one of our hotels easily in their travels. I remember as a child, our family would drive to Florida every winter for vacation. My parents would grab a hotel directory and search for lodgings near the highway. That revered travel tradition has been adapted to mobile in a way that was unimaginable not long ago. Choice's apps are free to download and allow consumers to book rooms anytime, anywhere. Specifically, they let travelers: - Search and book nearby hotels using GPS technology - View hotel details, amenities and photos - Access their Choice Privileges account or sign up for the program - View or cancel upcoming reservations - Access Customer Service contact information. Additionally, iPhone and iPad app users can: - View their hotel search results in a list and map view - Filter their hotel search results - View local points of interest on those hotel search results maps - Share their hotel via social media, text message and e-mail iPad app users can also compare specific hotels and save a Choice Hotels property as a favorite through their Choice Privileges account. Research shows that during the past year slightly more than 50 percent of consumers reported finding a lodging through GPS functionality. Because of our size and technology, the results of that location-based search for Choice are impressive. Mobile revenue for Choice was up more than 250 percent year over year in 2011. And we continue to see major gains for 2012. The expansion of mobile reservations platforms has been a key contributor to Choice's strengthening Central Reservation System results, which are on track for a record-breaking year. **Dealing With Devices Differently** Various customer segments use mobile platforms in different ways. The more casual Choice customer will most likely go to our mobile website because he has typed in a location and a price. However, our app sees a lot more loyalty from Choice Privileges members, who realize that by using it they will be able to take advantage of member benefits like free room nights and more. In fact, the app is a powerful tool in maintaining the loyalty of Choice Privileges members because it strengthens our connection to them. It's essential that our company website, mobile websites and apps all complement each other - with the understanding that the same consumer will be using more than one of these tools. That means that the look, feel and functionality must be intuitive to the user. It means that customers who are on our site while on the phone in the car must not feel any discrepancy in their experience when they arrive home and go to their desktop. Now, with the growth of smaller tablets like the iPad Mini, we must ensure that the content looks the same on those screens as well. With smaller tablets accessing our mobile websites, we have to continue to make sure that the size displays appropriately - and with familiarity - on those screens too. As new products evolve, we must move quickly to adapt to them. For example, we're currently evaluating Windows 8, the new Microsoft operating system, which really blurs the line between how content looks on a desktop and on a mobile device. **Prioritizing IT** Critical to maintaining leadership is our ability to work closely with our IT group, so we can remain at the forefront of any changes that might have an impact on the customer experience. And our IT group comprises a unique team with its own space, in sleek new offices in Phoenix. Our Western Regional Headquarters is the center of technical innovation, alert to new opportunities and quick in developing cutting-edge programs and products for franchisees. The tech center and the philosophy behind it are key to the company's continued success. As Steve Joyce, our CEO, has said, “In this industry, the battle over distribution will make or break a company in the future. You win that, and everything else falls into place.” Our Phoenix center uses a deft software development technique called Scrum that unites the needs of Choice franchisees and their guests with the resources and capabilities of the technology team. The center allows for a much faster process of creating and upgrading software in which users and architects work hand-in-hand throughout the project to create a better product. This collaborative approach is much quicker, and it spares Choice from placing big bets on technologies that don't always succeed. Ultimately, it helps assure our franchisees get exactly what they need. **Franchisees First** As is the case with everything Choice does, mobile development is all about franchisees. It's not up to hotel owners to have to deal with technology advances. It's up to the company to make these evolving technologies as seamless as possible on whatever device their customer uses. A reservation has to look the same no matter what device it comes from, so there is no discrepancy in the hotel's own property management system. While it's not franchisees' responsibility to develop technology, they do have a powerful voice on what they get. We often find solutions by listening to franchisees who must work with technology as it evolves in real life on the ground. Our cloud-based choiceADVANTAGE is an industry-leading property management system that, among other things, invites franchisees to recommend improvements and share ideas on an ongoing basis. The Phoenix team is open and responsive, spending approximately 20 percent of its software development time addressing suggestions from franchisees. The goal for Choice is always to drive as many guests through our CRS system as possible. We continue to see our priority as growing reservations to Choicehotels.com as a way to make sure the franchisee gets the most from his or her franchise with Choice as possible. We're still growing that channel, and there is a lot of opportunity to bring guests through it. While keeping an eye on new technologies, however, we don't act on anything until we're sure it will make sense for our owners. **Mobile and Marketing** With all the focus on mobile, we have to be aware that mobile is part of an integrated marketing and distribution landscape. For instance, our TV ads are always about “Your Voice Your Choice,” and we want to drive all the potential guests who see those ads to Choicehotels.com. We also must help ensure Choice Privileges members understand the benefits of membership, so they remain loyal to our brands. Our marketing and distribution approach puts a priority on integrating these myriad channels to work synergistically and holistically. We're allocating our dollars to get the biggest bang for the buck. In doing so, we also strive to assure our efforts aren't simply shifting revenues from one distribution channel to another. Choice's leading-edge but methodical approach to mobile technology, distribution and integrated marketing are paying off in a big way for the company and our franchisees. Our CRS is on track to have a record-breaking year, with a very high site conversion rate. We have an outstanding record of success in converting lookers into bookers when they visit Choicehotels.com. Strong marketing campaigns, promotions, and investments in search engine optimization and mobile channels have succeeded in driving more traffic to our CRS. In fact, brand awareness of Choicehotels.com is at all-time high. One of the most visited websites in the hospitality industry, Choicehotels.com is attracting more than 100 million visits annually. Choice drove more than $1 billion in revenue through Choicehotels.com in 2011, and we are on track for a very strong 2012. If 2012 was the year of inflection for mobile, 2013 will be another year of innovation as mobile takes an increasingly prominent role for consumers searching for and booking hotels. And Choice aims to be in the forefront of that innovation - as it has been since that first iPhone app in long-ago 2009.

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You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

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