Future Lodging Trends: Emerging Technologies & the Seven Phases of Travel

Future Lodging Trends
& Emerging Technologies
Wisconsin Hotel & Lodging Association
Conference & Tradeshow
Green Bay, Wisconsin
October 26, 2010
Robert Cole ● RockCheetah

Session Overview
• What’s Changing?
• Web 1.0 → Web 2.0 → Web 3.0
• Four Traveler Mandates
• Five New P’s of Marketing
• Six Business Impacts
• Seven Phases of Travel
October 26, 2010 ● Green Bay, WI WH&LA ● Future Lodging Trends & Emerging Technologies Robert Cole ● RockCheetah | 1

Everything is Changing
• Business
• Marketing
• Technology
Photo: ஆ ன ந் த ம் / a n a n d h a m (flickr)

Business is Changing – Occupancy
51.0%
56.0%
61.0%
66.0%
71.0%
76.0%
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
OccupancyPercentage
Week
US Hotel Occupancy Comparison
Weeks 24-42 | 2006 through 2010
2010
2009
2008
2007
2006
Data: Smith Travel Research Analysis: RockCheetah LLC

Business is Changing – Avg. Daily Rate
$91.00
$96.00
$101.00
$106.00
$111.00
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
AverageDailyRate
Week
US Hotel Average Rate Comparison
Weeks 24-42 | 2006 through 2010
2010
2009
2008
2007
2006

Business is Changing – RevPAR
$49.00
$54.00
$59.00
$64.00
$69.00
$74.00
$79.00
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
RevenuePerAvailableRoom
Week
US Hotel RevPAR Comparison
Weeks 24-42 | 2006 through 2010
2010
2009
2008
2007
2006

Marketing is Changing - Relevance
• People Don’t Like Advertising

Marketing is Changing - Quantity

Technology is Changing

New Traveler Mandates
• 1. Relevance
• 2. Mobility
• 3. Personalization
• 4. Community
Photo: Sprengben (flickr)

1. Relevance
Deep Search
vs.
The Splinternet
Photo: LuluP (flickr)

Relevance - Deep Search
Photo: g-na (flickr)
+
- $700 Million
=

Google using Microformats & RDFa
• Associate Reviews with Hotels
• Specify Image Licensing
• Drive Context-sensitive Ads
Relevance – The Semantic Web
Making Sense of Unstructured Data
Photo: Mr. Physics (flickr)

Relevance – Context Sensitivity
Video: Dapper.com

The Splinternet: Walled Gardens
Photo: SFB579 (flickr)
• Platform Challenges

The Splinternet: Walled Gardens
• Advertising Challenges

2. Mobility
Real-Time: Proximity:
Anytime Anywhere
Photo: atzu (flickr)

Why Mobile Can Not Be Ignored
Smartphone use is on the rise. Mobile web adoption is ramping up
8x faster than Internet in the mid-90s.
In the Travel vertical, purchase intent
on Mobile ads is 5x higher than on
desktop ads.
Mobile Travel bookings are projected to
grow 700% in 2 years.
0
500
1000
1500
2000
Mobile travel searches
$20M
2008
$160M
2010 Projection
Data Sources: : Forrester, 2009. Google Internal Data, February 2010. InsightExpress, February 2010. PhoCusWright, January 2010

Apple iTravel: Works solely within
Apple Hardware &
Software Ecosystem
· Network
· Camera
· GPS
· RFID / NFC
· Phone
Photo: gwgs (flickr)
Mobility – Anytime / Anywhere

3. Personalization
• Customization • Personas
Photo: Sergey Galyonkin (flickr)

Customization – Ask for Anything
Video: Google Android Voice Actions (YouTube)

Personalization - Personas
Photo: Greything (flickr)
AssociationSMERF
Wholesale
Leisure
Group
Package
Corporate
Transient Convention

4. Community
Social Computing
versus
Privacy
Photo: ►Voj► (flickr)

Community – Social Computing
If You Want the Job Done Right…
Get Help.
Experts ● Friends ● Groups with Common Goals
Photo: 3[3] (flickr)

Community - Privacy
Photo: laverrue (flickr)
• Trustwave 2010 Global Security Report
– Hotels Prime Target for Hackers
– Breaches Involving Hotels: 38%
– Breaches Involved Credit Card Numbers: 98%
– Average Days Between Breach & Detection: 156
– Many Franchisees – Only PCI Level 4 (Self Assessment)
• Insecure Passwords
– 8 character Password Cracked – Under 2 Hours
– Use of Identical Passwords Across Multiple Sites

New 5 P’s of Marketing
• Paradox
– Opportunity to Exploit Paradox and Create New Category
• Perspective
– What Consumer Need is Satisfied? / How Differentiated?
• Paradigm
– From Product (Features) to Brand (Who & What You Are)
• Persuasion
– Speaker Credibility/Message Content/Audience Involvement
• Passion
– Must Have Passion for What You Do
Source: Tom Patty, President - TBWA/Chiat Day 1997
Photo: pfala (flickr)

Only Six Possible Business Impacts
• Improve Brand Engagement
• Attract Customers
• Retain Customers
• Grow Revenues
• Increase Margins
• Reduce Expenses
If Any Strategy Does Not Target One of These… Stop.
Photo: Mr. T in DC (flickr)

Photo: joguldi (flickr)

Seven Steps – Inspiration
New Media
• Travel Writers
• Journalists
• Bloggers
• Social Graph
• Influencers

Seven Steps – Research
Semantic Travel Search Sites

Seven Steps – Planning

Seven Steps – Validation

Seven Steps – Booking
StayHip Mobile App
by Mobiata
for TravelClick

Seven Steps – Travel
Mobile Phone for Key Entry
• Guests Register Online
• No Stop at Front Desk
• Supports All Cell Phones
• Uses Existing Locks
• Cards Keys Still Work
• Code Change – 12 Seconds
• More Secure than Cards
• Support for Future NFC
Uses Unique Sound Patterns

Seven Steps – Sharing
• Images
• Videos
• Property/Destination

Where Do I Start?
What Should I Do?

Everything Is More Difficult
• Challenging Business Environment
• New Search/Interface/Technologies
• More Platforms & Walled Garden Sites
• Must Be Relevant/Mobile/Personal/Social
• Market Segmentation is Getting Personal
• Marketing Must Differentiate Product Offering
• Multiple Methods to Impact Business
• Multiple Phases of Travel Process to Consider
Photo: Sam Cockman (flickr)

How to Manage the Future
• Unyielding Focus on Customer Needs
– Guests Want Honesty / Transparency / Respect
• Strategic Business Objectives Define Actions
– Avoid Activities if Strategic Benefit is Missing
• Marketing Must Break Through Clutter
– Paradox/Perspective/Paradigm/Persuasion/Passion
• Technology is Only a Tool to Support Strategy
– Get Past the Hype - Select the Right Tool for the Job
• Fix Guest Experience Before Using Social Media
– Communicate on Guests’ Preferred Terms & Channels
• Target Personas for Travel Itinerary & Travel Process Step
– Easier Task to Target Family Leisure Travelers Planning Phase

Thank You for Your Attention
Questions?
Copies of the Presentation?
Comments?
Robert Cole
mail: robert@rockcheetah.com
phone: +1.262.309.9560
skype: robertkcole
twitter: @robertkcole
web: www.rockcheetah.com/blog/

Future Lodging Trends: Emerging Technologies & the Seven Phases of Travel

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Future Lodging Trends: Emerging Technologies & the Seven Phases of Travel