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Right Cloud Mindset: Survey Results Hospitality | Accenture

  1. Right Cloud Mindset in Travel Survey Results Hotel Industry* *Featured survey responses are ‘Top-three Ranked’ (%) (i.e., ranked by respondents as either Rank 1, 2 or 3)
  2. Survey Results Hotel Industry Guest Experience Owner and Franchise Management Sales and Brand Marketing Revenue and Yield Management Operations Information Technology
  3. Guest Experience
  4. Key Functional Objectives Within the Next Two Years Guest Experience CXOs are prioritizing contactless technologies, new connected services and improving the booking experience Technology-Related Challenges, in Achieving The Objectives 38 40 42 43 50 Achieve Contactless Operations Improve Bookings Experience and Rooms Visualization Launch New Connected Guests Services Gain efficiencies and reduce costs through process improvements and automation Enable 360 customer view 42 52 60 63 73 Difficulty in accessing, handling and provisioning the data needed Lack of integration of various tools Lack of flexibility of new application or technology Too much time required to launch innovative solutions Too much complexity
  5. Top Areas of Investment – Next 2 Years Guest Experience Reservations has been identified as a key process for investment, by 50% of CXOs, over the next two years 50% Reservations Housekeeping 35% Concierge 33% Guest Activities 32% We, unlikemanyof our global peers,do not haveour own PMS. Manyof the solutionsare stillon premisee.g., Oracle,andfor a businesslikeours, whichis split across geos, cloud isessential for flexibility. Mobility and Personalization Director Fortune 500 Hospitality Company
  6. • In a post-pandemic environment, the majority of travel companies continue to focus on contactless technologies; the idea is to create a ‘phygital’ concept that can personalize several aspects—such as shopping, identity, etc. • While mobile check-ins and related tools are key trends on the guest experience side, the pandemic has only accelerated the development of self-servicing capabilities. • The potential to monetize and personalize remains high—especially as the industry witnesses increased adoption in key technologies such as AI, ML, Chatbots, IOT and Analytics. True differentiation lies in the ability to offer the right product through the right channel at the right time—for enhanced loyalty and upselling and cross-selling. However, to make this happen, it is imperative that systems talk to each other. • It’s also important to curate experiences at every touchpoint, rather than at the ‘journey’ level. Today, the tight integration between PMS and CRM is a significant opportunity area for cloud. Data integration between these 2 systems would enable incumbents to optimize experiences at every touchpoint. Such a set-up would enable personalized responses on real-time basis. For example, if there is a customer incident, companies can use CRM to trigger an apology mail/personalized voucher and enable the workforce to make on-the- spot decisions, driving CSAT and NPS. Guest Experience
  7. Owner and Franchise Management
  8. Key Functional Objectives Within the Next Two Years Owner and Franchise Management Hotel and franchise owners intend to advance RM capabilities and prioritize attribute-based selling Technology-Related Challenges, in Achieving The Objectives 40 40 40 50 53 Achieve attribute-based selling and advanced revenue management Reduce costs through process improvements and automation Achieve contactless operations Enable 360 customer view Launch new connected guests' services within the hotels and facilities 47 50 57 63 67 Too much time required to launch innovative solutions Lack of flexibility of new application or technology Lack of integration of various tools Difficulty in accessing, handling and provisioning the data needed Too much complexity
  9. Top Areas of Investment – Next 2 Years Owner and Franchise Management Managing commercial and non- commercial partners continues to be a key priority for them 53% Manage Commercial Partners Manage Non- commercial Partners 47% • The hospitality industry has experienced foreclosure pressures in the past 12 months, leading to unsustainable operations for franchisees worldwide. • For hospitality companies, increasing franchise control has been on strategic agendas for the last decade. Recently, the industry has also witnessed a steady rise in soft brands in recent times. • Cloud is indeed the disruptor that could effect change; it will enable a new dimension of attribute selling, which could expedite profitability. It can also be the answer to solving fundamental challenges, such as handling analytical data at scale and enabling better integration among tools. For owners and franchisees, cloud can well be the answer to move beyond commoditization.
  10. Sales and Brand Marketing
  11. Key Functional Objectives Within the Next Two Years Sales and Brand Marketing The Majority CMOs and CSOs* intend to leverage technologies to dynamically market (and automate) their offerings Technology Related Challenges, in Achieving The Objectives 57 57 73 83 Innovate new products/packages during different booking/time periods Centralize, automate and host key processes Focus on SEO and SEM, to create personalized campaigns Achieve multi-channel capability 47 53 57 60 77 Difficulty in accessing, handling and provisioning the data needed Lack of integration of various tools Too much complexity Lack of flexibility of new application or technology Too much time required to launch innovative solutions *Refers to Chief Sales Officer
  12. Top Areas of Investment – Next 2 Years Sales and Brand Marketing However, incumbents continue to rely on outdated solutions, hampering objectives 67% Advertising Property Information 50% Marketing Campaigns 43% Sales Channels 40% Promotions 33% A bigimpactarea is digital sellinganddigitalmarketing,to appealto newcustomerswith newshoppingand purchasing patterns.Theneedfor personalizationand individualizedmarketingwill entailtrialingnewdigital marketingchannelsand offerings. Mobility and Personalization Director Fortune 500 Hospitality Company
  13. • The majority of surveyed CMOs and CSOs* want the ability to dynamically market their offerings, i.e., innovate new products/packages during different time periods. • However, the biggest impediment to dynamic operations is the system readiness to handle analytical data, as reported by 77% CMOs and CSOs. • Unfortunately, there is a big disconnect between IT strategy and respective functions, with Sales & Marketing still relying on solutions from 10 years back. It is imperative for IT to have a seat at the table, and in-turn help package relevant solutions for various functions, including Sales & Marketing. • As companies vie for differentiation in a post-pandemic world, current legacy systems limit the ability to scale data and achieve real-time data capture and processing. Cloud allows organizations to scale and interconnect systems and to work in a real-time environment, across functions and channels—thereby significantly expanding horizons around meaningful customer engagement. Sales and Brand Marketing *Refers to Chief Sales Officer
  14. Revenue and Yield Management
  15. Key Functional Objectives Within the Next Two Years Revenue and Yield Management Augmenting RM through AI/ML and improving dynamic pricing strategies, remain the key focus for CXOs Technology Related Challenges, in Achieving The Objectives 43 47 70 70 70 Optimize existing distribution channels / improve direct capabilities Augment Revenue Management through AI/ML capabilities Improve dynamic pricing strategies for bundled and unbundled products Create one-stop-shop solution, by integrating PMS, Channel Manager and RMS Improve integration and data exchange with current PMS 37 40 47 70 73 Too much time required to launch innovative solutions Lack of flexibility of new application or technology Difficulty in accessing, handling and provisioning the data needed Lack of integration of various tools Too much complexity
  16. Revenue and Yield Management Within the RM space, CXOs plan to prioritize ‘demand forecasting’ & ‘target pricing’ capabilities, in the wake of today’s shortened booking environment Top Areas of Investment – Next 2 Years 77% Demand Forecasting Capabilities Recommend Target Pricing 67% Gather Competitive Pricing 63% Tracking and Optimization 50% Collect Historical Data 37% There’sa significantopportunity in revenuemanagement,a key pain-pointin today’stimes; currentrelianceis mostly on inhousetools & not on 3rd parties. Infrastructure Technology - Network Architecture and Engineering Director Fortune 500 Hospitality Company
  17. • Today, Hospitality companies can no longer rely on past data (from 1 year), for forecasting and demand prediction. With COVID 19 variants such as Delta and Omicron impacting travel, the consumer booking window has shrunk dramatically (to 7-15 days), and organizations need to master dynamic and continuous pricing strategies. • 77% of CXOs intend to improve demand forecasting capabilities (primary focus area), while 67% want the ability to recommend target pricing. • 70% of CXOs intend to augment their RM capabilities, through AI/ML. Cloud will provide the intelligence, scale and the combinatorial power of working with multiple technologies to enable the differentiation that companies desire today. Revenue and Yield Management
  18. Operations
  19. Key Functional Objectives Within the Next Two Years Operations 63% of COOs aspire to improve function collaboration and sustainability, over the next two years; lack of integration among tools remains a major pain-point Technology Related Challenges, in Achieving The Objectives 43 50 53 63 63 Improve collaboration between functions Realize sustainability in operations Launch new digital tools/services Reduce costs through process improvements or efficiencies Achieve seamless collaboration among hotel owners, individual property owners and managers 33 53 53 57 73 Lack of integration of various tools Too much time required to launch innovative solutions Lack of flexibility of new application or technology Difficulty in accessing, handling and provisioning the data needed Too much complexity
  20. Top Areas of Investment – Next 2 Years Operations Additionally, 80% of CFOs and COOs plan to improve their financial planning & forecasting capabilities 43% Manage Regulatory Requirements Manage Facilities 33% Perform Physical Security and Safety 33% Manage Property Operations 33% Manage Consumable Inventory 30% WhileCXOs recognizecloud potential,they are concerned about failedintegrationeffort anddisruptionarisingfrom that. Importantto convincethem with pilots,with a narrativecentered aroundrisk mitigation.Key is to create a tangibleroadmapfor integration,that makesbusiness sense. Mobility and Personalization Director Fortune 500 Hospitality Company
  21. 80% • As the business environment remains difficult, hospitality companies are increasingly prioritizing transaction unit costs. • 63% of COOs plan to improve collaboration between functions. Unsurprisingly, 73% of COOs feel that integration among tools is the key challenge faced by the majority of today’s hospitality companies. • Data remains the most crucial element; while companies continue to hold proprietary data, they are unable to unlock value. The C-suite agrees that Cloud is probably the most powerful solution for data monetization. It will help break organizational silos and enable cross-functional services. Operations of CFOs and COOs intend to prioritize Financial Planning, Budgeting and Forecasting
  22. Information Technology
  23. Develop and Manage Business Relationships Develop IT Service Strategy Increase Efficiency in IT Service Management and Operations Information Technology Reducing costs through automation and achieving system integration remain key priorities for Hospitality CIOs, CTOs and CDOs over the next 2 years 33% 37% 50% 53% 57% Reduce costs through process improvements or efficiencies Achieve system integration among hotel owners, individual property owners and managers Improve collaboration with various enterprise functions Tracking and Optimization Collect Historical Data Within Information Technology, CIOs plan to: 67% 63% 47%
  24. Three mindset shifts to scale cloud What does it take to up your cloud game? Hint: It’s not only about the technology Think technology to grow business Old mindset: The CIO drives IT New mindset: The CIO drives recovery and future growth Think new ways of working Old mindset: It is working well today New mindset: Future agility is non- negotiable Think success beyond the change Old mindset: Fear around too much risk New mindset: Confidence in multi-fold rewards READ THE FULL REPORT 01 02 03
  25. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 674,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.
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