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Insights and advice from the HTR team to find the best technology to grow your hotel business

Hotel Digital Marketing Agencies Software Articles

How to know when your hotel needs a new digital marketing agency

by
Hotel Tech Report
2 weeks ago

Digital marketing is one of the top ways to drive direct bookings to your hotel. It’s the demand engine that raises awareness about your hotel, and pulls guests directly to your hotel’s website.  Yet, most hotels lack the ability to fully harness the power of digital marketing. This is mainly due to limited resources -- both time and money.  Digital marketing sounds like a “field of specialty” but it’s actually more like 20 different fields.  Google is just one such platform that digital marketers need to stay ahead of the curve on and their search algorithm changes 500-600 times each year.  That doesn’t even factor the changes to products like Google AdWords and Google Hotel Ads.  Expecting an on property marketer to fully understand Google search trends alone with all of their other responsibilities is unrealistic, let alone expecting them to be experts at Bing, metasearch, Facebook, Instagram, Pinterest, etc. Your hotel needs to also have access to CRO (conversion rate optimization) expertise, link building capabilities, content marketing, graphic design, social media marketing and more. Your on property team is literally competing with billion dollar ad budgets from companies like Booking and Expedia - you need to provide them with the resources to compete effectively or you’re leaving thousands of dollars on the table each month.  The craziest thing is that even if you find someone who’s an expert in all of these areas - they still won’t know how they’re performing because they’re looking at a single property or small portfolio. What is a good website conversion rate? What percentage of your hotel website should be organic vs. paid? What is a good ROAS?  All of these questions will be answered in monthly meetings with a great hotel digital marketing agency. If one thing is clear it’s that you should not be sending your on property marketing manager to the fight without the right resources and assistance.  There’s never enough time in the day, and certainly not enough cash in the marketing piggy bank. While it’s not always easy to get more budget, there is one easy way to get more time: turn to a top rated digital marketing agency that will be a true partner and augmentation of your in house marketing function.   The value of efficiency In 2018, Internet advertising revenues in the U.S. totaled $107.5 billion, which was way up over 2017: a 21.8 percent increase, according to a recent report by the Interactive Advertising Bureau. The continued growth in digital marketing mirrors a massive shift in attention: in the U.S., consumers now spend more time on their devices than watching.   The takeaway here is that digital is where the eyeballs are -- and hotels must follow. That means competing with massive OTAs and well-heeled hotel groups for consumer attention. That means navigating a multitude of platforms, both existing and emerging. That means spending time to understand where your audience lives online and then spending money to reach them. It’s a massive mountain to climb, and it’s something most hotels shouldn’t do alone.  How can hotels boost digital marketing spend (and efficiency) with limited budgets and fewer staff to optimize performance? The answer lies in the hands of others: finding a great digital marketing agency that aggregates its expertise from other clients to power a better, more efficient, and ultimately more powerful digital marketing strategy.    Meet Screen Pilot In the competitive landscape that is the hotel business, partnering with a specialist digital marketing agency can prove a nimble approach. The right agency helps hotels formulate and execute the right digital strategy for a given property or brand. Acting as an extension of the hotel’s in-house marketing team, a digital shop can help drive more direct bookings by bringing added levels of objectivity and expertise to the table as well as more progressive insights and advanced technology.  Denver-based Screen Pilot has been with working with hospitality companies of varying sizes for more than a decade. The company scores 4.8 of 5 by Hotel Tech Report users, with 97 percent recommending the business. Unsurprisingly with this level of overwhelmingly positive feedback, Screen Pilot also won Top Rated Digital Marketing Agency at the HotelTechAwards in both 2018 and 2019.   Read more Screen Pilot reviews like this one   While Screen Pilot implements strategies that are customized to the needs of a specific property or hotel group, each digital marketing program delivers measurable results. Following the first 45 days of work with San Jose’s Hotel De Anza, total website transactions increased 13.8 percent and associated revenue jumped 11.2 percent. Extend out to 90 days, and website production resulted in increases of 97 percent in revenue, 113 percent in bookings and 116 percent in room nights. Impressive stats that dramatically improved profitability! To achieve these outcomes, Screen Pilot employs a variety of digital marketing tactics such as search engine optimization, paid advertising, social media and metasearch management. The company excels at the core pillars of website design, content marketing, and social media marketing. For hoteliers considering when to elevate your digital marketing game, here are three signs you may benefit from some expert help.   #1: You have a low website conversion rate A hotel’s website is fundamental to its ability to drive direct bookings. It’s where most travelers have their first encounter with the property, setting the tone for their potential upcoming stay. Ease-of-use in terms of user navigation as well as how efficiently a booking can be made on the site, factor into higher conversion rates. Users want a streamlined process that’s frictionless. Information on amenities and packages should be simple to search.  Screen Pilot’s approach to hotel website design and development includes the essentials such as graphic design, copywriting and tag management tracking and configuration. The company can also customize a hotel website’s look and feel, including unique features such as 360-degree room tours or review sections for specific room categories.  Since Google shifted its focus to how fast websites load on mobile, speed is an important consideration for hotels. Screen Pilot can also optimize a hotel’s website for mobile with specialized technology like Google AMP markup. The Screen Pilot team will optimize mobile experiences using tools such as Google Optimize, which allows up to five website options to run simultaneously, without permanently affecting the CMS platform. Leveraging Google Optimize for one hotel client’s website lead to an 80 percent increase in booking engine views.   #2: You have a low percentage of organic traffic  Content is paramount to strong SEO. It’s also vital to engaging with website users as they move from the top of the funnel down. But effective content must reflect the brand while also closely aligning with the interests of the hotel’s target audience and including targeted keywords. It’s a delicate balancing act that reaches across a hotel’s marketing.  In fact, improving organic SEO is at the center of the Screen Pilot approach, insofar as every facet of the digital marketing engagement exists to both add standalone value and to improve SEO outcomes.     The first step to determine the viability of current SEO strategies is an audit of a hotel’s existing website content. Where there’s room for improvement, the team has an arsenal of tools: copywriting by brand-specializing journalists, influencer marketing campaigns, interactive content like quizzes and customized itineraries, public relations, user-generated content and others. It all comes together in a single strategy that positions hotels prominently in search engine results pages and, of course, more direct bookings.  Working with a collection of boutique hotels located across the U.S., Screen Pilot created a three-month campaign across multiple channels, focused on interactive content intended to generate brand awareness for the individual properties and pair them with a specific hotel and ultimately, increase year-over-year bookings for that period.  The social media component of the program resulted in over 200 bookings, with a 13 to 1 ratio for return on investment (ROI). PPC, remarketing and awareness display advertising generated 879 bookings and a 16 to 1 ROI ratio.   #3: You’re overwhelmed by the ever-changing social media and search marketing landscape  Screen Pilot’s expertise in social and search marketing gives its clients an edge over their competitors. The digital marketing firm is both a Bing Partner and a Google Partner, meaning Screen Pilot is officially a certified expert on each organization’s advertising programs and policies, making them well equipped to optimize a hotel’s pay-per-click (PPC) campaign. Moreover, Screen Pilot will also add new PPC channels into the mix, depending on client needs and strategy.  Social is also a key component of Screen Pilot’s suite of services. An active social media presence has a strong impact on hotels, as it acts as both a marketing tool and a guest engagement platform. A consistent (and constant) presence has become table stakes for any brand that engages with today’s traveler. A 2018 TripAdvisor report found that a hotel’s social presence is important to 92% of travel business owners. Of course, an effective social media presence can only be achieved with a customized strategy that incorporates the most relevant channels to a hotel’s target audiences and messaging that will resonate with those users while also communicating brand values. Screen Pilot buys media that supports each client’s objectives, incorporating elements such as social media photography, graphic design and influencer outreach.  In addition to crafting social media ad campaigns that drive brand awareness while also prospecting and retargeting users, Screen Pilot, a partner of social media management platform Sprout Social, can manage clients’ social media presence and deliver in-depth, monthly reporting and analytics. This also includes keeping up with guest comments and online reviews so that responses are timely and the brand’s reputation is safeguarded.  When the company was tasked with creating the social media presence for a new 878-room Orlando resort, Facebook, Twitter, Instagram and Pinterest channels were launched in April 2016. Between then and March 2017, Screen Pilot built a combined following of 2,400 followers, representing an increase of more than 4,000 per cent.  The entire social media campaign resulted in nearly four million organic impressions, more than 15,000 organic engagement and over 80,000 link clicks to the resort’s website.  More impressive results that show how valuable an expert ally can be to amplifying your hotel’s digital marketing efforts!   A final consideration When choosing an agency to level up your hotel’s digital marketing, be sure to find one that knows hospitality. It’s worth paying for that specialization, as this expertise pays off. You’ll spend less time training those unfamiliar with the business, and benefit from the learnings the team has from other clients. Prioritize agencies who are on the bleeding edge of hotel marketing tactics.  These agencies will have enough experience to know the latest updates in search algorithms and tactics to steal share from OTAs but usually won’t be so big that their work is cookie cutter - Screen Pilot fits right into this creative and trusted sweet spot. Much of Screen Pilot’s core team comes from a background in hotels, resorts and restaurants. The relevant backgrounds meant that they not only talk the talk but also walk the walk. This expertise also means that hotels with limited budgets can find an ally: since the team is efficient and knowledgeable, there’s less waste and more ability to help hotels of all sizes.  As this Assistant GM from Lakeport said in a review, it’s all about finding a “personable” team that’s “easy to work with” and “able to produce great results” -- even with a limited budget. That’s exactly the type of ally you need when investing more thoughtfully in your hotel’s digital marketing strategy!

HITEC 2019 Recap: Everything You Missed in Under 5-Minutes

by
Hotel Tech Report
1 month ago

The Hotel Tech Twins just returned home from HFTP’s annual US HITEC show which just so happened to find itself in...wait for it...the twin cities.  This year’s location in Minneapolis is the hometown of hotel tech darling IDeaS which happened to be celebrating its 30th year in business - serendipity was in the air. The week kicked off with our favorite part of every major conference, Klaus Kohlmayr’s exclusive tech startup happy hour where we got to bump elbows with CEOs like ALICE’s Alex Shashou, Meeting Package’s Joonas Ahoola and Triptease’s Charlie Osmond who just returned from running a marathon in North Korea (nope that’s not a typo...NORTH Korea!). During the conference we met with more than 50 tech companies to learn about the latest tech developments and tips to grow your hotel business.  In this article we distill major trends that we saw in the market and highlight key innovations that should be on every hotelier’s radar within each trend.  Consolidation certainly seems to be driving the market with Travel Tripper + Pegasus making its first combined HITEC debut, Jonas Hospitality launching its Jonas Chorum brand and HeBS/Serenata rebranding the organization Next Guest. Whether you were at HITEC and were too overwhelmed to cut through the noise or couldn’t make it at all...fear not, we've got you covered.  Below you’ll learn about the 6 biggest hotel tech trends we saw at the show, discuss what they mean for your hotel business and highlight the companies that are pushing the envelope within each.   TLDR; HITEC trends at a glance TREND 1 | Companies are doubling down on automated workflows to save time and reduce human error (12 products covered) TREND 2 | A cambrian explosion of tools to help hoteliers manage and make sense of their data (6 products covered) TREND 3 | A new focus on enabling guests and driving revenue with self service (8 products covered) TREND 4 | Big tech is leaning into hotels for new use cases & distribution (4 products covered) TREND 5 | Housekeeping software is heating up (4 products covered) TREND 6 | Fraud and security are still poignant post-Marriott breach (8 products covered) Bonus Coverage: More Notable Product Rollouts and Launches From the Show (10 products covered)   Before we jump into the trends...3 shout-outs for creativity at the show Most creative HITEC marketing initiatives: a tie between IDeaS and Infor IDeaS went big for their 30th anniversary and brewed their own line of local craft beers for the show.  We heard they still have a few extra cases left so when you are negotiating that contract for your hotel group’s next RMS - make sure to ask them for a hoppy throw in. Infor launched its new grab-and-go POS solution where guests can purchase food on a touch screen kiosk.  The Company went all in on the demo and had a full service food and beverage operation running in real time.  It turns out hoteliers love free food and the demo was super slick so the Infor booth was slammed every time we passed by. ALICE delighted conference goers by shelling out envelopes of cash to announce its latest release.  While envelopes of cash alone would have been enough to secure a shout out for creativity, the meaning behind the stunt sealed the deal with class, creativity and customer centricity.  Having just launched the all new ALICE Housekeeping, the envelopes were actually tip envelopes for conference goers to bring back to their hotel rooms and leave for their room attendent paying homage to housekeepers and the back breaking work they do day-in and day-out.   Congrats to SABA Hospitality, the winner of E20X People's Choice Award.  SABA Hospitality manages every aspect of the guest journey. From answering questions, to managing requests, making recommendations, fulfilling F&B orders and everything in between. Their artificial intelligence driven chatbot transforms a hotels guest experience, while lowering staff workload and driving revenue.     TREND 1 | Companies are doubling down on automated workflows to save time and reduce human error Due to years of overzealous media hype, when hoteliers hear the word ‘automation’ they mostly think about robots but the kind of automation that’s actually changing the hotel industry is a very different kind of automation. Most techies are familiar with companies like Zapier and IFTTT (If This Then That).  Essentially these companies are platforms that help businesses setup and execute rules for repetitive processes.  For example, you could set a “Zap” that triggers a Google Calendar meeting scheduled every time someone fills out a form on your website.  These kinds of automations are the backbone of building a great business because they free up your team to focus on high value tasks.  Hotels are notorious for having these kinds of repetitive tasks.  For example, every time a room attendent finishes cleaning a room they need to radio the housekeeping manager who then needs to mark the room ready for inspection.  Take another example where your night audit team needs to do a manual bucket check to cross reference each in-house folio against your in-house list in your PMS.  All of these tasks can be automated away which frees up those team members to focus on higher value tasks which can really move the needle for your business. At HITEC this year we saw a ton of companies from guest messaging platforms to revenue management systems showcasing ways for hoteliers to automate away those redundant and tedious tasks.  These tools help you save time, eliminate frustration and mitigate the risk of error across your property operations.   Below are the key HITEC launches and showcases that help hoteliers like you with task automation. Whistle launched AI conversation and dispatch automation for its guest messaging product Some hoteliers fear that adding guest messaging at their property will increase the amount of work for their teams by adding a new channel for requests. The good news is that Whistle has been honing their conversational Artificial Intelligence (AI) / Machine Learning (ML) model which now claims to predict responses to 80%+ of guest questions and requests. With this knowledge, Whistle can suggest or automatically prompt the appropriate response back to the guest, and even auto-prompt service requests and work orders to internal departments via Whistle’s lightweight task management module or other integrated Service Optimization solutions like Quore.  Whistle has won the top rated Guest Messaging category two years running and its new time saving functionality looks like they're likely to step up their game again this year. IDeaS showcased Investigator, a new feature to show hoteliers how pricing decisions were made As technology plays more of a role in revenue management many revenue managers want to know the “why” behind pricing decisions to ensure that mistakes aren’t being made and so that they can effectively communicate strategic decisions to stakeholders. With Investigator, revenue managers can drill into the analytics behind decisions made by IDeaS’ G3 revenue management system. Investigator allows revenue managers to embrace automation while also staying in the loop to make sure everything is working properly. OTA Insight adds intelligent rate parity breach detection and bulk actioning via automated alerts Hotel distribution is extremely complex and due to the way that 3rd parties resell inventory it’s nearly impossible to track down parity issues like price discrepancies or room-type issues. Parity Insight provides a turnkey solution to detect, action and resolve parity issues in real-time. The new functionality provides workflow automation and streamlines communication between groups, chains and hotels. OTA Insight is trusted by more than 40,000 properties globally and leverages data across the entire group to help each individual client ensure that their distribution partners aren’t engaging in costly breaches of contracts. Zingle launched automatic message categorization and intent triggered automation Without the right automation, guest messaging can add more work onto your team’s already busy plate so it’s important to have the right automations in place to ensure that this great guest amenity doesn’t come at the expense of team productivity. Zingle’s messaging software has pre-made and customizable automated workflows that re-route and follow up to messages to save staff valuable time on repetitive tasks. There are dozens of automations available today, including recognition of plumbing issues, process information requests (like gym hours), or housekeeping related messages like  room-cleaning and turn down service. Zingle  streamlines communication for hotels and improves service times by reducing the need for manual ticket entry, routing and follow-up by staff.  Zingle raised $11M from Peakspan Capital to fuel technical R&D and drive growth. Fun fact, Zingle's founder Ford Blakey also happens to be the brother of billionaire Spanx founder, Sarah Blakely.   Travel Tripper showcased its ADA compliance audit and monitoring platform to automatically detect compliance issues with your website. The platform offers a proactive approach to the increasing threat of ADA website lawsuits in the hotel industry, allowing hoteliers and their web service providers to address website accessibility issues and mitigate the risk of ADA compliance lawsuits.  This platform is the first of its kind (in the hotel industry) which actively audits hotel websites according to WCAG 2.1 AA-Level standards and automatically alerts property teams if a technical violation is found.  Upon recognizing an ADA violation, the platform sends regular notifications to account users until the issue is fixed.  In addition, Travel Tripper assists hoteliers’ legal teams by giving them the proper documentation they need when responding to an ADA website compliance lawsuit. Cendyn announced a new funding round lead by Accel/KKR to increase the capabilities of its marketing automation products both in SMB (Guestfolio) and enterprise (eInsight). Cendyn was one of the first movers in the hotel CRM market and to this day is amongst the top hotel CRM choices in the enterprise clients with its eInsight product.  Back in 2016 Cendyn acquired Guestfolio, a provider of hotel CRM independents and moving forward AKKR is likely to have its sights set on more M&A opportunities like Guestfolio (or even a larger merger).  With Tim Sullivan taking the helm from founders Robyn and Charles Deyo, hoteliers can expect the firm to push deeper into automation.  Over the last few years hotel CRM vendors have needed to invest heavily in GDPR compliance initiatives but with that behind them expect more "Marketo" like marketing automation functionality out of this category in the next 6-12 months. Protel launched zero cost 1-click integrations to fuel automation Integration is the key to all automation but historically integrations have been extremely expensive and time consuming to set live. protel launched one-click connect and slashed activation costs for select partners in its i/o marketplace. Now protel clients can instantly turn on top rated apps like OTA Insight, Oaky Upselling and Atomize revenue management without paying a dime. While this is a small step towards a more integrated future it is a critical one since this kind of move from a major PMS company like protel with 14,000 clients will put pressure on others to follow suit. Atomize launched its group booking price optimization functionality Group sales reps often price groups manually which takes a lot of work.  If they ask too much they could lose the contract and if they charge too little they leave money on the table. Atomize’s new group booking functionality allows hoteliers to automatically set optimal prices for group booking packages.  The software cuts out manual calculations, negotiations and collaborations by taking into account the total expected spend of various groups on property.  Atomize can factor varied requests within the same group like different arrival and departure dates. Atomize won top rated revenue management system in the 2019 HotelTechAwards and has been taking the industry by storm ever since.  This new group functionality is another step towards rounding out Atomize as a complete revenue management software the platform. SevenRooms launched email marketing for hotel restaurants Hotel food & beverage operations often lack the resources and know how to run personalized marketing campaigns. SevenRooms’ segmentation and email automation enables F&B managers to easily add customizable tags to guest profiles then run rules based marketing campaigns to those segments.  Run unique marketing to critical segments like: first timers, high value regulars, positive reviewers and more. Companies like Revinate and Cendyn have demonstrated the immense value of personalized hospitality marketing campaigns.  Now F&B outlets can benefit from marketing automation too. Zoox debuted facial recognition technology for hotel check-in Front desk agents are overloaded with repetitive tasks like identity verification which creates bottlenecks at check-in and hurts the guest experience. Zoox’ facial recognition software allows guests to check into the hotel in under 15 seconds without the front desk ever needing to verify their identity with ID or credit card. Facial recognition is already being used in markets like China which have leap frogged some of the West’s archaic traditions by using next gen tech. Avvio showcased its Allora powered booking engine Each guest is enticed by different booking messages, layouts and visuals so having a static booking engine means that you’re losing guests by not putting the right offer and presentation in front of them. Allora leverages data from Avvio’s client base to put the right messages and visuals in front of guests that are likely to be enticed by those calls to action. Continuous website optimization is mainstream in eCommerce and is a critical piece of maximizing direct bookings. Avvio guarantees that you will see a 25% increase in direct booking revenue when you switch to their booking engine. Knowcross launched KNOW Maintenance to automate preventative maintenance KNOW Maintenance is a cloud based multilingual application that helps automate, schedule and monitor all preventive maintenance activities at hotels.  The application organizes all engineering responsibilities for hotels, thus ensuring superior guest satisfaction, minimize malfunction accidents and maximized equipment lifetimes. This also results in enhanced productivity and better manpower forecasts. Event Temple showcased group sales automation. Sales & catering is the lifeblood of any business hotel and managing your group sales pipeline effectively could be the difference between making or losing money.  Event Temple's group CRM is purpose built for the hotel industry and features digital contract signatures, banquet orders, pipeline overview, menus and more.  With this software your sales team can track progress at the property or portfolio level.  Event Temple features built in emails and the ability to automate initial drip outreach with new leads.     TREND 2 | A cambrian explosion of tools to help manage and make sense of your data We know that you and your staff are probably sick of tech companies talking about artificial intelligence, machine learning and big data. Ultimately the big hotel data challenge can be boiled down into 3 simple buckets: (1) Guest profile data (2) Market data (3) Operations data   Most of the datasets that tech marketers are referring to are not really big data.  Here’s how analytics firm SAS defines big data. “Big data is a term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis.” Since big data can be overwhelming for hoteliers, let’s first define our data types so that we can see it’s actually not so scary: Guest profile data helps us target new guests and better serve them on property.  CRM systems use recency, frequency and monetary value as the core data points but this data includes PMS data like stay dates as well as 3rd party data pulled in from social media platforms, reputation platforms like Revinate, guest surveys and other data sources.  Ultimately we want to use this data to find new guests who are like the ones that stay with us and to deliver personalized experiences that drive loyalty Market data helps us price our rooms and plan for the future.  This data includes historical pricing, demand trends, local events and more.  Market data sources come from platforms like OTA Insight or TravelClick Demand360 as well as 3rd parties like Kalibri Labs, STR or CBRE. Operations data helps us streamline how we run our business.  This data comes from PMS and operations systems.  We’ll want to look at things like how long it takes to turn our rooms, average cost per occupied room, time to service requests and more. The challenge becomes tying all of this data together in ways that enable us to make business decisions and act on them in real time.  Integrating these datasets and visualizing them in a clear and understandable way is critical for the success of any hotel. Because this data is constantly flooding into our properties it’s impossible for humans to process it and make good decisions without the right software systems in place. From budgeting and forecasting to marketing and operations, the vendors below showcased new ways of visualizing and manipulating a hotel’s existing data to help hoteliers make better business decisions. Revinate debuted its new platform that promises to manage and organize all of your hotel’s marketing data How can hotels manage relationships with guests? Not just manage room inventory, but create and manage rich guest profiles that tell them everything they need to know about potential guests: recency, frequency, and spending of previous stays to really understand who their VIPs are and when and how they should be marketed to. Currently, data is tied up in various systems that don’t speak to each other very well. Hoteliers need tools specifically built for the complexities and nuances of the hospitality industry. Nowhere is this truer than when it comes to managing guest relationships effectively at scale. The Hotel GMS allows hoteliers to easily surface insights on their guest, segment and market to them, and learn more about them over time to make future communications even more effective. Hotel Effectiveness showcased its labor optimization dashboards and new wage benchmarking capabilities With labor costs on the rise and labor being the single largest line item on most hotel’s P&L, finding ways to monitor and optimize your labor and staffing is mission critical for most hoteliers.  The problem is that most hotels still track and manage their labor manually on pen and paper but luckily, Hotel Effectiveness (in depth review).  The team showcased their purpose built tool that is used by major clients such as Heritage Hotels & Resorts, Interstate Hotels & Resorts, Pacific Host Hotels and Chartwell Hospitality and promises to reduce total labor costs by 5-10% by turning labor hours and cost data into actionable recommendations served up right in the dashboard. SHR launched its Wave RMS (revenue management system) SHR is the latest in a slew of companies launching revenue management systems in the last couple of years. SHR's algorithm uses Reinforcement Learning techniques with a proprietary mathematical model that recommends prices not only based on one specific date, but factoring in both days-to-arrival and optimal price on shoulder dates, as well, to maximize revenue across the stay pattern.  Wave combines advanced algorithms with a Strategy Builder tool so that Revenue Managers don't need to solely trust a “black box” recommendation. Cenium showed off its Microsoft BI powered customizable dashboards If you’ve used multiple PMS’ before you know that the dashboards often look the same.  Based on your role, there are different metrics and views that are most important to you but it takes a million clicks to get to your favorite view. With a redesigned interface, Cenium put its new customizable dashboards on display at HITEC.  Powered by Microsoft BI, hoteliers can pick from pre-built templates or easily slice and dice data to personalize their dashboard. Owned by a Norweigan hotel conglomerate, Cenium was built for the portfolio’s own hotels and is now being made available globally to other hotels outside its portfolio.  Funded by the cashflow of the real estate business, Cenium’s pockets are deep and offer a deep resource pool to build a strong product with a customer mindset at the heart of product development. SnapShot rolled out its V1 POS Analytics to compare PMS and POS data in one interface While PMS Software was built for hotels, most POS Software was built for restaurants which often becomes evident when trying to run hotel analysis of various F&B outlets or compare POS and PMS data in one interface to identify performance by outlet as well as slice and dice data from both systems to do things like remap and unify POS outlets' names, payment methods, F&B categories and price modifiers. Snapshot POS Analytics is currently only available for hotels who utilize sister Shiji company Infrasys’ POS and the lightning fast growing Lightspeed POS. Profitsword showcased its custom financial performance dashboards The new user interface is a continuation of ProfitSword's commitment to provide instant and straightforward access to the information that businesses need in order to plan and ensure a successful, efficient and profitable operation. ProfitSword customers are now able to instantly access, group and compare real-time performance data in a way that fits their specific needs at any given time, and with a level of detail that is truly a first for our industry and save custom reports as favorites for easy 1-click access.     TREND 3 | A new Focus on enabling guests and driving revenue with self service We’re living in an age where we manage our investments on mobile devices via apps like Robinhood and choose our workouts at home via platforms like Peloton.  As technology gets better, we’re able to go straight to the source and get exactly what we want, when we want it and at a fraction of the cost. In the hotel industry the notion of self service has taken a bit longer to catch up except in innovative markets like Las Vegas.  Many hoteliers believe that disintermediating services is detrimental to delivering a great hospitality experience. In many ways they are right and there will always need to be a highly personal component between guests and staff to truly create a great guest experience. Having said that, there are many facets of hotel operations where guests are actually better served completing these tasks themselves which also frees up staff to focus on building personal relationships, surprising and delighting. An example of this in our professional lives exists within the meeting booking space.  Platforms like Calendly and x.ai are actually much better at scheduling meetings because they integrate directly with our calendars and don't require back and forth to coordinate between parties.  That doesn't mean executives no longer need personal assistants, it just means that personal assistants can focus on adding more value for their employers and skip the back-and-forth. There are lots of examples of this dynamic in hotels. Most guests would prefer an automated grab and go where they don’t need to go through an entire transaction process with an associate.  This seamless experience at the front desk actually builds loyalty by cutting out any wait time or frustration - something that is increasingly critical in the age of instant gratification.  Similarly, there is no check-in experience that can make up for waiting in line at the reception. Solutions like mobile check-in and keyless entry can alleviate wait times and free up staff to focus on higher value tasks. Below you’ll find the latest technology developments within the self service trend that deliver instant gratification and consistently perfect service to guests while freeing up your team to focus on surprising and delighting. Zoox Smart Pass rolls out facial recognition for seamless and verified self-checkin So you’ve been Global Entry or Nexus and wondered why the kiosks there can check you in but you have to talk to someone at the front desk at a hotel.  Well, now you don’t have to. As self service check-in goes more mainstream especially at select service and extended stay properties, it’s only logical that facial recognition will allow for a more frictionless and secure identification process.  With this new tech, guests simply walk up to the computer camera like they would a Global Entry terminal, scan their face and checkin to their room in under 15 seconds. Impulsify showed off its ShopPop hotel pantry solution that they're so confident in it actually comes with an ROI guarantee Having a hotel pantry has often been reserved for brands and larger properties who have the manpower to be able to properly service customers.  Even so, in the majority of cases front desk agents double as grab-n-go cashiers and anytime something is sold it creates a bottleneck at the front desk.  Impuslify’s purpose built pantry POS, ShopPop, allows any hotel to easily run their own pantry to offer additional convenience items to guests while driving ancillary revenue through an easy to use self service checkout kiosk.  In addition to time saving features like automated shopping lists and PMS integrations-- Impulsify has processed over 5 million transactions, giving it a growing database of information so you won't have to rely on instinct or habit to decide what guests prefer.   The results are so good that Impulsify even offers new clients an ROI guarantee. Infor showed conference goers just how easy self-service can be with its POS Kiosks Usually we expect creative displays from smaller companies but at HITEC, Infor stole the show with a live demonstration of it’s grab-and-go solution where attendees ordered food and beverages on one of Infor’s new self service POS kiosks.  Similar to Impulsify, Infor’s self service kiosk allows hotels to offer additional food and convenience items to guests with the tap of a button without having to worry about staff oversight. Zaplox rolled out its new customizable self-service check-in kiosk While self service check-in/check-out kiosks are ubiquitous in the airline and grocery industries, most hotels have lagged behind the trend and few offer a fully self-service check-in process.  More and more technology providers are creating solutions hoping that hotels will wise up and follow their more technologically advanced sibling categories. Following the likes of Mew’s Self Service Checkin Kiosk that was released earlier this year, Zaplox launched their take on the tech hoping to bolster usage of keyless entry by offering a more fluid end-to-end check-in experience.  Zaplox Kiosk enables guests to skip the lines and check in and print their own key cards - with 24 hours availability. The kiosk's custom-branded interface enables hotels to create a cohesive brand experience and because the kiosk runs on any tablet-based device, hotels can select the hardware that best matches the interior and space limitation. Whistle put its conversational commerce on display with its new text based upselling feature According to Whistle, nearly 30% of guest interactions on their guest messaging platform are potential revenue generating opportunities for the hotel. While guests often express their interest in purchasing an item or placing an order through messaging, they are then inconveniently redirected to communicate their request to the appropriate department (ex. Please call room service to place your order) which both adds friction for guests and reduces conversion to purchase for hotels (aka lost revenue). With Whistle’s new upsell module, hotels can add custom inventory from their F&B outlets, pantry, local businesses or even add-ons like late checkout and guests can now seamlessly purchase with one click and have the charges added to the room via PMS integration or leverage 1-click checkout with Apple or Google Pay.  Conversational commerce has long been the gold standard in Asian markets so its great to see frictionless ways to tap into more guest wallet share during their stay while simultaneously adding convenience value for consumers, a win-win for Whistle, hotels and their guests.  MeetingPackage showcased it's group booking engine and channel manager If you’ve ever tried to book a hotel meeting space or venue online you know just how cumbersome of a process it usually is. First you have to fill out a form, then you wait for a response, then when you finally get a response the first question hotels often ask is ‘how much is your budget’.  The whole experience is cumbersome, awkward and feels inherently like you’re being taken by a used car salesman. In comes MeetingPackage to the rescue with its M&E booking engine and channel manager that allows you to manage content, sync across channels to increase your reach and add a booking flow with rich content, add-ons and full customization for your next event promising to drastically increase conversion rates while delivering corporate clients and meeting planners a seamless self-service booking experience that consumers expect. Aethon Robotics turned heads with its delivery robots to cut down on delivery times Aethon’s TUG robots take a different approach to self-service by delivering things like food, linen, banquet supplies and luggage via an R2D2 looking robot.  Except for singularity believers waiting for the Terminator to jump through a time warp portal to initiate Skynet--the Aethon is likely to leave guests with a unique and memorable experience that they’ll want to tell their friends and social media followers about.  Beyond the buzz factor, for hotels looking to cut down on expensive labor can leverage Aethon’s robots to automate common deliveries and cut down on delivery times. Intelity's tablets got a backend upgrade to make it easier for guests to access information at their fingertips New additions to INTELITY Staff include an enhanced ticketing system, a more robust content management solution (CMS), in-depth guest and operations analytics, and Guest360™, which provides a 360-degree view of guest preferences, designed to help hotel staff across all departments make the right decisions at the right time while further personalizing the guest experience. The new enhancements to INTELITY Staff will provide staff with access to comprehensive business intelligence and the ability to streamline daily workflows, seamlessly track, manage, and organize preventative maintenance and service recovery, and make real-time content updates. One of the biggest challenges today's hoteliers face is connecting and engaging with their guests in a personalized manner on digital platforms. Guests expect highly personal experience and interactions in hospitality, but also want to have access to the convenience that technology affords them. The new enhancements to INTELITY Staff streamline staff workflows so that staff can spend more time focusing on creating the connection and personalization guests crave. Saba's chatbot and no-download app  SABA Hospitality manages every aspect of the guest journey. From answering questions, to managing requests, making recommendations, fulfilling F&B orders and everything in between. Their artificial intelligence driven chatbot transforms a hotels guest experience, while lowering staff workload and driving revenue. Swyft put its Amazon-esque cashierless stores on display And we’re back...more automated retail! Have you ever walked by a Best Buy or CVS vending machine in the airport? If so, then you’ve seen Swyft’s cashierless retail kiosks in action.  While not as widely adopted in hotels Swyft’s tech offers another option to generate ancillary pantry and merchandise revenue without the added labor bottlenecks or cost. StayMyWay rolled out all new keyless entry door hardware StayMyWay featured a series of shiny new access solutions including its signature Cylinder door lock hardware and 3 more unique digital replacements that each boasted clean lines and strong functionality without breaking the bank starting at under $200. 4Suites showcased its app-less mobile key solution 4Suites mobile keys are fully automated for hotels and frictionless for guests. No actions required from hotels, no app download or login for guests. All intelligence and security is handled by 4Suites in the background to offer the easiest, yet most advanced mobile key solution. Mobile keys can simplify guest operations, reduce costs and improve the guest experience. If done correctly.  4Suites removes friction and has created a fully automated process for hotels and a simple, seamless and impossible-not-to-understand journey for guests. Qwick showcased its short term staffing platform The Qwick app refines and matches job listings for professionals and allows them to accept and confirm shifts all through a smartphone device. The Qwick app has features all in one central place: view matched shifts to accept, view work schedules, clock-in and clock-out, and receive payments within as little as thirty minutes after completing a  shift through their secured platform. This level of convenience and accessibility is helping to grow Qwick’s database of professionals, ensuring high quality workers and quickly filled shifts for businesses.     TREND 4 | Big tech is leaning into hotels for new use cases & distribution Hospitality has always been a big focus for big tech and fortune 500s but it seems to be heating up in recent years.  Travel and tourism contribute $1.5 trillion to GDP globally so it’s no surprise that these companies want in on the action. Traditionally companies within the room automation space (e.g. Honeywell), high tech materials (e.g. Corning) and business electronics (e.g. LG) focus on the hotel sector and increasingly we’re seeing big tech get into the mix with the likes of Samsung, Microsoft and Amazon.  Below we highlight some of the key hospitality launches for big tech players at HITEC this year. Peloton made its HITEC debut offering a new way to attract a fitness focused audience for hotels Peloton made it’s HITEC debut where the firm unveiled its new “Hotel Finder” feature.   With Hotel Finder, riders can find and book hundreds of hotels with Peloton bikes across the United States.  The Company is set for IPO this year with it’s last valuation set at $4.15B and growth has been on a tear.  Peloton’s rider base recently surpassed Soul Cycle as it doubled its user count year over year and the firm is naturally looking for new growth avenues.  Fitness focused hotel brand Westin partnered with Peloton and this move seems to be an evolution of that thesis.  More than 400,000 bikes were sold by February of 2019 and many of those riders are die hard fitness junkies who are highly likely to seek out hotels where they can get their fitness fix.  As Peloton continues to grow it’s install base and product offerings (e.g. Peloton Tread) hotels could find an interesting niche distribution channel to reach fitness enthusiasts. Samsung mounted its 8k QLED monitors dubbed, ‘The Wall’ outfitted with captivating next generation digital art Samsung’s gorgeous 8K QLED and The Wall stole the show with digital art provided by partners Niio and Black Dove. 8K digital signage delivers impeccable picture quality and resolution that was previously unimaginable at scale. Samsung’s technology uses Artificial Intelligence (AI) upscaling to produce lifelike images and immersive experiences. Great hoteliers know that first impressions are everything. For select service hotels digital art can provide new advertising revenue while for more upscale high end and boutique properties it can give your hotel a huge leg up.  Digital art leaders include firms such as Niio, Blackdove and the 2019 HotelTechAward winner in the digital art category, Wrapped.   Create your own next gen hotel check-in experience with digital art like Sharks from Wrapped on an 8K Samsung Wall.   If you need some inspiration, we highly recommend checking out Wrapped Studios’s Shark installation that wow’d even the high brow crowd of attendees at this year’s renown Art Basel in Miami. Amazon and LG’s hospitality divisions collaborate to make in-room entertainment remoteless Gernophobes will be rejoicing at Amazon for Hospitalty’s latest partnership announced with LG.  Together the companies will infuse Alexa voice controls into the hotel TV experience allowing guests to never have to touch a remote again.  Other than being carriers for germs, most hotel remotes are clunky and make channel surfing a frustrating experience so voice controls promise to make for more seamless guest room entertainment. Microsoft steps up to the plate looking to bring its Teams for Frontline Workers product to hotel operations and compete in the employee engagement category While most offerings in the staff collaboration and employee engagement categories are purpose built for the hotel industry, Microsoft appears to be testing the waters by tailoring its employee communication offering to empower frontline workers.  Teams for Frontline workers dubs itself as “the hub for teamwork” and touts benefits including easier employee training, culture building and document management. With Microsoft’s office suite already being used by most hotels to manage email, the company has a strong foothold into the industry already and may just be able to gain footing in the employee communication category if it plays its cards right.     TREND 5 | Housekeeping software is heating up Earlier this year the NY Times wrote a great piece titled ‘The next wave of unicorn startups’ where it argued that the next wave of billion dollar tech firms will not look like the last.  Rather than splashy consumer facing companies like Snapchat, Uber and AirBnB making their way towards IPOs - the article hypothesizes that the next wave of unicorns will be filled with B2B software companies focused on seemingly boring and unexpected industries.   Now, many of the up-and-coming start-ups that may become the next unicorns have names like Benchling and Blend. And they largely focus on software for specific industries like farms, banks and life sciences companies. ~New York Times Add hospitality to that list because there are some major players entering the market.  Where the OTAs and digital distribution have largely driven the last wave of massive technology adoption in hotels because they focus on the top line, the next wave of hotel tech adoption is coming from operations software and specifically within the housekeeping segment.  After watching Quore take the title as “Top Rated Housekeeping Software for Hotels” in the HotelTechAwards two years in a row, several newcomers are entering the space to capitalize on the opportunity. ALICE upped its game with the launch of its all new ALICE Housekeeping While ALICE has always offered a flexible staff communication and task management platform that is used by housekeeping teams across the globe--the all new housekeeping offering is designed from the ground up to deliver a magical experience that will leave even non-housekeepers wanting to take it for a spin. The platform packs a punch with mission critical housekeeping management functionality like automated room assignments but delivers this functionality in an elegant and easy to use solution that integrates each department on property like a finely tuned orchestra. ALICE gave us a glimpse into the future of housekeeping with an exclusive behind the scenes tour of their reimagined housekeeping product. ALICE gave Hotel Tech Report an exclusive behind the scenes look at the all new ALICE Housekeeping See the product in action Hkeeper showed off new functionality that enables housekeeping departments to track materials usage and supply levels Using HKeeper, you will find all needed operational management hotel's tools and avoid unnecessary problems related to the human factor and lack of collaboration between departments. HKeeper will optimize all daily routine processes, improve your guest relations quality, and free up more time for working with projects and vendors. Hkeeper is one of the best tools for managing the personnel of the hotel and tracking material usage. With HKeeper, you can streamline workflows, reduce the turnaround time between tasks, and increase employee productivity. One of the main advantages over other housekeeping software is that Hkeeper offers a unique feature that allows tracking all materials used during cleaning and maintenance tasks or other operations through the program in real time. Moreover, HKeeper also monitors working progress in real time and analyzes staff performance by counting active working time, turnaround time, and time required for each task. Another exceptional function in the HKeeper program is that the mobile application can work off-line. Not all similar programs are offering integration with PMS software, and Hkeeper does, so hotels can easily stay updated on room status, availability, and guest information. Nuvola showed hoteliers if you can't measure it, you can't manage it The housekeeping department in the hotel industry is simultaneously one of the most valuable areas in creating the best guest experience possible while at the same time the hardest to optimize. Introducing new technologies and systems can often make daily processes seem more complicated and be met with resistance. Developed by former hoteliers with this unique understanding in mind, Housekeeping Productivity has been created to meet the specific department needs through an easy to use system and provides accessibility across desktop and mobile devices. Daily room attendants are now able to streamline activities (i.e., room assignment needs, cleaning service tasks) through an intuitive platform that speaks to the notion of making their lives easier.  Nuvola's analytics suite helps hoteliers gain critical insights to reduce average time spent "in between rooms" for room attendants, measure room attendant productivity by credit count and compare guest survey score vs. room attendants effectiveness. PurpleCloud takes a unique approach to housekeeping by leveraging gamification to increase staff productivity Housekeepers for hotels are in short supply and the nature of the work is unique. Their work is time sensitive and requires great attention to detail. If we give these housekeepers world-class tools to make them better at their jobs and couple this with common sense, easy to understand recognition and incentives, then we start winning their hearts. In doing so, hoteliers win for the guest.  PurpleCloud organizes the housekeeper’s day with a world-class digital platform. Gone are messy paper assignment sheets and balky walkie-talkies. The system is easy to use: self-explanatory; requires only a few clicks; and is available in the housekeeper’s given language. The system further provides housekeepers with feedback on their performance and rewards them for doing well by way of a gamification leaderboard. The result: housekeepers are connected and function as a team.       TREND 6 | Fraud and security still poignant post-Marriott breach A recent study by the American Hotel and Lodging Association (AHLA) reports that as much as 55% of all credit card fraud in the US takes place within the hospitality industry. Of course, that only considers criminal fraud; but when you factor-in other loss sources like fraudulent chargebacks, the real figure is much higher. Fraud tends to impact the travel and leisure industries even more heavily than other sectors like retail or digital goods. According to Kount, this is attributable to five specific factors: Fluidity: Multiple and last-minute booking changes create more opportunities for fraud. Perishability: Fraudsters tie-up space that cannot be used for legitimate bookings. Margins: Higher ticket values for hotel bookings mean greater impact on the bottom line. Revenue Loss: Excessive false positives mean merchants are declining valid bookings. High OPEX: More manual reviews mean increased operating expenses. With such high transaction volumes and so many moving pieces--hotels continue to be highly susceptible to fraudsters and hackers as evidenced by the Marriott data breach earlier this year of more than 500 million guest records that were hacked earlier this year.  Luckily companies are coming out with new and innovative ways to help hotels ward of expensive fraud and damaging hacks. Canary showcased its Y Combinator approved software that claims to cut chargebacks by up to 90% While not the sexiest topic, payments and fraud prevention are big business when it comes to hotels.  Y Combinator backed Canary Technologies has a suite of PCI compliant solutions to secure guest data, reduce chargebacks, and speed up sales and catering contract execution by eliminating paper processes on property.  If you’re ready to leave your fax machine in the 80s, minimize fraud or just want to hear about why PG is bullish on the product--its probably time to reach out for a demo. Insighti offers hackers for hire to help brands and management companies pre-emptively identify security flaws and protect their data Insighti offers hackers for hire. With the hospitality industry suffering loads of hacks lately from Marriott to Sabre, insighti offers much needed protection. insighti goes in-depth with physical, social, and digital facets of security, using creativity and persistence to find the vulnerabilities other companies miss.  Insighti recently partnered with former MGM Resorts VP of IT Marc Fancourt to create hiGuard.io taking the firm’s approach to cybersecurity and applying it to the unique complexities of the hotel industry. VENZA announces partnership with the PCI Council positioning them on the forefront of the latest compliances and security measures Navigating the ever changing PCI compliance regulations and ensuring that your hotel is up-to-snuff can feel like the endless climb to the top of Everest.  Luckily, Venza is here to be ‘your guide to data protection’. In the limelight was Venza’s partnership with the PCI Council and certification as a Qualified Security Assessor (QSA) that enables the team to work hand-in-hand with the council to set requirements, become early adopters on new PCI DSS requirements and, overall, ensure that customers are receiving the highest quality standards possible.  If you’re looking to shore up your hotel’s compliance you’ll want to check out VENZA’s Everest Plan, their entry level plan to get your hotel compliant. ADAsoft launched eSwipe, a passport/ID scanning solution for speeding up and automating guest check-in ADASoft launched its new passport/ID scanning solution for speeding up and automating guest check-in and registration while eliminating data entry errors by seamlessly reading, capturing and accurately transferring data from ID documents and passports into practically any PMS in the market. The company lately announced the release of another unique feature allowing printing of a pre-filled customized registration form available after each passport/ID scan for the guest to sign. Simply scan each guest's Passport/ID in less than a second creating an accurate and complete database, and enjoy the benefits of a great marketing tool and after sales potential. ADAsoft’s eSwipe passport scanning solution facilitates GDPR regulation compliance since typing errors are eliminated and data is accurately registered as stated in GDPR regulation, Chapter II, Article 5, Section 1.d ASSA ABLOY GLOBAL SOLUTIONS unveiled its all new staff safety solution  With the US hotel industry continuing to up its requirements when it comes to staff safety with many cities such as Chicago and Miami now requiring hotels to provide employees with safety devices--ASSA ABLOY is the first major company with a storied history and strong credibility to bring a safety solution to market.  The safety solution runs off of blue tooth low emission gateaways (BLE) via its Vostio Location Solutions software meaning that (a) it doesn't take up any wi-fi bandwidth and (b) it allows properties to unlock additional location based services within their hotel including asset tracking, proximity messaging and wayfinding.

Cendyn CEO: This is what hotels can learn from the Grateful Dead

by
Hotel Tech Report
3 months ago

Cendyn’s Charles Deyo isn’t your typical hotel tech founder by any stretch of the imagination.  Deyo is an avid scuba diver, he meditates under pyramids for spiritual guidance and even plans to play guitar at an underwater music festival next year.  By 1996, the same year that Expedia was born, Deyo had spent 20 years in the hotel industry before founding Cendyn with his wife Robin to help hoteliers win in the digital age. Cendyn’s first product to market was its eProposal solution which allowed hotels to accept group business RFPs via their websites and grow their group business. While eProposal is still a core component of the Cendyn Hotel Sales Suite, it is only a small piece of Cendyn’s current offering.  Today Cendyn’s sales and marketing solutions power more than 30,000 hotels globally through products that touch on hotel CRM, sales software and hotel digital marketing services.   Back in 1996, Cendyn’s initial product to market was its eProposal solution which allows hotels to accept group business RFPs via their websites to increase group bookings.  Today, eProposal is still a core component of the Cendyn Hotel Sales Suite.    The best tech companies listen carefully to client pain points and develop solutions based on those requirements.  The history of Cendyn is a textbook example of how to build a great business by listening to your customers. As the internet boomed through the early 2000s Deyo and his team noticed that there was a huge skills deficiency in digital marketing amongst hotels and began to offer digital marketing services to help clients grow their direct channel. During our interview with the Cendyn chief, Deyo told Hotel Tech Report that the biggest inspiration for building his empire was Grateful Dead frontman Jerry Garcia.  When asked why, he noted that the Grateful Dead is not just an iconic band but is actually one of the greatest brands of all time. The Grateful Dead brand is so prolific that at its peak it raked in more than $90M per year.  Deyo believes that the Grateful Dead’s success could be attributed to one of Garcia’s core beliefs that is summed up in this iconic quote: “We did not want to just be the best at what we did, but the only ones doing it.” ~Jerry Garcia Deyo has always wanted to innovate ahead of the competition and be the “only one doing it” as an ode to Garcia.  When Deyo started Cendyn there were few (if any) online platforms facilitating group business RFPs in hotels and he wanted eProposal to be the only one doing it.  While others were busy copying his recipe for success, Deyo was pioneering the concept of hotel CRM to provide actionable marketing insights where hotel marketers previously lacked any tools to make data driven marketing decisions. Cendyn is yet again pushing ahead with plans to change the way hotels leverage CRM systems within their businesses.  Historically, the hotel CRM sits within the marketing function but Deyo and his team believe it will become much more operational in the future and Cendyn is focused on pioneering the ways hotels leverage CRM systems for operations and not just marketing. Related article: "Super Angel" Dave Berkus on the convergence of PMS, CRS and hotel CRM Deyo believes that hoteliers, too, can benefit massively from living by Jerry Garcia’s credo.  The hotel industry is one of the most competitive in the world and in order to stand out hoteliers must find unique ways to can add value for hotel guests, shareholders and staff.  In this exclusive interview we spoke with Cendyn CEO Charles Deyo about the competitive advantage enjoyed by hotel technology early adopters, the evolution of hotel CRM as an operational tool and more. Power couple Charles and Robin Deyo co-founded Cendyn together What was your background prior to starting Cendyn? Before starting Cendyn I had many years of hospitality experience including 13 years at Hyatt Hotels as Regional Controller and AVP of Sales and Marketing, 3 Years at Kerzner International as Senior Vice President during the development of Atlantis in the Bahamas and 3 Years as Regional Vice President at Boca Resorts (which also owned The Biltmore and Registry Hotels). Tell us about the Cendyn founding story. After spending 20 years in the hotel industry, I realized that hotels needed software solutions to run their business better. We developed solutions that eliminated the pain points for hotels and drove sales and marketing performance. When Robin and I started Cendyn in 1996, the Internet bloomed in front of us and we decided to use this new medium to develop web-based tools that could help the industry we had worked in for years run their businesses better. The first product we brought to market was eProposal, which is still the industry leader almost 20 years later as part of the Cendyn Hotel Sales Suite. Back then, I did it all, from being the programmer to the accountant and everything in between. We were a small, family-run tech firm. After expanding into hotel CRM and digital marketing, (we were one of the early trailblazers in these areas for the industry), the momentum kept going as we won some of the biggest brands and best hotels in the world as clients. That really amped up with the investment from Accel-KKR a few years ago that gave us opportunities to open new locations, acquire companies and accelerate product innovation. Today, we’re lucky to have over 30,000 hotel clients using our solutions. Who was Cendyn's first customer? Frank Calaguire at Starwood. Frank and I worked at Hyatt together and we deployed our first SAAS solution (Cendyn eProposal) at The Westin back in the 90’s. Frank was a good friend and the Managing Director at Westin Copley Place. eProposal is now in over 22,000 hotels worldwide. The hotel tech market is incredibly competitive, how does Cendyn stand out? Cendyn is a cloud-based software and services provider that develops integrated technology platforms for driving sales and marketing performance in the travel and hospitality industry. The Cendyn Hospitality Cloud offers the most complete set of innovative software and services in the industry, covering hotel marketing, guest engagement, group sales, and event management. Cendyn's eInsight CRM is more than a marketing tool and delivers operational insight Who is one mentor that has made a big impact on your entrepreneurial journey? This is probably not one you hear everyday in hotel tech interviews but The Grateful Dead has had a huge influence on my perspective both personally and within the realm of entrepreneurship.  Jerry Garcia said: “We did not want to just be the best at what we did, but the only ones doing it.” Most people don’t realize that the Grateful Dead was one of the most successfully marketed bands of their time and turned their brand into a cash cow which generated $95 million a year at one point. What's one commonly held belief that most hoteliers believe to be true that is actually wrong? Hoteliers believe delivering personalized experiences is hard. I have always looked at technology as an enabler for innovation. With the right enablers, hoteliers can take advantage of technology to make personalization easy, which is one of the cornerstones of our eInsight CRM product. I think either hotels don’t know where to start with their data, or they haven’t democratized access to the right people who can leverage it to drive home personalization. Hotels that standardize 2-way communication among systems and make data integrations a priority are the ones able to break through and outperform in personalization. Information is more relevant, robust and customized when all the systems are speaking to the touchpoints guests have in the journey. What's the most surprising thing you've learned about scaling technology into hotels since founding Cendyn? I was always surprised that standardized integration took so long for our industry. Today, we integrate to hundreds of hotel systems which is key to getting a true 360-degree view of your guest. There are hotels leading the way in how they use technology integrations and those at the other end of the spectrum, but what we do see day-in-day-out is in those hotels that have done so, they have an improved ability to; send the right message to the right guest, through the right channels; gain a clear understanding about the history and preferences of each guest in real time regardless of how they booked; empower their guests to receive information and communicate in the ways that work for them; and deliver the best kind of service, whether it be human interaction or through the use of technology. How do you see hotel tech changing in the next 5-years? We will see more intelligent use of data with AI and bots to further leverage the guest experience. Because of more integrations between technology systems and a higher flow of data between platforms, bots and AI will increase in learned automation and intelligence that can deliver more of the right messages, at the right time through the right channel. We’re in the process of breaking new ground with CRM technology as the core with bots and AI serving based off centralized intelligence. In five years, it will all evolve around the model of a central global profile for guests that references a sophisticated rolodex of data to help serve the customer’s desire for personalization at every touchpoint. Bots will make recommendations, personalize communications and adjust service algorithms in real-time based on data points. CRM will no longer be seen as a marketing function, but rather an operational tool that intelligently orchestrates how everyone interacts with a guest. For Cendyn specifically, we will continue to grow our organic revenue at 20% year over year, along with continued evaluation of M&A opportunities. Do you have any new products or feature launches? As we continue to operationalize CRM for hotels, our latest release of eNgage allows for more sophisticated algorithms that anticipate varying engagement opportunities with hotel guests that, in turn, alert hotel staff. We have a lot of hotels using this solution with great success for personalization, including our client TFE Hotels, headquartered in Australia. They’ve got eNgage across their international hotel group in Australia, New Zealand, Germany, Denmark and Hungary. What advice do you have for hoteliers in this economy? Adopt more technology. Even with all the strides the hotel industry has made, it is still behind other industries. Technology must have an ROI by driving sales and marketing performance. With eInsight, our CRM product, we drove an average 33X ROI for our hotel customers in 2018.  As the economy hits an inevitable slow down, technology will determine the winners and losers.   What's one piece of advice that you have for any entrepreneurs looking to get into the hotel tech space? Keep it simple. Make it valuable. This has been a mantra of Cendyn from the beginning of our company. What is the best book you've read lately? I think we are experiencing significant generational differences due to technology, social media and the varying thought processes. Given that, I thought “Sticking Points” by Haydn Shaw does a great job of explaining how we can make this work with our evolving business teams. Great people working in harmony make great companies. What is your favorite podcast Cendyn’s upcoming podcast series, of course. What is one thing that most people don't know about you? I play guitar and am certified in scuba diving. I plan to play the underwater music festival in Big Pine Key, FL next year. I also meditate under a pyramid on life and business opportunities when needed.

Smart technology buyers judge companies by capabilities not number of employees

by
Hotel Tech Report
2 months ago

Unseasoned technology buyers often make the assumption that the biggest companies have the best products.  It’s not a terrible assumption when you think about it. After all, didn’t the biggest companies become so big by delivering great products to clients? There’s the old adage that “nobody gets fired for buying a Xerox” - doesn’t that still hold true? It’s true that big companies often get big by delivering great service to clients but technology changes so quickly that assuming ‘bigger = better’ can lead technology buyers into precarious waters.  When companies get to a certain size, they risk losing focus on customer relationships. Many massive companies, especially in hotel tech, have become synonymous with poor customer service. Think about the last time you called your CRS vendor because the system went down but they don’t reply for 48-hours - that’s a major problem.  Similarly, when engineering team grows to a certain size, the company’s products become plagued with feature bloat. Teams become more and more disparate which makes working on the same product a disaster if the organization isn’t managed properly. Big companies are also notoriously susceptible to disruption from smaller and more nimble firms. This isn’t to say that everyone should go jump into bed with the startup down the street.  The most savvy buyers know to look for the most innovative vendors who have achieved product market fit, are innovating quickly and will become the giants of tomorrow.  Travel Tripper is a firm that has proven itself in the market, is innovating at a rapid clip and still maintains strong relationships with clients through world-class customer support.  Don’t take our word for it, read what verified Travel Tripper customers are saying.  Perhaps that’s why hoteliers have rated Travel Tripper’s CRS #1 in the world for 2 years in a row.  The firm has recently expanded its offerings through a highly praised merger with Pegasus so we sat down with Travel Tripper president Gautam Lulla to get a behind-the-scenes perspective on what’s to come. The important thing for hotels to remember is not to judge tech vendors by the size of the company, but by the quality and capabilities of their product and their dedication to customer service.  ~ Gautam Lulla Prior to launching Travel Tripper, Gautam worked at hotel tech giant Amadeus so he has seen the inner workings of both startups and massive enterprise in the space.  He also began his career working in hotel operations and eventually corporate hospitality where he developed unique insights about the hotel tech vendor landscape before jumping in himself.   As with many great businesses, Travel Tripper’s founding team created the business to solve real-world problems that they were experiencing.  After working with several distribution and marketing technology vendors, the leadership team at Highgate Hotels wasn’t impressed by the results they achieved and thought they could do it better, so they launched Travel Tripper.  It turns out that they were right -- now hotels around the world are knocking on Travel Tripper’s door to tap their knowledge, technology and services. We are lucky to have caught Gautam in the midst of his integration between Pegasus and Travel Tripper, which he calls a highly synergistic transaction.   Gautam Lulla Travel Tripper's NYC Headquarters   What does the Travel Tripper-Pegasus merger mean for clients? It’s important for us to emphasize that as a combined company, no capabilities or services will be lost. In fact, exactly the opposite is the case. The driving force behind the merger was our complementary set of strengths, from our product offerings to our customer base. In this case, 1 + 1 really does = 3! To illustrate, Pegasus has always been uniquely and natively built for enterprise hotel chains and have more experience serving chains than any other business in the history of the hospitality industry. Additionally, Pegasus has a long and proven record of helping hotels increase corporate business with their Corporate Sales Representation Services, offering instant connections to 800+ corporations and 30+ consortia and TMCs.  Additionally, the recent introduction of Pegasus Business Intelligence Platform gives Revenue Managers the ability to turn their raw data into actionable information to positively affect their bottom line. Travel Tripper has built its reputation among independent hotels and casinos with its powerful CRS, e-commerce, and digital marketing solutions, which work together to help hotels grow their overall business while maximizing revenues in their direct channel. Combining this strong suite of products means that we can now offer existing customers and prospects a broader range of solutions tailored to their needs. What is Accel-KKR's thesis behind the new infusion of capital? Accel-KKR is a company that invests in high-growth technology companies in many verticals and different industries, not just hospitality. The primary thesis for their investment was the recognition that both Travel Tripper and Pegasus were two companies with a similar DNA of innovation and top-notch customer service, as well as complementary sets of strengths in our product offerings and customer base. They believe that they can provide us the infrastructure and support to help take our combined company to the next level. What was your background prior to launching Travel Tripper? I started my career in the hotel industry with Taj Hotels in India, where I was introduced to the world of hotel technology, after spending about a year or so in the front office. As Electronic Marketing Manager, I was responsible for managing the usage of our central reservation system as well as building and strengthening relationships with our CRS providers. I was also responsible for growing the GDS business. Subsequently, I joined Pegasus Solutions in Scottsdale, Arizona as a Product Manager and stayed there for about two years. It is where I learned all about the the workings of a CRS, and what better place to learn it than at Pegasus. It was the clear leader in the space with no competitor even a close second to Pegasus. Later on, I accepted an offer from Amadeus in France to join their e-commerce team. Hotel booking engines were a part of the portfolio, however as a GDS company it was not economically viable for hotels to pay GDS transaction fees on top of CRS fees for their direct booking channel. But Amadeus decided to invest in Hotel IT solutions, with the intent of replicating their success in Airline IT. I subsequently moved from France to the United States and continued with Amadeus for two years, during which time I became deeply involved with our first prospective customer. But after a short while with Amadeus USA, I realized I was also far removed from the center of activity within Amadeus and got a little bored.  It’s when I decided to join Travel Tripper, in its earliest days. What made you decide to jump in and launch Travel Tripper? My friend and ex-colleague Kurien Jacob had just started a booking engine company and asked me to run and grow the business. After leaving Amadeus, I was ready for a new challenge that would allow me to work at a much faster pace, so I jumped right in. Technically, I didn't found the company, but I joined as a partner when we were just a team of three people. As a partner, I did or oversaw everything on a daily basis—from product design and development to engineering, sales, and marketing, invoicing, customer support, so, literally everything that a young company of that size has to deal with.   Travel Tripper's Reztrip CRS took gold in the 2019 HotelTechAwards   Who was Travel Tripper’s first customer? Highgate Hotels was our first customer at Travel Tripper. Kurien, who had started the company, was the Chief Revenue Officer at Highgate Hotels at the time. He was convinced that Highgate could earn more direct business if they designed a booking engine, designed by the way, as a seed that would grow into a full-scale CRS, with certain features. So, that was sort of the rationale in founding, the raison d'être of the company. It became our motto and philosophy: Be Direct. Highgate tried out the first version of our product on one of their properties, a very large midtown Manhattan property. Even though it was a big risk for them, they went ahead and tested the technology anyways. After seeing spectacular results with the first property, we rolled out the booking engine across various Highgate hotels in New York and elsewhere. One of our other early customers was the Leela Hotel Group in India, which also benefited a lot by taking a chance on us. We increased their website contribution by very impressive numbers. Another early customer of ours was the Stratosphere Hotel, a large 2,500-room hotel in Las Vegas and our first casino hotel (a segment in which we now have 30% market share in the U.S.). We were able to get them on board because of our strong track record. They joined us in 2008 and significantly increased their website contribution as the result of our partnership. How do you see Pegasus and Travel Tripper working together moving forward? The combined entity of Pegasus and Travel Tripper provides a solid platform for hotels that  want innovative technology solutions combined with the best customer service in the industry. Pegasus has a deep and storied history in CRS and distribution, and offers world-class demand generation services designed to increase direct and corporate bookings while considerably expanding a hotel’s market reach. Travel Tripper has grown a strong reputation in helping independent hotels and casinos/resorts in direct channel optimization, bringing user experience to the forefront in our CRS, booking engine, e-commerce, and marketing solutions to help drive highly profitable direct bookings. Our merger brings together the best of our combined capabilities to help hotel groups large and small to directly own guest relationships and maximize bottom-line ROI. In short, we are a formidable and disruptive challenger to some of the bigger (yet more stagnant) players in this space! Who is one mentor that has really helped you scale the business? I’m lucky to have several mentors who have helped and influenced me at different stages of my career. In my early days at Travel Tripper, right after leaving Amadeus, I remained close friends with an ex-colleague of mine, Andy Ahluwalia, who has since passed unfortunately. Andy had built a successful business in our space and was very encouraging and gave me sound advice about the effort and the patience that it would take to make this company successful. He also taught me a lot about how to sell the product and negotiate with customers. I'm very grateful to have known him. Kurien and the team at Highgate, from whom I’ve learned a lot, have also been spectacular supporters of Travel Tripper. Of course, they have been one of our key customers since the beginning and have a vested interest in our success as a company. They’ve always been very encouraging and have provided me with the space and room to make mistakes and persevere while growing Travel Tripper. Highgate itself has grown tremendously since the time when we started our company. Watching their growth and expansion, even as they were already such a large company, has been an inspiration for me. And Paul McGrath, erstwhile and now again Product Manager extraordinaire was my first boss at Pegasus—he taught me all about the workings of a CRS. Paul led the product management team at Pegasus during its heyday and has returned to the company to once again lead the product management team of our combined company.  What's one commonly held belief that most hoteliers believe to be true in your niche that actually is false? Unfortunately, in this industry, the size of a hotel tech vendor sometimes is overplayed or overemphasized, while the quality of product and engineering teams is underemphasized. People often assume that large companies have better products simply because they can afford better engineers relative to smaller companies. This is far from the truth—I've seen very large companies struggle with their platforms and engineering initiatives. And I’ve seen smaller companies blow away the industry with their solutions. The important thing for hotels to remember is not to judge tech vendors by the size of the company, but by the quality and capabilities of their product and their dedication to customer service. It seems obvious, but happens more often than you think. What's the most surprising thing you've learned about scaling technology into hotels? I don't know if I can call it a surprise as much as learning, but one of the things that we have learned how to do effectively is to scale the platform based on evolving needs. For many organizations, it is quite difficult to anticipate the proper architecture in its early days until you meet challenges along the way. You can plan and design for scale, but there will alway be unexpected hiccups and scaling issues that you will certainly come across along the way, no matter how well you plan ahead. Therefore, you should plan and design as best as you can, but also be prepared to make some fundamental changes along the way when you encounter obstacles. We've done that several times throughout our history and have been able to successfully scale the platform. For example, when Travel Tripper took on Stratosphere Hotel around 2008, I recall that traffic volumes would peak around a certain time of day, and the system would simply keel over and fall down, so we always had to reboot at around 4:00 p.m. It turned out that was a relatively small problem to solve that wasn’t anticipated at initial design time. Along the way, we've come across other challenges as our customer base grew to a certain size. At one point, we started getting hit by a lot of robots that were scraping our booking engine user interface to get pricing information on our hotel customers. This is a common phenomenon in our industry and we were able to resolve the issues along the way when we encountered them. What have been some of the most successful partnerships for Travel Tripper over the years? Obviously we have numerous close partners in the industry, and our relationships with all of them are very important. We enjoy our partnership with Stay Wanderful, which provides a conversion optimization tool that helps hotels to increase their direct bookings and revenue through instant gratification and AI technology. We have worked closely to provide a strong integration and good user interface that generate good results for our customers. OTA Insight has also been a great partner for us on the industry level. Their company offers one of the top hotel Rate Intelligence/Business intelligence platforms on the market. We often run many marketing initiatives together to help educate the industry, such as webinars, roundtables, and our upcoming Tech Talks series at ITB Berlin. If you could partner with any vendor in hotel tech, who would it be and why? As a CRS company, there are so many vendors that we need to build interfaces and integrations with. We particularly enjoy working with the ones that are open to quick integrations in order to foster better functioning between our respective products. In other words, they do not lock up their APIs and charge unreasonable fees for integration and certification. How will the hotel distribution landscape change in the next 5-years? Traditionally, the companies in the hotel tech space have focused on being very good at one “category” of product. Sure, a PMS company could offer a booking engine, but ultimately it was more known for being a PMS company. The new startups in the space have amplified this trend. But now that companies are starting to mature and consolidate (ourselves included), the lines are going to start blurring and it’s going to be difficult to pigeonhole a company into a product type or category. The industry is moving quickly in the direction of a “platformization” model, where the breadth and interconnectedness of solutions will trump—or at least bring together—smaller niche solutions. We think we are on the cutting edge of that trend. We see ourselves as the strongest provider of the products and services we offer to the hotel industry. We are well on the way already.     Does Travel Tripper have any new product or feature launches we should know about? Travel Tripper and Pegasus have recently launched innovative new products lately that we think are going to be very exciting for our respective customers and prospects. To help hoteliers combat rate disparity and increase direct revenue, we created Rate Match, a powerful price checking and rate matching tool that automates best rate guarantee against the OTAs. On the e-commerce side, we recently introduced a very simple but enormously helpful ADA Monitoring Platform and audit services to help hotels mitigate legal risk of potentially expensive ADA compliance lawsuits. We are also about to launch Conversion Plus, a new direct booking optimization tool that drives conversions using personalized messaging and special offers based on real-time booking engine rates, OTA comparative rates, and user behavior. There is power in numbers which is why we recently launched the Pegasus Business Intelligence Platform. This solution offers Revenue Managers a way to turn raw data into immediately actionable information to amplify revenue management and marketing success across all distribution channels, all in one place. We combine guest data from multiple sources and deliver it with automated intelligence and easy-to-understand dashboards. The result is instant insights that help guide a hotelier’s strategy to increase bookings and occupancy and improve revenue and profitability.   What's one piece of advice that you have for any entrepreneur looking to get into the hotel tech space? Be patient and persevere. It's a crowded space, and it’s getting increasingly more crowded and competitive. There are a ton of companies that you will need to work and integrate with in order to succeed. In the hotel CRS space, the barrier to entry is quite high so it will require a lot of money and technology to be built before you can come in with a viable product for a meaningful segment of the market.

How successful have hotels been in earning more direct bookings?

by
Hotel Tech Report
3 months ago

Direct booking campaigns have been a centerpiece of hotel marketing for several years now. The push to encourage guests to ‘Book Direct’ stems from efforts to both reduce commissions paid to third-parties and to forge stronger bonds with guests. Without an intermediary, a hotel can market to the guest before, during, and after the stay, regaining control over the guest relationship, both financially and strategically. Evidence shows that the efforts have begun to pay off, says hospitality marketing firm Kalibri Labs: Loyalty member campaigns have either strengthened or stabilized the growth through Brand.com, while the OTA channel has either held steady or decelerated. Brand.com generates 50% more bookings on average to U.S. hotels than the OTA channel. To make its assessment, Kalibri Labs analyzed 80 million transactions from 18,000 hotels in its proprietary database. The results are promising, revealing solid gains in profitability and rate competitiveness among sampled hotels. Related article: Do loyalty programs for independents actually work?   Direct bookings are more profitable Hotels prefer direct bookings due to the lower customer acquisition costs, which have been rising for the past several years. When it comes to how much revenue hotels spend on booking-related costs, the data reinforces the narrative that OTA commissions have risen at the greatest clip. With hotels facing 45% commissions from that channel, the 27% cost for loyalty-based bookings is a striking contrast.     However, once a hotel turns away from intermediaries, it must spend money on marketing to secure bookings, some of which is spent on paid search and some on discounted Book Direct rates. So, some of the money saved on third-party commissions ends up going out the door anyhow. Even after accounting for the additional costs of paid search and discounting, the Kalibri Labs analysis found that direct bookings were 12.5% more profitable than those derived from OTAs. In fact, the more impactful value of direct bookings may be in the corresponding rise in Average Daily Rate. The ADR for Member Rate/Loyalty bookings reflects a solidpremium compared to OTA bookings (after acquisition costs are removed). ADR has grown to 9% in 2018, up from 8.6% in 2016. Even when tested for weekend/weekday and lead time differences, Net ADR for Brand.com loyalty bookings is higher in total, and for each chain scale. This is counterintuitive, as members-only rates are promoted as the “best available rate.” Are hotels lying to guests? On the contrary, guests are responding to the upsell. That’s the whole point of recapturing control of the guest relationship: Once a hotel can market directly to the guest through its upselling platform, it reveals new revenue opportunities such as room upgrades, bundled room rates, and premium experiences. It appears that guests respond to these efforts, pushing up the net ADR for brand.com when compared to the OTA channel. To achieve the greatest profitability for your hotel’s direct booking efforts, keep your marketing costs in check with metasearch management tools. And don’t neglect your hotel website - make sure you are working with a top rated digital marketing agency for hotels that can optimize conversion to your booking engine; you want potential guests clicking through from search to have a user-friendly experience. Direct booking tools can also encourage new sources of demand, such as from travel agents, in addition to existing loyalty members.     Loyalty programs generate more bookings at a lower cost Since the launch of mainstream direct booking initiatives in 2016, loyalty program memberships have grown at between two to five times the growth rate before Direct Book. As more guests enroll to take advantage of exclusive rates, more bookings originate from loyalty members. In fact, the report found that “almost half of the business in the U.S.branded hotels is derived from loyalty members.”   Do loyalty programs for independent hotels actually work?   The cost savings are also significant. It’s just more expensive for a hotel to keep purchasing a booking from an intermediary, rather than re-engage a loyalty member to generate a booking.   When calculating the benefit of a recurring guest coming three times after an initial visit, the average net benefit to a hotel using industry averages is approximately $65 per loyalty member, compared to cycling through 4 different OTA customers. To maintain that top-of-mind engagement with loyalty program members, carefully segment guests in your hotel’s CRM and then schedule e-mail marketing campaigns to nurture those relationships. With a precise and thoughtful approach to loyalty marketing, your hotel can generate more bookings at a lower cost, all while building that long-term relationship. A Revenue Management System is also beneficial to hoteliers seeking a more balanced approach to distribution. With the power of a comprehensive RM, small tweaks can create big results. This granular control of pricing strategy drives better ROI for direct bookings, which generate $8.33 for every $1 spent. Compared to the $4.77 to $1 ratio for OTA bookings, the investment in loyalty-based revenue management technology delivers more bang for the buck.            It’s all about the mix Ultimately, it all comes down to channel mix. Hotels that work with OTAs must do so with an honest appraisal of the value these channels bring -- and how direct bookings fit into a specific hotel’s revenue profile, says study co-author Cindy Estis Green: “[OTAs] will do anything to be a part of the sales path. If you collaborate with them, you have to do it with your eyes open. The trick for each hotel and brand is to determine in each market what pipes are flowing and what’s available. It’s optimal to cherry pick which bookings are available at the highest possible profit margin. That’s the challenge everyone has.”

The 10 Best Places to Work in Hotel Tech 2019

by
Hotel Tech Report
3 months ago

Creating a great work environment is the single biggest determinant of success for any business.  Companies that foster great work environments attract the best people and the best people build the best products. A 2017 study that analyzed 326,000 employee reviews at publicly traded companies found that firms with high employee satisfaction outperformed the overall stock market each year by 135bp (1.35%).  A similar study of 400,000 employee ratings found evidence of a statistical relationship between employee perception and a firm’s future earnings. Sophisticated enterprise software buyers know that when they partner with a technology company, they are buying into not just its products but its vision, mission and team.  These buyers perform due diligence to understand the viability of any business that they plan to partner with and a deep analysis of employee satisfaction and vendor culture is part of that process.  Hotel Tech Report hosts this award not just to help the community find great jobs, but also to help fast track diligence for hotel tech buyers who want to learn about the best vendors to work with. Understanding organizational culture is important for software buyers because companies that create great work environments retain employees longer, service customers better and innovate faster. Perks like ping pong tables,  office snacks and vacation days are nice,  but our 10 Best Places to Work in Hotel Tech list is determined by the glue that holds companies together. Each year we ask thousands of employees at hotel tech companies how they feel about their employers and anonymize the results.  The 2019 scoring is based on 7 key data points: Work-life balance: Please rate how well your employer promotes work/life balance. Personal development: How much importance does your employer place on your own personal development? Gender equality: How would you rate the opportunities available to women in your firm? Employee confidence: How much confidence do you have in the future of your company? Values alignment: How well do your values align with the culture of your organization? Employee engagement: How passionate are employees about the company? Growth prospects: How many open roles are there for your employees to grow into?   Without further adieu we give you 2019's 10 Best Places to Work in Hotel Tech:       10. Triptease Our research on Triptease validates that the Company truly lives and breathes the ethos of its name.  Employees consistently cited off-sites and team trips as the highlights of their year. According to LinkedIn data, Triptease has grown its employee count 72% in the last 2 years.  Sometimes when companies grow that quickly, it’s hard to maintain a great team culture. With the team spread all around the world, Triptease brings new employees for training and team building to the LondonHQ.  New employees rave about the experience for the learning and friendships that come from it. Other notable events include Triptease’s renowned Direct Booking Summits (America, Europe, Asia) and a company wide Christmas party in Madrid (let us know if you need HTR on the scene to cover next year’s party - this one sounded like a rager!).  Triptease employees are constantly blown away by how much management cares. One employee cited an unexpected bonus for a month of killer performance and another described to us how open management is to employee travel focused on career development. Ultimately, Triptease is one a big happy family and employees around the world are constantly connecting through a multitude team building activities and trips.  Employees love the fast paced nature of consistently launching new innovative products. Check out open positions at Triptease     9. GuestRevu GuestRevu had a year in which critical company milestones rallied the team together.  Not only did GuestRevu acquire a large regional competitor but the team also launched a major version update that required all hands on deck.  Despite all the craziness of rapid growth, a new version launch and a major acquisition - one employee raved to Hotel Tech Report about how supportive the entire team was during the loss of a loved one.  Another told us that she often needs to bring her 9-year old to work where he is always made to feel welcome and at home. The firm is so committed to its team that it sent out a company wide survey asking what employees wanted to learn and then purchased everyone access to Udemy classes to help them develop those new skills. The marketing team took classes on video editing and is already leveraging those skills to develop a series of video case studies for GuestRevu. Check out open positions at GuestRevu     8. Beekeeper For a company building software to help teammates communicate better - Beekeeper takes employee engagement and experience very seriously internally.  As one employee told us, “Beekeeper does an excellent job of capturing feedback and always checking in to understand where you want to go and providing actionable feedback and support to get you there.” The Company promotes a healthy lifestyle through lunchtime sports and CrossFit.  Taking it one step further, Beekeeper offers unlimited PTO and flexible work schedules to accommodate the expectations of the modern workforce. Beekeeper’s culture exudes transparency and humility. One employee told us that the team was initially put off by management’s decision to require employees to clean dishes at an off site before they realized that this was all part of the team building.  This employee told us that the people they ended up washing dishes with ended up being their closest new friends and that the experience gave them an opportunity to bond in a way that most rarely do in the modern workplace. Another employee told us about a rewarding experience they had volunteering together at a homeless shelter. The team’s humility shined through further when a new employee (2 weeks in) alerted management about tensions between two departments.  Much to their surprise both teams were thrilled to hear their new colleague’s insight and showed their appreciation. Management even went one step further offering this individual to run a huge cross-departmental retrospective 5 weeks into their job. It’s not often that companies are so open to self-reflection and change coming from a new junior hire and we really admire the culture that Beekeeper has nurtured. Check out open positions at Beekeeper       7. Hotel Effectiveness Hotel Effectiveness is an incredibly successful company that largely flies under the radar of hotel tech buzz.  The Company provides revolutionary labor management software that we’ve covered here.  If there’s one word that sums up the Hotel Effectiveness team culture - it’s ‘performance’.  Employees are unilaterally motivated by consistently hitting lofty sales goals time and again.  As a testament to this performance driven culture - one employee told us that one time their boss had to tell them to go home early and make some time for family when they were overworking themselves.  This performance culture isn’t mandated from the top and is completely grassroots in that it’s driven by internal employee motivation and ambition. While you can expect to work alongside incredibly driven and ambitious colleagues at Hotel Effectiveness - they definitely know how to have a good time host a hilarious annual white elephant Christmas party. Check out open positions at Hotel Effectiveness     6. Revinate Revinate’s culture is characterized by constant iteration and testing.  The Company is always trying new things and that affords a ton of learning opportunities to team members.  This year while the technical team executed a full shift from hosted data center to cloud based AWS infrastructure the sales and marketing teams were tasked to rapidly grow the install base of the Revinate Marketing product.  Both teams executed with near perfection and everyone celebrated with an impromptu party where key team members reflected on the incredible achievements of such a relatively short time period. Revinate embodies the startup spirit with enterprise scale.  Revinate CEO Marc Heyneker is deeply involved in the day to day operations of the business and employees across the organization rave about his ability to inspire and teach. One employee told us a story about a serious head injury that left this person working remotely for several months.  His team made sure to make him feel included as part of the office through the entire time away but that was only the beginning. The employee recalled being shocked that over a year after his injury Heyneker pulled him aside to check in on his health and to ask what he could do personally to help. Check out open positions at Revinate     5. Cloudbeds Cloudbeds management recently surprised its team with a beautiful new San Diego headquarters equipped with a 14 ft indoor willow tree, a massive outdoor workspace, game areas, stand up workstations and more.  The environment is fun, welcoming and echoes the company theme - all things travel. Cloudbeds has an extensive wellness program because management knows that healthy employees are productive ones. This productivity paid off in 2018 where Cloudbeds achieved #75 on Inc Magazine’s fastest growing companies list.  How are they growing so fast you ask? Well it’s probably because CEO Adam Harris told the team he’d dance to any song of their choosing. We will keep you posted once we get our hands on the video from Harris’ co-founder Richard Castle. The Company maintains several internal chat threads exclusively for team sharing of funny photos, videos and memes - so we expect the video to surface there as well.  All jokes aside, Cloudbeds takes both employee and team growth very seriously. Each employee has weekly 1-1 meetings to review competencies and revisit their path to promotion. The Company is growing rapidly and there are constant opportunities for employees who prove themselves. Cloudbeds is also a 100% flexible organization where remote employees and those stationed at the headquarters all enjoy the ability to work from anywhere anytime.  Cloudbeds has fostered a culture where its team members truly enjoy hanging outside of work and building friendships important for their personal and professional lives. Several Ukrainian teammates trained for a marathon together and one customer success rep has leveraged her friendship with the UX designers to pursue her passion for design. After taking several courses independently the UX team has given her several opportunities to practice her skills on live projects. Check out open positions at Cloudbeds       4. Clock Software Clock Software is another company on our list that is growing insanely fast but doesn’t take itself too seriously.  One Clock employee told us that on their birthday coworkers wrapped his entire workstation and even put a bow on it.  The only complaint we heard from Clock Software team members was that they are growing too fast and needed more staff to manage the growth.  This is the best kind of problem to have. Clock is the oldest company on our list and celebrated their 22nd anniversary this year - a testament to the longevity of the business.  Clock founder Krasimir Trapchev has focused on growing the client base without scaling the team too quickly. Trapchev is all about execution and he’s prioritized building a long term sustainable business over rapid scaling which is extremely unique in an environment where funding is so plentiful that CryptoKitties, a company that enables users to breed and trade digital cats can raise $15M.  Clock is now starting to scale the team so it can take on more enterprise clients and its employees are fired up.  If you want to learn how to build a real business without massive amounts of venture capital - check out open jobs at Clock because Trapchev is the Mr. Miyagi of entrepreneurship and you’d be wise to make yourself his Karate Kid. Check out open positions at Clock     3. Screen Pilot Screen Pilot takes team building very seriously with activities like bubble soccer, a British Bakeoff (it’s ok we Googled it, too), volunteering at an animal shelter, an escape room and even a city wide scavenger hunt around its hometown in Denver.  The scavenger hunt and Screen Pilot’s quarterly volunteer days are a testament to Screen Pilot’s commitment to the surrounding community. While Screen Pilot is a top rated digital marketing agency, it’s a technology innovator as much as a marketing service provider.  The Company has created what it calls SP Labs where employees brainstorm ways to better leverage technology to help its clients win more direct bookings. Think of SP Labs like an ongoing internal hackathon with dedicated teams set on solving acute problems for clients. It’s this kind of innovative mindset that lead Screen Pilot to a 2018 Adrian Award for social content creation. Check out open positions at Screenpilot     2. Mews Systems If you caught the Mews Systems booth at WTM you might think that it was a rocket science company with all the lab coats and futuristic decor that earned it the Best Stand Award.  While Mews isn’t quite a rocket science company it is taking off like a rocketship having doubled its client base in the second half of 2018 alone. To support that kind of insane customer growth Mews had to 4x its team size in the last year - the fastest growth of any company in our list.  So how can a company even hire that fast? Mews attracts 40% of new hires via referrals. If that doesn’t say something about the company culture we don’t know what does. With that kind of insane growth supported by an $8M Series A in June you’d think it’s all business but Mews employees say it’s very much a “work hard, play hard” culture.  One employee told us that one of his favorite things about working at Mews is “daily banter with the boizz” - this kind of hilariousness is exactly what’s helped the Company take the industry by storm. Hoteliers everywhere are sick of generic jargon and boring brand marketing from hotel tech firms and Mews is the antidote. Employees frequently cite founder Richard Valtr and CEO Matt Welle as saying “At Mews we are family and we will take care of any family member in need."  Mews also boasts an extremely inclusive culture illustrated by the firm’s attendance at the Prague Pride celebration wearing special edition Mews gear to the event. The Company also has a shared value culture at its core and participated in UK Byte Night last year.  Byte Night prevents youth homelessness by having corporate teams sleep in the streets to raise awareness and funds for the cause.  Richard and team participated which is really cool and a statement to the quality of people that you’ll work with when you join the Mews team. Check out open positions at Mews     1. ALICE ALICE employees widely agreed that quarterly town hall meetings are the foundation of ALICE’s connected team culture.  ALICE staff loves the opportunity to connect with colleagues from around the world, align around the company vision and get transparency into how the business is performing at a macro level. More than doubling its size in 2018, ALICE unsurprisingly had to upgrade its HQ office to add more space and acquire obligatory startup amenities like a cold brew keg, stand up desks and lockers.  ALICE goes so much deeper for its team and invests heavily in career development. Employees participate in a company wide book club, receive access to free Udemy courses and are nurtured along a very clear path to promotion.  ALICE employees talk about the clarity of path to promotion more than any other company’s employees on our list. Setting a clear path to promotion is important for making employees feel like they’re constantly progressing and puts them at ease knowing that there’s always room to grow internally.  Major consulting firms like BCG and McKinsey have perfected this art but rarely do we see startups who are able to provide such transparency to their staff - kudos ALICE management.One employee told us that she was promoted 4 times in the last 3 years - a testament to ALICE’s ability to reward top employees.  Even a remote worker was able to win ALICE’s Culture and Values Award twice in 6 months. This individual told us that they felt like they were on an island while working previous remote jobs - but felt very connected to the inclusive ALICE team. ALICE acquired GoConcierge this year and is making serious strides with major enterprise clients after its $30M Series B funding - a testament to the strong prospects for the firm and probably why employee confidence in the firm is best in class.  “When you receive a high five from the CEO, that says a lot about the culture of the company,” says one team member. High fives all around! Check out open positions at ALICE

Hospitality's next 5 years will be shaped by mobile saturation, shrinking office spaces and the gig economy

by
Hotel Tech Report
4 months ago

It's never easy to push through the hype and find the substance -- especially in hospitality, which is a challenging blend of guest-facing technology and back office software. Each year the technology world looks to Wall Street analyst-turned-VC Mary Meeker for her annual “Internet Trends Report”. Meeker’s report uses data to tell stories of business-related trends that are shaping society. Using data from Meeker’s report we identify some of the macro global trends impacting hospitality in 2019 and beyond. Unless otherwise noted, supporting images below are pulled directly from Mary Meeker’s presentation.   Mobile saturation means devices everywhere This slide highlights the slowdown of smartphone growth. How does that impact hotels? The slowing growth of smartphone sales means that we’re approaching market saturation and consequently every single traveler in the world will soon have at least one in their pockets. This means that we need to focus on being where they are. The saturation of mobile also means that guests -- and staff -- expect easy-to-use interfaces and seamless cross-device experiences. Technology must be unfussy and straightforward, working wherever and however the guest and staff need. For guests: Mobile-optimized booking engines and guest messaging platforms are two of the most visible guest-facing applications. When searching for hotels, potential guests want to see a modern booking engine that builds trust in the experience a hotel provides. When staying at a hotel, guests want to communicate with the hotel as easily as they do with friends and family, and via the same channels (such as SMS and messaging apps). For staff: When hotel staff comes to work, they shouldn’t have to re-learn how to interact with technology. Mobile task management and collaboration software allow staff to use familiar mobile devices to get things done more efficiently on-the-go with built-in accountability. When evaluating vendors, these factors should be towards the top of the list for any hotel that wants to offer the most modern experience. Remember that both staff and guests have plenty of options when it comes to where to stay and where to work. Providing technology that makes life easier, better, and less stressful will bear fruit over time. The simplicity of consumer experiences now extends to B2B. People expect all technology to have intuitive interfaces and reliable connectivity.   App explosion delivers near-infinite options It seems like every company has an app store these days. As more and more companies seek platform status, they launch app stores to encourage development on their platforms. By opening up development, the underlying technology becomes stickier, making it more useful to hotels and also more lucrative for the platform company. There are two things driving this “appification everywhere” trend: plummeting storage costs and rising computer power, which has made cloud computing not just practical but affordable. In parallel to the growth in mobile, cloud computing has made it more feasible for apps to be more lightweight and nimble. Stats showing the growth of computing power and hard drive capacity alongside the steady decrease in the price of storage.   Apps no longer require heavy computing power and on-device storage to deliver the impact required in a B2B setting. Now, apps can connect to the cloud to pull necessary information in real-time, making apps faster and more accurate even as apps become more complex.   Apple’s App Store was the first to thrive. Now, nearly every platform and many travel technology companies have app stores as well.   For hotels, 'appification' has ushered in a golden age of choice. There are now app stores for many of the largest travel companies, allowing hotels to plug-in specific apps for a wholly customized tech stack. In 2018 alone, we saw the launch of app marketplaces and integrators from travel technology companies Mews, Apaleo, SiteMinder, and Snapshot. Here at Hotel Tech Report, we’ve partnered with protel’s I/O marketplace to integrate rich reviews to its app store experience. This layer of social proof adds richness to the company’s marketplace, which allows hotels to pick, mix and test cutting-edge technologies all in one place. App integrations are also becoming much easier as services such as Impala and HAPI emerge to simplify the process of connecting apps through configurable APIs. As more hotels push to build the specific tech stack that works for them, these app marketplaces and API services will grow exponentially in the coming years just the same as we’ve seen happen with more mature app stores from companies like Apple and Google as shown in Meeker’s deck.     An app store with honest reviews builds trust. Hotel Tech Report reviews are fully integrated into the protel I/O app marketplace.   On-demand jobs exacerbate talent shortage More workers are turning to the on-demand gig economy to supplement earnings. Freelance workers also find work much more easily thanks to technology. As more workers find freelance work feasible, hotels face growing competition for talent, exacerbating an already-acute talent shortage. Technology continues to empower workers to build a work life that works for them. Hotels must keep up to remain competitive for workers.   The flexibility in freelance and gig work appeals to workers, so hotels can apply some of this to their own scheduling. Providing workers with a degree of latitude in the way they work will make for a more appealing workplace. With more individualized control for staff, mobile-optimized labor scheduling solutions foster trust and transparency across a hotel’s operations. In addition, technology must be leveraged as a key selling point to potential workers. With staff task management and collaboration tools,  applicant tracking solutions, and other HR/staffing technologies, hotels build resilience within the recruiting and staff management parts of the business. The objective is to leverage available technology to effectively track applicants and avoid letting the best candidates slip away to other hotels or on-demand work platforms. Today, hotels themselves can tap into the gig economy with next generation on-demand staffing platforms.   Just like technology makes it easier for workers to find jobs, technology also helps hotels sharpen focus on recruiting and retaining top talent.   As competition for workers heats up, people have more options than ever. It behooves hotels to provide a modern, sensible work environment across departments that attracts and keeps the best workers. To foster loyalty, invest in the right talent management solutions that develop your workforce. By providing opportunities for employee training and learning, hotels have a better chance of keeping the most ambitious employees engaged. Workers should be incentivized to stay through these development opportunities, as well as through a workplace that prioritizes workers as professionals. More workers turn to the on-demand economy to supplement wages and/or add flexibility to their work lives. The real-time and on-demand nature of these platforms diminishes loyalty in favor of flexibility.   Office spaces shrinking, off-sites growing Another area affected by unprecedented flexibility is office space. The average square footage per employee is lower than it used to be, both due to open floor plans and the rise of remote work. Denser office spaces, coupled with remote workers, has expanded the role of hotels as destinations for off-site meetings.   With less space at work, and teams dispersed geographically, more companies rely on off-sites. These events bring together remote teams in a non-office setting to accomplish concrete goals. For hotels, this means a potentially lucrative incremental revenue stream from groups. It also means more requests for proposal taking up precious staff resources for a non-guaranteed event booking. As the RFP pace picks up in 2019, hotels will turn to group sourcing and RFP tools to reduce the burden on over-taxed staff. Other technologies will further enhance hotels’ event capabilities, such as event planning software that brings efficiency and organization to the process, as well as sales platforms that aggregate knowledge and empower sales teams to sell more effectively. Data is also increasingly vital to successfully building a book of group business, with meetings and events intelligence tools growing in sophistication.   Airbnb offers ultra-affordable accommodations 2018 saw an expansion of available channels for hotels. For example, Airbnb added boutique hotels to its platform, saying that it now considers itself in direct competition with OTAs. This year, Airbnb also released a meetings and events tool for corporate travel companies. These are only two examples of the growing ecosystem offering hotel bookings outside of traditional intermediaries like OTAs. The evolution of Airbnb into a full-fledged online travel agency creates pricing pressure for hotels but could also benefit hotels by breaking the Expedia/Booking duopoly that’s crippling them. The slide above shows how significant the average discount of an Airbnb is when compared to a hotel. The ultra-affordability of some Airbnb listings versus hotels will continue to influence how hotels price their rooms in certain markets. Hotels will look to rate intelligence solutions to monitor rate parity -- and may eventually even pull in Airbnb rates for a more accurate compset in many market segments. All of this data must be considered for revenue management software to make the right rate recommendations. The lower price point for some Airbnbs is also an opportunity for hotels to deliver rate competitiveness through streamlined operations. For hotels in hyper-competitive markets, technology rewards hotels with more profitable operations. The ultimate goal here is to either bring in more guests at similar prices or bring in the same number of guests at a more efficient cost structure. Bring in more guests: Price more efficiently to offer the right price to the right guest using revenue management tools. Consider contracting with a hospitality-focused digital marketing agency, as well as adding direct booking, and metasearch/ad tech tools to keep your marketing spend in high-performance mode. Streamline operations: Wasteful operations bleed a hotel’s profitability. Technology keeps costs in check. Tools for staff task management and collaboration, as well as for housekeeping management, help managers track staff performance through comprehensive reporting that identifies areas for improvement. A tighter operation gives a hotel breathing room as far as pricing and profitability.   For 2019, outsource your hotel’s R&D So what do these trends mean for your hotel? Since most hotels are not in the technology business, outsource your research and development to trusted technology partners that specialize in defining and building technology. Meeker pulls together the top companies by research and development expenditures. The slide emphasizes the competitiveness of these investments; the fastest growing companies are also the ones that invest heavily in R&D. As these companies attract prime talent and continue to invest millions in exploring the applications of new technologies, there’s an economy of scale that fuels future growth. The top companies in the world by research and development. When it comes to technology, hotels don’t typically invest in research and development in the traditional sense. The outsourcing of these efforts is therefore not only sensible but imperative to compete in today’s digital economy. By investing in technology, hotels sharpen the edge in a fiercely competitive environment.

Benchmarking your hotel's email marketing for success

by
Hotel Tech Report
2 weeks ago

Email marketing continues to be paramount for effective and affordable hotel marketing. Unlike social media or search, it's also a channel that hotels own, which means that the investment in growing and maintaining that email list reaps dividends over time. With an email list, your hotel builds a longer-term relationship based on trust and ongoing awareness. Sure, it’s not like every former guest is waiting by their inbox for an email to arrive from your hotel. Even so, these micro-moments matter. A robust, thoughtful email marketing strategy gives hoteliers more control over marketing costs, leveraging the email list as an asset that liberates some of marketing spend from platforms like Google and Facebook. Successful email marketing also requires a strategic approach that puts it on par with other marketing channels, such as paid search, says hotel revenue optimization expert Vikram Singh: “Email marketing cannot be an afterthought. There is a tendency for marketing departments to devote a ton of time to their paid marketing efforts, to the exclusion of almost everything else.” One reason why email marketing becomes an afterthought is benchmarking. The major paid platforms do an excellent job of helping brands benchmark performance against similar companies. Email, however, is more of an echo chamber without that critical feedback piece. The CRM and email marketing firm Revinate recognized this and completed a thorough analysis of the performance across 77 million emails sent through its system. The resulting analysis offers an unprecedented benchmark for hotel marketers, highlighting the types of emails convert the best across geographies. These benchmarks offer a four-step process for email marketing success: start with segmentation, then create relevant content for those segments. Automate wherever feasible (and without sacrificing relevancy), and then track performance against accepted industry benchmarks by geography and content type. With that framework in place, your hotel’s email marketing will adapt and thrive over time.   1. Segment One of the original sins of email marketing is non-existent segmentation. Blanket emails to an email list rarely perform well; in fact, these types of untargeted e-mails do damage in the form of unsubscribes. It’s just not good for the health of your e-mail list.  By dividing our annual revenue that comes from email marketing by the average number of email contacts in our database we can calculate the theoretical value of each email subscriber.  If we then multiply that by number of unsubscribes per year we can see how much money we're leaving on the table with ineffective email marketing.  For example, if we have 50,000 emails in our database and make $2M in revenue from email marketing each year - each contact in our database is theoretically worth $40.  If 2,000 contacts unsubscribe due to poor segmentation we have destroyed $80,000 of theoretical value for our hotel. “Bragging about the size of your email database is so last decade. The more relevant question is: how many segments or groups do you have within your database? Sending massive email blasts without any segmentation is a sure shot way to get ignored/unsubscribed.” -Vikram Singh Examples of suitable segments range from the obvious, such as gender, to the more complex, such as loyalty based on a guest’s lifetime spend at a hotel (recency, frequency and monetary value). Attributes can be combined to build detailed segments that represent important demographics for a particular property. The right balance is one that is achievable and sustainable for a hotel’s marketing team. Too many segments are difficult to manage, as far as creating and matching relevant content to each segment (as we’ll see next). Too few segments and your content risks coming across as impersonal and won’t drive as many conversions. To find that balance, translate your knowledge of guest personas into structured experiments that generate data on which segments work well and which don’t. Once you know which segments need tweaking, adjust content methodically to test engagement. To determine success, take stock of your current metrics and then compare them over time to the post-segmentation results. According to Revinate, segmented campaigns should dramatically out-perform non-segmented ones.   “Our analysis of customer data shows that segmentation drives a 20% higher open rate, a 70% higher click-through rate (CTR), and 73% higher revenue per recipient than non-segmented campaigns.” Proper segmentation starts with selecting an email marketing solution that enables the process of list segmentation; ideally, the solution acts as a CRM and/or connects to the hotel’s PMS to use customer attributes and behavior for better relevancy in each e-mail message.  The best solutions offer rich guest profiles, live data streaming, intuitive drag and drop editors and top notch customer support.   2. Be relevant Proper segmentation is the first step. Once you have segmented your audience into groups, now you must focus on relevancy. The goal is to pair each group to relevant content in a way that increases conversion and reduces unsubscribes. To achieve this goal, you need strong segmentation. The right segmentation makes the content creation process much easier, as each segment shapes the content. One caveat: What’s actually relevant to a specific group is not always evident. Perhaps the segment doesn’t mirror a team’s own demographics, or maybe there are assumptions about what appeals to a particular segment. That’s where testing comes into play. Test different creative, messaging, and offers to each of your segments, and let the audience tell you what’s relevant. This “test and learn” process removes the magic from the process and puts some structure around the process. To start, brainstorm the reasons why a particular segment signed up for the email list in the first place and go from there. Success comes from targeting intent effectively.     3. Automate Revinate’s survey found further support for the value of automation. Emails with the greatest engagement were related to a guest’s stay, such as the confirmation and pre-arrival e-mails. In fact, the pre-arrival emails were the highest performers when it comes to revenue. Since 98% of all upsell revenue came from pre-arrival emails, hotels should focus on pre-arrival emails to drive upsell conversion.   Certainly, this makes sense; guests are in more of a transaction mindset before the trip, and often consult emails for information around the upcoming stay. The analysis found breakfast, parking, and airport transfers were also popular upsell items, as were early check-in and late check-out. Breakfast deals bring in the most upsell revenue, followed by offers for advanced parking. Early check-in, late check-out and airport transportation offers are also popular.   Other campaigns that should be automated include the OTA Winback, guest re-engagement, and birthdays. Pull this information from your CRM and/or PMS, and then automatically send these campaigns to solicit more direct bookings over time. For the best results, use your guest segmentation to pair the best subject line with relevant content. Test, and iterate. Click here to see the 5 top rated Email Marketing and CRM vendors for hotels   4. Benchmark over time The final step is to benchmark performance of each e-mail send against both internal and industry data. To do this effectively, track performance for each geography, segment, and email type.   Geography. To some extent, geography defines behavior. One of the most useful parts of the Revinate research was how geography impacts conversion; for hospitality marketers that serve guests from around the world, it’s useful to understand the nuances in behavior.   The global benchmarks for email performance.   Segment. Over time, a segment’s behavior may shift. Benchmarking to past behavior identifies any potential engagement erosion before it becomes a problem. It might be worth it to revisit segmentation to see if such shifts occur, or potentially try new offer/subject line/content combinations. Email type. Revinate compared open rates across booking windows and email types, such as Events and Announcements, We Miss You, Room Offers and OTA Winback. Different campaigns have different booking windows and that’s why it’s important to benchmark accurately to compare like-for-like.     Nurture the list By using segmentation, creating relevant content, automating where feasible, and benchmarking results, hotel marketers build a productive habit that nurtures a hotel’s email list. As a long-term asset that has a reasonable cost of acquisition, the email list should be one of the most valuable pillars of a hotel’s marketing strategy. Click here to see the 5 top rated Email Marketing and CRM vendors for hotels

How to maximize your hotel’s bookings by aligning your technology with your goal

by
Hotel Tech Report
4 months ago

The growth in technology tools for hotels has complicated life for hoteliers. While it has always been important to bring potential guests into the conversion funnel, there are now many ways to both capture and convert lookers to bookers. When considering the different ways to bring prospects into your hotel’s funnel, it can be helpful to start with the goal and then look at technologies that accomplish that goal. This approach differs from other common vendor evaluation processes in one key way: it puts the goal first rather than the category. For instance, rather than comparing only direct booking tools to one another, this process focuses on the desired outcome -- and then compares tools across categories that may help a hotel achieve that outcome. With this outcome-based approach, hotels have stronger odds of successfully matching with the correct vendor for a specific issue.   "I want to improve conversion on my website" When it comes to getting more direct bookings, it’s all about the hotel website. After all, a hotel with a buggy website and poor user flow will scare off many potential guests who seek a trustworthy booking experience. Direct booking tools promise growth in direct bookings by increasing conversions on a hotel’s website through price check tools, real-time guest messaging, smart segmentation, and pricing optimization. These direct booking tools offer a mix of capabilities, so it’s best to evaluate each according to how your hotel prioritizes direct bookings. Booking engines are a necessity for selling rooms directly. Without a modern and intuitive interface that’s optimized for conversion, guests will go elsewhere out of frustration or suspicion. Look for a booking engine with real-time inventory updates; otherwise, you risk double booking across channels. Reputation management is more than just an operational tool: it’s also handy for marketing. Most hotel reputation management solutions have the ability to feature previous guest reviews on your website; doing so can dramatically boost your conversion rate. Virtual tours can help conversions. When potential guests consider a hotel, they want to be certain that the property is as advertised. Consider investing in a virtual tour to give guests piece of mind.   "I want to drive new traffic to my website" Once a website has been optimized for direct bookings and conversion, the next step is to entice more potential guests to it. There’s a blended approach to making this happen.   Content marketing is one of the most affordable ways to engage potential guests and to bring them to your website. With great content, you’ll have an engaging website to attract visitors, as well as plenty to post on social media. Be sure to make your content relevant to your guest profile. Social media is a challenging place but can deliver results when done right -- especially for distribution of the great content you’ve created! Social media is also a goldmine of consumer insights. Leveraging social media tools can bring you closer to your customers. Influencer marketing continues to be a growth area for hospitality marketers. Inviting influencers to experience the property, or paying them to post about the property, appeals to hotels looking to reach particular demographics. These influencer marketing tools should factor into the mix, helping identify the right influencers and tracking the success of your campaign. Digital marketing agencies are assets for those hotels that have enough budget to engage subject matter experts. Hospitality marketing agencies use their experience across clients to build high-impact campaigns that can be quite intimidating to deploy solo.   "I want to bring back old guests" According to research from the company that invented the Net Promoter Score, increasing customer retention rates by 5% increases profits by 25% to 95%. Statistics aside, it really comes down to customer acquisition cost for hotels. With each booking channel taking a large commission for bringing in a guest, it can be extraordinarily lucrative to re-engage former guests. Loyalty programs are helpful assets to organize and track a comprehensive loyalty program for independents. The best technology will give you insights into your guest profiles, and help you craft the best offerings to each group.  Read our article "Do independent hotel loyalty programs actually work?" to decide if this option is right for your hotel or properties. Email marketing is a critical piece of the loyalty puzzle. When evaluating email marketing tools, you want to be sure that it integrates with your existing loyalty program and hotel CRM tools.   "I want more bookings on OTAs & Metasearch" Third-party websites and metasearch are important pieces of any hotel revenue management strategy. As part of a cohesive approach that includes direct bookings, wholesale, and groups, these channels are valuable tools to shore up low demand periods and achieve overall revenue targets. Metasearch and ad tech bring advanced reporting, bidding and inventory management to your third-party distribution strategy. These metasearch tools help hoteliers wrangle the complex web of metasearch campaigns, as well as integrating in real-time with existing systems to maximize profitable bookings without overbooking. Review management software performs a critical function: it monitors your hotel’s reviews for potential operational issues. Catching poor performance before it affects the guest experience means better reviews -- and a higher ranking in search results on OTAs and metasearch sites.

Social Media for Hotels: How it Drove 6% of Direct Bookings

by
Simone Puorto
1 year ago

Social media for hotels, does it work? Does it convert? Is it a waste of time? Is there any ROI? Should one have a Facebook page? An Instagram one? As always, there are no totally right or wrong answers and one size does not fit all. First of all let’s start analyzing the three typical hotel approaches when it comes to social media, to further emphasize the lack of a unique and standardized methodology:   1. The Über-Social Hotels It’s the minority of hotels that makes of their social DNA their selling point: they train their staff, hire social media managers, allocate budget for social ads, work on niche social networks, etc. 2. The Let’s try it Hotel Hotels that approach social networks with fewer resources, limiting their actions to the most known players (Facebook, Twitter, Instagram, etc.) and working without a proper method and strategy. This group includes the majority of the hotels. 3. The I don’t care Hotel In this group are those hotels that have no interest in being present on social networks, relying mainly on established advertising channels. Which of the three is the right method? While I have personally sometimes discouraged hotels to go all-out on social media, I have also managed and led many very successful campaigns for some clients. ROI or ROE? The main problem with social media for hotels is understanding and measuring the results. As Douglas Quinby from PhoCusWright once said: ”hotels are reluctant to disclose the numbers associated with the conversions of the hotel on Facebook because the data is irrelevant.” Supporting this thesis is a recent study by the University of Applied Sciences and Arts of Lucerne, which states that social networks are “much less important than previously believed”. The study was conducted on 1,000 online bookers of three critical markets: UK, Germany and United States. For English and German travellers, a good website is (still) the decision-making element priority. Americans give the Palme d’Or to hotel reputation and notoriety of the brand and only a minority of (less than 20%) think that social networks are important. Friends, not clients So, are social networks completely useless for hotels? Of course not, but to understand if it is worth to use social marketing you have to understand what social networks are all about n the first place: sharing. And what users share? Stories. If the stay was pleasant guests will more likely write a review than share or interact with a hotel social page. They will post photos from the city, or funny things they saw or did during the trip, but rarely anything related to the hotel. Why? Because if the hotel does not offer a story to tell then that story, obviously, won’t be told. On the other hand, if a hotel has something special and unique or it offers a non standard hotel experience, that’s where social networks become useful. According to Jana Zvolánková, former IT marketing and social media manager for a famous hotel in Prague I used to work with “guests are like friends and you do not send advertising to your friends. They give us good ideas and we give them interesting facts and links in return. Facebook should not be the commercial backup of your official hotel website: it is a social media platform designed for friends to communicate with friends, so that is what you have to focus on. Once they actually arrive in the hotel, they have the feeling that they are already part of the family. The hotel is created with the uniqueness in mind and with the urge to be different then the rest of the pack. In this increasingly difficult hotel market, you need to find a way to stick your neck out. We opted to change the complete interaction with the guests and we strive hard to give the guests a completely different experience, that is great to share over social media. Combine this with the kind of guests that we attract with the concept of the hotel and you have a clear view of why social media works well here, with 6% of direct reservations coming from Facebook only.” IN CONCLUSION While many hoteliers and marketers still look at social media as an ROI tool, it should be looked at primarily as a communication platform to engage with guests and potential guests. Hotels that are built with social elements in their DNA may receive more reservations through social media but that is a positive side-effect that one should consider as a bonus and not the main goal. As to who should have a social media presence? most any hotel can and should but if they’re ready to manage it for real, that means answer questions, post regularly, make it interesting and not just an advertising outlet. If the hotel isn’t ready to handle the traffic I recommend not to take this path, as there’s nothing worse than an old page not kept alive.