For hotel brands, keeping customers loyal is getting difficult. Online travel agencies like Kayak or Booking.com are increasingly popular among the leisure and business travel markets. While some offer brand filters, the majority don’t play favorites when it comes to finding travelers somewhere to stay at the absolute lowest price. Peer-to-peer lodging platforms are also threatening legacy hotel brands, with front-runner AirBnB now boasting the second-most rooms of any travel lodging business on the planet. Hotels need every bit of help they can get to remain relevant and retain their share of travelers who prefer a traditional experience (read our first article on hotel retention strategies here).
Many are turning to technology, and with good reason. A recent study by Magnani Caruso Dutton polled 1,000 travelers on how they felt about a hotel brand’s digital presence. “For 70% of travelers, a hotel’s website and app impact their decision to book a stay,” the study reports. “Travelers often feel that a hotel’s digital offerings reflect what the experience will be like at the hotel itself.” By building or sourcing mobile applications that prioritize guest experience, hotel brands have been able to build deeper customer relationships and claw back their share of business from peer-to-peer platforms.
Getting Personal
By automating data collection, mobile applications are helping hoteliers get to know more about their guests. Many hotels already offer mobile apps that let guests stipulate dietary restrictions, specify particular bed/pillow types, and even request newspaper delivery directly to their room. These preferences are then tracked and retained for future stays, offering the personalized experiences that resonate with customers. But it’s not just guests enjoying the benefits of new mobile technology. Mobile apps are empowering staff to deliver a new level of service to their guests. “New technology has enabled them to take food and beverage orders directly on their mobile POS tablet while still in the presence of the guest,” explains Teri Howe, principal product manager for the hospitality software solutions provider Agilysis. “With today’s technology, servers are afforded more time to genuinely connect with every guest; making them feel more special and welcome.”
Maximizing Convenience
Convenience a main priority for hotel guests, and mobile apps are helping make their lives easier. In its 2017 Travel & Hospitality Industry Outlook, the Deloitte Center for Industry Insights analyzes current market data to forecast future trends. The study asserts that hotels will soon embrace mobile applications as a table-stakes offering, citing Virgin’s mobile app, “Lucy,” as a bellwether for the industry as a whole. “Branded the app that ‘Makes Things Happen,’ Lucy enables guests to control the temperature of their room, order room service, book spa appointments, and even text with hotel staff and other guests.” Mobile apps are also helping streamline the check-in experience.
In an article for hospitalitynet.com, TripCraft CEO Mike Murray articulates one guest’s experience, as made possible by an app: “With a few finger taps, she requests an airport transfer and early check-in, receiving a confirmation notification within seconds. Upon entering the hotel, a welcome message pops up, complete with her booking information and room number. Skipping the front desk line, she heads directly to her room, unlocking it with the app’s mobile key technology on her smartphone.”
Owning The Experience
Online travel agencies (or OTAs, as they’re known in the hospitality business) provide customers with immense value. By automating price comparison, they grant customers the confidence of knowing they’ve secured the absolute best deal possible. But according to the J.D. Power 2017 North America Hotel Guest Satisfaction Index Study, this can lead to problems for hotels. “When guests book through an independent travel website or mobile app (e.g., Expedia, Travelocity) instead of directly with the hotel, they are more likely to experience a problem and to be less satisfied with their stay.” Mobile applications can help a hotel take ownership of their guest experiences.
“As mobile usage becomes increasingly ubiquitous for guests, the challenge for hotels becomes twofold: First, they must persuade guests to book directly with them, and second, they must encourage easy utilization of this technology,” said Rick Garlick, practice lead, travel and hospitality at J.D. Power. “By forging direct relationships, hotels can become guardians of the guest experience, but at the center of these relationships is an establishment’s mobile strategy.”
It hasn’t been easy for the hotel industry these past few years. Rapid innovation brought about by a booming tech sector has left many hoteliers scrambling to keep up. Thankfully, many solution providers have rushed in to fill the void. As mobile-first thinking continues to gain traction across the hospitality industry as a whole, both customers and business owners can look forward to better experiences that lead to longer-lasting commercial relationships.