HFTP HITEC Conference - Disruption Gets Personal
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Transcript of HFTP HITEC Conference - Disruption Gets Personal
Disruption Gets Personal
Hospitality Financial and Technology Professionals – HITEC ConferenceJune 24, 2014 | Los Angeles, California
Image Credit: WorldIslandInfo.com | flickr (cc)
The Crazy Ones Think Different
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 1
Video Credit: Apple Computer (Unreleased Edit)
Disruption Gets Personal - Overview
• Personalized Data– No Behavior Gets Overlooked
• Personalized Pricing– Who Gets the Best Available Rate?
• Personalized Hospitality– Selling Experiences, Not Just Rooms
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Image Credit: Sean McGrath | flickr (cc)
Personalized Data – Big Data
Big Data Doesn’t Fit Traditional Databases
• Volume
– Kayak: +40 Million Rows into 43 Fact Tables Daily
• Variety
– Facebook: 350M Photos | 4.5B Likes | 10B Msgs / Day
• Velocity
– Sabre: Processes 85,000 Transactions/Second
• Veracity
– 1/3 of Business Leaders Don’t Trust Their Information
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Image Credit: jesuscm| flickr (cc)
Personalized Data – Universal Analytics
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Image Credit: jesuscm| flickr (cc)
Not Tracking Visits – Tracking Visitors
• Anonymous Data Joined Using Customer ID
– Google, Apple, Facebook, Microsoft – UserID/IDFA
• Cross-Device/Offline Campaign Tracking
– Website, Mobile Apps, Call Center, On-site Actions
• Death of 3rd Party Cookie – Blocked by Default
– 1st Party Data Insights = Competitive Advantage
Personalized Data – Predictive Analytics
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Image Credit: jesuscm| flickr (cc)
Know Answer Before Question Gets Asked
• Customization Changes User Experience
– Search, Sort, Filter, Selection – Produces Response
• Personalization Changes Content
– Target Stores – Recognize 2nd Trimester Pregnancy
• Intense Testing Support
– Kayak: 30 to 50% Daily Visitors Involved in Tests
– Other: More Tests in 1 Year Than Company History
Personalized Pricing – Rate Parity?
UK/EU Outlaws Resale Price Maintenance
• Undermines Basis for Best Rate Guarantee
– Allows Discount on Wholesale | Rebate on Retail
• Rate Parity OK for General Public
– Unregistered Visitors & 1st-time Guests (Strangers)
• Outlawed for Returning Guests
– Existing Guest Registration & Previous Booking
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Image Credit: Ahmad Hashim | flickr (cc)
Personalized Pricing – Dynamic Pricing
True Rules-based Pricing Still Elusive
• New Segmentation & Conversion Analytics
– Starts with Sale Works Back to Identify Attributes
• Situational Pricing Adjustments
– Factors Conversion Opportunity / Weather / Time
• User Interface Offers Best Eligible Rate
– Eliminates Need for Guest to Know Codes
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Image Credit: Ahmad Hashim | flickr (cc)
Personalized Pricing – How to Compete?
Retail Pricing Versus Rebates & Discounts
• Advantage to Intermediary
– Multi-Brand | Better Data | Better Algorithms
• Limited Defensive Options
– Align Price / Demand / Conversion / Ad Bidding
• Who Ultimately Wins Customer Loyalty?
– Battle for Returning Visitor & Lifetime Value
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Image Credit: Ahmad Hashim | flickr (cc)
Personalized Hospitality – New Supply
“Location, Location, Location”
• Top Sharing Economy Lodging Websites
– Airbnb|600,000 Listings|34,000 Cities|190 Countries
– HomeAway/VRBO | 952,000 Listings | 190 Countries
– Xiaozhu | 20,600 Listings | 160 Cities | China
• Inverts Standardized Product & Market Segment
– Find Best Property to Match Individual Guest Needs
• Increased Regulation Inevitable
– Room Occupancy Taxes | Unit Usage | Life Safety
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Image Credit: Justin Brown | flickr (cc)
Personalized Hospitality – Value Creation
“Life is Service”
• Authentic / Highly Personalized Experiences
– Chip Conley | Training Hosts | 9 Service Standards
• Local Experience Focus
– Airbnb Neighborhoods | Lounges Hubs | 10 SFO
– HomeAway | Gogobot | Insider Local Guides
• No Nickel & Diming
– No Resort Fees | Free Internet | True Value Adds
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Personalized Hospitality
“The Guest is Always Right”
• Personalization is Core Business Competency
– Right Host + Right Traveler = Right Experience
• Model Rewards Highest Quality Service
– eBay-style Voting Supports Engaged Community
• Ease of Use & Discovery Biggest Challenges
– Mobile is Future - 26% of Business via Mobile
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Disruption Gets Personal - Recap
Turn Hotel Stays Into Travel Experiences
• Personalized Data
– Create Relevant Offers Appealing to Individuals
• Personalized Pricing
– Base Pricing on Guest Lifetime Value
• Personalized Hospitality
– Produce High Value Memorable Experiences
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Image Credit: Barry Bland| All Rights Reserved
Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: [email protected]
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Image Credit: Edward Koren | The New Yorker
Disruption Gets Personal