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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


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


Image Credit: jesuscm| flickr (cc)

Personalized Data – Universal Analytics



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



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


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



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



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


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


Image Credit: Barry Bland| All Rights Reserved

Robert Cole

phone: +1.262.309.9560

social media: @robertkcole

email: [email protected]


Image Credit: Edward Koren | The New Yorker

Disruption Gets Personal

mailto:[email protected]