hftp hitec conference - disruption gets personal
DESCRIPTION
An overview of the impact that Big Data, the demise of rate parity and the personalization of hospitality through the sharing economy have on traditional hotel industry distribution. Presentation by Robert Cole of RockCheetah for the Distribution Super Session at the Hospitality Finance and Technology Professionals 2014 HITEC Conference held Tuesday, June 24, 2014 at the Los Angeles Convention Center in Los Angeles, California.TRANSCRIPT
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 2
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 3
Image Credit: jesuscm| flickr (cc)
Personalized Data – Universal Analytics
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 4
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 5
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 6
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 7
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 8
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 9
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 10
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 11
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
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 12
Image Credit: Barry Bland| All Rights Reserved
Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: [email protected]
HFTP - HITEC 2014 Disruption Gets Personal Robert Cole ● RockCheetah | 13
Image Credit: Edward Koren | The New Yorker
Disruption Gets Personal