The hotel industry has lagged behind other sectors in adopting technology to meet customer led demand, according to a new report from Grant Thornton.
Richard Ratcliffe, a director at Grant Thornton in the Isle of Man, said the report, which is available at www.grantthornton.co.im, contains research the Isle of Man’s tourism sector could find useful.
The report, Hotels 2020: Welcoming Tomorrow’s Guests, concludes hotels must now put mobile technology at the centre of their customer experience and compete in the ‘sharing economy’. However, it also cautions against de-humanising the hotel experience, stressing that the most successful companies will be those that master the balance between using technology to respond to customer preferences and keeping the personal touch.
Launched at the International Hotel Investment Forum in Berlin, the report highlights the changing nature of hotels and their guests, finding this is in part due to the increasing spending power of ‘millennials’, digital natives looking for local, authentic experiences when travelling. It adds this group, which expects increasingly tailored services such as mobile room customisation and special in-app offers, is set to outspend baby boomers in hotels by 2017.
Mr Ratcliffe said: ‘This report is based on extensive international research and will be invaluable to the hotel trade as it tries to meet the changing expectations of guests.
‘The report will be informative for leading international hotels chains, but there are lessons the Isle of Man’s tourism sector can learn from it. We have seen hotels close, despite reports of the visitor economy growing, and this research may help explain what the industry needs to do to attract more of the travelling public to the Island by meeting expectations of a more personalised experience through the use of technology already commonplace in other sectors.
‘There are plans to develop new hotel accommodation in the Island, and if these developments are to help the Island compete for visitors, they must incorporate the services and experiences this report shows today’s and tomorrow’s travellers demand.’
Gillian Saunders, Global Leader for Hospitality and Tourism at Grant Thornton, added: ‘Hotels need to work to understand their guests’ requirements, making the most of big data to analyse and establish where personalisation through better use of mobile technology can really add value. It’s all about striking the right balance between apps and technology, as well as human interaction, which is still hugely valued. Get it wrong and you risk alienating your customers. Get it right and you can reap the rewards.
‘With millennials and tourists from emerging economies set to dominate future reservations, tomorrow’s guests will expect tailored services that break down language and cultural barriers, whilst still offering an authentic, personal touch that gives a unique experience.’
She added: ‘Developed carefully, with real understanding of what the consumer wants, technology can go a long way to build unique customer experiences that meet today’s demands. From ensuring the minibar is stocked with a guest’s favourite drink to providing details of local restaurants via their smartphone, hotels must retain the personal touch that keeps consumers coming back. Hotels must act now to differentiate themselves and make a reality of mass personalisation whilst keeping the human touch, to surprise and delight guests.’
The report highlights the hotel industry has lagged behind other industries in mobile personalisation. From retailers and personal finance providers to travel companies and restaurants, mobile technology, and especially apps, is being developed at a rate of knots to provide accessible, customised services. The report urges hotels to consider apps that personalise elements of the guest experience, going beyond room booking and check-in to allowing guests to truly tailor their stay through their smartphone. However, with recent privacy concerns around the amount of data shared through cloud platforms and mobile devices, the report warns that hotels must be mindful of how much data is likely to be shared by guests, and therefore work closely with consumers to ensure that personalisation is introduced at a level that is comfortable and achievable for both parties.
