Étiquette : Web-2.0 @en

Catégories
Accommodation

Ancillary revenues in the hotel industry

Mobile technology can help hoteliers increase their sales of ancillary products and services.

Though ancillary products and services (add-ons) were first introduced by the airlines, they are also sold by hotels, though less often. As long as hotels have the tools to promote such sales, there are numerous opportunities for increasing customer spending: fees for Internet, parking, breakfast, etc. Mobile technology is one such tool that can help boost additional revenues and enhance the customer’s hotel experience.

A practice used throughout the tourism industry

According to PhoCusWright, in 2011 U.S. hotels sold approximately US$1.85 billion in ancillary products and services, which accounted for 1.7% of the country’s total hotel revenues. Compared to the airline industry, a pioneer in the use of additional charges, the hotel sector is not very active. In fact, according to Amadeus, U.S. carriers generated $12.5 billion in ancillary revenues in 2011, representing an average 12% of a company’s operating results. The Forrester and Amadeus firms estimate that by the year 2015, ancillary sales will account for more than 18% of a tourism business’ total revenues.

What are these ancillary products and services?

In the hotel sector, rooms are the core product. All related products and services like food and drink, upgrades, and Internet, cancellation or early departure fees (see Table 1) generate ancillary revenues (see also: La «montée en gamme» ou comment générer des revenus supplémentaires tout en augmentant la satisfaction de la clientèle). They are supplied by the hotel itself or outside service providers (see also: La vente croisée: une source de revenu encore peu exploitée par l’industrie touristique), and are suggested by hotel employees, call centres or delivered automatically via technology.

AL_RevenusComplementaires_tab1_ENG

Mobile technology and its benefits for hotels

While hotel options can be purchased before (e.g., upgrade) or after the client’s stay (customized promotion for the next stay), the time to maximize ancillary revenues is when the client is actually present in the hotel.

 

According to PhoCusWright, mobile technology appears to be one means of accomplishing this by increasing the visibility of ancillary products and services at each point of contact with guests. Hotels with their own app or mobile website version can make customized, location-based offerings available on smart phones and tablets. Hotels have already realized the importance of this market, for many of them have added a tool for reserving spa treatments or ordering in-room services to their mobile site or app.

The many uses of mobile devices in hotels

When hotel in-room tablets are available, they boost sales of in-room services and on-demand films and games. QR codes can be placed in various locations throughout the establishment to facilitate communication AL_RevenusComplementaires_image1with guests, encourage customer feedback and promote specials at the restaurant or souvenir shop. Mobile payments using NFC technology (see also: La tendance cash-less gagne l’industrie touristique) also help hoteliers sell more ancillary products. Finally, hotels who belong to location-based social networking sites like Foursquare can use them to share promotions that entice clients to spend more (get the second breakfast free, two drinks for the price of one, etc.).

Micros’ MyStayManager application organizes a guest’s entire hotel stay: reservation, additional products and services as needed, check-in, in-room services, wake-up call, spa reservation, view of final bill and check-out. Hotels can send targeted promotions to each guest by email or text message, inviting them to take advantage of the services and products available in the establishment.

How can hotels increase ancillary revenues?

It is not easy to make ancillary sales.  Here are the challenges facing both managers and third parties:

  • Determine points of contact and the customer profile

PhoCusWright has identified the points of contact for each stage of the travel cycle (see Table 2), and there are numerous opportunities for hotels to increase ancillary sales. The firm recommends that hotels make greater use of « up-selling » when rooms are reserved, just like airlines do. According to Valyn Perini, CEO of OpenTravel Alliance, they can then make more offers between the booking date and arrival date.

AL_RevenusComplementaires_tab2_ENG

  • Have the right technology

The global distribution systems (GDS) of traditional travel agencies, online agencies and meta-search engines do not provide customers with access to all ancillary hotel products and services. This means that hotel managers have a competitive edge, if they can offer these products on their hotel website and they have high-performance management systems (see also: Technologies en hôtellerie: regard sur les systèmes de gestion).

  • Manage inventory and availability

Hotels must assess their potential future sales and anticipate how much inventory is needed. Some products are limited in number (e.g., spa treatments), while others can be sold without restriction (e.g., breakfast). It is also essential that product and service availability be updated in all reservation systems.

  • Other obstacles

Hoteliers hesitate to make ancillary products and services accessible via third-party distribution channels, because of the commission charged. Moreover, business travel agencies like Carlson Wagonlit Travel and American Express are not likely to suggest these options, because their clients are used to getting services comped in hotels and thus do not feel like they should pay.

Is there a magic formula?

To increase its ancillary revenues, an establishment must meet certain conditions: communicate effectively with its clients, know their preferences and needs, multiply opportunities for interaction, and adopt mobile technology and payment. If hoteliers suggest personalized products and services adapted to the traveller’s current stage (before, during or after the stay), these products will be perceived as value-added services and not sales.

 

Sources:

– Amadeus. « Airline ancillary revenue soars to $32.5 billion worldwide in 2011, » amadeus.com, 19 October 2011.

– Dandapani, Vijay. « Pricing Ancillary Goods and Services, » 4hoteliers.com, 6 March 2013.

– Google and Nielsen. « Mobile Search Moments – Understanding How Mobile Drives Conversions,« , google.com, March 2013.

– Juman, David and Ralph Merten. « Tee Times & Touchscreens: Hotels Leverage Mobile to Drive Ancillary Sales » insider.phocuswright.com, 13 February 2013.

– Merten, Ralph. « Hotel Ancillary Revenue in Europe, » PhoCusWright, January 2013.

– Samuels, Gerry. « Can mobile change the way travellers feel about ancillary products? » tnooz.com, 2 June 2011.

– Turner, Shawn A. «Hotel ancillary revenue model questioned, » hotelnewsnow.com, 9 March 2011.

 

Catégories
etourism and technology Management

SOS! My business is having a social media crisis!

Thanks to social media, information that used to take several hours or even days to reach the public can now be spread almost instantaneously. When a crisis sets alarms bells ringing in today’s world, it’s impossible to ignore!

A well-prepared crisis unit and an action plan to mitigate the impact and quickly get back to normal are just two ways to manage a social media crisis and limit collateral damage.

Anticipate and plan for a crisis

While it’s nearly impossible to predict what will lead to a crisis, organizations are nonetheless well-advised to take advantage of calmer periods to contemplate the possibility. They should envision some plausible scenarios, establish a management protocol, appoint the individuals who will be in charge, determine the role of each team member, and supply everyone with the tools they need to take action and communicate effectively, should the need arise (see also: Quand la crise éclate!).

Online monitoring of chatter about your company or organization is a way to complement your crisis preparations. In fact, this sort of monitoring can identify vulnerabilities and anomalies and enable you to take action before they degenerate. There are many monitoring tools available to facilitate this process (see also: Des stratégies pour gérer votre réputation en ligne).

In the end, although your company image and reputation are at stake, don’t forget that similar risks existed, even before the advent of social media. The difference is that, today, social networks have the potential to aggravate and accelerate a crisis situation.

Intervene, manage and overcome a crisis

When an incident is detected and a crisis seems inevitable, one must take effective action. At this stage, managing communications and reassuring clients, partners and the public requires a lot of discipline and diplomacy. Even if you have no answers for the questions being asked, it is important to publicly acknowledge the problem and show that you are doing everything in your power to resolve it.

Maintaining control over communications, promoting transparency and honesty with regard to the current problem and reacting quickly to criticisms can help you limit the damage. If the crisis actually began on a specific social network, Facebook, for example, you should begin by responding directly on the site. With a little bit of luck, the crisis could subside without reaching other media. If, on the other hand, this is not the case, you must act in a uniform manner across all networks involved.

Creating a Web page with crisis-related questions and answers (FAQ) could save you a lot of time and prevent misunderstandings. In addition to listing all possible questions, this page means you can provide a link to the answers when asked about the same topics; remember, Twitter only gives you 140 characters, which is not much for clearly expressing your views. This page could include the following types of information:

  • Recognition of the crisis
  • The surrounding circumstances
  • Photos or videos showing, for example, the president of the company holding a briefing
  • The next actions planned to resolve the crisis
  • Contact information for people who can provide more details

During a crisis, the point is not to win arguments but to control damage. For this reason, although transparency is essential, it’s also important to know when certain conversations that could degenerate should be taken offline. Inviting a compromising person to continue the discussion by phone or email shows that you are interested in the position being argued yet prevents the spillover from being aired publicly.

End a crisis

Some crises can be avoided, while others would appear inevitable. What lessons have you learned and what measures can you take to prevent a similar situation from happening again? It is crucial to deconstruct such events after they are over so you can use the experience to prepare your next crisis management plan. You could, for example:

  • document and preserve all the comments posted on the various social networks and any emails exchanged with the internal team, the public and the media
  • analyze the number of site visits and your social network profile during the crisis
  • determine the chronological sequence of events, identify the critical moments and understand the reasons behind them
  • evaluate the crisis management plan you used and improve it

To avoid having to face a social media crisis, some businesses are simply opting out of social networks. But is this really a good solution? What if a crisis involving you unfolds on social media and you are not there to deal with it? Although maintaining a presence on social networks definitely involves some risk, paradoxically, not doing so does not make you immune to risk!

 

Sources:

– Baer, Jay. « Don’t Be Scared Be Prepared – How to Manage a Social Media Crisis« , convinceandconvert.com, 2012.

– Blancot, Carole et al. « Communication de crise à l’heure des médias sociaux, » Atramenta, September 2012, 100 p.

– Fryatt, Jenise. « Social Strategies: Creating Your Social Media Crisis Management Plan« , blog.cvent.com, January 16, 2013.

– Seraiocco, Nadia. « Gestion de crise sur les réseaux: pensez-vous à votre CM? » cheznadia.com, February 27, 2013.

– World Tourism Organization. « Toolbox for Crisis Communications in Tourism« , 2011.

Catégories
etourism and technology Trends

Web 2.0 extends to both tourism and culture

The internet continues to evolve at a rapid pace. Indeed, recent changes have been so profound that they have led to the introduction of the phrase “Web 2.0”, which has quickly become the trendy, catch-all term used to describe the new ideology that is shaping the internet. This new approach has been adopted by numerous sectors but specifically by the tourism industry, giving rise to the term “Tourism 2.0”. Some see this as a trend that will quickly spread to other sectors. If that is indeed the case, when will we see the emergence of “Culture 2.0”?

The 2.0 Philosophy

With Web 1.0, internet users could do little more than browse for information on professionally‑constructed sites, using tools developed by a limited number of companies. The advent of the 2.0 era means users are now active participants, able to produce their own tools and data. They interact with the medium by creating, modifying, organizing, commenting on and uploading content.

Users can take advantage of the internet’s expanded functionalities to build virtual communities where they share information, favourite sites, photos, videos and much more. A wide range of tools have been developed that strengthen the Web’s influence: blogs, news aggregators, forums, meta‑search engines, podcasts, and so on. Some of the better‑known icons of Web 2.0 are:

  • Wikipedia: web‑based free‑content encyclopaedia project
  • Flickr: photo sharing website
  • Del.icio.us: bookmark sharing website
  • Myspace: social website with filesharing
  • Youtube: video sharing website
  • Netvibes: personal news aggregator

The 2.0 trend is spreading!

Today’s internet community includes millions of members, and a great many of them are excited about 2.0. The number of online communities, websites and webtools is growing rapidly. When sectors see 2.0 added after the name, they know it identifies them as a domain where the critical mass of content and users matches the 2.0 mindset.

Already, there is increasing online use of the term “Medicine 2.0,” to refer to the proliferation of sites where people share information and advice, enabling them to confirm a doctor’s diagnosis or diagnose their own illness by comparing their own symptoms with those listed online.

Tourism 2.0

Already a mainstay of the online world, the tourism sector lost no time in adopting the 2.0 philosophy; after all, travel has always involved an element of exchange between individuals. Also, since nobody can try a trip before they buy it, tourism is the perfect commodity to bring individuals together online where they can provide the inside scoop on vacation deals. The kind of networking made possible by the web is the perfect stepping stone to sites that promote the sharing of photos, videos, opinions, advice and referrals related to tourism destinations.

With popular influence rapidly growing, the role of critic and consultant is no longer the exclusive domain of professionals and the same is also true of control over the image of a company or destination. One of the results of web users being able to produce and broadcast information and visual content is that the general public is faced with increasing amounts of material of uneven quality. The power of internet users is so great that it influences the way information is organized and accessed.

It is precisely the emergence of a significant number of web‑tools and sites, specifically geared toward tourism and inspired by the Web 2.0 mindset, that gave rise to the term Tourism 2.0.

Culture 2.0… it’s only a question of time!

Culture in general already has a significant web presence. Many cultural organizations and artists were quick to take advantage of the web’s ability to reach new audiences by creating virtual museums, online art galleries, live concert broadcasts and increased access to archival material – although these offerings are mostly based on Web 1.0.

However, we are starting to see an increasing number of cultural projects that have been more influenced by the 2.0 philosophy, where the general public participates and is involved in creating, personalizing, classifying and broadcasting content. This trend is particularly pronounced among those in the vanguard of Web 2.0, all of whom devote part of their space to culture:

  • Wikipedia lets internet users collaborate on writing encyclopaedia articles on a wide range of cultural topics;
  • Youtube lets millions of amateur and professional artists upload video clips and short films;
  • Various blogs and forums provide a space for authors to share and discuss their work with other community members.

A certain number of cultural entities are also trying to exploit the potential of Web 2.0; among them:

  • www.cinemamontreal.com: A space devoted to commercial film, this site now lets people upload and read reviews and comments.
  • www.librarything.com: This site lets people catalogue their personal book collection, share it with other community members and make recommendations; it claims it has 100,000 users and 7 million books.
  • www.brooklynmuseum.org/community/blogs/: This section of the Brooklyn Museum’s website features blogs and photo‑, video‑ and document‑sharing as a means of promoting interaction with its community. The museum has also designed an impressive space on Myspace, the biggest social networking website (www.myspace.com/brooklynmuseum).
  • www.australiadancing.org: Clicking on the Take Part tab on this dance site takes the user to a page that uses “wikis,” a collaborative online tool, to let people share their knowledge, ideas and news about dance.
  • www.nzlive.com: Developed by New Zealand’s Ministry for Culture & Heritage, “New Zealand culture online” provides an online space that cultural partners and the general public can use to display information on a wide variety of cultural activities.

When the number of site and users reaches critical mass, the Culture 2.0 movement will take flight!

Culture 2.0…a world of opportunity!

Your clients want to express themselves and get involved, so give them the tools to do it! Adding a blog, forum, comments, opinion or review page to your site will enable them to interact not only with you, but also with each other.

Managers can make good use of this new public‑generated content (blogs, forums, virtual communities, social networks, comment sites, etc.) to learn what their clientele is actually thinking. Monitoring client comments is often much more effective than using customer comment cards, and definitely less expensive than setting up a focus group.

Sources:

– Krajewski, Pascal, “La Culture au risque du Web 2.0 – Stage d’étude,” École nationale supérieure des sciences de l’information et des bibliothèques, December 2006.
– Péloquin, Claude, “Web 2.0, vous n’avez pas fini d’en entendre parler!,” Réseau de veille en tourisme, Chaire de tourisme Transat ESG Uqam, June 27, 2006.