Smarter meetingsRevenue generator for the hospitality industry
Feb. 2015 Lieven Bertier – Global Marketing Manager
Investment sentiment at all-time high ...
Investor sentiment for trading has surged to an all time high, with positive trading sentiment for all three regions broadly aligned
Source: Jones Lang Lasalle – Hotel Investor Sentiment Survey June 2014
As hospitality market keeps on growing
Source: Euromonitor International, travel and tourism: global hotels
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0Global Business Trips
Global Business and Leisure Trips2011/2016
600
500
400
300
200
100
0
Global Hotel value Sales 2011-2016
Global Leisure Trips 2012 2013 2014 2015 20162011
2011
2016
Business hotels
“In the current market scenario, 40% to 50% of the total revenue is generated through non-room related revenue”.(Dhiraj Trivedi, director - group e-marketing, The Park Hotels, India)
50%room revenue
40-50%non room revenue
Generate more than 50% of revenue from business guests
Your average business traveler will change
67 percent of business travelers are male and more than half of this group are between the ages of 32 and 54.
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Sources: Deloitte: Hospitality 2015, game changers or spectators? – PWC: Room to grow
Mobile everywhere2
Source: Smartbrief Media Services: 10 hospitality technology trends you need to know about
87%Nothing: it should be free
How much are you willing to pay for Wi-Fi?
8% - 15$ or more for premium service
4% - $15
1% - $10
“Guests, especially business travelers, want simplicity. They want to be able to turn something on and go. They don’t want tech for the sake of tech, and we get that.”
Niki Leondakis, CEO of Commune Hotels & Resorts
Simplicity rules3
Employee retention4Hotels will face the challenge of employee retention in the future. Hotel employees have historically been asked to work harder for less money than most other occupations. It is not unusual for the front desk clerk to also be the person that sets up the breakfast buffet, cleans the lobby, does the bookkeeping and also must greet every guest with a big smile. Housekeeping is often asked to clean three or four rooms per hour in an 8-hour day
Source: Deloitte: Hospitality 2015, game changers or spectators?
Think beyond hotel guests5“Most hotels, lobbies and boardrooms, a lot of them sit empty during the day. Why not allow people to come in during the day and allow them to use our space? It creates awareness, generates food-and-beverage sales—all types of things.”
Peggy Roe, VP of global operations services for Marriott
Source: www.hotelnewsnow.com/Article/10727/Non-guests-driving-incremental-revenues#sthash.JJFQqI5m.dpuf
MICE is changing6 Meeting demand is at its peak since 2008 — and growing across all
sectors.
New age technology — Meetings and events are getting more tech-savvy than ever before. Apps downloaded on smart phones and iPads, easily accessible mobile sites and meeting-dedicated Facebook pages are all around. Note taking through iPads, projectors and the latest audio-visual technological tools – events have been totally transformed by technology.
The Meeting Package is back — The last couple of years saw a decline in the meeting package but it has made a strong comeback again this year.
Source: http://www.worldluxurytourism.com/mice/mice-trends-and-its-immediate-future.html
But the one word coming back in every conversation: BRAND differentiation7The next five years will herald the era of a consumer-led brand focus for the hospitality industry. Consumers are changing faster than ever before in both attitude and behaviors.
Source: Deloitte: Hospitality 2015, game changers or spectators?
How to differentiate?
Traditional ways of differentiation are gone
The websites of many top end hotel chains are currently difficult to distinguish from one another, with frequent repetition of the words ‘luxury’ and ‘experience’ and relatively similar messaging. We believe that much greater differentiation will be needed over the next five years to capture the loyalty of the traveller.
Source: Deloitte: Hospitality 2015, game changers or spectators?
The answer to the business traveler: ‘smart’ meeting room packages
ParkInn by Radisson: Smart Meetings and Events
Marriott: ‘inspired by people’ meeting spaces
Meeting@Novotel
Can technology help further differentiate?
8 out of 10 European business leaders expect technology to make meetings more productive
80%Of the European business leaders expect technology to make meetings more productive
30%Find hotel technologyessential
50%Find hotel technologyImportant
Source: Meeting room of the future survey by BarcoSource: Smartbrief Media Services: 10 hospitality technology trends you need to know about
Screen mirroring as one of the exciting technologies
1. Marketing advantage
2. Loyalty driver
3. Cost saver
4. Attracting new customers
5. Revenue generator
Marketing advantage1
Vandervalk, Eindhoven, Netherlands
London Marriott Hotel Kensington
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Loyalty driver2“Many customers are coming back since we updated the meeting package. They’ve experienced the reliability of our systems and the comfort and convenience to hold their meetings here, hassle free and problem free.”
Erich Zuri, General Manager of Marriott München
Cost saver3“Quite often we have customers coming in and asking for a meeting room, immediately. In these cases, there is no time to set up the room or the technology, it just has to be ready… or we lose the client. With ClickShare, we don’t need much time to set up the system or instruct the customer. It is ready and easy to use. We can explain it in three simple steps.”
“During a recent board meeting, a pharmaceutical company had four different types of presentations to show. They were really excited about the flexibility to change presentations during the meeting without interruption or any changing of cables.”
Kathrin Hanisch, Director of Event Management, Marriott Munchen
Attract new customers4 “We’ve all sat outside a coffee shop with free Wi-Fi to be on a conference
call. In hotels there is a lot of underutilized space during the day, and we thought it would be a good way for our hotels to invite people in.”
Marriott’s new Workspace on Demand service allows non-hotel guests, such as small businesses and entrepreneurs, to book meeting space at Marriott properties on half-day or full-day basis. Larger groups can book meeting space that includes audio-visual equipment and Wi-Fi.
Peggy Roe, VP of global operations service for Marriott International
Source: www.hotelnewsnow.com/article/10764/10-trends-in-hotel-technology#sthash.LCYZbazU.s2fhLQ0t.dpuf
Revenue generator5Our focus on Meetings, Incentives, Conferences and Events (MICE) Business has generated an average annual increase in revenue of around 25% since 2004.
Source: www.rezidor.com/phoenix.zhtml?c=205430&p=devrevenue#sthash.z6ELhvI3.dpuf
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