Hospitality Industry Technology Exposition & Conference
April 11–13, 2018
RAI Amsterdam Convention Centre
Hospitality Industry Technology Exposition & Conference
June 26-29, 2018
Hospitality Industry Technology Exposition & Conference
December 5–6, 2018
GuestRevu 12 February 2018
Everyone's a criticNo longer does one person's opinion act as a placeholder for all. The advent of the internet means that every guest is a critic, all of their opinions holding equal weight when it comes to reviewing your hotel. It's no longer enough to have one room prepared once a year for the grading inspector. Instead, every room needs to be given that treatment. Every guest expects a great experience when they book your hotel, and it's up to you to make sure that they get one, or face the wrath of the bad TripAdvisor review.Why professional reviews don't mean as much anymoreHaving an outstanding review published in an internationally recognised magazine used to be the pinnacle, practically the definition, of success. It would see guests from around the world swarming to your hotel and booking for months and years in advance. Now, a review published in a magazine is nothing more than that -- one review. It may still carry weight with some readers, but is unlikely to be the only source of advice that they look to. It will be followed by a trip to TripAdvisor, a browse of Booking.com or a glance at Google, and the reviews found there will tell the reader more than that single article ever could -- it will tell them what an average experience at your hotel is like.While some hoteliers and chefs may lament the death of the professional critic, for others, the more egalitarian review system allowed by an internet to which everyone is a contributor has been a decidedly positive development.Now, hotels that may never have come across the radar of professional critics get their time to shine too. Review sites cover wide ranges of accommodations, so while your safari camp or self-catering cottages may never get the chance to grace the pages of Cosmopolitan, they are exactly what some visitors to TripAdvisor are looking for, and potential guests get the chance to read about how others have found their stays with you.The rise of the publicly accessible opinionWith the rise of review sites like TripAdvisor, Booking.com, Yelp, Trivago and thousands more, suddenly opinions are public, and you're seeing reviews from people who had good and bad experiences alike. Though it can feel as though all these sites do is provide a podium for disgruntled guests to rant, or unscrupulous visitors to blackmail their way to a better room, they're doing so much more - they open up the world for hoteliers and travellers alike. You're no longer relying on one or two reviews in magazines, newspapers or guidebooks to get your name out to the public, but could have hundreds of reviews for potential guests to base their decisions on. Not only do they give travellers the power to make better-informed choices, they're giving you the opportunity to learn more about the guest experience that you provide and to respond to any criticism that you might receive.People having opinions about their stays with you is nothing newThe fact is, none of this is really new. Your guests have always been critics -- they simply haven't had the public platforms before. Word of mouth is hardly a novel concept -- think of all those great stays that saw your guests suggesting you to their friends and family. But the other side of the coin wasn't quite as noticeable -- the awful stays that saw your unhappy guests telling their real-world social network to avoid you at all costs. You didn't notice those instances, because you didn't know about them. You simply never saw the bookings. You couldn't stop the negative word of mouth from spreading or add context to it, because you didn't know where it was coming from, or who it was reaching.You can add your voice to the discussion onlineNow, the negative reviews and naysayers may be reaching more people than they were before, but, while you should obviously be trying to ensure all guests have positive experiences, bad reviews aren't necessarily something you should be scheming to circumvent. Now, you also have the opportunity to address negative reviews, and make sure that more than one side of the story is being heard. Where before, you couldn't know who was talking about your hotel, now you can be a part of the conversation.Perhaps your guests are raising points that you haven't considered before -- you have the opportunity to improve what you offer, and raise your standards. Better yet, you can make sure that your unhappy guest, and all those who may read their review later, know that their opinion matters, and that you take their suggestions to heart. Showing that you care about your reviews and your guest experiences enough to change will encourage others to consider your hotel, and maybe even have that unhappy guest considering giving you a second chance. Research by TripAdvisor suggests that a professional response to a bad review may even improve readers' impressions of your hotel, and make them more likely to book.Creating a balanced picture and getting a better rating require more reviews, not fewerWhen it comes down to it, you should really be encouraging every single one of your guests to post reviews on travel sites! The more reviews you have, the more balanced a picture you can give, not only of the accommodation that you provide, but of the atmosphere and attitude that you inspire. And, while it might be tempting to just have the ten best reviews that you've ever received displayed on every site where a potential guest might see them, the algorithms that sites like TripAdvisor use take into account not only the score of reviews, but the number of reviews and their recency as well. Therefore, the more reviews you have (even if they could be described as average at best), the better you're likely to rank, and the more uncharacteristic those few negative ones will seem to readers.Use reviews to your advantage offlineNot only are the number of reviews and the opportunity to engage with reviewers fantastic for your business, but the content of the reviews that you get will be more helpful than information that professional critics provide. People who are paid to write reviews are reviewing you for their readership, not for your benefit, and whether they're packed full of praise or niggling negativity, it can be difficult to find information that you can actually use to improve what you've got to offer. When it comes to online reviews, on the other hand, there are no holds barred, and you have the opportunity to learn exactly where you are getting things right, and where work is needed. Whether they act as the basis for making operational decisions, or creating marketing campaigns that highlight what sets you apart, your reviews can be used online and off to improve your hotel and bring the right kinds of guests to stay.For better or worse, professional critics are part of the past, along with floppy disks and VCRs. Every one of your guests has an opinion to wield and air, and it's a wonderful development that you should embrace! After all, it's not going to be changing any time soon.
GuestRevu 23 November 2017
Enticing guests to stay with you has become one of the biggest obstacles in the hotel industry, since guests now have a range of options available to them - many of which are far more affordable than a traditional hotel. What many guests want from hotels also seems to have changed. While some are still looking for the familiar comfort that hotels provide, others are longing for a local experience. Hotels are uniquely equipped to cater for both.What is an experience exactly?There is often a sense of sameness between hotels. It doesn't matter if you are in Barcelona or Johannesburg, you get to your room, and know what to expect. As GoCanvas explains, "In general, guests know what to expect when they walk into a hotel room. They know there will be someone at reception, a clean bathroom stocked with travel-size toiletries, a neatly made bed, TV, phone, closet with hangers, and maybe a couple of extras -- like a microwave or mini fridge." In short, hotels offer consistency, and it can be reassuring to find that some things never change, no matter where you are on the planet.While providing that sense of comfort works well for business travellers and guests who prefer to explore on their own, many prefer to be taken out of their comfort zone. They want to experience what a city or country is like, rather than simply sticking to the hotel lobby.A great customer experience is taking customer service to the next level, and going out of your way to ensure that your customers have the best possible stay, not only at your hotel, but in your area. Doing this doesn't necessarily mean making drastic changes like upgrading every guest's accommodation or buying iPads for every room. Perhaps the biggest change that your hotel needs is a change of attitude.Engage with guestsThe foundation for a great customer experience is getting to know your guests. This is where AirBnB has an edge, according to Layer.com, and is part of what has made it so popular. "There's great appeal to staying in what feels like a home, feeling connected to the person who owns it," they state. "Perhaps even being treated to insider info about a true local experience so you may have one for yourself." Staying in an AirBnB, a guest has one point of contact, who will often go beyond simply providing a room; offering insight about the area, chatting to their guests and forming a more personal connection. Staying in a hotel usually involves minimal contact with staff, based on the assumption that guests have come to you, not to make friends, but to relax.Relaxation and enjoyment have never been exclusive though, and guests are looking more and more for an interaction that goes beyond a passing smile or a friendly waiter. The number of staff that you have work in your favour here. If your staff are engaging with your guests in the same way that an AirBnB host could, they can help you to understand who your guests are and what they enjoy.Encouraging your staff to read your guests' subtle cues can mean telling the difference between guests who would prefer to be left to themselves, and those who would appreciate advice and input. This can even serve as a motivator for your team, as they will have gone from simply doing their jobs, to being vital to your guests' experiences. Even better, your guests will feel more connected to your hotel, and this connection could see them evolving from a one-time guest to a loyal customer.Personalise their stayEngaging with your guests will often give you a lot of information about them - why they are in the area, what activities they enjoy, what amenities they are taking advantage of, even what their favourite meals or drinks are. This information can be used beyond just getting to know who your guests are. As Entrepreneur explains in their 6 Ways to create a memorable customer experience, and as we mentioned earlier this year, it can help you to personalise their stay with you by anticipating what they might need."Don't we all have a story about the coffee shop waitress who doesn't ever need to be told how we like our iced tea, or the diner where the cook starts to make the same thing you always order the minute he sees you walk in the door..." asks Entrepreneur. "These experiences add value, and they also instill an enormous amount of loyalty."Personalising a guest's experience will make them feel less like just another customer. It can be the difference between a good stay and a great experience. If you know what it is that your guests want from their stay, you will be in a better position to make recommendations for things outside of the hotel that they will enjoy. This kind of advice is always appreciated, and can leave guests feeling like they have a connection to your hotel instead of seeing it as simply a place to sleep.Show your appreciationPersonalising a guest's experience of your hotel doesn't need to end when they leave. As we've pointed out before, it doesn't even have to start when they arrive. Once a guest has booked with you, you already have information about them - how many guests there will be, how old they are, if they are travelling with others, etc. You can use those details to start their experience before they even arrive. Maybe you noticed that they have children. You could send them information about your kiddies entertainment, or family friendly restaurants in town. If it's a couple, romantic restaurants might be more their style.Once your guests have left your hotel, you can take the opportunity to thank them for their stay and offer them a chance to give you feedback. Perhaps they were visiting for a special occasion. An annual email sending them your well wishes will serve as a great reminder of their stay. And, as Routier points out, if they come and stay with you again, you could already have a wealth of knowledge at your fingertips about their preferences to personalise the experience even further."Think about it - each time a customer comes back, they will have an even better, more customized experience," says Routier, "and as they grow in brand loyalty, they will be more likely to continue using the same hotel."Now that you know...Hotels are in a great position: they have the ability to not only provide the comfortable familiarity that they have for years, but they also have the opportunity to engage with guests on a more personal level. All that it takes is a change of attitude and a willingness to go out of your way (and perhaps out of your own comfort zone) to provide customers with more than just a bed, but an experience of your hotel, and your area. Succeeding has the chance to not only motivate staff, but to see your guests forming deeper connections with your hotel, and coming back year after year.
GuestRevu 23 October 2017
Having previously been a partner at Clyde & Co LLP and Locke Lorde LLP, and with a legal career that includes specialisation in data protection, privacy and IT, few are better equipped than Katten Muchin Rosenman UK LLP Partner Alan Meneghetti to offer guidance to hoteliers on how to handle sensitive guest data carefully.We chatted with Alan to get the expert's opinion on how hoteliers can ensure they are treating their guest data with the care it deserves, and in compliance with current and incoming data protection laws.Where did you first begin to work with hotels and the hospitality industry?My first venture into hospitality was working as a room attendant at Sir Rocco Forte's fledgling group's first hotel, the Balmoral Hotel, in Edinburgh. I went on from that to be a trainee hotel manager at the Balmoral and then to work as Restaurant Manager at Sir Rocco's first purpose-built hotel in Cardiff Bay, the St David's Hotel & Spa (which the group has since sold).I knew that I loved the hotel business and spent a long time trying to work out how I could combine it with law, which I had read at both the University of Cape Town and the University of Aberdeen.How do you think hotels will be affected by the new privacy laws coming into effect next year?Hotels, as with most other businesses, will need to ensure that they are up to speed with the requirements of the General Data Protection Regulation (GDPR), which commences across the EU on 25 May 2018, and ensure that their systems and agreements with their contractors are compliant with the requirements detailed in the GDPR (many of which are either new or extensions of the requirements under the existing European legislation).It is also worth remembering that the GDPR does not only apply to hotels operating in the EU, but also to those which offer services to customers in the EU (for example, gift cards, mail order and so on).With the rise of personalisation and hotels asking guests for more data than ever and often on different platforms, do hotels in general put enough emphasis on data security?No, but then I don't think most businesses do! Hotels hold an enormous amount of personal data and, quite often, personal data which is of a sensitive nature (for example, information about guests' medical conditions or meal choices which may indicate a religious preference), not to mention credit card and billing information. As a result of this, the data that hotels hold is particularly valuable and presents a prize target for thieves and fraudsters wishing to exploit vulnerabilities in a hotel's IT network.Hotels need to ensure that they know exactly what data they hold, how long they are holding it for, where they are holding it and what security measures they have in place to safeguard that data (as well as whether that security is currently sufficient - something which requires constant evaluation).Can hotels expect increased pressure to be transparent about how they are protecting guest data?Not necessarily so, in a general sense, although if there is an incident relating to personal data held by or on behalf of a hotel, the hotel must be in a position to respond to that. It is imperative that hoteliers have a plan in place for handling data incidents that is agreed upon and rehearsed in advance. Hoteliers also need to be prepared to explain to an investigating regulatory authority how its systems are set up and why it believes them to be sufficient to protect the data which the hotel holds.What is the first question a hotelier should ask when assessing whether their security measures are good enough?How strong, and where, is the weakest part of my network? This is where the vulnerability lies.Is there a chance that hotel staff could unwittingly be breaching privacy laws or regulations, particularly in smaller hotels?I think that there is every chance that this is the case. For example, does the hotel use a cloud service provider to back up its personal data and, if so, where does that cloud service provider physically store the data? If it is outside the European Economic Area (EEA), is the hotel able to point to a lawful ground (such as guest consent) to permit the export of this personal data outside the EEA?What advice would you give to independent hoteliers to ensure they comply with the new privacy laws?Spend a little bit of time getting to know your obligations under the GDPR and your network infrastructure. You can then work out if you need to update your customer and supplier agreements and your IT network, and create a plan to detail the areas that need addressing in order of priority.What's the best hotel you've ever stayed at?May I have two please? I love the Balmoral in Edinburgh because it is just so beautiful and perfectly decorated and I have watched it evolve since I first went there in 1996. Hadrian's and Number One are also two of my favourite restaurants - amazing food, great service, and both in settings which perfectly complement the food they serve. And then the Imperial in New Delhi, which has the most amazing food and service, and is a haven of calm and tranquillity in the middle of a thriving, bustling and generally very busy city.
GuestRevu 19 September 2017
From his first role on the front lines of guest satisfaction as a room service waiter to management positions at four- and five-star InterContinental and Hilton properties, Arun Kumar's impressive hospitality career has taught him a thing or two about keeping guests satisfied.With around two decades of experience in the hospitality industry, Arun is an indisputable thought leader in his field, and has been recognised on "The Brit List" as one of the UK's Top 25 Most Influential & Inspirational Hoteliers and has earned a place on the Boutique Hotelier Power List for 2017.Arun's impressive credentials attracted the attention of Indian luxury hotel group Lalit Suri, which afforded him the opportunity to oversee the redevelopment of a grade II listed building in London into the group's first European hotel, The Lalit London.We asked Arun to share some of his guest experience wisdom, and tell us how technology will influence the management of luxury hotel guest satisfaction in the future.Where did you begin in the hospitality industry?My foundation for a successful hospitality career started with my first role as room service waiter.What's your role now?I am now General Manager for The Lalit London.What would you say are the cornerstones of a luxury hotel experience today?I would say that humility, trust, a good personal rapport and personalised and professional service are essential for creating an excellent luxury guest experience.You were a key part of launching The Lalit London hotel, was there an initial focus on the guest experience and what would make this up?Everything we do here at The Lalit London revolves around our guests, both internal and external. Right from the construction and design stage of the Lalit London, every aspect of this project was focused towards guest experience.Based on your experience, have guest expectations and demands changed with the rise of mobile technology?I think there has been a huge change, the online world is changing how efficient our clients expect a business to be, and with mobile technology there is now an expectation of 24/7 service. Additionally, the word "fast" in the hotel business has been redefined by social media.Does the feedback you get from guests and your online reviews play a role in how the hotel is managed?Client feedback is vital for any organisation's success; a clear sentimental analysis of guest experiences has always helped us to prioritise operational and service improvements.A lot of hotel general managers talk about the importance of using big data in terms of exceeding guest expectations - what does big data mean to you at this point?Big data is invaluable in helping us to provide an exceptional guest experience. It helps uncover a lot of hidden patterns and opens up new opportunities, helping us to design new services and products to present to our clients. It also plays a key role in better and faster decision-making processes.How do you think guest expectations might evolve over the next 5 years?I believe it is clear that guests will want a more personal, connected and informed experience, and technology will be a major brand differentiator. Areas such as virtual experiences will play a major role. At the Lalit London we have already changed the traditional model of hotel check in with our in-room check in.What's the best hotel you've stayed in and why?The Royal Mansour Marrakech - the architecture of the building, service, food everything is perfect.
GuestRevu 12 September 2017
And chances are you've already interacted with a chatbot. Think about Apple's Siri, Microsoft's Cortana, Google Assistant or Amazon's Alexa - these are all advanced forms of chatbots. Or put simply, computer programs powered by artificial intelligence (AI) that are designed to simulate conversations with human users.What is a chatbot?If you're familiar with instant messaging platforms (like Facebook Messenger, Whatsapp and so on) you'll understand the basics behind a chatbot. A chatbot is essentially the next generation of this instant messaging technology that we use every day. Run using artificial intelligence, a chatbot is basically a computer answering your guests, instead of a person.Talking to a computer may not sound like a very personal experience to offer guests, but with the help of natural language processing, chatbots can expertly mimic a real, human conversation.According to Chatbot Magazine, there are essentially two types of chatbots:A chatbot that functions based on rules:This bot only responds to very specific commands (it's only as smart as it's programmed to be). If you say something it doesn't understand, it will typically reply with an error message.A chatbot that functions using machine learning:This bot has an artificial brain (artificial intelligence) and gets smarter as it learns from the conversations it has with people. You don't have to be extremely specific when you're talking to it, and it understands language, not just commands.How can a chatbot help me delight my guests?So, if we consider that a chatbot is essentially your own messaging app powered by AI, that can plug into larger messaging platforms that you already use - like Facebook Messenger, text messages, etc. - and that no human needs to man it, hotels using chatbots to provide their users or guests with information will help them achieve their goals quicker, making their user experience quick and painless.Having a chatbot means that your guests can get on-demand information in a natural and conversational way, 24/7 and in just one click, and the chances of losing a guest during the booking journey reduce considerably.Large hotel companies like Hyatt and Starwood have recently installed chatbots to act as convenient, helpful customer service channels, while Expedia, Skyscanner and Booking.com have also made use of this technology to assist their clients in different ways.Meet Edward - Edwardian Hotels use a chatbot called Edward to help guests with a variety of things, from online check-in, to letting them know their rooms are ready. In fact, Edward is so good at his job that many guests thought they were dealing with a real person, and praised him with glowing reviews on TripAdvisor."Edward kindly secured me a late check out and was keen to help with anything else I needed," wrote one happy TripAdvisor user. A guest even brought an envelope to down reception with a generous tip!In April 2016, Voyages-sncf.com created a chatbot in Facebook Messenger that interacted with people after they made a booking. The bot handled simple requests, while humans picked up the more complex questions. Thanks to a large tech team, this service has since evolved to allow people to share their train ticket with friends and book together via Messenger.Weighing up chatbotsChatbots are still relevantly new to the hospitality industry, with large hotel brands and OTAs mostly taking advantage of them. For independent hotels and smaller chains, human-maintained instant messaging systems are still providing a good, cost-effective alternative while the tech matures.Below we weigh up some of the pros and cons of implementing your own chatbot system.Pros:Help enhance guest communicationThey are always on, and provide guests with 24/7 smart communicationThey can be multilingual, catering for international guestsBots help move guests along the booking path faster and more efficientlyReduce workload of your staffImproved profiling of guests to help you later in your efforts to boost loyaltyCons:When needed, they can't provide that human touchThe complexities of languageThe best chatbots are expensiveLet's look at these in more detail...Benefits of using a chatbot1) Enhanced guest communicationBecause the messaging system is managed by AI, chatbots are there for guests 24/7. This promptness can help make them feel special and greatly enhances brand loyalty. Additionally, chatbots can be multilingual, helping international guests feel far more at ease when they deal with your hotel in their own language.A chatbot can also help guests check in and out on the fly with their mobile device, and provide a seamless platform to ask questions or raise complaints that can be dealt with quickly by staff.2) Increase booking conversions and reduce abandonmentA chatbot can quickly direct guests down the booking path, and reduces a hotel's dependency on online travel agencies to increase direct, non-commissionable booking revenue. If your bot is always present within popular messaging apps used by millions of people every day, eventually guests will start to use this method as a natural way to book their trips.3) Reduce workload of your staffA chatbot frees up staff from the often time-consuming task of responding to hundreds of guest requests. Now they can focus on enhancing hotel functions that only humans can do. And as mentioned above, hotel staff might not be able to give guests the instant satisfaction that only a ChatBot can.4) Improved profiling of guestsBecause a chatbot interacts with guests at most (if not all) stages of their stay, you're able to gather valuable information which can later be used to automate personalised services for current or future stays. This enhanced personalisation also goes a long way towards building brand loyalty.Read about pre-stay communication techniques that help improve guest experienceConsidering the negatives1) Failing to meet expectations"The expectations of people who use bots are very high," says chief experience officer at travel firm Travelaer Mike Slone. "They think they should operate like something they see in a movie, whereas the reality is that conversational bots are quite immature today."Certain situations require a human touch, and having a bot reply to a stressful request with an automated response will often only make the situation worse.2) The complexities of languageHuman language is incredibly complex. Words have different meanings in different situations and contexts, and getting artificial intelligence to fully understand that can be massively challenging. Guests will have to understand that to get the most of a chatbot, they should use simple, direct requests.Multiple languages can also pose a problem. How do you accurately communicate with guests from countries that speak different languages?3) ChatBots are expensiveIt's estimated that building a chatbot from the ground up can cost anywhere between $30,000 and $150,000. It's a complex task to build a friendly, reliable and helpful bot that won't give you headaches along the way, so be prepared to pay the premium.There are cheaper ways to construct chatbots through pre-built apps, but these are basic shells that will need to be fleshed out further by developers.All things consideredWhile chatbots still have room for improvement (and a few complex hurdles to overcome), it's an exciting new technology that has the power to help you improve customer service, increase revenue and drive bookings.If you have the budget and need to automate the guest interaction process, then a chatbot is definitely something worth considering.
GuestRevu 28 August 2017
Change is a constant reality in the hotel industry - new technologies, online competition and modern guest expectations are just some of the major driving forces, and nearly all aspects of hospitality are affected.Keeping ahead of these changes, as well as new emerging technologies, is a daunting task for anyone. But to ensure that your hotel keeps ahead strategically, a good place to start is taking a critical look at your PMS and making sure that it supports your growth.A good PMS controls and automates a number of processes within a hotel, ideally reducing time-consuming tasks and inefficiencies within your operation.It's not just about capturing bookings or keeping track of finance, but as technology evolves and expands, so does the need for your PMS to play an integral role in guest experience and loyalty management. Ideally, it should form the core of almost all hotel activity.According to the 2016 Smart Decision Guide to Hotel Property Management Systems, the biggest benefits of having the right property management system include:Improved guest satisfaction and quality of the guest experienceStreamlined hotel operations and reduced costsIncreased hotel occupancy, revenue and profitabilityImproved performance reporting and business intelligenceThe considerations of a new PMS might vary depending on the size and needs of different hotels, so we have taken a look at some of the most important questions you should ask during the research and evaluation process, as part of the study mentioned above.1) Does the solution offer flexibility in functionality, including data access and performance reporting?According to 87% of hoteliers interviewed in the study, gaining access to PMS data and business insights is "important" or "very important".A good PMS offers unprecedented visibility that allows you to take full control of your hotel's administration, and will come with a wide array of options when it comes to data report dashboards. Having said that, it's still important to find out what level of custom reporting is available to you before buying.Tip: Confirm that the solution is flexible in terms of keys areas of functionality, including custom report generation.2) How easily and seamlessly does the PMS integrate with third-party technologies and data?With the constant development of new technologies, having a PMS with a growing integration partner list is becoming more important. An integrated partner could be anything from a channel manager to a mobile app or online guest feedback system. Less integration opportunities could mean that you end up with data spread over a number of different applications, or having to settle for apps that don't serve your needs like they should.A great place to start is to make a list of all the third-party providers or applications you work with, or would like to work with, and check how many of them can be integrated with the PMS you are assessing.Tip: Ask about PMS compatibility and interoperability with third-party technologies in place or anticipated.3) How long will it take for problems to be resolved?It's important to have a clear understanding of the PMS platform's customer support process before making a buying decision. It's also important to consider what kind of training is provided to hotel staff who will be using the system for the first time. More than 80% of hoteliers agree that user training is a key success factor in getting the most out of a PMS.Tip: Make sure that problems will get resolved in a timely manner. Some solution providers will go so far as to guarantee response and case resolution times.4) What is the total cost of ownership? Are there "hidden" costs?Thanks to rapid developments in technology, PMS platforms today aren't nearly as expensive as their predecessors.However, whether you choose a cloud-based or traditional computer-based system for your hotel, it's important to find out if you'll be making any surprise payments down the road - some examples include future software updates, technical support, infrastructure or maintenance etc.Tip: Ascertain that all associated installation, licensing, maintenance and ongoing service as well as support fees are included in the pricing.5) What return on investment (ROI) can be expected?How much time your new PMS will save in terms of managing front desk activities, like check-ins and check-outs, consolidating guest accounts, and managing rates and availability across all of your different channels (OTAs, travel agents and so on) is a critical consideration to make.How will the new system improve sales revenue? Will it help you increase bookings thanks to seamless booking engine integration, or allow you to increase your average daily rates using integrated revenue management and forecasting tools? Analyse how the PMS will improve your ROI.Tip: Keep in mind that enhancing the quality of the overall guest experience through the deployment of a next-generation PMS should lead to a greater number of repeat guest stays and a higher volume and intensity of positive brand advocacy. The correlation between favorable guest reviews and positive economic outcomes should factor into the equation.6) What is the PMS solution provider's track record of success?Lastly, it's important to look at the company's track record before making a buying decision. Even if they've been in business for years, check their client base to determine how reliable they are. The last thing you want is to be promised the world, only to be let down by poor service delivery.Tip: Seek information about what, if any, performance issues may arise through conversations with existing clients, preferably ones in the same hotel category.Making the right decision for your hotelThe right PMS can help you streamline your business and save you hours by automating repetitive front-desk tasks, help with bookings, channel management, housekeeping and finances, to name a few.But before you make your final decision, consider:Does the solution offer flexibility in functionality, including data access and performance reporting?How easily and seamlessly does the PMS integrate with third-party technologies and data?How long will it take for problems to be resolved?What is the total cost of ownership? Are there "hidden" costs?What return on investment (ROI) can be expected?What is the PMS solution provider's track record of success?Having a firm grasp of the answers to these questions will place you in a much better purchasing position, and set you on the path towards streamlining every aspect of your hotel's day-to-day operations.
GuestRevu 14 August 2017
With a background in investment banking and a solid portfolio of deals he has helped to facilitate, including the sale of the Danube hotel portfolio (seven intercontinental hotels in Europe) for MSREF to a private investor, the sale of four iconic luxury Concorde Hotels for Starwood Capital to Constellation Hotels and the sale of Hilton International to Hilton Hotels Corp, if there is one thing Nam Quach can spot excellently, it is value - particularly in the hospitality and leisure sector.We decided to find out what attracted this Managing Director of the UK branch of merger and acquisition firm, DC Advisory, to working with hospitality and leisure clients, what he looks at when evaluating businesses in the sector, and what he believes the true value of online reputation is for hospitality and leisure brands.Where did you begin in the hospitality industry?I started my professional career at a Swiss bank called Warburg Dillon Read (now known as UBS) and worked as an analyst in their investment banking division focusing on Leisure & Hospitality. It was a small team and I learnt a great deal from the people there. I enjoyed the sector so much that 17 years on, I am still focused on that industry.What is your position now?I've recently joined DC Advisory as a Managing Director. We're part of Daiwa Securities and we focus on mid-market M&A transactions as well as raising capital for our clients across Europe.What role do sites like TripAdvisor play when you're evaluating a hotel?When we assess potential hotel opportunities for our clients, particularly portfolios, TripAdvisor is a very useful tool in gauging customer feedback. In particular, it allows us to assess quickly on a desktop basis the relative quality of the hotels in question vs. competitors in the area.In some of our presentation materials to investors we would analyse the relative TripAdvisor ratings and highlight some of the feedback that comes up most often. This could be positive, such as great customer service or quality of rooms, or negative, for example the upkeep of the bathrooms. Nothing could replace an onsite inspection of the hotels, but if you had a portfolio of say, 30 hotels to assess quickly, TripAdvisor was a great initial tool to get an overall impression.How does a hotel's online reputation affect its valuation?Managing the online reputation of a hotel is very important. Valuation is made up essentially of two parts; the cash flow of the business, and the multiple that investors are willing to pay for this cash flow stream.Firstly, from a trading perspective, a better online reputation will lead to more visitation and higher spend. This will appeal to repeat customers and attract new ones, and increased cash flow will lead to higher values. Customers today analyse a number of different touch points before making a buying decision, and analysing the online reputation (through sites such as TripAdvisor) is one important component.Secondly, a better reputation online may signal other traits such as a well invested business, and therefore additional upfront investment required to address any shortfalls could be less. This could be in form of physical assets (carpets, the restaurant, etc.) or human capital. A hotel that has a good reputation online could also signal that it is well run from a CRM point of view and that it actively manages customer feedback.Are there specific things that you look at when deciding on a valuation?Every investor will look at valuation differently, and that is what, essentially, creates the market. The most common valuation factors when looking at hotels is a measure of profit and cashflow, say EBITDA (earnings before interest, tax, depreciation and amortisation) or NOI (net operating income) and the yield or multiple which is applied to these earnings. DCF (discounted cash flow analysis) is another way of assessing value by discounting the future earnings stream of a business. Every investor will have a different view on the earnings potential and the future, and will have a different view on risk, and hence value.If a hotel wanted to ready itself for a sale, what are the key things you would advise it to do?The key thing is preparation. These intense processes last a number of months from start to finish. Preparation is not just important from the transactional perspective that I focus on, but is also important for the business itself and the people affected by the sale (be it employees or management). It is often forgotten that hotels are a people business. Not being fully prepared could add delays to the process, or, worse still, give the impression to investors that it is poorly run. Being upfront and efficient with material portrays to investors that management is on top of the details.Making sure that management and employees are continuing to drive the business forward during a sales process is also critical. This can be managed in a number of different ways (confidentiality, incentives, etc.) but the last thing we would want to see is a trading dip as employees are switched off. This will affect valuation.What's the best hotel you've stayed in and why?After 17 years in the industry I've stayed at a number of hotels, but for me the best hotel I have ever stayed in was the Conrad Pezula in South Africa. It was off-season, so very few guests were around. The hotel was beautiful and I had a lovely suite. I remember opening the doors in the evening as the sun was setting and just hearing nature play its song - truly spectacular.
GuestRevu 27 March 2017
GuestRevu 11 July 2016
How much data on your guest satisfaction, staff performance, and online reputation did you collect last quarter? How did you collect it, and where did you collect it from? And, most importantly, what did you do with it?If your answer is a shrug of your shoulders, you're getting left behind. Without solid data, your operational and marketing decisions are likely to be based on hunches and whims - not usually a sound business plan. Luckily, information and communication technology has evolved to the point where we have data collected from thousands, or even millions, of individual actions at our fingertips.TripAdvisor says that it has around 350 million reviews - and it frequently does studies and publishes the results for all to see. In 2012, Google received 1.2 trillion searches, and it uses data from these searches to produce publicly available reports and studies. Your hotel also probably gathers its own unique data from guest satisfaction surveys and your own listings on review sites and online travel agencies (OTAs).What information is available to youBecause big data has become so much easier to access, many business people are tempted to believe that it is a new phenomenon and something to be intimidated by. The truth is that big data has always existed, but it has remained in the hands of the fortunate few who had the resources to collect it. Now all hoteliers have useful big data available to them.The easiest place to find data about your own operations is in direct guest feedback and online reviews. A careful look at your TripAdvisor score and reviews and an analysis of your direct guest feedback can give you insights that can help you greatly with your marketing efforts and guide your operational decisions.The trick is not so much finding the data as figuring out how to use it - how to turn your big data into smart data that will provide you with actionable intelligence that you can use to inform your business decisions.Finding smart data in big dataWhen interpreting your data, the most important thing to remember is to filter. You are probably going to have far too much data to be able to read and interpret all of it thoroughly. Use your big data to discover insights about correlation, and use smart data to help you understand why those correlations exist.Researchers at Cornell University recently did a study on hotel reviews in which they used sophisticated text mining software to glean insights from both big data and individual reviews. Their key findings were very interesting for hoteliers who would like to analyse their own data:Negative experiences are more powerful than positive onesThe Cornell team discovered that negative sentiment tended to have a stronger impact on a guest's overall rating of the hotel than did positive sentiment, leading them to recommend that hoteliers focus on maintaining a generally good experience for customers, rather than one that is outstanding in some ways and falls short of expectations in others. When analysing your data, remember that just because a score is low, it doesn't mean that a guest's entire experience was negative, but rather that there might have been a particularly negative aspect of their experience that overshadowed the good.Different tiers of hotels should focus on different aspects of the guest experienceIn the reviews that the Cornell team analysed, guests at higher tier hotels most often spoke about their experience, and middle and lower tier hotel guests focussed on amenities and location.Happy guests and unhappy guests talk about the same thingsWhile guests at different tiers of hotels generally tend to care about different things, unhappy guests tend to focus on the same things, regardless of the type of hotel. Generally, unhappy guests mention issues of "value" and "transactions", while happy guests focus on things like "experience" and "location".Unhappy guests write moreThe Cornell team also found that long reviews that spoke in-depth about just a few topics almost always accompanied low ratings, while shorter reviews that mentioned many aspects of a person's stay were associated with higher ratings.What does this mean for analysing your own data?It means that not all insights are created equal, and if you want to make your big data smart data, you need to focus on what matters to your hotel.If you have a high tier hotel, for example, reviews rating your location and guest experience highly should be your norm - your big data should reflect high scores in these categories.The individual reviews that praise your location and guest experience will be the ones that will help you to discover what your hotel's most appealing elements are, and what you should be focussing on in your social media posts, on your website and in other marketing material. The reviews that focus on value and transactions are probably the ones to look at if you want to know where your hotel needs to up its game.If you run a hotel catering to those on a tighter budget, be aware that value for money is what matters most to your guests. Your big data should show a high score in this area, and individual reviews that rate your establishment highly in this category will be those that show you what satisfied guests are thinking.All hoteliers should be on the lookout for lengthy reviews. These will probably be the ones that tell you where your hotel has fallen short of guest expectations, and therefore the ones that give you the insights you need to improve your offerings.The key to turning big data into smart data is understanding why your big data reflects the results that it does. Using your knowledge of your business, your clientele and your target market, you can filter and interpret your big data and turn it into smart data. Big data and smart data in the hospitality industry: quotes from industry leaders from Sarah Came