Arthur Esch, futurologist
To understand how the online buyer fits into the hospitality industry, you need to understand the following elements: connectivity, e-marketing, building lifetime clients and how we use e-commerce.
Technology Projections
w In a couple of years, guests will have moved to cell and
wireless phones. Costs are falling rapidly of voice and data transmissions. This will
propel even greater Internet growth.
w A million new websites have been created since December
1999. Today, a total of 7 million sites exist.
w In 1999, there were 200 million users globally and there
will be 500 million in 2002, representing $3,000 billion in e-commerce in 2002.
w 70% of e-commerce is B2B and 30% is business to consumer.
The internet is in its infancy, it will be totally different in 2 years because of changes
in speed, much more like TV.
w Today 99% of all connections to the Internet are though
PCs. In 5 years they will account for only 50% while the other 50% will be via appliances
such as cell phones, telephone consoles, pocket mail systems.
w There will be new form of display screen (for TV and
internet) digital displays, split and multi-purpose screens.
w The year 2001 will be heralded as the Digital TV era, when
internet will have been fully integrated.
w By 2002 hotels will move to interactive TV as a source of
all types of information.
w From 2003 wireless high speed functionality in meeting
spaces will be the norm.
w In 2004, high definition displays, in-house networks and
wireless phones will be everywhere
Impact on E marketing
While today's websites are still hard do find and navigate, in the future we won't get the
customer to come to us, we will reach out to them. The idea of 'audience management'
systems will be key to this form of online communication. It starts with data mining, to
discover what audience needs are, so we can use it to send a personal message (either
text, audio or e-mail dialogue function) that the individual is interested in, and in an
entertaining and engaging way. It will be in summarised form and the reader will be able
to access multiple levels of detail as required. Then we use feedback to get more
targeted. But beware, privacy will be the hottest issue of 2001 (do not 'spam' people with
your hotel newspapers.)
The lifetime client relationship
This process is expensive and difficult, but we can use the audience management system
concept to get customers to give their preferences. Then we match the profile to the
category of user. Our newspaper transaction sidebar will allow them to make reservations
so they feel like 'members' of the hotel to whom we provide personalised services. The
next step will be going beyond cell phone reservation capacity, to the stage where the
system is able to intuitively book the traveller on the next flight when a connecting
plane is going to be late. This will elevate the level of service. Disney has made a
science of the premise of lifetime relationships. What's important is to be in the game,
not sitting on the sidelines.
E-Commerce
There has been a 65% increase in e-commerce from 3 years ago. It has happened because we
have empowered the buyer. Although this is happening in the automobile industry, it has
not yet started in the hospitality industry. It will happen soon and you need to be ready.
It requires understanding how to build community, then the ability to deliver a value
product, give customers knowledge that they don't get elsewhere so that they will trust
you to match their needs.
In the e-commerce world, hotels will have 'stores', where they market their own products,
as well as their travel partners' (airlines, wholesalers, affinity groups). They will use
auction models more. Meeting planners will seek tenders (see pcma.org) and fulfil a
brokerage role (see officialtravelinfo.com) for meeting planner initiatives.
How to get there
If you want to keep up with the pace of change, you need to attend Eurhotec but also
send your managers to 'executive boot camps'. Give them the opportunity to learn about
this technology, because it's the fastest, most powerful and least expensive way to do
business. As yet, your companies are not structured for e-commerce you need chief
knowledge officers, people who can manage content/relationships & alliance
opportunities. If you embrace these systems you will see significant productivity gains.
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L'HÔTELLERIE Eurhotec Special Issue 8 February 2001