HOW HOTELS & RESORTS CAN BEAT THE ONLINE RETAIL GIANTS AT E-COMMERCE
DAN BRAZIER HOW HOTELS & RESORTS CAN BEAT THE ONLINE RETAIL GIANTS AT E-COMMERCE
HOTELS & E-COMMERCE
The impact of online and mobile technologies
Whilst the online revolution has given with one hand, it has taken with another when it comes to the hotel industry. Online bookings have soared and hotels no longer rely on travel agents or expensive printed marketing. On the opposite side of the fence, the boom in personal Internet devices such as smart phones, tablets and laptops, has had an adverse effect on revenue as hotels now lose out on the extra up sell services they used to earn from such as movies, in-room telephone and chargeable WiFi.
The answer is however staring the industry in the face.
Whilst the rest of the ecommerce world is fighting to achieve 2-3% sales conversion rates from their web stores, hotels can achieve up to 15%. With a success rate like that, the hospitality industry has an enormous opportunity to capitalize on the traffic and trust generated on their websites and other digital channels.
This e-book examines just how unique and well- placed the hotel environment is for online retail and e-commerce, and why hotels must now step forward and offer guests the online experience they expect in today’s connected world.
“Hotels are perfectly placed to reap the
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Today’s Hotel Guest
Whilst it wasn’t too long ago that a phone call to the 9am - 5pm hotel reservation desk was the only means of researching and booking a room, the frequency of online communications is starting to change how customers interact with hotels before, during and after their stay, 24 hours a day.
Online reservations have now become the norm throughout the travel industry, and online researching has also shaken the hotel industry, in good ways and bad, with the arrival of review sites and mobile apps such as Tripadvisor, Expedia and Hoteltonight.
Internet use is no longer reserved for bookings either. Hotels report that as many as six devices per room can be connected to a hotel WiFi, compared to perhaps just one per family or business guest just a few years ago. Not only do guests want more of a hotel’s bandwidth; they now expect it for free too.
Dave Garrison, CEO of iBahn, one of the world’s top hotel Internet providers, has observed major change and growth in the use of iPads and mobile devices for applications such as YouTube, Netflix and social media. This has resulted in an increase in hotel broadband use and a decrease in guests ordering movie rental through their in-room television; a double hitter on the bottom- line hotel profits. This explosion in hotel guest WiFi demand is a clear sign that something dramatic has changed. Today it is hard to deny that most hotel guests around the world are connected and smart hotels must now recognize that, to offer good customer service, they must move with the Kevin Chin, Frequent Traveller. times and embrace the online world.
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Travellers like to shop. Just look at the airports.
According to airportwatch.org.uk, Heathrow airport generated 21.3% of its income from retail in 2011. On average, passengers spend about £5.70 at the airport. From last-minute souvenirs, gifts for loved ones or clients, to impulse purchases, tax free offers and special airport deals, retail spending makes up a large part of an airport’s profits.
In the year 2010/2011, Heathrow airport made £380 million on retail alone demonstrating just how profitable shopping from tourists and business travellers is.
What percentage of guests who check-out of hotels head straight to the airport to shop?
Interviews with hotel door staff suggest that at least 50% of the taxicabs called on behalf of guests go directly to the airport. How many of those guests are going to the airport early to shop for gifts or spend their currency?
Rather than sending guests away to spend their money elsewhere, hotels should be looking for ways to encourage their guests to shop on site.
Hotels have the perfect opportunity to offer a unique service to their guests and set themselves apart from their competitors, whilst increasing their revenue potential. Guests want convenience and so being able to purchase the items they want at the hotel, before they pack and leave, is the ideal solution.