Creating ‘moments of trust’ The key to building successful brand relationships in the Kinship Economy 2 Contents

2 Preface: Richard Solomons

4 Executive Summary

8 Introduction: The imperative of trust

10 SECTION 1: Securing the future in an uncertain world

11 Changing world

11 Changing consumers

12 Changing world of global brands

13 Brands in 3D

14 SECTION 2: The new Kinship Economy

16 SECTION 3: Global, local, personal

17 The benefits of global

18 The benefits of local

19 The benefits of personal

22 SECTION 4: 6 Actions for building trust

23 Securing guests’ trust

23 6 trust-building actions

34 SECTION 5: ‘Moments of trust’

36 Conclusion: Creating kinship through ‘moments of trust’

38 Appendix: Research methodology

1 Preface Richard Solomons

To help us in our purpose of delivering trends that come today and are gone and personalisation means that brands Great Hotels Guest Love today and tomorrow; they are big trends that have need to stay relevant by becoming 3D – tomorrow, IHG looks forward over the next been developing over past decades. What managing their global, local and personal decade to understand how consumer and we are seeing now, however, is their assets simultaneously. marketplace trends are shaping guests’ collision, accelerated by the rapid rise of future expectations of hotel brands. technology-enabled personalisation. This Through the six trust-building actions this collision is shaping the experience our report highlights, we provide a blueprint Last year we published The New Kinship guests want when they travel. for how global brands in the hospitality Economy that evidenced a marketplace industry and beyond can leverage the transition from brand experiences The collision of these macro trends is macro trends of globalisation, localisation to brand relationships. We now put making the world feel more uncertain, and personalisation to create new value in relationships, not properties, at the and this uncertainty is impacting on the the services we deliver. heart of everything our hotel brands relationships with brands that travellers do, necessitating a shift away from are looking for. We have uncovered in our This sets out a vision for the ‘3D brands’ ‘transactions’ to ‘interactions’ with guests research an intersection between the of the future – brands that are global, that build lasting relationships. macro trends of globalisation, localisation local and personal. and personalisation that reduces this To help us – and others – on the journey uncertainty. This intersection is trust. If Richard Solomons to success in the new Kinship Economy, a brand can balance the macro trends by Chief Executive Officer we commissioned research from The being globally coherent, locally relevant InterContinental Futures Company that builds on our work and personally unique, consumers Hotels Group last year to understand what it is that will trust the service experience. And travellers around the world are likely to it is through building this trust that want from their relationships with hotel relationships will be secured over the brands over the coming decade. next decade.

We have found that future success lies in Consumers trust brands with a heritage brands simultaneously managing three and they value the comfort and security macro trends: globalisation, localisation established global brands provide. But and personalisation. These are not the collision of globalisation, localisation

2 3 Executive Summary

Creating ‘moments of trust’ – the key to both global and local. In recent years, and personal through six trust-building building successful brand relationships however, the rapid rise of technology- actions identified through the research. in the Kinship Economy enabled personalisation means that brands must now contend with a third • The research is based on a survey • IHG commissioned research into what dimension – being personal. of circa 7,000 business and leisure travellers are likely to want from their travellers from seven countries (US, relationships with hotel brands over the • Over the next decade, the challenge UK, Germany, Russia, China, Brazil and coming decade. facing global brands across all the UAE), along with qualitative depth consumer-facing industries is how to be interviews with travellers and expert • This report analyses the collision of 3D: globally coherent, locally relevant interviews. three macro trends – globalisation, and personally unique. localisation and personalisation – and The imperative of trust how this is producing an imbalance that • This report examines the benefits is impacting on the way brands have that being global, local and personal • IHG has uncovered an intersection traditionally engaged consumers. each brings to brand relationships. between the macro trends of It sets out a blueprint for brands to globalisation, localisation and • This imbalance poses a challenge transition from a 2D focus on global personalisation that is the key to for brands. Over the past decade, and local to a 3D perspective where building relationships – and this brands have focused on how to be they are simultaneously global, local intersection is trust.

4 • In a world that is becoming increasingly • The benefits of being global: do a better job at being innovative uncertain it is the comfort of trust compared to 66% of all travellers. that travellers are looking for. Trust • Global brands are well placed to will become one of the most valuable deliver consistently outstanding • Being both consistent and innovative currencies a brand can have in the brand experience every time: 71% of can be achieved if both serve the emerging new Kinship Economy. travellers rate global hotel brands promise of global coherence, as IHG Brands that build trust reduce as ‘always consistent’, increasing in demonstrates by its consistent track uncertainty while cementing enduring emerging markets. record of delivering innovation that connections. has been so important in building a • Travellers also expect global hotel coherent brand identity over time. The benefits of being global, local and brands to be the most innovative. personal This is especially true for the younger • The benefits of being local: generation of business travellers • The research highlights the importance – 75% of the Millennial ‘laptop and • Travellers now expect global brands of being global, local and personal to latte’ business travellers (a new to be relevant to their local tastes, the next generation of travellers: the traveller group born after 1982 and customs and cultures. “new global explorers” of travellers characterised by an attitude that from emerging markets and younger their office is wherever they happen • Travellers from emerging markets Millennial travellers. to be) think that global hotel brands hold this view most strongly: 68% of

5 travellers from Brazil, 60% from UAE 3D brands of the future The six trust building actions and 58% from China disagree with the statement “a global brand can never • For 21st Century consumers, the 1. Be consistent be a good fit with local culture”. global and local dimensions of brands • Hotels must provide a more meaningful no longer offer enough on their own. guarantee of consistency that is • For these travellers the more locally Global brands must be personal too, by not standardised hotels, but rather relevant a global brand is, the more adapting products and services that are individualised experiences that are trusted that brand is as a result of different from one person to the next. delivered within a consistent brand seeing their local and regional values Consumers want the reliability, safety, framework of global standards. reflected in the brand. and authority of global brands. They want the reflection of their local and • 45% of Millennial travellers agree that • The benefits of being personal: regional values. And, they want their a hotel with on-site dining options personal uniqueness respected and offering the foods that they would eat at • The rise of personalisation has addressed. home would motivate them to return to increased consumer expectations the hotel, compared to 55% of travellers across all industries. This is • For brands, this means managing the aged over 65. especially true for travellers in promises of being globally coherent, emerging markets. locally relevant and personally unique. 2. Deliver authentic local customisation The way brands can manage these • Global brands need to build trust by • The “new global explorers” (a three promises simultaneously is by customising their global offerings to new traveller group of travellers creating ‘moments of trust’ through reflect local variations that give guests originating from emerging service at every point in the customer reassurance they are experiencing economies) have higher expectations journey. something truly authentic to the locale. for personalisation than travellers The challenge for the hospitality from developed markets: 78% of • This research has identified six trust- industry is that what is considered ‘truly Russian and 64% of Chinese expect building actions for global brands genuine’ varies by generation. a hotel to tailor the experience that leverage the macro trends they have to their personal needs, of globalisation, localisation and • For older travellers, authenticity compared to 43% of US and 42% of personalisation to create ‘moments of is primarily about a demonstrable UK travellers. trust’. connection to local place. 72% of travellers aged over 65 agree that • In emerging markets, one of the a hotel with on-site dining options biggest benefits of personalisation featuring authentic ingredients is that it makes them feel more and specialties from the local area respected by the brand. 62% of would motivate them to return to the Chinese travellers agree that hotel, compared to 57% of Millennial personalisation makes them travellers. feel respected, compared to 39% of travellers from all countries surveyed.

6 • For younger generations of travellers, 5. Personal relevance hotel brands also need to enable • Global brands should build trust by authentic connections between people, offering advice and guidance tailored as well as place. to individual needs and preferences. For the next generation of Millennial 3. Create tailored consumption travellers, this means giving them the • Global brands need to support a guest tools to discover for themselves. experience that reflects their individual preferences. Personal technologies • Armed with information from review mean that it is possible for guests to sites and social networks before they bring more of home with them when even arrive at the destination, Millennial they travel than it was before. This travellers are less motivated than any is creating a new expectation among other generation by hotel staff that travellers: the desire to enjoy the things help them find places off the tourist they love best during their hotel stay. track: 59% of Millennials say this would motivate them to return to a hotel, • This extends to diet - 72% of travellers compared to 70% of ‘mid-lifers’ aged 49 aged over 65 said a hotel that made it to 65. easy to make healthy food and beverage choices would motivate them to return. 6. Use service to surprise and delight • Global brands can build trust by 4. Support technology-enhanced service creating surprise and delight moments • Global brands need to build trust by that make guests feel valued. However, using technology to give guests more hotels must tread carefully as trust can self-reliance, but also ensure that easily be damaged if the hotel gets it guests are supported when something wrong or breaches personal privacy, goes wrong. This means hotel brands and this is true even among the younger must offer service that is enhanced by generation: only 23% of Millennials say technology, not replaced by technology that a hotel that researches their social – even when the service itself is networks and other online information delivered ‘invisibly’ through technology about them to know what they like best rather than staff. would motivate them to return to a hotel. • Millennials are embracing self- service in hotels more than any other generation: 46% of Millennials agree that being able to check in/out using a mobile device would motivate them to return to the hotel, compared to 38% of total travellers of all ages.

7 Introduction The imperative of trust

Recent events are changing our world shreds. From a business perspective, is how to balance the benefits at the making it feel more uncertain today than the collision of three forces of imbalance intersection of global, local and personal it did ten years ago. In an increasingly – globalisation, localisation and to build trusted brand relationships. complex and unpredictable world, people personalisation – can cause chaos if look for touchstones of trust. Without ignored, or success if properly managed. Trust reduces uncertainty while trust, nothing else matters. Trust is cementing an enduring connection. In our not bought - it is built. Trust cannot be Globalisation, localisation and volatile global environment, it is clearly awarded - it has to be earned. personalisation impact business, politics, one of the most valuable currencies a societies, education, institutions and brand can have. People look for brands Yet, we face a storm cloud on the horizon culture. It is already impacting the travel they can trust. that has the potential to tear trust to and hospitality industries. The challenge

8 As first identified in IHG’s 2013 Trends relationship has within it an element of Global brands must find ways of bringing report, The New Kinship Economy, there trust. To create, reinforce, strengthen together their globalised, localised and is an on-going evolution from travel brand relationships we have to create personalised promises to help build experiences to travel relationships. True ‘moments of trust’. trust. relationships are built on a foundation of trust. IHG’s new research suggests that building The research underpinning this report ‘moments of trust’ requires brands to is based on a survey of just under 7,000 This 2014 IHG Trends report examines balance and deliver the benefits of these business and leisure travellers from how brands can balance the three three forces: seven countries (US, UK, Germany, trends of globalisation, localisation and Russia, China, Brazil and the UAE), along personalisation. • Consistently delivering outstanding and with qualitative depth interviews with reliable service every time everywhere travellers and expert interviews. – global coherence

In the new era of the Kinship Economy, • Reflecting local and cultural variations relationships rule. Relationships are in needs and values – local relevance critical components in many industries, especially the hospitality industry. So, • Respecting individual differences the hospitality industry needs to find between people in the delivery of compelling ways for hotel brands to service – personal uniqueness. secure long-lasting relationships with guests. Having an agreed and adhered to global brand framework is essential. Delivering Trust is a relationship criterion more the benefits of these three forces within a than a transaction criterion. Every brand consistent brand framework builds trust.

9 Section 1 Securing the future in an uncertain world

The future is by its nature unknown. But Harnessing the pervasive uncertainty what we are seeing now is that as the caused by the collision of globalisation, world becomes more connected, changes localisation and personalisation will at a global level have the potential to help shape the next decade of global create changes more directly felt at the brand building. Knowing what to do at local and personal level in consumers’ the intersection of the global, local and lives. This means that winning in the personal dynamic will define how brands future will require a new set of rules: need to interact with consumers. brands have the ability to provide assurance and ease anxiety, but only The good news is that the antidote to if managed well. uncertainty is trust.

10 Changing world The world spent much of 2013 holding its breath. The economic global aftershocks following the financial crash of 2008 continue to reverberate, resulting in the IMF cutting its forecast for world economic growth six times in less than two years1. Slowing economies are accompanied by political uncertainty and tension. Increasing concern with natural resources, educational quality, healthcare, climate change and natural disasters all contribute to people’s unease.

These events are not exceptions to the rule: this seems to be the way in which the world works these days. And, as the world becomes increasingly connected they can be fairly certain of over the power shifting to these consumers, they through technology and social networks, coming decade. It is certainly something are becoming increasingly demanding. this uncertainty ripples more quickly and consumers are already adapting to. In China, for example, there has been a touches the lives of more people. steep drop in consumer willingness to buy Changing consumers fakes, from 31% in 2008 to 12% by 20105. This means that everywhere around the Consumers are changing. They are This marks a growing desire for certainty world, from the developed nations that becoming more informed, more sceptical, that the products they buy are genuine. are struggling to the emerging nations more connected, more demanding and that are booming, risk is on the table. more fiscally cautious. Other changes will also impact the lives of consumers in both developed and Yet just as the marketplace learns to The economic downturn six years ago emerging economies. Growing access cope with the risks of today, new risks marked the biggest turning point for to the internet is opening new global will emerge over the next decade. The consumer behaviour in developed audiences and increasing the sharing of possibility of a longer growth slowdown in markets over the last decade. Post- culture across geographical boundaries; emerging economies is one such risk2, as recession consumers are adopting a the fact that a video of a Korean pop is the growing threat of extreme weather more considered approach to their star was viewed over a billion times on events. Experts suggest climate related consumption; for example only 43% of YouTube within six months of its release is disasters could affect 375 million people Americans have no intention of going testament to this6. every year by 2015, up from 263 million in back to pre-recession levels of spending 20103. or behaviour4. The rapid adoption of smartphones has ushered in the biggest marketing For brands and businesses, continued Consumer behaviour in emerging markets revolution since mass marketing on global uncertainty is therefore something is also changing. With the balance of national television. We live in the mobile

11 marketing era, where mobile is not Up until now,the focus has been how a mean that products and services can be just another channel but a huge force global brand could localise its products tailored to an individual, challenging the producing lasting marketing changes. and services. mass marketing characterising so much of the 20th Century. In this connected world, change has the In the food and beverage service industry, potential to spread across geographical major international players with a The desire for personalisation is changing borders more quickly. Change is a presence across many different markets the expectations of consumers. For 21st challenge for brands. How do we keep have long recognised that they need to Century consumers, the global and local brands relevant yet true to their core in make their menus relevant to local tastes, dimensions of brands no longer offer a world that is changing so rapidly? How while maintaining a coherent brand. enough on their own. Global brands must can a brand be globally coherent, locally McDonalds is a well-known example, with be personal too, by adapting products relevant and personally differentiating its paneer salsa wraps and pizza McPuffs and services that are different from one all at the same time? Building trust at all offered in India and the McArabia in person to the next. Consumers want the levels – globally, locally and personally Bahrain, while Subway lets its franchise reliability, safety, and authority of global is the way forward. This will define how owners put forward ideas for local brands. They want the reflection of their brands will win in the next decade of sandwiches, and Starbucks in China has local and regional values. And, they want global marketing. black sesame green tea Frappuccino for their personal uniqueness respected and its Chinese customers. Local relevance is addressed. Changing world of global brands a critical factor in brand building. Now is the time to change our thinking For example in retail, personalisation is and management of global brands. To However, in recent years, the marketplace ‘recreating’ the experience of shopping be successful, brands must balance and has witnessed the steady rise of at the local corner shop, where the provide benefits at the intersection of personalisation. New technologies and shopkeeper knows their customers global, local and personal. access to enormous amounts of data individually and remembers personal

12 preferences. Online shopping lets restaurant when you’re welcomed has dominated the travel and hospitality retailers, such as Amazon, collect rich there, but in our case it will be delivered industry over the past two decades – to data about their customers and feed this by thousands of staff to millions of ‘3D brands’ of the future that are global, data into sophisticated algorithms to customers”7. local and personal. Focusing on just one produce personalised recommendations or two of these dimensions will no longer for product purchases, marketing Personalisation, however, is not replacing be sufficient; the rise of personalisation communications and promotions. the expectation of global coherence and means brands must be 3D. local relevance. All three are necessary For the service industries, personalisation for making products and services more To create the future in an increasingly means that consumers increasingly important to consumers. All three ensure uncertain world, global brands must turn want service that moulds to them, not a that guests receive the consistently high this challenge into an opportunity – and service provider with a mould that stamps quality of service they have come to expect this opportunity is creating relationships out consistent yet indistinguishable from a global brand when they travel. that consumers can rely on through the experiences. Personal uniqueness deployment of the brand’s global, local matters more. Service providers Brands in 3D and personal assets. are beginning to adapt to these new Over the next decade, the challenge expectations. facing global brands across all consumer- Brand relationships built on a foundation facing industries is how to be globally of trust will be achieved through the Last year British Airways launched coherent, locally relevant and personally consistent delivery of global coherence, its ‘Know Me’ customer service unique. local relevance and personal differences. programme giving cabin crew access to passenger data. The airline said that it is This marks a transition from ‘2D brands’ “essentially trying to recreate the feeling focused on managing the two dimensions of recognition you get in a favourite of global and local – the thinking that

13 Section 2 The new Kinship Economy

The challenge of creating touchstones Relationships that people can trust of trust faces global brands across all become more important in creating industries. At IHG, we believe that this the feeling of safety and security. For requires a new way of thinking about brands in a fast-changing world, building how brands connect with consumers. trust is therefore more of an imperative In last year’s report, The New Kinship now than ever before – and trust is the Economy, we outlined the marketplace key to creating deeper, longer lasting transition now underway from thinking relationships with consumers. about products to thinking about people – a transformative change that puts relationships at the heart of everything our brands do.

14 The Kinship Economy The Kinship Economy offers a new direction for brands that goes beyond the brand experience – namely, creating deeper and longer-lasting relationships with consumers.

Kinship represents the strongest ties we can form. What makes these ties so strong is the trust underpinning those relationships. Kinship is not a one-off commitment: lasting relationships require trust to be built, maintained and sustained over time. Kinship knits together a brand and a customer.

Kinship is the consumer trusting a brand to have their best interests at heart. Kinship is nurtured when the brand earns trust. Kinship is renewed at every experienced point of connection. Kinship strengthens when relationship repair is members in July 2013, and extending to what are their needs and what are their needed. As trust grows, so does Kinship. all members during 2014. occasions of use. And, based on this understanding, we focus on what is the This latest IHG research shows that When it comes to the experience of promise that will best satisfy this guest’s superior value is built most meaningfully staying in one our properties, we believe specific needs in a particular situation. for consumers when a brand operates that consistency is not about making at the intersection of global, local and everything the same everywhere. Great For each brand, we have a clearly defined personal to provide a service experience branded-hotel experiences that our brand framework to guide all thought that is consistently good and always guests love depend on bringing together a and action on behalf of our brands. relevant to the occasion at hand. brand’s global, local and personal assets Knowing our guests and our prospective that satisfy our guests’ individual needs in guests helps us design products and Our promise of free internet for members relevant and differentiated ways. services that will satisfy their needs. of our loyalty programme across all Superior understanding of the guest hotels, whether they are staying the Market segmentation provides outstanding competitive night or just coming in for a coffee or To understand who are our guests and advantage. It provides strategic focus an impromptu meeting, is an example their individual needs, at IHG we use the identifying market priorities. And, with of this kind of service experience. IHG deep insight gained through extensive this knowledge and pathway to action, we Rewards Club was the first to announce market segmentation research. The role can design and innovate in relevant and that it is offering free Internet in all its of market segmentation is to understand differentiated personal ways. hotels globally, starting with Elite level who are our guests and customers,

15 Section 3 The benefits of being global, local and personal

In our global research, we explored what versus local brands. What perhaps is travellers saw as the primary benefits most surprising, however, is that when of global hotel brands. We learned it comes to providing personal service, what travellers think global brands do a travellers are unsure whether global or better than local brands. This helps us local brands do a better job at delivering understand how global hotel brands can this. most effectively deploy their global and local assets to deliver brand promises. This is an opportunity for global brands.

We found that there are striking differences when it comes to the benefits travellers expect global brands to deliver

16 The benefits of global Travellers think that global hotel brands Which hotel type does a better job at delivering (% agree) do a better job than local hotel brands on several key dimensions (see figure 1 GLOBAL HOTEL BRANDS below). LOCAL HOTEL BRANDS 71 66 Of the things that global brands are 60 60 perceived to do a better job at, two are 54 particularly striking. 22 The first is that travellers rate global 14 14 12 15 hotel brands as more consistent than local hotel brands. Consistency defines Is always Has the most A sign of I know exactly The property quality. A global brand is perceived to consistent innovative success and what to expect itself is features and accomplishment absolutely safe be a quality brand because it delivers a services coherent experience across geography. Figure 1 – all countries (n=5,954) excluding ‘don’t know’ responses There are differences between countries. For example 80% of Brazilian travellers agree that global hotel brands do a Global hotel brands are well placed continue to be a challenge for brands better job in delivering consistency – the to deliver the promise of consistently serving the new generation of travellers. highest in our survey. The lowest was the delivering an outstanding brand The two can be achieved if they both serve US, where 71% of travellers agreed that experience every time. global coherence, as IHG demonstrates global hotel brands do a better job than by its consistent track record of delivering local hotels – but still the majority. However, travellers also expect global innovation that has been so important in hotel brands to do a better job at offering building a coherent brand identity over the most innovative features and services. time. This is especially true for the younger generation of business travellers – 75% of “ Holiday Inn is global. the Millennial ‘Laptop and Latte’ business “ We are the generation They’re available all over travellers (a new traveller group we with the spirit for progress. the world; you know Holiday identified in last year’s Kinship Economy Innovation is so important report, born after 1982 and characterised Inn will never fail. It’s by an attitude that their office is wherever these days, it’s critical for important that at the global they happen to be) think that global hotel global brands to deliver level you always have the brands do a better job at being innovative, the best quality, but also same level of services, the compared to 66% of all travellers. to inject new fresh blood same pleasurable moments.” into it.” This tells us that for the next decade of global brand building, the paradox of China, female business traveller Russia, female business traveller being both consistent and innovative will

17 The benefits of local Our Hotel Indigo brand integrates the IHG’s History of Innovative In the early days of global brand building, benefits of being global with the local - ‘Firsts’ people thought that being ‘global’ was each Hotel Indigo property reflects the incompatible with being ‘local’. How local culture, history and character of the can a brand be the same and different surrounding area, combining the intimate • In 1965, Holiday Inn was the simultaneously? The world has changed. service associated with a boutique hotel first hotel brand to launch a Travellers expect the benefits of a global with the conveniences and consistencies computerised reservation system, brand and the benefits of local relevance. travellers expect from a global brand. HOLIDEX Our recent research shows that travellers now expect global brands to be relevant In order to deliver the promise of • In 1966 InterContinental Hotels in terms of local tastes, customs and local relevance, global brands will launched the world’s first loyalty cultures. be more effective if they encourage programme, which later became greater creative freedom within the the world’s largest as IHG Rewards Travellers from emerging markets hold global brand framework. ‘Freedom Club this view most strongly: 68% of travellers Within the Framework’ means that it • In 1984 Holiday Inn was the first from Brazil, 60% from UAE and 58% from is the responsibility of the regional and international brand to open in China disagree with the statement “a local teams to ensure that the global China with Holiday Inn Lido Beijing global brand can never be a good fit with brand stays consistent to its core while local culture” (see figure 2 below). For recognising and respecting relevant local • In 2004 IHG introduces the first these travellers the more locally relevant idiosyncrasies. branded boutique hotel, Hotel a global brand is, the more trusted that Indigo brand is likely to be as a result of its This is a principle our Crowne Plaza brand demonstration of respect for their local is using to test a series of new market- • In 2009 IHG launched ‘IHG Green culture. specific services and features in selected Engage’, an online system to help manage energy consumption more effectively

• In 2012 IHG launches EVEN Hotels, “A global brand can never be a good fit with local culture” the first mainstream holistic (% disagree) wellness hotel brand 68 • In 2012 IHG unveils HUALUXE 60 Hotels and Resorts, the first 58 upscale international hotel brand 49 designed with the Chinese traveller 41 in mind 26 29 • In 2013 IHG becomes the first in the industry to commit to free guest internet for all loyalty members Germany UK US Russia China UEA Brazil worldwide Figure 2 – all countries (n=5,954) excludes ‘don’t know’ responses

18 hotels around the world. These features However even though the expectation range from in-room technology that for personalisation is growing, travellers “ Personalisation in other ensures guests are always connected, to are not sure whether global or local industries is increasing breakfast options available in easy ‘grab hotel brands do a better job at providing consumer expectations. and go’ packaging. All aim to empower personalised service. ambitious, career-focussed travellers by The result now, regardless helping them get their work done 24/7 This means that there is an opportunity of your industry, is that with as little friction as possible – but the for global brands to figure out customers don’t understand way they are delivered has been localised. meaningful, creative ways to address the if you can’t personalise. If For example the menu options for the three forces of global, local and personal. you can rearrange and remix new Fast and Fresh concept is different Technology in combination with people in America and Europe, but the core is critical to generating personalisation. your music on iTunes or pick promise of delivering freshly prepared If used with care, technology can create your seat in the middle of the meals within 15 minutes to anywhere in personal bonds that in turn reinforce the night with an airline before the hotel is the same everywhere. Kinship relationship. you print your boarding pass, then why don’t you have The benefits of personal For the majority of travellers, the biggest The rise of personalisation over the last benefit personalisation delivers is these options in hotels?” few years across all industries has been increased comfort during their hotel stay one of the biggest developments in the (59% of travellers say their hotel stay Micah Solomon modern marketplace. It has increased will be significantly more comfortable). Customer service author and speaker consumer expectations everywhere, Travellers told us that this comfort is both especially in the hospitality sector. As physical and emotional – the physical a service business, being personal is a comfort derived from having things just critical element in creating a true Kinship relationship.

Our research shows that this is especially "I expect a hotel to tailor the experiences I have when true for travellers in emerging markets. I stay there to my personal needs" 78 The “new global explorers” (a new (% agree) traveller group identified in last year’s 64 The New Kinship Economy report, of 62 travellers originating from emerging 51 54 economies) have higher expectations 42 43 for personalisation than travellers from developed markets: 78% of Russian and 64% of Chinese expect a hotel to tailor the experience they have to their personal needs, compared to 43% of US and 42% of UK US UAE Germany Brazil China Russia UK travellers (see figure 3 below). Figure 3 – all countries (n=5,954)

19 what consumers expect in China today. “ I don’t like the feeling you HUALUXE Hotels & Resorts was created Summary: The benefits that sometimes get of global based on IHG’s unparalleled insights globalisation, localisation and brands looking down on their into Chinese customers, accumulated personalisation each deliver from three decades of operations in customers. Sometimes it China, and offers guests an appealing feels like you have to fit them experience based on four priorities that Globalisation best delivers because they won’t fit you.” Chinese guests want from an upscale • Consistency and reliability of hotel: Tradition, Rejuvenation, Status experience Recognition and Enabling Spaces. China, male business traveller • Innovation and progress

There are also variations across countries Localisation best delivers in the types of personalisation that the way they like, and the emotional travellers find motivating – as shown • Relevance and respect for local comfort of feeling looked after. in the infographic on the next page. environments Looking across the different types of • Relevance and respect for local Increased comfort is followed by the personalisation that travellers from cultures around the world benefit of feeling more valued by the hotel different countries find motivating, what brand (54% of travellers say they will feel they have in common is the principle of Personalisation best delivers more like a valued guest). In emerging respecting individual differences between • Feeling valued and respected as an markets this takes on a particular twist people in service delivery. individual – personalisation makes them feel more • Welcome and comfortable during respected by the brand. hotel stay

For example, 62% of Chinese travellers agree that personalisation makes them feel respected, compared to 39% of travellers from all countries surveyed.

This is significant as it indicates the cultural importance of personalisation to consumers who want a more equal relationship with global brands.

This principle of respect underpins our HUALUXE Hotels & Resorts brand, which takes the best aspects of renowned Chinese hospitality and applies IHG’s international scale, powerful systems and unparalleled insights into the Chinese market to consistently deliver

20 The types of personalisation that motivates travellers around the world These are not the personalisation items that score the most highly, but the items where there are biggest country differences.

% % 76% 59% Specific All country market average ‘Has local travel guides in your language ready to go if and when you need them.’ 68% 62%

‘Surprises you with a little, personal touch in your room.’

77% 67%

‘Helps you to discover places in the local area that interest 70% 60% you.’

‘Choose your exact check in & 63% 53% check out time.’ 58% 41% ‘Gives you special personalised attention on ‘Offers you an interactive app your arrival.’ for your mobile device that helps you find special things just for you in your local area during your stay.’

57% 55%

‘Enjoy your personal content (e.g. movies, music) using the hotel technology in you room.’

Figure 4 - Country differences in the types of personalisation that motivate travellers

21 Section 4 6 Actions for building trust

It is through solving for the forces of global, local, personal – and then delivering these solutions consistently through human and technological interactions – that we create ‘moments of trust’. Moments of trust are those indelible experiences that build enduring relationships. In order to successfully build trust, global brands must make and deliver promises at the global, local and personal levels simultaneously.

22 Securing guests’ trust There are two macro challenges facing “ Openness and transparency “ I always book my room consumer-facing industries, not just are putting the consumer in directly on the hotel website the hospitality industry, when it comes control. That is terrifying to because I don’t really to building trust. Global brands need to navigate a path through these issues and marketers; because we have trust those middle links. our research has identified some actions spent the last twenty five Sometimes I worry that they that can help. years treating personal data will lose my information.” as a leverage point rather The first challenge is that consumer trust than as a way to enhance China, female business traveller in brands across the board is currently low. The 2013 Edelman Trust Barometer trust. Times have changed. reported a ‘serious crisis of confidence’ Brands must use data to in leaders of both businesses and create trust.” government, with less than one fifth of the general public globally believing that Matthew Bayfield business leaders and government officials Ogilvy will tell the truth when confronted with a difficult issue8. trust more. This uncertainty is greater in of how motivating they are – ranging The second big challenge is growing developed markets. from ideas such as helping guests keep concern over the use and misuse of track of how much impact they have on personal data, coupled with a lack of Given travellers have a high degree of the environment, to enabling guests to understanding about how companies use uncertainty as to whom they can trust, personalise their gym workouts. customer data, breeding a general sense marketers need to address this as a of distrust and suspicion. The hospitality matter of priority. We did not initially expect trust to industry has so far been relatively emerge as the thing travellers want immune to the public scandals that have 6 trust-building actions most. However, when looking across afflicted other industries, and is therefore Using our research, we identified six these experiential ideas that are most in a good position to lead the way in trust-building actions for global brands. motivating to guests, it became apparent rebuilding consumer trust. Each one provides direction for creating that all were linked to a fundamental and developing great branded-hotel human need for trust when travelling. Our research has found that global hotel experiences guests will love. When travelling, so many things can brands have an advantage over local hotel go wrong. Yet, so many things can go brands in being trusted more by travellers These trust-building actions create right. By following these rules, we can to not misuse their personal information: experiences that are important to focus on making things not just right 33% of all travellers surveyed say they travellers. And, these experiences are with our guests and prospective guests, trust global hotel brands more, compared what they reported as most likely to but special, extraordinary and highly to 22% of travellers who say they trust motivate them to return to a hotel. We personalised. local brands. However a higher number asked travellers to score over seventy of travellers (44%) do not know which to different experience ideas on a scale

23 The way hotel brands used to guarantee Standardisation means knowing what 1. Be consistent consistency was through the traditional elements of the brand will be coherent promise of standardisation – that property to property. Mercedes are everything will be the same everywhere. different around the world. But, there are Today, travellers demand more specific some design cues that say “Mercedes.” recognition of their individual needs: No matter where you buy or rent a Mercedes, Stability and constancy are critical factors complete standardisation is not what you will know how to turn on the lights. when it comes to travel. When travelling, they want. there is always a lot to think about. If on Global hotel chains have traditionally vacation, it could be looking after the For guests now, ‘consistency’ means sought to provide safe, familiar children, making sure that everyone the experience of a hotel environment environments for their guests through is having a good time and sorting out that feels familiar to them personally. actions such as providing food that is the itineraries. If on a work trip, it could be This builds trust by minimising the risk same everywhere. However, this kind of worrying about the presentation that of nasty surprises and giving guests a blanket standardisation is less motivating needs to be done tomorrow. comforting ‘cloak’ of familiarity to return for the next generation of travellers. to after a busy day of sightseeing or Just over half (55%) of the travellers we With so much going on in our guests’ working. Consistency is often emotionally surveyed aged over 65 agreed that a hotel lives, we want to make sure that when comforting in new and unfamiliar places. with on-site dining options offering the they stay in our hotels, they know they foods that they would eat at home would are in safe hands. The experience outside This requires the hospitality industry to motivate them to return to the hotel. the hotel may be exciting or thrilling or rethink standardisation as the bedrock However, only 45% of Millennial travellers unusual. But when they return to the for building trust. Having standards aged between 18 and 34 agreed. hotel, they want to know everything is as is not the same as standardisation. they expect. Hotels must have fire safety, life safety, This presents a pressing paradox for the water safety and food safety standards. hospitality industry. On the one hand,

Building ‘moments of trust’: being consistent

Global hotel brands build trust by promising and delivering consistent brand experiences. However, because guests increasingly expect these experiences to meet their individual needs, hotels should deliver consistency not through standardisation, but through local and personal experiences delivered within a framework of a global brand promise, values and standards.

24 global hotels must deliver consistent make the neighbourhood stories come to experiences in order to build trust. On the 2. Deliver life. For example the Hotel Indigo Lijiang other hand, many travellers – especially authentic local Ancient Town hotel is located within an the next generation of Millennial customisation 800 year old UNESCO world heritage site travellers – want differences that are in Yunnan, China. The hotel combines locally and personally relevant. personalised service, traditional Naxi The words ‘customisation’ and ethnic hospitality and the neighbourhood To win in this new world, hotels must ‘personalisation’ are often used and design story resonates around the provide a more meaningful guarantee interchangeably. But they refer to ancient Tea-horse Trail that linked Yunnan of consistency that is not standardised different things. For the hospitality and Tibet. hotels, but rather individualised industry, customisation means the experiences that are delivered within a explicit adaptation of global products The challenge for the hospitality consistent brand framework of global and services to local environments, industry is that what is considered ‘truly standards. Hotel brands must adapt to such as customising menus to include genuine’ varies by generation. For older guests so guests do not feel that they local flavours. Personalisation, on the travellers, authenticity is primarily about have to ‘fit’ the hotel brand, but the other hand, is the human element, a demonstrable connection to local place. hotel brand should fit to them. To this individualisation of the experience for For example, 72% of travellers aged over end, Candlewood Suites extended stay guests, such as personalising the hotel 65 agree that a hotel with on-site dining hotels have ‘Candlewood Cupboards’ that greeting to recognise a loyal guest. options featuring authentic ingredients operate on a trust basis where guests can and specialities from the local area would pick up food, beverages and toiletry items In order to deliver authentic experiences, motivate them to return to the hotel, whenever they want. global hotel brands must customise compared to 57% of Millennial travellers. their global offerings to reflect local and The delivery of this trustworthy service cultural variations. At the same time, also needs to cover what happens when hotels must offer personal experiences. things do not go to plan. Maintaining trust Through customisation, global brands means acting quickly when there is a build trust by guaranteeing that a problem to put this right. traveller is experiencing something truly genuine and relevant to the local “ I like brands that embrace Complaint handling and resolution has environment. global communities. I like always been a key focus for all IHG hotels it because I am a young and around the world. However, it has now Local relevance is woven into the fabric become one of the key target metrics of each of our Hotel Indigo properties dynamic person. I see that that every hotel, across all brands, will through thoughtful, unexpected touches the world is changing and focus on in order to shape their overall that reflect the distinct character of it’s not possible to exist in performance and success. It is not what the neighbourhood and the hotel’s one small space. It’s good we want to happen, but often, a guest with stewardship of the community. Hotel they unite people by social a problem solved leaves happier than a Indigo properties work alongside local guest who had no problem at all. businesses to protect and cultivate the networks.” culture of their neighbourhoods, and team up with local suppliers and artists to Russia, female leisure traveller

25 For Millennials however, authenticity is The second way to create authentic about the connections between people connections is for the hotels of the “ For me local communites online and offline, as well as connections future to become social and business share space together. to place. hubs within their local neighbourhoods If a hotel doesn’t have a – focused on the connections between This shift in focus is not surprising given people. In recognition that a feeling of connection with its local our survey findings that Millennials are connection can be particularly important community, then it becomes more likely than any other generation for guests away from home and family for harder for me to feel part of to feel less connected to a local area. an extended period of time, Staybridge it.” Just under a quarter (24%) of Millennials Suites (IHG’s extended stay brand of agree that they feel more connected to an hotels that offer warm, social and home- US, female leisure traveller online community than they do to people like environments for guests) hosts an in their local area, compared to 9% of evening reception ‘The Social’ three times travellers aged over 65. While the majority a week with complimentary food and of Millennials say they feel connected to drink, fostering a sense of community important and these connections can be their local area, for a significant minority between guests and staff. facilitated through things as diverse as this is not the case. Millennials are food, technology and design. interested in relationships; they just see The physical design of the hotel can them differently. The Kinship Economy also help facilitate connections between means that relationships are critical. But people. In 2013, Holiday Inn launched in today’s world, relationships are grown the test of its ‘open lobby’ concept in differently depending on the person. Europe at Holiday Inn London – Brentford Lock, now also being tested in the US. This points to new ways of creating The Holiday Inn open lobby concept has authentic connections for guests to transformed the traditional hotel lobby experience. format by combining the front desk, lobby, restaurant, bar, lounge area and business The first is to rethink ‘local’ as not just centre into one open, cohesive space. Building ‘moments of trust’: geographical place but also ‘virtual place’. deliver authentic local There is opportunity for the hotels of the The hotel as a hub also means making customisation future to help guests establish authentic the hotel a destination in its own right, connections with online communities. attractive to local residents as well as a Global hotel brands build trust by IHG’s Hotel Indigo family of boutique place where travellers from out of town customising their global offerings hotels recently piloted an Interactive stay. For example, the ‘Theo Randall’ at to reflect local variations that Media Display in its lobbies that let the InterContinental restaurant in Park give guests reassurance they are guests explore each property’s unique Lane, London or NOBU InterContinental experiencing something truly authentic to the locale. For younger Neighbourhood Story around the world, Hong Kong are dining destinations both generations of travellers, hotel access local recommendations and for locals and hotel guests. brands also need to enable authentic offers, and share pictures and comments connections between people, as well with other guests, friends and family on As these examples show, it is the as place. Facebook via the integrated photo-booth. connections between people that are

26 said that being able to access personal 3. Create content – such as movies or music – “ If you have the iPhone, tailored would motivate them to return to a hotel, your phone these days is as consumption compared to 55% of travellers of all ages. personal as it gets. It’s your

Other things are more important to older computer, your photos are in Travelling can cause disruption to the travellers – for example, their diet. 72% of there, it’s your Internet, your routines people have and the way they travellers aged over 65 said a hotel that apps. Apple has ingrained usually live their lives. When at home, made it easy to make healthy food and itself into your everyday life.” people have complete control over what beverage choices would motivate them to they eat, what products they use in the return, compared to 61% of Millennials. US, male business traveller shower, how they exercise, the movies In both cases though the majority say that they watch etc. When staying as a guest healthy food and beverage choices will in a hotel, some of that control is lost. It motivate their hotel brand decisions. is never going to be possible for a hotel to recreate the full experience of being back Despite these differences in what home – and indeed part of the joy of travel different generations want, they share a “ When I travel I love trying is trying something new and different. common idea – and that is making the local hotel property feel more relevant new things when I’m However, personal technologies such as to their particular personal and cultural out during the day. But mobile phones, iPods, e-book readers and preferences. sometimes when I come back tablets mean that it is possible for guests to the hotel, I feel tired and to bring more of home with them when Sharing personal preferences with the just want to come back to they travel than it was before. Now people hotel before arrival helps the hotel create can carry with them their entire music opportunities for tailored consumption. the hotel and relax. It would collection, their photos and all their books This is particularly important to guests make me feel like I’m at when they travel. Home has become who want to stay healthy in mind, body home if they knew what I like much more portable. and spirit when they travel, as well as to eat and offered that when business travellers who either want to they saw I was tired” This is creating a new need among be productive while they are away from travellers: the desire to enjoy the things the office or who want to be shown a high they love best during their hotel stay. This degree of respect. These groups are more China, female leisure traveller is giving rise to a growing expectation that likely to say their stay will be better if the in-hotel consumption (the products and hotel knows their preferences ahead of services that guests ‘consume’ during time. their stay) will be tailored to their cultural and personal preferences. Our EVEN Hotels brand of wellness hotels, due to debut next year, has at its For Millennials, this means being able heart the concept that wellness is not to enjoy their personal content when ‘one size fits all’. Guests will be invited they are in the hotel. 62% of Millennials to let the hotel know their preferences

27 ahead of time to make sure their stay ‘fits’ who understands them and wants to help their personal needs. Diabetic, gluten- 4. Support them. However, for other guests, a real free, dairy-free, vegetarian, low-carb – technology- person is more of a hindrance than help. the hotel will have it covered during their enhanced service stay. Guests who book at EVEN Hotels The paradox facing the hospitality will receive a pre-stay email that links to industry is that while travellers want the the EVEN Hotels’ Preference Centre and When travelling, there is always the risk reassurance of help if something goes asks guests what they hope to accomplish that something goes wrong – you miss wrong, they are becoming more self- during their stay, their workout routines, your flight, the airport loses your luggage, reliant and willing to ‘go it alone’. special diet requirements etc. so that you get lost in an unfamiliar city and your their stay can be tailored to their health mobile phone runs out of battery just as We have found that this is particularly preferences. you try to load a map. true for business travellers who want to be more productive while they travel. Even if a hotel feels like home for a guest, These travellers are more likely to say the reality is that many guests are far they are motivated by being able to book Building ‘moments of trust’: from home when they stay with us. This hotel services from a mobile device, in create tailored consumption means that guests want assurance that their quest to bypass the front desk and support will be on hand if something get to work. Global hotel brands build trust goes wrong on their trip. But how that when they enable guests to enjoy a hotel experience that reflects support is delivered is radically changing Therefore, the hospitality industry needs their individual preferences, from the service industry. Does a person to enable travellers to be self-reliant, personal content to diet. This deliver it or does technology deliver it? but to be on hand when something goes means that hotel brands need to If technology delivers it, what is the new wrong. Two technology trends drive this give guests opportunities to tailor definition of service? self-reliance. First, the growing desire their consumption of hotel goods to stay connected means that travellers and services so that it meets their In situations like these, it is reassuring for expect to be able to access service personal, and cultural, preferences. some guests to be able to talk to someone whenever they need it.

28 The second technology trend driving One solution is a new approach to service self-reliance is the growth of self-service. that brings together technology and 5. Personal Web, kiosk and mobile check-in have been hotel staff – or what Micah Solomon, a relevance the catalysts of a sharp rise in the use of customer service expert interviewed for self-service in the hospitality and travel this research, calls ‘systems and smiles’10. industries. For example, in 2012 over two- This means having the technology thirds (68%) of airline passengers had systems that enable guests to self-serve, When travelling, there are often a used some form of self-service check-in, with a human smile never far away. For bewildering number of options available up from 55% in 20119. some travellers, knowing there is a real to guests for things to do inside and person nearby is a benefit. For others, outside the hotel. In this age where online Different people have different there is no need to interact with a human review sites like TripAdvisor, DaoDao views when it comes to self-service. being. and Qype are replacing traditional travel Demographics matter. Our research has guides, deciding what to do, see or eat found that Millennials are embracing IHG’s new Anywhere Check In solution is requires a lot of time and effort sifting self-service in hotels more than any other currently being piloted by select Crowne through the options. Even then there is generation: 46% of Millennials agree that Plaza hotels in the US, before being no guarantee that the restaurant with the being able to check in/out using a mobile introduced elsewhere. The IHG ‘Anywhere most positive reviews is the place that the device would motivate them to return Check In’ is a cutting-edge mobile guest will enjoy the most. to the hotel, compared to 38% of total check-in solution that can help make travellers of all ages. travel experiences seamless and stress Travel is therefore fraught with the free, combining the latest in hospitality possibility of making the wrong decision. Attitudes towards technology also matter, technology with our commitment to One way personalisation works is to and segmentation plays a role here in serving our guests to create an easier, offer a way to help guests make better helping understand how best to deliver more simplified online check in experience. decisions on how to spend their precious technologically enhanced service for time and money on activities they are different types of guest. We are observing guaranteed to enjoy. a new traveller tribe we call the ‘invisible Building ‘moments of trust’: traveller’ – travellers who want to support technology enhanced At InterContinental Hotels & Resorts, we seamlessly pass through hotels with service help our guests discover the local area minimal interaction with staff. For these through our ‘In The Know Experiences’ travellers, good service is often invisible Global hotel brands build trust by initiative. We were the first big brand to service. using technology to give guests more introduce iPad apps offering Concierge self-reliance, but also ensuring Insider Guides – short videos of This begs the question of how the that guests are supported when concierges discussing what locals like to something goes wrong while away hospitality industry can strike the right see and do in the destination. from home. This means hotel brands balance between providing service must offer service that is enhanced through hotel staff for the travellers by technology, not replaced by Building on the success of these wanting to speak with ‘real people’, and technology – even when the service initiatives, we are now anticipating a delivering service to those who would itself is delivered ‘invisibly’ through new generation of concierge service rather pass through ‘invisibly’. technology rather than staff. that uses data about guests’ interests and preferences to provide them with

29 a more personalised service. This member’s home. The member is now is concierge service that combines planning to redeem for the Big Green Egg, “ It used to be that I would local recommendations with personal the grilling table and accessories totalling speak to the concierge to find preferences. around $2,000. out what to do. But now I can

Hotel brands need to become better at Another member had over 2.2 million find out about everything ‘remembering’ guest preferences, and points. His dream was to have a before I arrive. It would be sharing this information across other woodworking shop. With the use of his more useful if you could show brand properties. In order for this type of points, he acquired over $3,500 worth of the concierge what you want service to be scaled up, global resources woodworking tools including a table saw, to do and he gave you advice of databases and infrastructures are planer, jointer, shaper and a lathe. required so that hotel staff can access on the safest route there.” the information about guests’ personal However, the paradox facing the preferences. This is the global helping the hospitality industry is that personalisation Russia, female leisure traveller local to be personal. based on stored guest data risks ‘closing down’ the discovery of new things, We are making the IHG Rewards Club, because it recommends to people things the largest hotel loyalty programme that they already know they like. This is with more than 76 million members, often referred to as the personalisation more personalised by giving members a ‘filter bubble’11. hand helping find the things they want to redeem their points for. For example, one member wanted a Big Green Egg Grill and table. This item is only available at select retailer locations. The IHG Rewards Club Concierge found a retailer near the

Top 5 most expensive items redeemed with IHG Rewards Club points in 2013

ITEM POINT VALUE

Sharp 70” Quattron™ LED Smart 3D TV 1,254,000 Canon EF 300mm Telephoto Lens 613,000 $1000 Regal Entertainment Group Icon Gift Card 465,000 Sony Alpha Digital Camera with 18-135mm Lens 464,000 Jet 6-in Long Bed Jointer workbench 428,000

30 Therefore, when designing the next generation of concierge services, hotel 6. Use service “ I was so surprised when brands will need to not only build in to surprise the hotel front desk greeted personalisation but also serendipity – the and delight me by name. It made me “pleasant surprises” that enable new discoveries. think, wow this hotel has In the hospitality industry, there is millions of guests every Giving guests the tools to discover for growing focus on using guests’ personal year and yet they’ve still themselves can help do this. Our research data to create ‘surprise and delight’ remembered findings show that Millennial travellers moments. Much of this is an extension who I am.” want to be given the tools to discover of what hotels have been doing for many local areas for themselves. They want years to provide special experiences for more than recommendations, as they their guests, such as rose petals on the UK, female leisure traveller are already armed with information from beds of honeymooning travellers. review sites and social networks before they even arrive at the destination. We However, in recent years, some hotels see this shift in Millennials being less have started mining guests’ personal motivated than any other generation by data on social networking sites to provide hotel staff that help them find places off surprise and delight moments. These are the tourist track: 59% of Millennials say new sources of personal data available this would motivate them to return to a to hotels, and it is therefore unsurprising A surprise and delight hotel, compared to 70% of ‘mid-lifers’ that hotels are experimenting with how to moment at one of our hotels: aged 49 to 65. use this data in their service delivery. Staybridge Suites

The risk, however, is that in using Extended stay travelers are away personal data mined from the internet, from their home for weeks or months hotels get it wrong – and create the wrong at a time for a variety of reasons – from work to relocation to medical kind of surprise. treatment. The Staybridge Suites Oklahoma City Quail Springs hotel is Building ‘moments of trust’: Service is therefore crucial in making near a cancer treatment facility. The personal relevance sure hotels get it right: when a hotel gets Director of Sales, David, overheard personalisation right in its service, even one of his guests mention that his Global hotel brands build trust the smallest things, like remembering a daughter had not ridden a bicycle when they help guests make better guest’s name, can be a moment of delight since she was diagnosed with cancer. decisions by offering advice and in itself. In an effort to lift her spirits, he guidance that is tailored to their brought his own daughter’s bike for individual needs and preferences. For her to ride. The girl loved the bike It is critical that hotels tread carefully concierge services, this means giving and it made her feel like she was at when delivering the surprise and delight personalised recommendations and home. Since that guest stay, David supporting guests by giving them the moments that make guests love a hotel, has shared his family’s bicycles with tools to make their own discoveries. and never overstep the line of becoming many other children. too personal and ‘creepy’. This however

31 would motivate them to return to a “ I want to know what hotel. This declines as guests get older information they hold – dropping to 11% among the generation about me. I don’t want them of ‘mid-lifers’ aged 49 to 65. Guests like it when hotels will deliver surprise and thinking they know me and delight moments as this makes them feel then giving me avocado noticed and valued by the hotel. because they think that’s what I like but actually Our Hotel Indigo brand is making surprise they’ve got me mixed up with and delight moments part of the everyday service experience through its principle my wife. I hate avocado.” of ‘Inspired Service’, where staff engage with guests in an authentic and intimate US, male leisure traveller way that is personalised to each guest. Before guests arrive at the hotel, Hotel Indigo staff are encouraged to use what creates an opportunity for brands to build information a guest has previously trust by linking ‘surprise and delight’ shared with the hotel in order to make a moments to the promise of global personal, unexpected action or gesture coherence – that a hotel brand will be for when a guest arrives, such as a consistent and transparent in the way it serving a local drink or refreshment. uses guests’ personal data. There is a fine line between privacy and peeping. Building ‘moments of trust’: For example, we have found in our use service to surprise and research that the best way to deliver delight surprise and delight moments is to ‘learn’ Global hotel brands build trust when what guests like during their stays in our they create surprise and delight properties. Guests say they find it more moments. These moments make motivating if a hotel collects information guests feel valued by the hotel brand. about their preferences, noticing and However, hotels must tread carefully recording what they like to eat, drink, buy as trust can easily be damaged if etc. at the hotel, than when a hotel tries the hotel gets it wrong or breaches to personalise the experience by looking personal privacy. Our research at their social networking profiles. shows that the best way to deliver surprise and delight moments is to ‘learn’ what guests like during their This is true even among the Millennial stay based on collecting information generation. Only 23% of Millennials say about their preferences, noticing and that a hotel that researches their social recording what they like to eat, drink, networks and other online information buy etc. at the hotel. about them to know what they like best

32 33 Section 5 ‘Moments of trust’

Every time the three forces of global, local The future imperative for the hospitality and personal are bought together through industry is to create ‘moments of trust’ combined use of the trust-building throughout the customer journey, and actions, we create a Moment of Trust to keep on repeating them every time between the hotel brand and the guest. a guest stays at any one of the brand’s These ‘moments of trust’ are the indelible properties. experiences when the guest sees and feels that a hotel brand understands and cares about their needs and desires.

34 Trust at a global, local and personal level The promise of local relevance Moments of trust The diagram below shows the three Creating tailored consumption and It is creating ‘moments of trust’ like these fundamental promises we believe a global supporting technology-enhanced service that build lasting relationships in the brand should make to consumers. enable global brands to deliver the Kinship Economy. promise of local relevance by using hotel The promise of global coherence properties as a hub for interaction – the In the Kinship Economy, ‘moments of Being consistent and delivering authentic interaction of the hotel brand with the trust’ represent the proof that guests are local customisation enable global brands locality surrounding the hotel and the valued and respected by the hotel service to deliver global coherence by using the local culture. experiences they encounter during their over-arching brand promise, values and travels. standards as a framework within which The promise of personal differences customisation can take place. Staying relevant to guests’ personal As the breadth of travel experiences needs to surprise and delight to make increases, it deepens through the guests feel more valued by the brand as it relationships we build with guests ‘remembers’ and proactively acts on their along the way. To have these deeper personal needs and preferences. connections between people, trust must be established.

“ If a hotel brand feels personal, I will feel like ‘that’s my hotel’. I will feel Global I belong to this hotel and in Coherence some cases I wouldn’t even compare the prices, I would go to the website and book a room.”

Russia, female leisure traveller

Local Personal Relevance Differences

35 Conclusion Creating kinship through ‘moments of trust’

In the emerging Kinship Economy, the intersection of the global, local and travellers require. Global best delivers relationships come first. Commerce personal when building relationships. consistency and innovation. Local best follows people not products. Trust is the delivers respect for local cultures and linchpin of relationships, so that is what We are committed to creating Kinship environments. Personal best delivers travellers are demanding of brands. through ‘moments of trust’. We recognise individual respect, welcome and comfort. that guests, whatever their reasons for All three must come together if Kinship is But trust is harder than ever. Uncertainty traveling, want relationships as well to be secured. and change have raised the stakes while as experiences, and that trust is the eroding the presumption brands used cornerstone of relationships. Brands The crucial building blocks of trust are to enjoy that trust is the rule not the succeed in the Kinship Economy through six-fold: Consistency. Authentic local exception. In the new Kinship Economy, engagement that feels more like kinship customisation. Tailored consumption. trust must be re-won on every level: and less like business as usual. Kinship Technology-enhanced service. Personal global, local and personal. adds a deepening of relationships to high relevance. Surprise and delight. These quality experiences. six imperatives can only be delivered The collision of the macro trends by the confluence of global, local and of globalisation, localisation and What seals a relationship is a vow, or personal assets. ‘Moments of trust’ are personalisation means that brands in the a promise. Trust is the assurance that found in this intersection of assets and future will need to become 3D in order to a promise will be kept. We offer the imperatives. This intersection is where satisfy guests. But in order to transition certainty that our global and local assets IHG is found as well. from a 2D focus of ‘global and local’ to will be used to look after guests in a a 3D perspective of ‘global, local and personal way that puts their interests Looking forward, we will lead the way in personal’, brands must re-win trust on first. Through these ‘moments of trust’, the Kinship Economy with an unswerving every level. we will continue to earn the respect and commitment to ‘moments of trust’. loyalty of travellers. In the evolution from experiences to The central imperative for the future relationships, guests at every IHG hotel of brands is ensuring ‘moments of No one asset is sufficient anymore to will see the promise of ‘moments of trust’ trust’, as this is how brands can act at completely guarantee the trust that fulfilled.

36 37 Appendix Research methodology

This report is based on proprietary research conducted by The Futures Company for InterContinental Hotels Group between July and December 2013.

The first phase was twenty four qualitative interviews with business and leisure travellers in four countries: US, UK, Russia and China,

The second phase was a quantitative survey of just under 7,000 business and leisure travellers from seven countries: US, UK, Germany, Russia, Brazil and the UAE, with a sample of approximately 1,000 travellers in each country. In total, 6,931 online interviews were completed with a representative sample of travellers who have stayed 1 or more nights in paid accommodation over the past year.

38 39 Endnotes

1 Yukananov, A. (2013), ‘IMF say global economy healthier, but still weak’, Reuters 8 October 2013 http://www.reuters.com/article/2013/10/08/us-imf-economy-idUSBRE9970FT20131008 2 IMF (2013), ‘World Economic Outlook Update ‘, 9 July 2013 http://www.imf.org/external/pubs/ft/weo/2013/update/02/ 3 Oxfam (2009), ‘Forecasting the numbers of people affected annually by natural disasters up to 2015’, https://www.gov.uk/government/policies/helping-developing-countries-deal-with-humanitarian-emergencies 4 Martinez, A. (2013), ‘One step back: The 2013 US Consumer Sentiment Survey’, McKinsey&Company http://csi.mckinsey.com/Home/Knowledge_by_region/Americas/Consumer_economic_sentiment_2013.aspx 5 Waldmeir, P. (2012), ‘Savvy Chinese consumer comes of age’ Financial Times 7 February 2013 http://www.ft.com/cms/s/0/acb87e50-4e72-11e1-8670-00144feabdc0.html#axzz2miVLsLFM 6 http://www.youtube.com/watch?v=9bZkp7q19f0 7 Business Traveller (2012), ‘BA to roll out ‘Know Me’ initiative’, 2 July 2012 http://www.businesstraveller.com/news/ba-to-roll-out-a-know-mea-initiative 8 Edelman Insights (2013), ‘Edelman Trust Barometer 2013: Executive Summary’ http://www.scribd.com/doc/121501475/Executive-Summary-2013-Edelman-Trust-Barometer 9 SITA (2012), ‘Passenger Self-Service Survey 2012’ http://www.sita.aero/surveys-reports/industry-surveys-reports/passenger-self-service-survey-2012 10 Solomon, M. (2013), ‘The most powerful customer service formula is just three words long’, Forbes 18 November 2013 http://www.forbes.com/sites/micahsolomon/2013/11/18/the-essential-customer-service-improvement-formula-systems-and-smiles/

11 A phrase first used by Eli Pariser (2011) in The Filter Bubble: What the internet is hiding from you, New York: Penguin Press

40 Global Coherence

Local Personal Relevance Differences

41 42