More and more services are moving to an on demand model.
What is on demand?
It means if you need anything, you just order it through an app, and the transaction is completed.
You need a car. One tap and it will be there. Need to book a hotel room a couple of taps and done.
It is about instant gratification. The consumer says I want it now and the service is delivered. When this happens a user is delighted. As it is still early it is a delight to get something done immediately. Soon, very soon, it will be expected. The ones who can deliver, win. They win big time. Those who don’t they have a problem. Whether they realize it or not. As the guest loyalty is moving to hotels who can deliver to their expectations. Immediately.
As the consumer behaviour changes hotels have to be aware of how it impacts them. What are some of those future services that you think will be impacted?
- If you find the hotel restaurant expensive then you can order food through an app and it will be delivered to you. The great restaurant you have may remain undiscovered.
- You need dry cleaning done. Tap, tap and done. Someone will come pick it up and get it done.
- Rooms rented by the hour. We used to sell them directly as Day Use rooms now there are sites dedicated to it. Dayuse and ByHours are just two of the services focused on this.
- Travel Concierge: Pana & Aces is looking to address the concierge aspect of travel services. Facebook is also working on a personal concierge service through M for Messenger. It is still early and not open to everyone but the potential can be seen.
On demand doesn’t mean hotels stand to loose.On demand just means that the consumer expectation is changing and we need to adapt. The ability to deliver on demand is now seen as great customer service.
There is a generational shift in how communication is happening. Texting or sending a message through an app is just normal. Getting a quick response via these means is also seen as high customer service.
This gives an opportunity to generate ancillary revenue while delivering better service. It is not limited to just selling room upgrades it can also be used to delivering experiences from your partners. Example, if someone is interested in an adventure tour give them a chance to book an activity.
In destination recommendations by your concierge is an extension of your service. It is just delivered electronically rather than face to face. However as digital experiences improve customer service the lack of face to face interaction is not seen as a limitation.
As hoteliers we are focused on delivering a great stay experience but we have to think about the entire guest life cycle. Integration with other services creates an eco system which allows you to deliver a complete experience.
CB Insights published an infographic that mentions 52 companies focused on unbundling hotel services.
OTA’s are not behind on this trend. Hotel Tonight the creator of last minute booking via apps launched its new concierge service, Aces.
It is focused on providing recommendations to travellers. In destination tips, recommendations, hotel services arrangements and more.
There is a clear trend here which a hotel should jump on. Utilize the most personal technology, smartphones, to deliver in context offers, recommendations and more. The guests want it, the hotels can generate more revenue doing this & it improves communication with guests. This trend sits at the intersection of operations, marketing, revenue & customer service.
Have you already implemented any of these technologies in your hotel?