CRM in Hospitality

CRM
The Fundamentals of
Customer Relationship
Management in a
Hospitality Setting
Part 4:
Technology in Hospitality
RECAP: CRM
• CRM is all about using gathered information
to improve customer relationships
• It is underpinned by technology
• Technology is constantly evolving – we need
to be aware
TIMELINE
• Those wanting to travel, bookings via:
• Direct bookings (telephone)
• Travel agent
1996
• Travel agencies often offered complete
package (hotel stay, flights, etc.) – but
Internet there was little/no transparency is
pricing information
• Hotels → wholesaler → Operators →

Travel agencies
• Hotels were also in the dark

TIMELINE
• Guests who wanted recommendations
and reviews had to rely on what was
“officially” provided, on bulletin boards
1996 or travel forums
• No space for them to publicly voice their

Internet complaints, concerns or praise
• Customer relations with hotels

happened solely at the points of direct
interaction
TIMELINE
• People did not trust the internet right
away
1996 • 1996: (Microsoft) Expedia launches

website for hotels, airline, and car
rental bookings
Internet
• Later in 1996: (Sabre) Travelocity
• Then, Priceline with “Name your own

price” opaque pricing model launched
TIMELINE
• Currently 4 main OTA’s: Expedia,
Priceline, Orbitz, and Travelocity
1996
• Throughout the course of this evolution,

Internet
there has been pull-back in transparency
by certain groups: 2010, AMR Corp
listings disappeared from Expedia.com –
dispute regarding customers’ degree of
access to info – decision reversed in 2011.
TIMELINE
• Expedia Group: Expedia.com,
Travelocity, Hotels.com, TripAdvisor
1996
• 1999: OpenTravel – to improve
experience of traveling by connecting e-
Internet purchases to on-the-ground systems
• OpenTravel 2.0 aims to link ALL
systems, including hotels, with airlines,
etc.
• → Seamless travel
TIMELINE
• 2002: Hospitality Technology
Next Generation (trade
association) for inter-operability
1996 2005 of all systems
• 2004: meta-searches for rates

Internet Social Media
• Prior to 2005/2006, inter-
personal relationships between
customers and businesses not
commonplace
• THEN: Social media explosion

SOCIAL MEDIA
• Created a new, direct line of communication between end-users and

suppliers (guest-to-hotel)
• New way of talking
• New way of advertising
• New way of reviewing
• New way of THINKING and OPERATING
• Never before seen level of TRANSPARENCY

Is this GOOD OR BAD for the hospitality industry??
For instance: online bookers now tend to show higher levels of trust in
reviews, rather than marketing. Bad reviews have a larger knock-on effect
than good. So what do we do?
• Depends on the business itself, and the mindset

• For those willing to adapt and evolve → GOOD
• Therefore, must always be AWARE of latest available
technologies
TIMELINE
1996 2005 Up to 2020

?
Latest Hospitality Industry Trends
• Standard Technologies
• Website – optimised for UX and mobile use
• Owned app
• 3rd party apps
• Wifi
• Standard Technologies
• Social media: Facebook, Instagram, Twitter
• Streaming capabilities (81%)
-----
• Competition – AirBnb – pushes hotels to remain innovative

• The “Internet of Things” (IoT)
• Refers to inclusion of internet connectivity within everyday devices and

appliances that have not typically had such capabilities
• Examples of these devices: from thermostats and energy meters, through to

vehicles and large machines
• Essentially, it can turn those devices or appliances into ‘smart’ objects,

capable of both sending and receiving data and communicating with each
other. Improves data collection, increases levels of automation and allows for
multiple devices to be controlled or monitored from one centralised place,
such as a phone or tablet.
EXAMPLES of IoT in Hospitality
• SMART rooms /
hyper-personalised rooms
• Location-based information
• Predictive repairs and maintenance

• Mobile key-cards
• Voice-controlled customer service

• Big Data
• Massive data sets (information) streaming into a capture system
• Too big to analyse in traditional ways (manually)
• Predictive technologies
EXAMPLES of Big Data in Hospitality
• Revenue management → revenue strategy

EXAMPLES of Big Data in Hospitality
• Targeted marketing
• Customer experience (significant trends)
• Additional services and partnerships
• Competitors – getting it right AND wrong

• Virtual Reality (VR)
• Technology that allows user to be “embedded” into virtual world

EXAMPLES of VR in Hospitality
• Virtual tours prior to booking

VIDEO: A Virtual Honeymoon to London and Hawaii #GetTeleported
VIDEO: Quantas and Hamilton Island, 360 VR Tour
• Virtual tours of hotel

VIDEO: Atlantis Dubai Virtual Tour
• Virtual booking process

VIDEO: The world’s first Virtual Reality travel search and booking experience
• Augmented Reality (AR)
• Technology is used to ADD to the user’s real world perception
• Digital components into reality

EXAMPLES of AR in Hospitality
• Interactive hotel rooms

• Interactive experience of destination and tours
VIDEO: Florence Travel Guide - Italy - Augmented Reality - HD
• Gamification
• Adding elements to hotel
• Combine with beacons

• Blockchain
• Decentralised information accessible by many parties
• Information is verified at several points

VIDEO: TUI Group- What is a blockchain
Usefulness of Blockchain in Hospitality
• Secure payments • “LockChain”: allows hotels to rent out their

property; cuts out middlemen = 0%
• ID and security commission
• “Trippki”: loyalty rewards

• Loyalty programmes
• “BeeToken”: home-sharing platform

• Baggage tracking
• “ShoCard & SITA”: ID and security

• Artificial Intelligence (AI)
• Computers or machines carrying out tasks that were traditionally

thought to require cognitive function to carry out
• Hotels – AI can assist in 24/7 service
EXAMPLES of AI in Hospitality
• AI Chatbots
• Data analysis
EXAMPLES of AI in Hospitality
• In-person customer service

EXAMPLES of Robots in Hospitality
• Robot-staffed hotels, voice recognition, intelligent learning

EXAMPLES of Robots in Hospitality
• Travelmate suitcase
• Recognition technologies
• Biometrics used as keys
• Facial recognition at check-in points

• Mobile payment
• Mobile & remote check-in / check-out: alert staff to arrivals, at check-
out can arrange transport, etc.
• Self-service kiosks
• In-room devices with app access
• Near-field communication (NFC): smart comms in rooms, e.g. menu at
certain times (can utilise previous orders)
• CRM on mobile devices; CRMs connected to direct messaging

• Smart energy management – temp, lighting + AI learning
• Reputation management software for collation
BIGGEST TECH TREND in HOSPITALITY = PERSONALISATION
BUT
• SO many new technologies available

• → Can lead to guest overload and negatively impact relationship
• Hotels must decide for themselves how to keep high-touch points high
TECH enough, while still maintaining the human element
• Hotels must be very aware of status of technology of location country =
technology readiness
• Can be utilised as USPs in certain locations
• Must also be aware of interplay between “old school” and “new school”
KEY POINTS
• Technology in hospitality = touch-points + human interaction

+ technology
• Budget-determined, but can lead to increased revenue
TIMELINE
1996 2005 Up to 2020

?
WHAT
NOW??
POST-COVID19
• Data flow has been severely disrupted → will we be drawing

from potentially inaccurate / invalid data?
• New operation realities
• Will most guests prefer non-human contact?
• → INCREASE in demand for digital contact and touch points
• Partnerships with digital health providers

• WORLDWIDE CHANGE IN EVERY ASPECT

CRM in Hospitality

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CRM

• Hotels → wholesaler → Operators →

• Hotels were also in the dark

• No space for them to publicly voice their

• Customer relations with hotels

1996 • 1996: (Microsoft) Expedia launches

• Then, Priceline with “Name your own

• Throughout the course of this evolution,

• 2004: meta-searches for rates

• THEN: Social media explosion

• Created a new, direct line of communication between end-users and

• Never before seen level of TRANSPARENCY

• Depends on the business itself, and the mindset

1996 2005 Up to 2020

Internet Social Media

• Website – optimised for UX and mobile use

• 3rd party apps

• Social media: Facebook, Instagram, Twitter

• Streaming capabilities (81%)

• Competition – AirBnb – pushes hotels to remain innovative

• The “Internet of Things” (IoT)

• Refers to inclusion of internet connectivity within everyday devices and

• Examples of these devices: from thermostats and energy meters, through to

• Essentially, it can turn those devices or appliances into ‘smart’ objects,

• Predictive repairs and maintenance

• Voice-controlled customer service

• Massive data sets (information) streaming into a capture system

• Too big to analyse in traditional ways (manually)

• Revenue management → revenue strategy

• Customer experience (significant trends)

• Additional services and partnerships

• Competitors – getting it right AND wrong

• Virtual Reality (VR)

• Technology that allows user to be “embedded” into virtual world

• Virtual tours prior to booking

• Virtual tours of hotel

• Virtual booking process

• Augmented Reality (AR)

• Technology is used to ADD to the user’s real world perception

• Digital components into reality

• Interactive hotel rooms

• Combine with beacons

• Decentralised information accessible by many parties

• Information is verified at several points

• Secure payments • “LockChain”: allows hotels to rent out their

• ID and security commission

• “Trippki”: loyalty rewards

• “BeeToken”: home-sharing platform

• “ShoCard & SITA”: ID and security

• Artificial Intelligence (AI)

• Computers or machines carrying out tasks that were traditionally

• In-person customer service

• Robot-staffed hotels, voice recognition, intelligent learning

• Biometrics used as keys

• Facial recognition at check-in points

• CRM on mobile devices; CRMs connected to direct messaging

BIGGEST TECH TREND in HOSPITALITY = PERSONALISATION

• SO many new technologies available

• Can be utilised as USPs in certain locations

• Technology in hospitality = touch-points + human interaction

1996 2005 Up to 2020

Internet Social Media

• Data flow has been severely disrupted → will we be drawing

• Partnerships with digital health providers