Hospitality Management
Article | July 4, 2023
Most people associate the term "blockchain" with cryptocurrencies such as Bitcoin, Dogecoin, or Ethereum. Blockchain is the technology behind cryptocurrencies, but it is also a technology in its own right that has many uses.
Blockchain is an immutable ledger that tracks transactions and assets, like cash and patents. All parties have access to the same data simultaneously, eliminating intermediaries and making it a cost-effective way to track assets. It could, for example, track a flight delay and automatically refund a customer’s money.
A German blockchain start-up Etherisc launched an insurance product, FlightDelay, which uses blockchain to automatically issue policies and execute payouts for flight delays and cancellations on around 80 airlines. Customers can buy policies with cryptocurrency and receive claims in cryptocurrency.
Flight delays are where blockchain-based insurance can make a difference in the travel insurance domain. Data on delays and cancellations is readily accessible, and all assist in automatic payments. This way, companies that offer flight insurance can avoid higher claims-processing costs and save on data protection costs because blockchain is secure.
U.S. Insurance Regulations Prevent Blockchain-based Travel Insurance
In the U.S, there is a need for state-by-state approval for changes in regulations. Blockchain’s appearance in the U.S. insurance industry may take another ten or fifteen years. However, the potential of blockchain-based insurance products is huge. Insurance companies can sell them at much lower costs compared to traditional insurance products.
Blockchain Can Change the Travel Insurance Business
Interestingly, the U.S. already has an insurance product similar to FlightDelay but none of them have the blockchain component. Called ‘parametric insurance’, an auto payout is done when some parameter is violated. Using blockchain technology to offer this insurance could save money and enable insurers to pass on some of the savings to the customers. Insurance industry experts think blockchain will definitely make a mark in the travel insurance domain and can change the way travel insurance businesses operate at large.
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Hospitality Management
Article | July 18, 2023
Leverage upselling and cross-selling techniques to elevate hospitality & tourism businesses. Discover the strategies used to boost revenue by adapting upselling and cross selling techniques in hotels.
1. Introduction
2. Cross-selling Vs Upselling: Which One Is More Optimal?
2.1. Defining the Two Techniques
2.2. The Key Differences
3. Combining Both the Techniques to Improve Revenue
4. Importance of Implementing the Techniques in Hotel Businesses
5. Conclusion
1. Introduction
The hospitality industry is highly competitive, and hotels must find ways to boost revenue beyond room rates and taxes. The key to success in this field is to tailor offers to each customer and encourage them to spend more than they had planned. Cross-selling and up-selling are two effective methods of increasing sales.
This article explores these methods' nuances in the hospitality sector. By dissecting the advantages of cross-selling and upselling, we can better understand when it makes sense to implement these tactics for maximum profit. The potency of upselling and cross selling techniques in hotels to improve the business and offer enhances guest experiences.
Cross-selling Vs Upselling: Which One Is More Optimal?
In the hospitality industry , maximizing revenue and enhancing guest experiences are paramount, and whether to prioritize cross-selling or upselling is a question. While often used interchangeably, these sales techniques hold distinctive positions within the buyer journey.
2.1. Defining the Two Techniques
Upselling is a sales approach that offers customers a higher-priced or upgraded service or product that aligns with their interests and preferences. In the hospitality industry, it may encompass enticing guests to upgrade their room selection, such as transitioning from a standard room to a mini-suite, either during the booking process or afterward. Additionally, it may involve presenting guests with hotel packages that provide added value and amenities compared to standalone bookings. The aim is to elevate customers to a higher price category and ensure they enjoy an exceptional stay experience.
On the other hand, cross-selling entails encouraging guests to purchase supplementary products or services related to their existing purchases. For instance, this could involve offering a spa package or a romantic dinner to enhance their stay. Cross-selling opportunities in the hospitality industry can include add-on activities like city tours or bicycle rentals, in-room extras such as upgraded amenities or specialized equipment, on-site spa and fitness services, food and beverage options such as dining discounts or meal packages, and other hotel services like complimentary parking or transportation.
2.2. The Key Differences
1. Strategy: Upselling focuses on communicating value to customers, persuading them to opt for a higher-priced or upgraded service or product. The emphasis is on showcasing the benefits and added value of the upsell, ensuring customers see the value in paying extra for a superior experience. On the other hand, cross-selling aims to appeal to impulse buying by enticing customers to purchase additional, related products or services that complement their original purchase.
2. Timing: Timing is crucial in both upselling and cross-selling. With upselling, the timing is most effective when done pre-arrival, ideally a week or two before the guest arrives at the hotel. This allows customers to anticipate their upcoming stay and consider upgrading their room or adding extra amenities. Cross-selling can be implemented post-booking, such as during check-in or through targeted email campaigns when customers have already committed to their initial purchase and are more open to additional offers.
3. Value Perception: Upselling techniques relies on effectively communicating the value and benefits of the upgraded or higher-priced offering. Guests need to see the value in paying extra for the enhanced experience. In contrast, cross-selling often involves appealing to customers' desire for convenience or enjoyment by offering travel management services that enhance their stay without necessarily requiring a significant increase in expenditure.
3. Combining Both the Techniques to Improve Revenue
Cross-selling is the most effective post-booking and can be implemented in various ways. Firstly, it can be done at the hotel reception during check-in, where guests can be offered add-on items. Secondly, sending an informative email before arrival to highlight additional services is another compelling cross-selling opportunity. Lastly, when guests express interest in a particular service, it presents an opportunity to introduce them to other relevant options.
Upselling, however, is particularly effective when implemented pre-arrival, ideally a week or two before guests arrive at the hotel. This technique can be deployed during the browsing and booking, where customers can be presented with room upgrades and add-on items. It is also fruitful to inform customers about better room options at affordable prices before their arrival, tapping into their anticipation for their upcoming vacation. Furthermore, during check-in, providing guests with information on enhancing their stay by spending a little extra can generate additional revenue.
To combine the power of both techniques efficiently, companies must employ specialized software. This software automates room upgrades and the promotion of additional ancillaries, providing customers with the convenience and freedom to choose and bid on attractive upgrades before arrival. Advanced customer journey analytics, such as software offers, enable personalized product offers, increasing sales and hotel revenue.
4. Importance of Implementing the Techniques in Hotel Businesses
Implementing upselling and cross-selling techniques is vital for hotel businesses, apartment rentals, and hostels. Hotel upselling techniques and cross selling techniques establishments possess unique opportunities to capitalize on these strategies, similar to how airlines offer seat upgrades, meal additions, and car rental options. When choosing accommodations, travelers invest considerable time and thought into finding a place that aligns with the desired ambiance of their trip. As hosts, this presents an ideal opportunity to offer additional products and activities that complement the property's offerings.
Unlike airlines, hotel properties often indicate the activities that guests might be interested in, allowing hosts to select the most relevant products to offer. This could involve tailored offerings such as private guided tours to popular tourist attractions or unique underground graffiti tours based on the guests' preferences and digital travel persona.
By providing personalized offerings that cater to the customer's needs, hotel businesses enhance the overall guest experience and deliver excellent service. Activities constitute the third-largest segment of the travel industry and are continuously growing. With data revealing that 46% of travelers engage in sightseeing tours, it becomes evident that upselling and cross-selling will play an increasingly significant role in the hospitality industry.
5. Conclusion
In the incredibly competitive hospitality industry, implementing upselling and cross-selling techniques is crucial for hotel businesses. By understanding the nuances and distinctions between these strategies, hotels can target customers strategically and increase revenue streams beyond room rates and taxes. Cross selling techniques encourages impulse purchases by offering additional products or services related to the initial investment. By combining both techniques with specialized software, hotels can personalize their offerings, automate their promotions, and provide a seamless experience for their guests. This strategy not only increases revenue but also caters to guests' various preferences, resulting in increased satisfaction and loyalty. As the activities segment of the travel industry continues to expand, the importance of upselling and cross-selling in hospitality management is anticipated to continue rising. In addition, deploying innovative business travel technology solutions can improve hotel businesses in hospitality industry.
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Hospitality Management
Article | June 20, 2023
Travel technology professionals view tech as the way to help travel come back stronger, according to research.
The TravelTech Show (formerly TTE Europe) polled buyers and suppliers who listed artificial intelligence, customer relationship management and online booking tools as the top three technologies to help boost recovery.
Rounding out the top five were self-service portals and innovative payment options.
The findings will be unsurprising to many in the industry already looking to AI, the cloud and other technologies to boost efficiency and improve the customer experience.
Brian Sheerin, managing director of SABS Travel Technologies, says: Allowing travelers to self-book through an OBT [online booking tool] while still providing simple methods to communicate, such as online chat, are key to reducing customer frustration and allowing travel businesses the space to restructure, to resource and to meet customer expectations. OBTs were already playing a massive part in booking travel pre-pandemic and now it is even more important in the role of rebuilding the sector and customer confidence in it.”In recent weeks, American Airlines announced a far-reaching partnership with Microsoft, Expedia Group unveiled its new tech platform Open World and Miami Airport announced its rollout of biometric boarding technology.
Payment developments and other advances in travel fintech also have been highlighted recently as an increasing priority to the industry as it looks to find new revenue streams.
The TravelTech Show research also quizzed participants on the top challenges facing the travel technology industry currently, with economic uncertainty taking the top slot (52%), followed by COVID-19 restrictions (46%) and climate change (36%).
Cyber security took fourth place compared to two years ago when it was in seventh place.
Meanwhile, sustainable travel moved to seventh place compared to the second-place spot it held in 2020.
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Hospitality Management
Article | July 24, 2023
Discover insights to overcome hospitality management challenges of the dynamic travel industry. Elevate customer experiences, optimize operations, and thrive in the hospitality and travel industry.
Contents
1. Importance of Hospitality in Tourism Industry
2. Key Management Challenges in the Hospitality Industry
2.1. Personalizing Guest Experience
2.2. Seasonality of Hospitality
2.3. Rapid Shift in Market Trends
2.4. Retaining, Hiring & Managing Staff
2.5. Protecting Online Reputation
3. Significance of Implementing the Right Solutions
4. Conclusion
1. Importance of Hospitality in Tourism Industry
Today, the culture of hospitality holds paramount importance, focusing on outshining businesses by delivering exceptional service quality. To achieve this, hospitality industries must prioritize providing superior and satisfying products to their customers. Hiring managers should seek individuals with an excellent service-oriented mindset, while the training process should center around cultivating a strong service culture within the organization. Graduates of tourism and hospitality management programs are increasingly occupying key positions within the industry. These professionals view themselves as dedicated individuals entering the realm of hospitality management. Their roles demand specialized knowledge and skills, ongoing professional development, and a commitment to benefiting the community and society.
Hospitality and travel industry revolves around extending friendly treatment to guests and tourists, making it an indispensable sector within tourism. Understanding consumer behavior becomes crucial in making informed marketing decisions for tourism products and activities. To fully leverage the potential of the tourism industry, it becomes imperative to comprehend what challenges may and how to overcome them to make better decisions.
2. Overcome Key Management Challenges in the Hospitality Industry
2.1. Personalizing Guest Experience
Personalizing the guest experience has become an increasingly crucial challenge in the hospitality and travel industry, particularly as traditional B&Bs face competition from emerging players like Airbnb. To stay competitive and retain guests, it is essential to go beyond providing basic services and amenities. Today's travelers seek unique, tailored experiences that resonate with their preferences and needs.
By personalizing the guest experience, hospitality establishments can create a lasting impression and build strong customer loyalty. This involves understanding guest preferences and anticipating their needs before they articulate them. It can include personalized greetings, offering amenities or services that align with their interests, and providing recommendations tailored to their tastes. Effective communication is vital before, during, and after the guest's visit. Leveraging guest data and preferences allows targeted marketing campaigns, personalized offers, and follow-up communication that nurtures the relationship and keeps guests engaged.
2.2. Seasonality of Hospitality
One significant challenge is personalizing the guest experience, especially when considering the seasonality of the hospitality and travel industry. During peak seasons, although businesses may thrive, there is often added stress on staff to cater to a high volume of guests. Effective stress management measures and caring for the team's well-being are essential to delivering exceptional experiences consistently. In contrast, during off-peak seasons, it is an opportune time to utilize the team's talents for activities such as enhancing social media platforms, updating the website, reviewing security measures, conducting staff training, and staying abreast of industry innovations. This proactive approach helps maintain competitiveness and prepares for the next peak season.
2.3. Rapid Shift in Market Trends
In hospitality and travel management, a critical challenge is the rapid shift in market trends driven by technological advancements. The advertising and marketing landscape has undergone significant transformations, rendering previously successful strategies ineffective. To navigate these transformations successfully, it is crucial to maintain updated websites, actively engage on social media platforms, promptly respond to online reviews, and develop compelling advertising campaigns. Hospitality industry managers can collaborate closely with either an internal marketing team or a marketing agency to ensure that their brand voice and mission are accurately conveyed and represented across all social platforms. Consistency, accuracy, and responsiveness are paramount in achieving marketing success in the dynamic world of hospitality.
2.4. Retaining, Hiring & Managing Staff
While retention, hiring and effective staff management is a challenge that extends beyond the hospitality and tourism industry, it holds particular significance in roles that involve direct interaction with the public, as they play a crucial role in delivering exceptional guest experiences. Hospitality and tourism establishments rely on staff members of the highest caliber at all levels, be it front desk, housekeeping, maintenance, tour guides, wait staff, or kitchen personnel. In addition to possessing the necessary skills, staff members must embody essential qualities such as integrity, compassion, and empathy to provide guests with the finest service. Regular training programs are crucial to align new hires with the vision and mission of the hospitality business. Furthermore, fostering a strong team culture is essential for retaining staff members who consistently go above and beyond for guests.
2.5. Protecting Online Reputation
In the contemporary hotel and tourism industry, where customers openly share reviews, opinions, and complaints on online platforms such as OTA websites, Google, Facebook, TripAdvisor, and social media, safeguarding and managing online reputation has become a critical challenge.
With 96% of Tripadvisor users considering reviews critical in their travel planning and hotel booking decisions and 83% referencing reviews before booking, effective reputation management is paramount. Thoughtful and timely responses to customer reviews are crucial, as 85% of TripAdvisor users agree that it positively influences their perception of the hotel.
(Source: Xotels)
Maintaining a high review score on OTA sites is essential to prevent potential guests from filtering out hotels with lower scores. Additionally, leveraging positive reviews and customer feedback on social media platforms can be done by showcasing average scores and using customer quotes on the hotel's website. Importantly, customers understand that mistakes can happen, but how a hotel responds to them matters. Swiftly addressing issues, providing courteous and considerate online communication, and rectifying problems extensively safeguard the hotel's reputation.
3. Significance of Implementing the Right Solutions
Implementing the right solutions holds immense significance in hospitality management. It is essential to address various challenges effectively, such as personalizing the guest experience, managing seasonality, adapting to rapid market trends, retaining and hiring staff, and protecting online reputation.
By implementing tailored solutions, hospitality professionals can strengthen their hospitality management businesses. Understand the significance of the solutions to be implied to overcome management challenges.
Enhanced Guest Experience: The hospitality and travel industry thrive on delivering exceptional guest experiences. By addressing management challenges effectively, such as streamlining operations, optimizing customer service, and personalizing guest interactions, the right hospitality solutions can significantly enhance the overall guest experience. This, in turn, leads to increased customer satisfaction, loyalty, and positive word-of-mouth, all of which are crucial for the success of any hospitality business.
Improved Operational Efficiency: Hospitality management challenges often revolve around optimizing operational processes, managing resources, and ensuring a smooth workflow. Implementing the right solutions, such as advanced technology systems, automation, and efficient management tools, can significantly enhance operational efficiency. This results in cost savings, reduced errors, improved productivity, and better utilization of resources, leading to overall business growth and profitability.
Effective Staff Management: The hospitality industry heavily relies on its workforce to deliver quality services. Staff scheduling, training, communication, and performance management challenges can be effectively addressed through the right solutions. Employee management systems, training programs, and communication tools improve staff organization, engagement, and productivity. When employees feel supported and empowered, they are more likely to provide exceptional service, leading to a higher guest satisfaction.
Data-Driven Decision-Making: The hospitality industry generates vast amounts of data related to guest preferences, booking patterns, revenue streams, and operational metrics. However, deriving actionable insights from this data can be challenging without the right solutions. Implementing data analytics tools, performance tracking systems, and guest feedback platforms enable managers to make informed decisions based on real-time data.
4. Conclusion
To achieve long-term success in the travel and hospitality industry, it is necessary to overcome hospitality management obstacles that businesses face. Through strategies such as personalizing the guest experience, effectively managing seasonality, adapting to market trends, retaining and hiring the appropriate staff, and protecting online reputation, hospitality businesses can differentiate themselves and develop customer loyalty. Through the strategic implementation of customized solutions, managers can navigate these challenges, enhance their guests' experiences, and drive long-term growth in the dynamic travel industry.
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