Innovation

📌 Hotels are grappling with high costs from third-party booking platforms, which impede profit margins and access to guest data, hindering direct bookings and loyalty efforts. The introduction of a Customer Data Platform (CDP) allows hotels to centralize guest data, enabling full control over marketing strategies and personalized guest experiences. By leveraging a CDP, hotels can reduce dependence on external channels, optimize marketing, and increase revenue through direct bookings and tailored campaigns. TrustYou's CDP offers hotels a solution to unify guest profiles and enhance the personalization of services, aiming to increase guest satisfaction and drive profitability.

🏥 Jyoti Chopra, Chief People, Inclusion, and Sustainability Officer at MGM Resorts International, detailed MGM Resorts' post-pandemic talent strategy transformation on Oct. 29, 2024. The company shifted from one-size-fits-all hiring fairs to specialized recruitment events, emphasizing employee flexibility, well-being, and engagement. Initiatives include "years of service" pins, Showstoppers Awards, the "Ask the CEO" program, and the Courageous Conversations series. MGM introduced the World of Well-being (WOW) and employed engagement surveys to enhance satisfaction. The MentorcliQ program pairs employees with mentors for their career development.

🍽 Santa Clarita Valley Kitchens, nicknamed The SCV Hub, allows customers to order from multiple restaurants in one transaction since its opening in October 2023, in Southern California. Empower Delivery, featuring 18 commercial kitchens, offers ordering kiosks and online options through TheSCVHub.com, ensuring items are freshly coordinated. The founder, Chris Collins, switched to Empower Delivery after a previous system failed to meet expectations, influenced by OOMI's success in Dallas. Empower's platform improved service speed and reliability, boosting guest satisfaction and efficiency.

🏠 Travel Tech Essentialist introduces "Deep Dives", with around six per year focusing on travel tech companies. Boomerang, founded in November 2021 by Skyler Logsdon, Philip Inghelbrecht, and Augustine Diep-Tran, reimagines lost and found with AI automation. The U.S. spends $5 billion annually replacing lost items, with the average value over $250. Boomerang boasts a 50% return rate, and Savannah/Hilton Head International Airport saw an 85% increase in claims and a 79% found items increase after implementation in January 2023. Boomerang charges businesses a monthly fee and shares profits from sold unclaimed items. The platform handles the complete return process, including shipping logistics, aiming for network effects like OpenTable for seamless experiences across multiple venues.

📂 To optimize travel apps for offline use, brands should focus on vital data like upcoming trips and use smart sync protocols. User engagement metrics such as session duration and feature adoption are critical. Retention rates indicate app stickiness, while personalized experiences can be measured by interaction with tailored suggestions. Analyzing conversion and revenue, like in-app bookings and ARPU, helps assess app success. Cross-device behavior tracking is essential for a seamless travel experience. Hutokshi Sethna, Head of Travel and Hospitality at Tredence, advocates for nuanced analytics in the industry.

🏨 Hotel industry innovation is essential to generate excitement and loyalty among travelers, with customer-based assessments linking to brand loyalty and financial performance. Key metrics used include loyalty, brand attractiveness, Net Promoter Score, share of wallet, hotel stays, and detailed ratings on commercial (18 attributes) and social innovation (15 attributes). Commercial and Social Innovation Index Scores range from 0 to 100, quantifying perceptions. Travelers value technology, design, rewards programs, lifestyle brands, and environmental and community efforts. Strategic lessons highlight the importance of diverse innovation drivers and customer-specific feedback to strengthen loyalty and brand excitement. Airbnb, noted as an innovation leader, challenges hotels to provide customized experiences and consistency.

📌 AI platforms like ChatGPT and Perplexity offer solutions to simplify hotel selection for consumers, presenting pros and cons in response to queries. Hotels now need to ensure their data is accurate across all AI-utilized sources to maintain brand reputation and stay competitive. With AirBnBs facing issues like inconsistency and regulation-induced scarcity, hotels can leverage their consistency and data management to advantage in AI search results. A unified data approach for multi-location hotels is crucial to optimize their digital presence and cater to new AI search efficiencies expected by travelers.

💰 Gen Z (12-27 years old) is projected to have $12 trillion in spending power by 2030, becoming potentially the wealthiest generation. Yet, their brand loyalty wanes, with a 4% and 1% drop in affinity for top restaurant brands Chick-fil-A and McDonald's, respectively, while Starbucks experienced a 6% decrease since the previous survey six months prior. Despite the declines, Gen Z's spending increased by 6% year-over-year and 2% since spring. Their intent to return to quick-service restaurants is 33% and to recommend is 29%, which is the lowest across generations. Historically high prices and third-party delivery services like DoorDash are contributing to diluted brand loyalty. Fast food is now seen as a "luxury" by 80% of consumers. However, opportunities remain as Gen Z prefers dining out, with chicken tenders and customizable meals, and values seamless digital experiences with variety and value deals.

📱 The 2024 Customer Engagement Technology Study predicts AI's significant impact on travel and hotels, enhancing personalization and efficiency. The Hotel Communication Network's AI-powered Navigator 2.0 tablets, called AiMe, offer voice-commanded services in multiple languages. At The Hospitality Show in San Antonio, Booth #1755, visitors can see AiMe in action. Key stats include 30% of consumers using AI to learn about hotels, and hoteliers focusing on guest loyalty (80%), employee productivity (76%), and safety (68%). AiMe aims to fulfill both guest and operator needs, potentially escalating service requests and integrating with safety systems. Technology ROI is complex, but HCN's DineIN program reports a 20-30% revenue increase, and their Guest Choice program saves 5% on labor costs.

💾 Dine Brands tripled tech spending since 2019; rolled out new POS to over 1,500 IHOP locations, launched website and app with loyalty program. CIO Justin Skelton detailed IHOP's use of Google Cloud Recommendations AI to improve online ordering nationwide. Born from the pandemic's shift, where 40% of revenue came from off-premises sales, the AI engine aimed for quick implementation and immediate ROI. It took Dine's IT team about 9 months to deploy, involving data cleansing and integrating details from 11 million loyalty members.