Hotelier Express roundtable speakers, discussing the trends, opportunities and challenges facing the industry.
How important will digital and mobile strategies be for the mid-market?
Marloes: I recently had a meeting with our information technology department, we discussed the old days when operators didn’t even have a mobile-friendly website, nowadays we’re all developing apps and that’s now the norm. Why Airbnb did so well, was because it’s all on the smartphone. With new tech there’s so much off-the-shelf options, there’s so much we can do, and developers are now more geared towards tailoring these products so that they’re affordable to mid-market operators. With technology there is a great way forward, both the guests and the owner’s perspective – there are products that are accessible and affordable.
Tarek: It is interesting because this industry so far behind, relative to other industries and we’re all playing catch up. There is now a significant focus on technology among the big chains, and so now we see new chains with a focus on technology from the get go. If properties in Dubai want to catch up on some of the challenges in supply and dynamics they need to get smarter – this means getting smart with technology.
Mark: I beleive the only challenge we face in this region now is digital check-in. We have digital check-in in many parts of the US – through this feature, guests can choose their room type and room number. This also saves on the cost of manning a hotel, we can then we can focus that saving on other areas like increasing guest loyalty.
Will social media influence future hotel bookings?
Mark: I truly believe today you can’t live without social media. As we see more of these platforms in the future, it will absolutely play a big role in creating awareness among potential guests. Making sure you are well positioned on social media channels and capturing 100% of the opportunities in the arena is essential to drive business. It took us a long time to communicate what we offer, we couldn’t do that in such a short time frame without social media.
Marloes: The next question is really what comes next. How big is virtual reality going to be in this industry? Look at social media, did anyone know that this was coming, yet it’s taken us so far. These trends are moving fast, with or without you. Looking to the future, what will we be late for, or what will the mid-market be first to adopt new trends? That’s the interesting part.
Tarek: Some chains are aggressive in their spending on technology, because they realise they have to catch up now, because for many years they didn’t move as fast as these trends did. Technology does move very fast, there are now more efficient routes that were just not available as little as eight months ago. The real question is how will the market shift from a development point of view – with the use of third party suppliers or will they move this process
in house?
How important are F&B options in the mid-market?
Mark: You need to be conscious about what you are willing to offer the consumers, to meet the standards of the local market. We had to tweak what we offer in this region, while keeping our pricing model suitable to expectations. So our food and beverage options cater to all segments for this reason. We focus a lot on the culture of the local market too, but at the end of the day, we focus our options on value – it’s all about the finding the right price point.
Marloes: WAt Cloud 7 Hotels we leverage our options on local brands, so we offer a more local experience to our guests. We really believe that food is a part of that experience to. We look at profitability and adjust accordingly – but it is a challenge to bring people to your outlets. We make this our part of our marketing model, this is what we offer, we highlight what you’re are getting and also what you’re not getting.
Tarek: Again this is also a sign of a maturing market. Guests are now spoiled by their f&b options, but they’re moving to a more affordable environment, however they expect the same level of service and amenities, but at a lower price, so the question is how can operators handle this behaviour? In the end, we now live in a world where products and services have developed and with that you are having consumer behaviours that were once at the top-end of hospitality that are now coming down to the mid-market.
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