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The hospitality industry is one of the most established and long-living industries. Traditional sales and marketing approaches have been well-developed and fine-tuned over the years. With such legacy, how can marketers bring in creativity and innovation that can transform the business?
On the one hand, rich legacy brings great value, in terms of the efficiency of a well-oiled machine. On the other hand, it brings challenges in its inability to be flexible and to bring in new ideas. The latest technologies and innovations may be perceived as a threat to existing processes and may be discouraged, ultimately hindering the ability of the business to grow and evolve. “That’s how we do things around here” is something I hear far too many times. The key to success is actually not as complicated as one may think, but simply going back to basics with an open mind - Why, Who What, How.
WHY - Dig deep and ask this question
Think deep about what your purpose is as a hotel brand. What is your goal? What are you trying to achieve? You may say that it is providing customers with an excellent service, excellent stay, excellent food, excellent accommodation, and an excellent overall experience. But these are only the basics and are a given for any hospitality brand. What kind of brand are you building? What kind of impression and feeling would you like to give your guests? Think not only about the short term, but also the longer term objectives in terms of the type of impact and legacy you want to establish. This is where the more holistic strategies such as wellness and sustainability may come into play. The important thing to keep in mind is to find the right balance between what you want as a brand and what consumers want. A brand without an audience is not a valuable brand.
WHO - Define and size your audience
Really figure out who your target audience is. Understand their pain points, needs, wants, and desires. Are they simply looking for a place to stay during their business trip? Or are they looking for entertainment and relaxation to reduce stress. Make sure to understand what their fundamental motivations are and how you can help them achieve their goals.
Most importantly, do not just define your audience, go size them. If it is too large, then it will be too mass and marketing will be too expensive. If it is too small, then it may not be a sufficient audience to justify specific products and programs.
" The key to success is actually not as complicated as one may think, but simply going back to basics with an open mind - Why, Who What, How "
It is important to keep in mind that this is not a one way channel. It is a holistic multi-channel two-way communication with your audience. Focus on the interaction, emotion and journey. Understand what they feel and react to that. Then determine what type of channel and content is the right fit to interact with this audience. Trust your gut, but trust real research and data even more to quantify your customer understanding. For instance, if your target audience is not digital savvy, then a complex marketing technology solution may be less effective than good old in-person service.
WHAT - Develop and validate your proposition
Whether you are introducing a new F&B offering or room service, make sure you have a solid pitch to the customer. If you only have one minute with a guest new to your hotel brand to explain what your offering is and make them want to have it, what will you say?
Are you going for a premium proposition? Or a value for money proposition? A lot of things are already assumed to be given. Top service and quality rooms and food is expected. So these will not necessarily bring your brand to rise from the crowd. What are the new and more unique elements that you can leverage such as wellness, sustainability, technology, innovation, etc. And you can no longer just do discounts, as everyone can do it. You need to think of something new and signature to your brand.
One important thing to keep in mind is that Distinctiveness does not equate to Appeal. We spend a lot of time coming up with things that are new and never been done in the hotel business. But that does not mean people will pay for it. There are many scenarios where a product idea is ‘cool’ and ‘creative’, but customers are still not paying for it.
The best way to figure this out is to simply talk to your customers. Don’t spend millions of dollars planning a 6 month research. A quick and dirty approach works just fine. Leverage simple tools in the market, and you can do a decent survey in 2 weeks at a low cost. Speed matters more than anything. Companies that are able to research, validate, and finalize their propositions are the ones that win.
HOW - now let’s get to the fun part
Once you have all the strategic foundations above in place, you are ready to put together the right resources to execute and deliver the marketing part.
Traditional channels such as PR, media, influencers are all still very important in showcasing the hotel experience. However, there are a lot of newer technologies that are very effective in targeting and engaging with potential customers. Geotargeting for instance allows you to reach people around your hotel at lunch time, to drive them to come try your restaurants. There are also a lot of AI driven advertising that is able to predict the best target audience and the best message utilizing behavioral data.
Of course, a personalized in-person experience is still a crucial component for the hospitality business. However, new digital channels can also create a very personalized and tailored communication, leveraging the latest marketing automation and automation engagement journeys. The key is to study the end to end cross channel experience with your guest. You should literally map that journey out, from online to offline, and continue to optimize this journey. Ensure to leverage the latest in technology and analytics to track and understand your customers’ behavior. The key to success is continuous learning and optimization.
In conclusion, the way to successful transformation is to ensure you have a solid strategic foundation to start with. Leverage data and insight to understand your customers, build your strategy, optimize your marketing, and ultimately create real innovation and impact!
