thinking outside the hotel box final
TRANSCRIPT
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Thinking Outside the Hotel Boxengaging the conscious traveller for life
Anna PollockHTNG Members’ Meeting, BerlinOctober 26th, 2010
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Your Challenge
"Strategic resilience is not about responding to
a one time crisis…it's about continuously anticipating and adjusting to deep, secular trends that can permanently impair the earning power of a core business. It's about having the capacity to change before the case for change becomes desperately obvious." Prof. Gary Hamel, December 2003
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When travelling, I wish I were a box
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The Promise of Travel
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Today’s Reality
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Today’s Reality
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Your Guests?
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The Room With A View
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The Value is in Relieving Pain
The opportunity is finding a cure not relieving symptoms
“When pain pushes vision pulls” Michael Beckwith
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My Purpose Today
• Shift Your Mindsets• Focus: deep, radical innovation• See the really “big picture” and the “big
opportunity”• Stimulate some fresh thinking• But first, some history
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Recession as Punctuation PointDon Tapscott
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To Prepare for a Different World..Understand the change drivers
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People
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Technology Age of the Automobile, Mass Everything
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Organization Assembly Plants, Specialization, Hierarchies
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Organization
Standardization, Order, Planning
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Mindsets What Was the Lens Through Which the World was Viewed?
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Mindsets
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A Mindset is a Set of Underlying Assumptions
• The universe is a machine of parts and objects obeying physical laws
• The planet is a lumberyard• The industrial model can be applied to tourism – which means
that• Places and experiences became products• People became resources or targets
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Mindsets Use Different Parts of the Brain
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This Mindset Thinks in Boxes & Lines
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See what I mean?
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The industrial model:• Productizes• Standardizes• Homogenizes• Commoditizes
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The “Industrial Model” worked for Many Years
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BUST
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IS IT OVER?
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“We are at that point of time when a four-hundred-year-old era is rattling in its deathbed
and another is struggling to be born.”
So What’s Really Happening?Click icon to add pictureClick icon to add picture
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Supposing Every One of the Gears Change?
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2 billion internet users825 million in Asia
Technology Connectivity
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Technology Connectivity
Three screens dominate our lives
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Technology Connectivity5 billion mobile phones worldwide
Average North American user consumes 150+ megabytes of data
By 2015 data use could rise to 7 GB a month
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Technology Connectivity
Gartner predicting 103 million tablets in circulation by 2013 – up from 19 million today
30,000 Apps for i-pad only 178 days after launch – example of an ecosystem at work
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Technology ConnectivityOpen Source, interoperable, modular, in the cloud
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Technology Connectivity
Immersive Telepresence
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Technology Connectivity
Immersive Telepresence
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Technology Connectivity
Immersive Telepresence
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People Consumers
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• Risk is back• Anxious• Self-reliant • Distrustful • 76% don’t trust brands
People Consumers
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• Tyranny of Choice• Tyranny of Time• Tyranny of
Abandonment
People It’s no fun being a consumer
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Post Recessionary Consumer Wants
• Value• Quality• Support• Rich Content • Relevant Content – Before, during, after– Real time– Geo-located
• Personal – but how?
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Post Recessionary Consumer Wants YOU to
• To do that, you can’t change software, procedures
• Even changing your culture won’t work entirely
• To show you care you have to change your mindset!
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Mindsets From Machines and Boxes to Ecosystem
• Appreciating that the universe is not a dead machine
• It’s alive & there are no straight lines in nature
• Everything is connected – IT’S A NETWORK!
• Nature has her cycles & her limits• Nature and people are dynamic
and fuzzy• Not everything can be measured• Small actions can lead to big but
unforeseen consequences
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Mindsets This mindset uses the right brain
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Organization And is Inspired by the Natural World
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Organization Not Value Chains but Value Networks
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Tourism ecosystem
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Organization And the Customer Sits At The Centre
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Organization Anyone Can become an Intermediary
• In an ecosystem some species become “keystone species” providing opportunities for other species to survive and thrive– Microsoft– Apple– Facebook– Google
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Challenges & Opportunities
staying within the box
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Industrial Push Model Running Out of Steam
• Forecast, make & sell• Transaction oriented• Share of wallet the
measure of success• Economies of scale• Value lies with the
producer• Diminishing returns
from trying to add value
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Industrial Push Model Running Out of Steam
• Micro innovation – tinkering at the edges
• Lip service paid to customer centricity
• Reality is about cost cutting – Standardization – Automation– Commoditization
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Industrial Push Model Running Out of Steam
• Do you wish to follow the airlines?
• “race to the bottom”• Diminishing margins• Focus on volume• Brand agnosticism• Customer acquisition
spending greater than retention
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Service Marketing
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We at Gourmet Pixel have researched current luxury hotel offerings and feel that there is great potential and opportunity to develop a bespoke application for use within the hotel and travel industry.
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Challenges & Opportunities
Moving out the box
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Business Model Innovation
• The value lies with the consumer
• The real question is not how do you add value but how do you attract value?
• Customers want support for their entire trip
• Opportunity for trusted infomediaries – those who earn the right to my personal data
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Organization Customers Own Their Own Value
Value is in knowing who the customer is & what they wantValue is at the edge - the frontline staff who have the conversations
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Your Guest is not buying products but having a complete experience
Value is in taking care of the whole customer while having that complete experience
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The Boxes are breaking down
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Starbucks Digital Network
• Power of Place• Starbucks becomes the
community hub on and offline
• Partnerships– itunes– Foursquare– Zagat– Weather– Local Events
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Who Will Take Care of Me?
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Who Could be the Keystone Species?
• The whole trip• Solve problems• Relevant content• Save me time• Get me out of trouble• Help me enjoy the trip
& the destination• Help me meet others• Be my guide/concierge
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Which Species in the Tourism Ecosystem is best suited to be the keystone species?
• Who has the greatest interaction with the guest?
• Who is really in the connecting business?
• What kind of business innovation will help your company survive?
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Think About it – Could it Be Yours?
Thank you!Anna Pollock
www.annapollock.net