8 December 2014
5 Apps That Look to Steal Revenue From Your Hotel
David Tossell, Vice President of Travel & Hospitality at DataArt, contributes the first in a series of articles on the trends in the industry, where he explores apps and how they are causing revenue erosion at full service hotels.
“There are apps that have been stealing revenue for years from hotels -- perhaps even more revenue than AirBnB ever likely will. Enabling this reality is that 99% customers show up on hotels’ doorsteps with their mobile devices in hand loaded with these apps.
Your customers’ behaviors and expectations are changing -- and, unless you react, this is costing you money. …customers pick up their mobile device and browse for information. And once on their mobile devices, the hotelier loses control over the guest experience.
Many hoteliers are considering the on-property “Digital Guest Experience” as they create their vision for the end-to-end guest experience.
During their stay when a guest picks up their mobile device… they are very likely to explore beyond what a full service hotel has to offer. Once down that path, that revenue likely ends up being spent off-property. Why is this revenue likely lost?”
David lists five apps and explains how they “draw revenue from your hotel”: Foursquare, Google+ Local, OpenTable, Yelp, Uber.
“Nearly every full-service property has experienced revenue erosion at the hands of these apps. And these hotels will continue to see more revenue go out the door as consumer adoption of these popular apps increases.”
“The List of Apps that Hotels are Losing Revenue to is Long. There are dozens upon dozens of apps that also compete for revenue from hotels, and, just as many startups also looking to take a bite out of hotels’ revenue. They include:
- Fandango – helping guests go to the movies rather than watching pay per view movies in their rooms.
- Where – almost everything you would ask a bellhop or concierge about the neighborhood around a hotel – weather, Starbucks, movie times, Yelp content (for restaurants) gas, traffic information, car rentals and more.
- AroundMe – Similar to Where: banks, bars, coffee, gas, hotels.
- Urban Spoon -- similar to Yelp, but, focused on the dining category.
- TripCase – A Sabre powered app that provides itinerary aware recommendations and offers.”