The luxury hotel industry is based on guest experiences that
are a cohesive mix of storytelling, premium service, superior products (from bath
soaps and towels to spa’s, shopping, and bar nuts), refined finishes, scents,
locations, and energies. Whether Ian Schrager’s brand-new EDITION Hotel in
Times Square or the stately likes of a Waldorf-Astoria or Plaza Hotel, walking
into their lobbies or guest rooms elicit pleasurable emotions that exude a heightened
level of importance. Just like premium fashion labels are being faced with the
challenge of demonstrating their value proposition via e-commerce, a 2D world
where their high-end, cashmere, hand-dyed, $2,000 sweater cannot demonstrate the
value of its touch or weave against a photos of a mass-produced sweater of a
similar style/silhouette priced at $45 on Amazon, the luxury hotel industry is
figuring out how to bring luxury and ease to a host of digital consumer
platforms.
One way hotels are creating a premium user experience
through digital is via smart phones. By turning guest smart phones into a
travel tool, chains like Marriott have piloted app check-in prior to arrival, the
ability to order room service, call their cars from valet, book excursions, and
access room keys all from the Marriott Bonvoy app. A guest holds the command
center for their stay in their hands and removes inconveniences like waiting
for checkin-in, car service, or a concierge and eliminates having to deal with
replacing lost room keys. Gone are the days when a guest might arrive at their
hotel room multiple floors up and all the way at the end of the hall only to
realize their room key has been decoded or lost, requiring a frustrating
journey back to the front desk and having to wait in another line. Luxury
hospitality aspires to ensure ease is at the core of every guest stay.
Of the challenges facing the hotel industry, home-sharing companies
like Airbnb and online travel agents (OTA’s) such as Kayak and Priceline are
among the greatest. In 2019, Airbnb grew by 30% and demonstrated superior
growth to hotel giant Hilton, the second largest hotel conglomerate in the
world. And while home-sharing is threatening their market-share, OTA’s
significantly affect profitability, often times taking 20% of any room fee
booked via their platforms. While most hotels have had to participate in intense
price-cutting to stay competitive, the luxury segment relies on exclusivity and
could suffer brand damage if resorting to similar tactics.
In response to this challenge, STANDARD International came
up with their own solution, ONE:Night. ONE:Night is an app that hits the sweet
spot for the hotel, their employees, and the consumer. Leveraging consumer
brand loyalty, data that supported a significant decline in full-price bookings
after 3PM as well as data that supported a significant number of same-day bookings
within local geographic purchasing points, their platform allows guests to book
same-day rooms after 3PM at rates far more competitive than those of OTA’s
while still turning a profit. ONE:Night offers guests luxurious accommodations
at an array of their properties at a fraction of the cost. In turn, it expands
their market opportunities by rewarding loyal guests with low commitment,
last-minute adventures and introduces new guests to their brand and unique guest experience. Additionally, they’ve
leveraged the power of their employees by providing them unlimited discount rates
for friends and family. This accomplishes the same benefits as ONE:Night, while
also providing the employees with the means to act as brand ambassadors.
Similarly
to Marriott’s Bonvoy app, ONE:Night extends the luxury guest experience beyond
their hotel rooms. Their site boasts, “Beyond a bed, browse our hour-by-hour
experiential timeline of insider tips to get the most out of your adventure.
From the art on hotel walls, to the secret drink at the bar and the best coffee
shop around the corner, this is your go-to for things to do.” Both
companies model actions taken to transform 2D digital space in order to bring
to life the unique value, dynamic aesthetics, personalized services, and
experiences that can only be had at a luxury hotel.
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