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Digital Insights (ADI) report that ‘70% of Millennials would rather spend on amazing experiences than on tangible items’. This obviously creates a massive opportunity for the hospitality sector – if the correct infrastructure and systems are in place. Digital transformation in the hospitality sector should deliver:

  • a more personalised service for the customer
  • greater efficiencies/less waste/lower costs for the supplier

Gone are the days when a goldfish bowl full of business cards on the reception desk was considered cutting-edge customer engagement. Millennials interact with the world via their smartphone – in 2016 65% of same-day hotel reservations were made this way. There are two overriding reasons to create a slick, mobile-friendly online booking experience:

  • Millennials expect it.
  • It allows the capture of granular customer data.

Customers are increasingly willing to share personal data provided that they trust the recipient and in return receive a more customised experience, which might include:

  • Reduced waiting times.
  • Automated check-in.
  • Digital room access.
  • Favoured table locations, dining facilities (Instagram-friendly tables) or hotel room preferences.
  • Tailored menu recommendation based on previous purchases and avoiding known allergies.
  • Digital newspapers.
  • Digital concierge service (delivered via chatbot)
  • Personalised excursion or restaurant suggestions.
  • Complimentary gifts on birthdays or anniversaries.
  • Targeted discounts and/or promotions (potentially tied to key dates).

For the supplier, the major benefits come when detailed personal data on customers’ habits and preferences are overlaid onto big data (social media, trend analysis, weather forecasts) to extract useful insights, which might include:

  • Increased customer loyalty.
  • Reduced staff headcount.
  • Smoother order flows.
  • Swifter payment processing.
  • Using weather forecasts to predict footfall and/or menu choices.
  • Optimisation of market trends by tailored discounts and special offers.
  • More efficient stock ordering.
  • Reduced waste.
  • Reduced energy consumption.
  • Increased publicity – 65% of Millennials believe that sharing their experiences on social media platforms adds to the enjoyment.

To discuss how digital transformation could help your business optimise similar benefits please contact us.