How hotels can personalize the customer experience to compete with Airbnb
Companies like Airbnb have blown the traditional market wide open and the most amazing thing about this service is that it owns no assets apart from a really well-designed, digital service. Hotels need to up their personalisation game.
The Airbnb service experience
I recently relocated my whole life from Helsinki to London with family and all our personal possessions in tow, it was hard work I can tell you.
A few weeks earlier my partner had booked a temporary Airbnb as a stopgap, while we waited for our new London apartment to be refurbished. At the time I hadn’t realised but the wonderful thing about Airbnb is the variety.
London, of course, has more choice than many cities, but it was less about the number of apartments to rent, more about the interiors of those apartments and the visual quality of the web experience. I remember my partner sitting happily for hours on end, looking at different places like she was perusing World of Interiors magazine.
One of the great things about the Airbnb experience, is that you’re in total control.
The photos of the apartments allow you to see small details that strum your emotional heartstrings. For example, a David Bowie picture on the bedroom wall or a kitchen table like the one you had in your grand parents home, the old scruffy teddy bear sitting on the bed in the kids room waiting for a hug.
These items are personal, they have a story and you relate to them in your own way. They draw you in and create a strong sense of belonging that makes you feel like you were always meant to stay here. 'This is my kind of place'.
The next step of the service experience is even more compelling; you actually get to talk with the owner of these objects and this beautiful apartment. You get a chance to ask about certain details and in the best cases you actually feel like this total stranger is a friend, someone who is there to listen and make every little thing feel just right.
In our case, when we turned up at the apartment we booked, we met a guy called Dorian who was waiting there for us patiently, even though we were late. He gave our tired family a big smile and happily carried our insanely heavy luggage up two flights of stairs.
Dorian showed us around our “home away from home” with great pride and passion. He gave us complimentary gifts, one white wine and one red wine, some bread, cheese, milk and chocolate biscuits for the kids. And to top it all off, after he left he sent us a long list of recommendations for breakfast, dinner, family friendly bars and more. Amazing!
Now that’s what I call personalisation and one reason why established hotel chains are feeling the pain. Companies like Airbnb have blown the traditional market wide open and the most amazing thing about this service is that it owns no assets apart from a really well-designed, digital service.
How can hotel chains compete?
So how can hotel chains compete? Well it’s simple; they need to up their personalisation game.
As well as re-training staff to increase levels of systematic and ad-hoc personalisation, they can also design new digital tools that do this job for them in multiple different ways and channels.
Take for example what the automotive industry has done recently when it comes to choosing the right car to buy. VW has developed a fun, immersive web experience where car buyers can literally build their car from scratch, choosing model, engine size, colour, wheels, trim and interior.
Personalisation is huge and everywhere and can be big business. The whole iPhone/app concept is built on this foundation.
The phone is not your iPhone until you fill it up with your apps. Everyone’s iPhone is different.
Christian Lunden, Head of Future Business for Nordic Choice Hotels, has seen some interesting examples around the hospitality industry when it comes to personalisation.
An example of this is the walk-in closet Nordic Choice has in the Clarion Collection Tapto in Stockholm. In a room, guests are given a selection of their favourite clothing brands to try on. If they find something they really like, they can add it to the bill. Minifashionbar.com has delivered a very similar solution.
Wouldn't it be great if your room was exactly how you like it, every time you stay?
Imagine entering a hotel room set at the right temperature, the music you had playing in the car is now playing in the room, the lighting responds to your presence and you slump into a perfect mattress and pillow with your favourite TV programs, Instagram feed and social media services easily accessible on the HD screen.
A few of your favourite candies are next to you on the bedside table. In the morning your preferred newspaper is ready to download and read.
To be able to achieve these levels of unique personalisation hotels need to know guests much better. Digital channels, especially mobile, play a key role in this development, allowing guests to profile themselves and provide rich, contextual information.
This takes us back to the need for recognition as the clear starting point for many of these value-added benefits. Digital channels are really the only way to develop deep and systematic recognition of guests and the only way deliver back personalisation at scale in both digital and physical channels.
The key to getting guests to provide more personal data and preferences is being able to clearly show the benefits and rewards of doing so. For a start it helps if your brand is strong and appeals to your guest in more ways than one. Communicating a clear set of values helps the guest to find and relate to you in the first place.
The rewards can come in all shapes and sizes and more so now than ever before it’s not enough to offer the traditional “member points” or free night stay.
Recognise and reward
Guests want rewards that align with their lifestyle and are more meaningful. For example, discount on the clothing brands mentioned earlier, access to exclusive content or events, even spontaneous gifts every now and again go along way to build guest loyalty and up re-booking rates.
Only after hotels recognise guests are they able to personalise in a meaningful way that begin to compete with likes of Airbnb. Hotels should not be pushing the panic button just yet, the industry has a variety of opportunities ahead of it by embracing digital and putting personalisation at the top of its must win battles.
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