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Digital disruption in the hotel industry





The hotel industry is embracing new digital products and technologies, disrupting the way consumers engage.

The way we communicate and find information is changing rapidly. In earlier days, print and broadcast advertising were the platforms used to reach an audience. Technology has the power to target consumers on an individual scale and process requests in very little time. As a result, it has been reshaping the marketing and customer experience landscape in which hotels operate.

The impact on hotels

Changes to technology have opened consumers to a much wider range of options when it comes to finding accommodation, and thus have significantly increased competition within the industry.

Comparison sites, such as Trivago, are allowing consumers to quickly find the best accommodation to suit their needs - whether that means it's more affordable, in an ideal location, or has certain amenities.

The inclusion of independent reviews on comparison websites allows users globally to book with greater confidence, according to research by Deloitte and Facebook. A massive 76 per cent of travellers refer to these reviews to gain better insights into the state of different hotels.

In order to be considered relevant by consumers, hotels need to develop an active online presence. This involves marketing via social media, responding to online reviews, and offering competitive deals to online consumers.

Meanwhile, over two million guests were accommodated by Airbnb in Australia in 2015-16, according to Deloitte. This popular home sharing app provides consumers with a variety of accommodation types at a number of different price points, further driving competition in the market.

Changing the way consumers interact

Digital disruption is creating a more competitive market for those offering accommodation. So how can technology be used to improve customer experience in hotels to help them compete with the rise of home sharing?

Virgin Hotels in the United States has developed a technological solution for their own venues, called Lucy. This app is integrated with their hotel systems, and allows guests to change thermostat settings, order room service, or communicate with fellow guest or hotel staff. The integration of smart technology with hotel rooms and services offers guests a more interactive and luxurious experience than they are likely to experience at an Airbnb.


Becoming a next generation manager

The future of the hotel industry relies on the innovation the next generation of managers. Le Cordon Bleu offers a Bachelor of Business (International Hotel Management) to help you step into leadership in a world of emerging technologies. Contact us today to discuss study options.

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