GuestSpan Speaks!

Chad and I spent two days in Las Vegas at the Hotel Design Expo (May 14-16, 2008). The convention was housed in the Sands Conference Center and must have included nearly 10,000 exhibiting vendors. Two full floors were devoted to displaying every conceivable item that could possibly be stuffed into a hotel room to improve its design and functionality.

This was our first trip to this conference. I couldn’t believe how many companies manufacture intelligence doorknobs for commercial purposes. Self-locking, personnel-tracking, microbe killing doorknobs were everywhere. (Did you know that they make a doorknob that kills about all of the bacteria and viruses that come off of your hand within 20 seconds? The coating is supposed to last for 20+ years! Jim Pinter or TownSteel was happy to show us how it all worked. With 6 kids, I’m going to install those doorknobs through my whole house.)

There was very little in the way of electronics at the show. A couple of vendors stood out, and I wish I had written their names down to give individual shoutouts. A few phone manufacturers were there. The coolest place we stopped was a virtual reality company that is doing amazing animation to preview cityscapes, design concepts and architectural renderings. The quality of their animations was top notch. (I can’t think of any use of their application in my life, but I’m going to work on it. I want my own virtual reality studio)

Chris’ HD Expo Conference Grades:

We met great people, but unless we’re a vendor there next year, I’m not sure if we’ll get excited enough to see a million shower heads, fabric textures and pillow displays again.

I don’t talk to librarians anymore. Can’t think of the last time I spoke to someone at the bank. Airline counters are a thing of the past. If I have 10 items or less at the grocery store, I don’t talk to a cashier (unless I have produce. Produce is complicated..). By the time I arrive at the movies, I go right to the concession stand and into the theater. When was the last time I went inside a convenience store to pay for gas? I’d never have to go into the store if they would simply put a drink dispenser next to the gas pump.

Every one of these areas in my life (and more) provide a self-service option. I am willing to take them up on their offer more often than not (except of course, in the case of produce. I can’t figure out how to ring up the right lettuce…)

And, judging by the number of growing terminals and the people at those terminals, I’m not alone. User interfaces are simple. The technology works. I can get what I want.

And, I’m not anti-people. I tend to like people. My wife is a people. My kids are people (in varying degrees). I’m mostly people myself.

But, I’ll tell you, there are some instances when I’m happier with my self-service experience than others. The library is fantastic. Easy. Quick. Scan a barcode on the outer cover of the book and be off. The grocery store, Wal-Mart and Home Depot are not my favorite. The self-checkout process is complex. Lots of payment options. “Unexpected Objects in Bagging Area?” ARGH!

Last week, I was speaking with Ram Thakur, PhD who is on top of self-service. He said that simplicity is the key. The more complex the process, the higher level of dissatisfaction. Makes sense to me.

But, self-service isn’t going away. It is getting smarter and will pop up in almost every area of our life. They don’t make mistakes. They are easy to use. They are less expensive and more consistent than humans and they don’t mind working at all hours without a break.

(Note: GuestSpan is very concerned with this topic as we intend to put self-service into every hotel room in the world. Hotel guests will get everything they want (food, product, information, service) more quickly than they have every experienced. Watch for us in your next hotel stay.)

According to an article in Hotel Business Magazine, Kimpton Hotels is making a big bet in what many would consider a bad market. Kimpton has raised $800 Million in funding for new projects to be invested in the next three years. The article states:

While much of the hotel investment community awaits further clarity on where true asset values currently are before making another move, Kimpton…has made a bold statement of faith in the market, the boutique sector, and more significantly, its own brand.

Indeed Kimpton’s strategy is bold. I think it also speaks to the real state of the market. Companies that are nimble such as Kimpton can benefit from the lowered asset values and expand their hotel portfolios. Kimpton CEO Michael Depatie is quoted in the article as saying,

“while there isn’t a lot of current activity, we expect that will change in the coming months. We’re very bullish.”

He continues,

“So in 2009 and 2010 there will be a moderation of new supply and if the economy comes back at that same3 time, that will bode well for asset values.”

It is as simple as buy low sell high. Kimpton is poised to take advantage of a lagging market and, what’s more important, they have the confidence in the resurgence of the market to do so. Further elaborating on how the company is approaching this, Joseph Long, Executive VP of Acquisition said,

“No one knows where the market is on the downward scale and whether it’s down 20%, 30% or 50%. And there is a dearth of deals getting done because the values are not being validated due to the lack of financing. But at some point that will change and it may be in about six months.”

I like Kimpton’s confidence in both their brand and the status of the market. In an era of negative media about the economic outlook it is good to see a company with a lot at stake taking risks to further their brand and their market position.

Terry Jones, founder and former CEO of Travelocity, told a major hotel brand:

“People don’t like to stay at your hotel. People like what they can do when they are at your hotel. That may be a business meeting, getaway or trip to see Grandma. They didn’t come to your hotel to stay at your hotel.”

Mr. Jones’ comment was not what the brand wanted to hear, but was true.

And, this thought applies to business travelers as much as anything. When I am on the road for business, I want to be a member of the local community. Those first couple of nights, eating at the close diners rather than the good restaurants, are not as enjoyable as they could be.

That’s why GuestSpan is creating a system that puts hotel guests right into the local scene from the minute they arrive.

I’m not just trying to create self-promotion in this post. I’d appreciate readers leaving comments about what they would like out of their travel experience. What information are you lacking that would help you make the most of a stay in a new city?

Also, take 3 minutes to be part of our survey audience. If you travel for business, take our 9-question survey by clicking HERE.

We are going to make your next hotel stay much better than you might have imagined.

The Cornell Center for Hospitality Research recently hosted a roundtable discussion on the risks and rewards of technology service innovations. Some of the topics hold a particular interest here at GuestSpan. Particularly in the area’s of using technology to create a better experience for hotel guests and improve the performance of hotel staff. A point one of the panelists made was:

“Regardless of how the innovation is implemented, it must be embraced by staff and management, and guests must see the changes as valuable.’ When innovations are meant to cut costs, for instance, both employees and guests may need an explanation of the innovation. One example that roundtable participants cited is the addition of self-service kiosks in some hotel lobbies. Employees regarded these with suspicion and guests were slow to adopt kiosks in some cases. Several participants suggested that the moral of that experience (and of other technological innovations) is that technology needs to be balanced with personal service innovations.

This is a good bit for any company or hotel looking to technology as a solution to service. If you are going to roll something new out you need to have the entire staff involved in educating guests on how this new technology will improve their stay.

Another are of discussion where GuestSpan shines is when it comes to ROI:

Measuring the return on the innovation investment presents an additional challenge. One logical approach is to measure customers’ responses to the change, typically with focus groups or surveys. Roundtable participants who have used focus groups said that they are not always reliable. Moreover, many customers do not want to be questioned.
Instead of taking surveys, managers could observe customers’ actual responses to the innovation-what they do, rather than what they say. Observing customers’ loyalty, or, for that matter, employees’ loyalty, could be one gauge of an innovation’s success. Other participants suggested that financially oriented measurements, such as share of wallet, might make more sense. In many cases, the most successful innovations are based on customers’ suggestions.

If you instituted a technology service solution that was aimed at increasing the orders in room service wouldn’t the best way to measure that be whether or not there were an actual increase in room service orders? I think that results will ultimately be the best gauge of success for any service innovation.

Hoteliers chant the refrain, “Our people (guest service staff) make the difference to our guests.”

Great.

But, not necessarily true.

I won’t spend time today talking about most of my business travel and the decline in guest service staff I have experienced.

Instead, let’s examine an article by Kate Leggett of KANA (A multi-channel client service company). Ms. Leggett talks about her experience of trying to build a relationship with a bank. After years of being a customer at her local branch, she realized that the bank didn’t know her any better than they did the day she opened the account.

In brief, when starting a home remodeling project, she opened a home equity line of credit. Nobody at the bank told her that a cash-out refi would have been less expensive. Shortly thereafter, a family emergency took her out of town and because she wasn’t thinking about her bank account, she incurred $250 of overdraft charges, even though there was plenty of money sitting in a side account. These events led her to think:

“After 10 years of working with my bank and being consistently disappointed, I considered what I valued in my interactions with my bank. Yes, having a personal relationship was important, but what was more important was that the bank help answer questions that I had, and to recommend basic financial plans tailored to my situation.”

She ended up finding an online bank that provided all the services she wanted, answered all of her questions and seemed to “know’ her better than the service people at the local branch. Kate’s concluding thought provides a lot to think about when considering the idea of service:

“I used to think that a long interaction for each service issue led to a better relationship. But now, I am not so convinced. A short, fulfilling interaction where you get what you want by looking for it yourself can be as fulfilling as one in which you are held by hand.”

To me, the message is that we have to rethink how we deliver meaningful service to clients, guests, patrons, etc… The presence of a person is less valuable than providing answers, no matter the interaction method.

Just something to chew on for those that claim that their people make the difference. You’d better have really good people if you’re going to beat technology.