The benefits of mobile marketing (mobile apps)in the digital arena of the hotel industry.

What is mobile marketing?
According to Marketing Land “Mobile Marketing involves reaching customers and prospects when they’re using the internet away from the traditional home/office desktop environment”. Because of the increased usage of smartphones, tablets and other mobile devices, mobile marketing is becoming increasingly important for the online business (land, 2015).According to Peelen & Beltman ” The ultimate promise of mobile marketing is to integrate some form of the organization’s presence into the everyday lives of its customer “.

Currently, everyone has a smartphone which they are using for multiple purposes such as stay engaging on social media, writing reviews, searching for information, booking an holiday and making reservations. For the hotel industry this is the opportunity to use mobile marketing in order to generate more customers. They have the opportunity to engage with their customer through mobile marketing which can create a noble experience for the customer (Anastasios A. Economides, 2009).

There are various hotels, who are using this mobile marketing approach. Often, the big chain hotels are using this mobile approach(mobile app) to engage with their customers. For smaller companies it is often not affordable to develop an app because it requires a huge amount of investment.

One successful example is the hotel app of Hilton called “Hilton Honor”. Hilton is a well known hotel chain around the world and is perceived as a very luxurious accommodation. Hilton has created an app, where customers can check in 1 day before their check- in date, customers will receive a notification if the room is ready, customer can order dinner through the app, the departure date can be easily changed and there are much more options. After they created this app, they were be able to reduce some of their fixed costs and were able to engage with their customer through to entire process (Expert, 2014).

The negative aspect of the mobile app is that some companies are not interacting with the customer after the stay. Often, hotels only interacting
with customers before and during the stay. Hilton came up with the brillant idea to interact with the clients after the stay. They have introduced
that the customer can earn points,if they stayed in one of the Hilton chain hotels. Customer can get discount in return of their points (Expert, 2014).

To conclude, mobile apps are very beneficial within the hotel industry. Firstly, it is a huge investment. However, the huge investment can result in decrease of fixed costs. Secondly, companies can interact with the customers before, during and after the stay and create a good experience for the customers through this online approach.

Bibliography

Anastasios A. Economides, A. G. (2009). Students’ thoughts about the importance and costs of their mobile devices’ features and services. Telematics and Informatics, 57- 84.

Expert, T. L. (2014, November 21). Retrieved October 11, 2016, from Hilton’s loyalty program (HHonors) explained: https://theluxurytravelexpert.com/2014/11/21/hilton-hhonors/

land, M. (2015, Janurary 2014). Retrieved October 11, 2016, from Mobile Marketing : http://marketingland.com/library/mobille/marketing

How can the hotel industry use Cross selling and Up selling in order to build a good relationship with their customers?

According to Evelyn “The difference between upselling and cross-selling is more than just definition; it’s about strategy. When it comes to the upsell, communicating value is most important, while success in cross-selling comes from appealing to the impulse buy”.

Cross-selling is selling one or more products to the current customer who is already purchasing a product from the company. The cross selling and up selling method has been already used by the low-cost carriers such as Ryan Air. The hotel industry can use both methods to generate more revenue and build a good relationship with their potential customers (Peelen & Beltman, 2013). Up – selling means to involve customers to spend more on an existing purchase, such as upgrading their standard room to a more luxurious room (Evelyn, 2015).

According to Peelen & Beltman “ During the growth phase of a relationship, engaging in cross-selling is of considerable importance in guaranteeing the continuity and further development of the relationship ”. Thus, the cross selling phenomenon is significantly important for building relationship with current customers.

Within the CRM, the client point of view is important during cross selling. For the hotel industry, it means that if an existing customer will contact the company, it must be possible to establish, which products have the superlative chance of being cross-sold (Peelen & Beltman, 2013).
The hotel industry can use numerous ways to do cross selling. However, the greatest way is to do cross selling within the product range, customers can buy another product within the same product category or they can buy a another product from the company from another category.

Within the hotel industry, it´s about knowing the customer. Doing cross- selling or up- selling should be personalized to each customer, should appear on the moment when the customer wants it and the customer should see the value of the product for what they are paying for. If the hotel industry, will be able to understand their customers and can provide the service on the right time, they can generate more revenue and build a good relationship with their customers. Customers are in the centre of the hotel business. If the hotel business will sell the right service on the right time, this can be converted in a good relationship. This will result in loyal customers.

In conclusion, hotels should offer the right product to the right customer on the right time in order to generate revenue and build a good relationship.

Bibliography
Evelyn, J. (2015, Augustus 11). Upselling and cross-selling: the difference and why it matters for hotels. Opgehaald van Travel Tripper: http://www.traveltripper.com/blog/upselling-and-cross-selling-the-difference-and-why-it-matters-for-hotels/

Peelen, E., & Beltman, R. (2013). Customer Relationship Management (2nd edition)

How important is co-creation to the hotel Industry

What is co-creation?

According to Peelen & Beltman“Co-creation is a form of open innovation. The word itself hints at the creative contribution of more than one person or entity. The focus is on the end-user and the place or context in which they live and experience the product and/or services. The needs and desires of the end-user are the starting point, not the technology, the patent, the factory or ready-made building blocks”.

The hotel industry is a service industry. The customers are the fundamentals of the business. In order to generate more customers, organization needs to engage the customers in the development processes. Since, the customer is the fundamental of the business, their needs and wants should be the starting point of the business(Peelen & Beltman, 2013).

If the customer is already engaged in the early stage of the development process, this leads to advantages for the industry. One of the biggest advantage according to Peelen & Beltman is “the inventors can get recognition for their work and derive status from it”. This will result in brand awareness, and the other advantage can be lower costs related to the last minute adaptations.

Despite the advantage, there are some disadvantages related to co-creation. For instance, the ho-tel industry is a difficult environment, because interaction with the customer has a direct influ-ence on their experience. Thus, the product should match the customer expectation (cocreators, 2015). Nevertheless, the advantage of co-creation has more benefits according to Peelen & Belt-man. Therefore, every organization should use the co-creation principle for their business.

A good example of co-creation is the online ideation of the Starwood’s Marriott Travel Brilliantly initiative. This is a well-executed online platform, where guests can submit their ideas and give their opinion on the ideas of their fellow guests. In conclusion, this approach is just an online sug-gestion box. However, the guests can share their ideas and give feedback, which can be used to improve the service. By doings this, the guest will be taken more seriously (cocreators, 2015).

In conclusion, co-creation is significantly important for the hotel industry. The co-creation prin-ciples has many advantages for the company which will result in brand awareness and loyalty. Customers wants to be heard and recognized. Therefore, if a company will interact with the cus-tomers according the co-creation principle, it will certainly result in higher revenue.

Bibliography

Cocreators, T. (2015). Co-creating the Hospitality Experience. Retrieved September 26, 2016, from http://www.thecocreators.com/co-creating-the-hospitality-experience/

Peelen, E., & Beltman, R. (2013). Customer Relationship Management (2nd edition)

Importance of the defensive strategy for the hotel industry.

According Peelen & Beltman (2013) there are three kind of value discipline, which are significantly important for organization, who wants to be unique from their competitors. The values disciplines are called: operational excellence, product leadership, and customer intimacy. Firstly, Companies who are using the operational excellence approach are trying to combine the price of the competitors, quality and the ease of purchase together. Secondly, companies who are using the product leadership approach are aiming for innovative products and wants to provide their customers with the best features. Thirdly, companies who are using the customer intimacy approach are only focusing on their relation ship with their customer, they want to engage their customers in order to have loyal customers.

Customer intimacy can be further divided in 2 strategies: The offensive strategy & the defensive strategy. The offensive strategy focusses on gaining new customer while the defensive strategy focusses on increasing customer satisfaction (loyal customer). Both strategies are significant for the hotel industry. Nevertheless, the hotel industry is a service industry and customers are the king of the industry, thus, they should focus on the defensive strategy (Peelen & Beltman, 2013) .

The last decades, tourism industry is growing rapidly. The huge growth has a big impact on the hotel industry. Nowadays, hotel industry are competing with each other in order to differentiate themselves with the competitors. However, trying to differentiate with the competitors in terms of products is almost impossible. Nonetheless, hotel can differentiate themselves in terms of the customer relationship( loyalty programs). Therefore, the hotel industry came up with some loyalty programs (Chen, 2009).

There are different loyalty programs in the hotel industry. Every hotel develops their own loyalty program. For example, The Hilton honors loyalty program is on the top of the list for business and luxury travelers. Participants can convert credits for frequent flier miles at 40 different airlines, and as an extra bonus, can cash in their frequent flier miles. Another benefit is that Hilton is partner with Visa, American Express. They are working together in this Hilton program and allows members to earn points for every dollar they have spend (Blog, 2016).

In conclusion, loyalty programs are developed in order to build relationship with the clients. They want to have loyal customers through the loyalty program and the loyalty program is part of the defensive strategy which is really important for the hotel industry.

Bibliography
Peelen, E., & Beltman, R. (2013). Customer Relationship Management (2nd edition).

Blog, T. B. (2016, 2 1). Top 5 Hotel Loyalty Programs. Retrieved 9 9, 2016, from http://bigdoor.com/blog/2014/03/11/top-5-hotel-loyalty-programs/

Chen, C.-F. (2009). Tourism expansion, tourism uncertainty and economic growth: New evidence from Taiwan and Korea. 812-818.