Question

List and discuss FOUR (4) ways in which social and digital media are transforming the way in which consumers access and use services such as hospitality services provided by Accor Hotels.

Answer 1

List and discuss FOUR (4) ways in which social and digital media are transforming the way in which consumers access and use services such as hospitality services provided by Accor Hotels.

(I). First Way: Customer service communication

The customer service (CS) interface between customers and CS representatives has changed as technology evolved. People now prefer to text in requests for more soap or towels rather than bother hotel staff with an in-person or over the phone request. Hotel guests don’t even have to check-in at the lobby when they enter the hotel, some hotels offer an online check-in experience that allows them to enter their hotel room directly with their phone or other electronic entry keys. The customer service hotel lobby desk is becoming less useful for the younger generation, replaced with impersonal technology requests.

(II). Second Way: Personal planning/booking

In the past travelers would need to book travel through travel agents that were the experts in travel and would provide “best cost” through a vacation bundle which includes airfare, lodging and sometimes food. Now with greater access to information through technology, travelers can research various travel options and costs and create a vacation tailored to their specific needs (“unbundling” associated services). Also, travel agents historically sell people on the hotel features rather than the experiential features of the area (Disney Adventures does an amazing job of creating VIP experiences focused vacation options to destinations around the world). People currently want to purchase experiences rather than products.

(III). Third Way: Reviews and reputation of businesses

The number of smartphone users grew substantially (8 times) from 2008 to 2015. Most of the population in the US and abroad have access to the collective knowledge at their fingertips; with that access comes the availability of information and reviews of almost anything that interests an individual. Travelers can access thousands of reviews for a hotel, and they can see if the hotel meets their needs for their price range. The article found that there is a direct customer review-reputation-pricing relationship. People are more likely to pay more for a brand with a higher rating (reputation). This relationship exemplifies the need for hotels to exhibit excellent customer service so they receive glowing reviews from the customers.

(IV). Fourth Way: Online content and exclusivity

Previously, hotels would create flyers that would list amenities available at the hotel, and the flyers would only be updated once a decade, so they would become stagnant and obsolete very quickly. Now hotels can market themselves online by promoting sales or creating how-to-guides or press releases and only releasing this information for people who interact directly with their website. This allows the hotel to constantly create and publish new content that can be targeted to their main customer base. Also, if customers book directly through the hotel website, the agency fee (typically 20-30%) can be cut out and the hotel can receive that extra percentage as profit. It greatly benefits the hotel if the customer books directly through their website, which is why it’s so important for the hotel to create unique content directly related to their hotel brand/location that will interest their customer base.