Grey Ocean @ Hospitality on 17 March
HSMAI Special Interest Meeting: Grey Ocean @ Hospitlaity on 17 March
"Life goes so fast so always eat your dessert first!”
Yes, life goes fast but also the demographic earthquake called aging goes fast. The age group 25 to 49, being the most important age group in the worldwide economy, is shrinking with an impressive impact. And at the same time, the 50+ market with a relatively high net disposable income and equity, is increasing with an impressive impact. A Wake Up call for the hospitality industry!
In Edgar Keehnen’s new textbook "Grey Ocean Strategy - Agewise Marketing for the Mature Consumer" he describes clearly how to develop a successful Grey Ocean Strategy. But how do we develop successful strategies in the hospitality industry to exploit the opportunities of aging as a key force driving change?
Jointly with Mr. Bosman he started writing the next book 'Grey Ocean Strategies for the Hospitality Industry'. Results from the recent GreyOcean@Hospitality research programme from Hotelschool The Hague, Hospitality Research, will be referred to in this new textbook.
The same applies from insights from the industry for which the Round Table discussion March 17, endorsed by the HSMAI, is organised.
Boosting the end phase of the customer journey
The article ‘Boosting the end phase of the customer journey’ was written by Hotelschool The Hague students: Alexandra Sprangers Bokelund and Dominique Hendriksen, for House of Hospitality.
The customer journey has for a long time been important to consider within all types of businesses. However, as the world is progressing and the demand of consumers is changing rapidly, the customer journey has become vital for not only businesses, but also for cities. The House of Hospitality provided the students with an opportune possibility to create a project aiming at testing the possibilities of creating a prototype(s) for the end of the customer journey.
Current research shows that the era of solely focussing on single touch-points during the pre-departure and arrival stages are over. The time has come to focus on the complete customer journey, including the end. By taking control of the last impressions of a visitor, The Hague cumulates the experiences of a visitor across multiple touch-points; enhancing the likelihood of increased satisfaction, as the overall perception is created at the end of a journey.
What is happening around the world?
Customers are changing; we are living in an experiencing economy in which the 'Internet of Things', globalisation, customisation and gamification play a huge role in customers’ changing behavioural intentions. Worldwide organisations are adapting innovations to their various business concepts, focusing on the end of the customer journey. The innovations are either focusing on surprising the customer or taking away their ‘pains’ at the end of their journey. Such innovations pay off in terms of revenue, costs, overall satisfaction and have a competitive advantage.
With the House of Hospitality community, an ideation event was hosted, referred to as the Idea Generation, to come up with innovative prototypes that could be used as a product for further research on the end of the customer journey.
The purpose of creating a prototype was to test the impact at the end of the customer journey. During the evaluation process, all ideas and pre-researched innovations resulted in generating two prototypes that stimulate visitor engagement at point of departure. The Royal Farewell and the Welcome Home Gift.
Curious about the winner? Read the full article
"A happy customer is not always a loyal customer"
Mr Bosman, has written an interesting Dutch article for Hospitality Management on “Retaining Happy Customers”. Nowadays the hospitality industry is acknowledging the importance of customer experience and building a loyal customer base. In light of this, Mr Bosman is currently doing research on customer loyalty, specifically the “Paradox of Delight”.
Interested? Read more by following this link: Mr. Bosman
(Please keep in mind this article is written in Dutch.)
RAAK project "Gastvrijheid Verdient"
On 7 September Hotelschool The Hague organised the RAAK “Gastvrijheid Verdient / Hospitality Pays Off” conference at the Amsterdam Campus. The event focused on a user-friendly toolbox that will enhance guest experiences by selecting and training genuinely hospitable staff.
The conference was hosted by Daphne Dekker, and keynote speakers Prof. Vincent Magnini from Virginia Tech and Dr. Rendel de Jong from Utrecht University captivated the audience with their presentations. During workshops the audience got to experience first-hand how user friendly the toolbox is.
For more information press this link The Toolbox or the button on the right.
"The city of The Hague wants to offer its visitors a WOW-experience"
Interview with Karoline Wiegerink, professor of City Hospitality, on NRIT Media, about the collaborative community Hotelschool The Hague and the municipality have founded in the “House of Hospitality”.
In the article, Karoline describes how the cooperation between all stakeholders, from the tourist sector to other businesses, services as the public transport company and local residents— helps to increase the positive experiences of visitors (“WOW”-moments) and to eliminate or reduce their negative experiences at other touch points (“AUW”-moments).
The article concludes that the The Hague approach to City Hospitality can be expanded to other city destinations. Read the interview with Karoline Wiegerink (in Dutch).
On June 4, RMAPI conference took place in London. RMAPI (Revenue Management and Pricing International) is the international professional body for practitioners of these disciplines.
The conference was mainly visited by Revenue Managers and Revenue Directors. There were five key speakers at the conference, addressing issues related to revenue management forecasting and revenue management technology. Larissa Koupriouchina presented a study conducted as a part of her PhD.
One of the challenges of revenue management is to produce an accurate forecast. Larissa’s research focuses on understanding adjustments introduced by revenue managers to the RMS (Revenue Management System) generated forecasts. Pitfalls related to monitoring forecasting performance were discussed. The presentation showed how a recent study challenged widely-accepted views on forecast assessment in hotels. The presentation was very well received and there was a lively discussion with the industry representatives during a Q&A session and the rest of the day.
On June 2, “Revenue Systems” event organised by RevenueProfs took place in Amsterdam. RevenueProfs is an interactive Revenue and networking platform, powered by HSMAI for revenue professionals who are in charge of “Profit maximisation” in their company. Revenue managers, revenue directors and revenue management solution providers visited the event.
Three guest speakers shared their views and provided interesting real-life examples of how Technology and Revenue Systems can be used to make better decisions on revenue and profit optimisation. The first speaker, Gino Engels, Co-Founder of OTA Insight illustrated typical dilemmas hoteliers face in a rapidly changing distribution landscape and showed examples of channel optimisation strategies. He spoke about importance to know when and how to use: (1) “commission overrides” on OTA’s, (2) hotel market demand data, (3) rate intelligence information and (4) review ranking & review analytics.
The second speaker, Margitte Verkruijsse, Vice President Business Development of Snapshot spoke about “Big data” and so-called “small data” that hotel can and should use in order to make informed decisions. Ms. Verkruijsse expressed a belief that data will be a key drive in our new economy and “data is new soil” on which everything else will grow. Managing hotel demand is a challenging task, since the IT landscape is fragmented and complex. Many system vendors dictate which data can be exchanged between applications. There are cases when in order to generate a standard report for a Revenue meeting, reports from multiple systems have to be generated and combined in Excel. According to a study conducted in the UK, mentioned in the Snapshot’s presentation, 76% of hoteliers heavily depend on Excel for their RM decisions and often feel that they spend more time on “managing Excel” instead of “managing hotel demand”.
The third speaker, Quentin de Metz from PriceMatch, discussed three generations of Revenue Management Systems and their evolving role in RM decision-making and rapidly changing distribution landscape. Only in Amsterdam, according to PriceMatch there were more than 10.000 additional addresses on airbnb. Bookings from mobile devices are increasing (especially for a shorter booking window), there is a 20% projected growth of mobile bookings for 2015. New market players are coming up with business models that potentially could be disruptive.
I returned full of inspiration and examples that I would like to share with my next group of Revenue Management students (August 2015). An important takeaway was that Revenue Management Technology is becoming increasingly important AND needs to be paired with skillful professionals able to use it to create competitive advantage. I am enthusiastic to see a strong link between the topics presented by the industry speakers and my PhD research on Revenue Management Systems and on how Revenue professionals use them.
Lecturer & Researcher in Revenue Management
Revenue Management Education
On May 1 and 2, Larissa Koupriouchina attended an inaugural Revenue Management Education (RevME) Workshop on teaching Revenue Management (RM) at the University of Delaware (UD).
“This is a groundbreaking seminar because we are bringing faculty from all over the world together to discuss revenue management with industry leaders from hotels and revenue management data providers,” said UD Department of Hotel, Restaurant and Institutional Management chairperson Sheryl Kline. The opening session explored skills the hotel industry expects students to acquire. All participants agreed that there is a need for qualified revenue managers with a unique skillset. Please click here to read a full story, which contains more workshop details and extended views of industry leaders.
Forecasting was selected as a key workshop theme, due to its utmost importance. On the first day Larissa delivered a presentation on Monitoring Forecasting Performance. Both industry and education supported her concerns about the way forecasting performance is currently measured.
Three key lessons to share:
Lesson 1. Forecasting is a cornerstone. Organizers selected it as the key themes for this inaugural event. Top universities teach forecasting for approximately half (!) of the semester.
Lesson 2. Excel skills are a must have! Revenue Director from Hilton Worldwide acknowledged that if a candidate does not know how to use Pivot tables, VLOOKUP function and advanced graphing functionalities, he will not continue the interview!
Lesson 3. Exciting career opportunities. One of the Revenue Directors recently interviewed 20 students from a top US university, failing to find even one suitable candidate, while career opportunities are excellent. A graduate with good RM knowledge can realistically earn around $250,000 (!) within first few years after graduation.
from left to right: 1) Larissa Koupriouchina, HTH lecturer and researcher Revenue Management; Dr. Zvi Schwartz – UD Professor; Dr. Sheryl Kline – UD Professor and Department Chair.
Innovation in Hospitality Education
The Hospitality Research Centre at Hotelschool The Hague proposes an initiative to give an overview of the latest insights on the future of hospitality education in a book on “Innovation in Hospitality Education”.
We are inviting academics and practitioners in fields as Hospitality, Hospitality Education and Training and in Educational Research and Development to submit chapter proposals.
Click here for more information.