The document discusses the disruptive forces impacting the lodging industry, including changes in traveler demands and behaviors driven by technology, relationships, and loyalty programs. It also outlines disruptions in the competitive landscape for lodging providers, their need to improve efficiencies, and engage guests. Finally, it addresses disruptions in how lodging inventory is distributed through online travel agencies, meta-search sites, and supplier direct channels. The presentation argues that hoteliers must adapt to these changes or risk being disrupted, and that simplicity, hospitality, and a strategic focus on the guest experience will help win in this new competitive environment.

1. The Battle of Disruptive Lodging
Models and Technologies
HTNG – North American Conference
March 5, 2014 | Rancho Bernardo, CA
Image Credit: Brian Wilkins | Flickr (cc)

2. Introducing The Combatants
• Traveler (Demand)
– Consumers Want Value
• Faster | Cheaper | Better
– Disruptive Forces
• Technology | Relationships | Loyalty
• Lodging Provider (Supply)
– Businesses Want Profit
• Revenue Up | Costs Down | Earnings Growth
– Disruptive Forces
• Competition | Efficiency | Guest Engagement
• Channel (Marketing)
– Marketers Want
• Traffic Growth | Strong Conversion | High Margins
– Bridge Supply & Demand
• Online Travel Agencies | Meta-search | Supplier Direct
HTNG North American Conference
Image Credit: kagey_b | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 1

3. What’s Not On Today’s Agenda
• Outbound Travel from China
– 100 Million Outbound Travelers
• Wearables (Google Glass)
– Context Aware | Voice Interface | Beats 2 Second Rule
• Big Data
– Too Much, Fast, or Weird to Fit in a Database
• Apple iTravel Patents
– Integrating Travel Services in a Single Application
• Semantic Web
– How Various Data Entities Relate to Create Meaning
• Near-Orbital Regional Internet
– Use of Drones or Balloons as Internet Relay Stations
• Nanobots (Kurzweil’s Brain-Cloud Interface)
– Samantha (OS in “Her”) Becomes Visual & Tactile
HTNG North American Conference
Image Credit: gsz | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 2

4. The Multiple Persona Traveler
College Trip
Client Visit
Industry
Conference
Weather Delay
Family Visit
Romantic
Weekend
Family
Vacation
HTNG North American Conference
Image Credit: Greything | Flickr (cc)
Getaway with Friends
Battle of Disruptive Lodging Models and Technology
Wedding
Anniversary
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5. Traveler (Demand) Disruptive Forces
• Technology
• Relationships
• Loyalty
HTNG North American Conference
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Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 4

6. Traveler – Technology
• Dealing with Multiple Devices
– The Power of Mobile – A Constant Companion
– Telephone (Voice) Still Important
– Solution: Cross-Device / Channel Tracking
• Social Network Integration
– Extensive Preference & Behavioral Personalization
– Links Individuals to Friends + Deep Targeting Data
– Solution: Short URL / Campaign Tag Social Links
HTNG North American Conference
Image Credit: laverrue| Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 5

7. Traveler - Relationships
• Authentic Engagement
– Relevant Context – Focus on Guest Needs
– Respect – Traditional Spirit of Hospitality
– Solution: Training & Tools for Face to Face/Online
• Life Enhancing Experience
– Stress Reduction – Simplify Lives
– Create Positive Memories – Create Referrals
– Solution: Know Trip Purpose | Processes for Goals
HTNG North American Conference
Image Credit: laverrue| Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 6

8. Traveler - Loyalty
• Rewards Program Participation
– Points & Discounts are Transactions, Not Loyalty
– Reduction in Reward Richness Undermines Loyalty
– Solution: Measure Profitability & Sentiment
• Customer Lifetime Value
– Loyalty is Paying Extra for Something That is Loved
– Value Drives Transactions | Values Drive Loyalty
– Solution: Track Sentiment/Performance Over Time
HTNG North American Conference
Image Credit: laverrue| Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 7

9. The New 5 P’s of Marketing
The Old 5 P’s (Traditional)
• Product
The New 5 P’s (Disruptive)
• Paradox
– Creates Differentiation
• Price
• Perspective
– Only Customer’s Matters
• Packaging
• Paradigm
– Who & What You Are
• Place
• Persuasion
– Speaker | Message | Audience
• Promotion
• Passion
– Eagerly Seeking a Goal
• (People)
HTNG North American Conference
Battle of Disruptive Lodging Models and Technology
Image Credit: NASA Goddard Photo and Video | Flickr (cc)
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10. Lodging (Supply) Disruptive Forces
• Competition
• Efficiency
• Guest Engagement
HTNG North American Conference
Image Credit: Roadsidepictures | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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11. Lodging - Competition
• New Competitors
– Sharing Economy – HomeAway / Airbnb / Breather
– Unique Selling Proposition & Key Differentiators
– Solution: Guest-centric Focus Personalizes Stay
• Changing Service Profiles
– Hotels Less Control – F&B / Concierge Outsourced
– Sharing Economy Hosts Moving Other Direction
– Solution: Integrate Support Resources & Empower
HTNG North American Conference
Image Credit: Roadsidepictures | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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12. Lodging – Efficiency
• Guest Devices Now Part of That Person
– Want Netflix / Uverse Access While Traveling
– Want Wireless Access to Avoid Carrier Data Fees
– Solution: Easy Interfacing (a la Chromecast)
• Property-wide Interactive Guest Engagement
– Seamless Arrival/Room Access/Payments/Offers
– Bluetooth LE/Beacon: Who/Where/When Context
– Solution: Bluetooth LE Devices + Interactivity
HTNG North American Conference
Image Credit: Roadsidepictures | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 11

13. Lodging – Guest Engagement
• Relevance is King
– Right Message/Guest/Time/Place/Channel/Price
– Precision v. Privacy (Guest Draws Creepy Line)
– Solution: Test Extensively | Seek Feedback
• Contextual Engagement
– Real-time / Situational / Segmented / Geo - Offers
– Facilitated by Social Relationships / Active Apps
– Example: Targeted Facebook Dark Posts for Offers
HTNG North American Conference
Image Credit: Roadsidepictures | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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14. 7-Step Travel Process
INSPIRATION
(Why)
SHARING
RESEARCH
(Wow)
(Where)
TRAVEL
PLANNING
(What)
(How)
BOOKING
(When)
HTNG North American Conference
Image Credit: paul bica, Greything, | Flickr (cc)
VALIDATION
(Who)
Battle of Disruptive Lodging Models and Technology
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15. Channel (Marketing) Disruptive Forces
• Online Travel Agencies
• Meta-search
• Supplier Direct
HTNG North American Conference
Image Credit: williamcho | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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16. Channel – Online Travel Agencies
• Weaponized Discounting
– Merchant Model (Tax Shaving) & Comm. Rebates
– UK/EU Resale Price Maintenance & Rate Parity
– Solution: Total Revenue Management & GOPPAR
• Value-Added Cross Selling
– Supplier Discounts Not Creating Consumer Benefit
– Discounts Frequently Getting Absorbed as Margin
– Solution: Supplier- Centric Dynamic Packaging
HTNG North American Conference
Image Credit: williamcho | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 15

17. Channel – Meta-search
• Search Seeking Context
– Content Aggregation / Reviews Provide Freshness
– Defining Relevant Product & Preference Linkage
– Solution: Relentless Semantic & Local Tagging
• Channel Management Rising
– Challenging Traditional PMS/IBE/CRS/Switch
– Booking Messages Well Established
– Solution: Ensure Technology Partners Are Nimble
HTNG North American Conference
Image Credit: williamcho | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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18. Channel – Supplier Direct
• Fluid Website Architecture
– Responsive Design Based on Screen Dimensions
– Adaptive Content Based on Personalized Context
– Solution: Site Design & Experience Optimization
• Mobile Apps Grow Up
– Intermediary Apps Dominating Hotel Brands
– Utility Focus – Download Useless if Never Used
– Solution: Link Loyalty/Booking/Dest. Experience
HTNG North American Conference
Image Credit: williamcho | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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19. Review of Disruptive Forces
• Travelers (Demand)
– Technology
– Relationships
– Loyalty
• Lodging (Supply)
– Competitive Landscape
– Creating Efficiencies
– Guest Engagement
• Channel (Marketing)
– Online Travel Agencies
– Meta-search
– Supplier Direct
HTNG North American Conference
Image Credit: PhOtOnQuAnTiQuE | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
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20. Will Hoteliers Be Disruptors or Disrupted?
• Disruption is Inevitable
– Lodging Is a Highly Fragmented Marketplace
– As Herd is Thinned, Who Gets Culled First?
• Competitive Advantage Kills Legacy Methods
– Platforms | Partners | Processes – Are All Evolving
– Enterprise & Highly Interoperable Solutions Win
• As Complexity Grows, Simplicity Gains Value
– A Strategic Touchstone Should be Hospitality
– Life is Service & The Guest Is Always Right
HTNG North American Conference
Image Credit: HJ Media Studios | Flickr (cc)
Battle of Disruptive Lodging Models and Technology
Robert Cole ● RockCheetah | 19

21. The Battle of Disruptive Lodging
Models and Technologies
Thank You
Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: robert@rockcheetah.com
HTNG North American Conference
Battle of Disruptive Lodging Models and Technology
Image Credit: Ed Koren / The New Yorker | (All Rights Reserved))
Robert Cole ● RockCheetah | 20