The case for mobile technology

In today’s technology-filled world, it’s no surprise to think smartphones would be a key factor in connecting guests to their hotels of choice but how big a role do smartphones and other mobile technology play? Seeking answers to that question led to the genesis of Oracle’s just-released study, Millennials and Hospitality: The Redefinition of Service. Its findings deliver an emphatic message to hoteliers about the importance of mobility:

Embrace it, quickly, or risk a fate worse than shrinking revenue – the loss of relevance.

Our study focused on millennials, who now represent the largest demographic group in the US with a population of 83 million, outnumbering baby boomers and Generation X’ers. Furthermore, they’re projected to account for 50% of the workforce by 2020. Millennial consumerism will reshape every industry worldwide, and in hospitality, millennials are already triggering change with every tap of their mobile devices. Indeed, their use of mobile technology in hotels and restaurants is far more pervasive than many hospitality leaders may have thought. Understanding what millennials want from mobile will be critical not only to win their allegiance, but to maintain it. 

Make no mistake: millennials in every country are embracing mobile devices to conduct core functions with hotels. According to our survey of 9,000 millennials in eight countries, 46% already had booked a hotel room using their mobile, and 20% had checked into a hotel through similar means. Only 12% had ordered room service by smartphone, yet access to that opportunity was the top request when millennials were asked how else technology could improve their stay. 

Millennials also covet freedom of choice, meaning options to receive hotel services or access opportunities whenever and wherever they want them. The latter was best illustrated by another finding: only 11% reported a willingness to pay for hotel-provided content. But such interest increased to 36% when they were given the option to enjoy their content – as well as hotel content – with their own devices. 

What hoteliers must recognise is that mobile technology has led to a seismic upheaval, shifting marketplace power to consumers. Mobile devices give consumers instant access to almost anything, raising expectations that no need shall go unfulfilled. 

The only way to meet such demand is for hoteliers to accommodate guests’ use of mobile technology – and better yet, enhance their devices by providing apps or other services that enrich their stay. According to our survey, 52% of respondents said they want to use their mobile devices to take advantage of loyalty programs offered by restaurants, bars and coffee shops. They want to be acknowledged with personalised rewards. For hoteliers, such mobile-driven programs represent a tremendous opportunity to collect invaluable data about guest behaviour and deliver targeted promotions. 

In similar fashion, hoteliers also need to equip staff with mobile devices of their own so they can better serve guests. Staff members equipped with tablets, for example, can be untethered from the front desk and extend service off premise, offering a personalised welcome and accelerating check in. They can use mobile applications and hotel operational platforms to leverage guests’ profiles, preferences, stay history and consumption patterns. Likewise, mobile technology can be customised to address the needs of housekeeping and maintenance staff, providing them with critical real-time data to immediately respond to – and resolve – guests’ concerns.  

Keep in mind that empowering hotel employees with mobile technology does more than improve operations: it boosts staff morale, too. Millennials, like all workers, want to make meaningful contributions, and mobile technology provides them the means to that end. But our survey showed that more than one third (36%) of millennials who had worked in the industry in the past five years said their employers’ use of technology was lacking and had much room for improvement. What’s worse, only 15% said their employers sought their feedback on using technology more effectively to improve operations and service. That’s a missed opportunity, because they’re bound to have plenty of insightful suggestions. 

Ultimately, mobility is needed because it’s the gateway to providing relevant, timely, individualised experiences – ranging from customised perks for guests to valuable information updates to specific employees. Delivering such experiences consistently and at scale will increasingly become a prerequisite for success. 

Indeed, that point was validated in another major Oracle study (The Era I Enterprise: Ready for Anything), which recently surveyed 300, C-level executives across a spectrum of industries in North America: 84% said their organisation has experienced a trend toward customers wanting a more individualised experience. But fewer than 20% gave their organisation an ‘A’ in its ability to offer highly individualised customer or employee experiences. The others acknowledged weaknesses such as an inability to “turn on a dime” in response to change or opportunity, offer highly individualised products/services, and respond effectively to changing market conditions. 

How does your hotel earn an ‘A’ rating? Integral to any solution is employing technology capable of continuously adapting to – and anticipating – guests’ ever-changing needs. And for all the reasons cited already, mobility needs to be a key component of such a platform. 

Addressing the so-called ‘Age of the Individual’, 81% of the participants in The Era I study believe there is an important link between cloud-based IT solutions and their organisation’s ability to deliver individualised employee and customer experiences.

Such a strong endorsement of cloud reflects its ability to address one of the top challenges facing IT: reducing cost and complexity. Industry experts say today’s predominantly premise-based IT operating model is unsustainable, considering that 75% of expenses are typically drained by routine maintenance and integration efforts, leaving only 25% available for actual innovation initiatives. 

For companies willing to invest in individualised guest experiences, a healthy return likely awaits: according to the Era I report, organisations estimate that if they were able to successfully offer customers and employees a highly individualised experience, they would earn an additional 18% in annual revenue. 

But it’s paramount for hoteliers to remember that today’s guests – for all their reliance on technology – still value human connection, too. It’s not about replacing service with technology; it’s about enhancing service with it to create the memorable moments they covet.

Paul Finch is the senior director of Oracle Hospitality.