REGULAR UP IN THE CLOUDS
As TC columnist Max Adam, Sales and Marketing Manager at RP Adam, continues his discussion on digital disruption in the cleaning industry,
he looks at how it will impact some of the key sectors supplied by Arpal Group, starting with hospitality and facilities management.
Building on the two previous articles in this series, parts three and four examine the potential impact of digital disruption on some of the key sectors supplied by Arpal Group, beginning with hospitality and facilities management. Part four will cover residential care and the public sector.
HOSPITALITY From the early days of computer reservation systems, ICT has been core to running an efficient and successful hospitality operation. The digital change currently taking place in the industry is at a completely different level to this.
A convergence of digital forces is reshaping global hospitality at a faster rate than at any time in history. Within five years, the sector will look very different from today. Most industry observers agree that hospitality operators will need to ‘adapt or die’.
The digital forces reshaping the industry are broad ranging and include the declining importance of hotel brands due to the growing power of OTA’s (Online Travel Agents) and other online intermediaries; the rise of social media and customer review sites such TripAdvisor; ubiquitous mobile connectivity; smartphones and apps; the market entry of disruptive start- ups from the sharing economy such as Airbnb; big data and predictive analytics; automation, hotel robots; and the emergence of a new breed of empowered, constantly connected customers (Gen C).
As a consequence of digital disruption, every stage of the customer journey is being transformed, from the initial information search phase, through booking, the on-property customer experience to checkout and beyond.
30 | Tomorrow’s Cleaning
The enhanced expectations of constantly connected and mobile customers are one of the main drivers of digital change in the industry, and it is no longer just a ‘young people’ thing. By 2017, 88% of the UK population will have mobile internet access. Mobile and tablet hotel bookings are already beginning to overtake ‘traditional’ web-based booking.
“The enhanced expectations of
constantly connected
and mobile customers are one of the main drivers of digital
change in the industry, and it is no longer just a ‘young people’ thing.”
Constantly connected, mobile customers are leading the way in driving technological change. Providing free, high speed and reliable wi-fi is no longer up for discussion. Constantly connected, mobile customers expect mobility and seamless connectivity. They expect to be able to access content when they want using whatever platform or device they wish. The facility to book, pay safely and easily on the go has become a ‘given’. When they post a question or comment on social media, they expect a response from the brand. Perhaps most importantly of all, they expect personalisation of service at all stages of the customer life cycle.
The ability to engage with constantly connected, mobile customers presents many opportunities for hospitality operators. Business strategies can
be redesigned for the digital age with data gathered from mobile messaging and social media being used to better understand preferences and expectations leading to personalised customer experiences. Mobile can be used to simplify all stages of the customer journey – booking, check-in, smartphone room controls including door entry, check-out and post-stay follow-up. Opportunities exist for increased revenue through quick responses to mobile requests for additional items and amenities.
The potential threat from new market entrants such as Airbnb will require innovative ways of building brand loyalty through providing unique customer experiences, supported by digital technology.
While exciting opportunities exist, the main challenge for hotel operators is to digitally transform their business. This raises complex strategic, operational, organisation, and people and resources issues, to be examined in the final article in this series.
FACILITIES MANAGEMENT As with the hospitality industry above, a convergence of digital forces are beginning to disrupt the facilities management sector, including the Internet of Things (IoT), artificial intelligence (AI), ‘the cloud’ and ‘big data’.
With FM executives coming under increasing pressure to improve the efficiency, reliability and environmental impact of their estates, while at the same time, managing increasing building complexity, the sector is becoming increasingly ‘smart’. According to a recent study by ABI Research, global smart building facility services revenue will grow
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