Hotel IT Checking in for attribute-based shopping
H
ospitality is seeing changes in technology as extensive as those in aviation – changes in systems and security, data and distribution,
customer service and workplace practice. Now attribute-based shopping is poised to bring to the sector what ancillary sales have brought to airlines – at least, that is the view of Joe Youssef, Amadeus executive vice-president for strategy and marketing for hospitality. Youssef explains: “Hospitality has become a new pillar of the Amadeus business. We have our global distribution solutions, serving our travel channels. We have the airline IT distribution business and hospitality has become a new pillar. We have also a key diversification pillar that we call Strategic Growth Businesses that includes activities such as airport IT, rail and payments.” Amadeus’ acquisition of hospitality
technology and data services firm TravelClick in October 2018 marked a significant expansion in the sector. “The acquisition propelled us into the independent market,” says Youssef. “Roughly 60% of global hotel supply, from a number of properties perspective, is independent and TravelClick is a leader in the sector. We have roughly 3,000 employees in hospitality now and work with 40,000-plus unique properties.” He identifies a “key transformation
in hospitality” as “how to enhance and personalise the guest experience”, saying: “That drives loyalty which, in turn, drives increased bookings and increased profitability. “Hospitality is increasingly commoditised.
Amadeus is at the forefront of developments in hospitality technology. Ahmed (Joe) Youssef, Amadeus executive vice-president for strategy and marketing for hospitality, explains
Consumers are becoming less-brand loyal.” But at the same time: “Guests expect a more- personalised experience and don’t want one size fits all.” The answer is ‘attribute-based’ shopping and booking. Youssef says: “I hate the phrase.” But he explains: “Do you want to personalise your hotel room? For example, do you want weights in the room? Do you want a yoga mat? Would you like decaffeinated coffee? A special pillow?” “Today, this is not possible, but it will become possible soon. We are moving from a property-centric paradigm to a guest-centric one and to transparent pricing.” Youssef notes a survey Amadeus recently
conducted in the Asia-Pacific region suggested 75% of consumers would welcome attribute-based shopping and says: “The industry is asking for this.” He acknowledges Europeans “can be
more conservative” than consumers in Asia in adopting new technology. But he argues ‘attribute’ adoption need not be slower in Europe “not once the world sees what attribute shopping can do”.
Benefits for guests and hoteliers Attribute-based booking means not only more-personalised rooms but also “consumers will be paying different prices” depending on the ‘attributes’ they book. “Pricing for a guest’s selected attributes
may be lower than the typical room-type rate since they’re only paying incremental costs for the attributes they desire on top of the base
%
10 15 20 25 30
0 5
From elsewhere in EU From beyond EU 24 | Travel Weekly Europe Report 2019 27% 21% 18% 15% 16% 26% 28% 19% 16% 9% 7% 1% From unknown country 19% 16% 7% 8% 14%
FIGURE 40: CROSS-BORDER PURCHASES, ALL ADULTS All purchases
30%
EU France Germany Italy Spain UK
Source: Eurostat
%
10 15 20
0 5
Purchase of travel/accommodation
Highest EU rate: Ireland (21%)
16% 13% 8% 8% 5%
EU France Germany Spain UK
Ireland unavailable. Source: Eurostat, 2017 (2018 data n/a) Italy data
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