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The Innovation Mind Set

Hospitality  Success  in  the  Digital  AgePresented  by:

Jason  McDonaldApril  9,  2016

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Open  Innovation  

“a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology.”

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Uber

•7  year  old  company  •More  than  60  countries  •More  than  300  cities•More  than  150K  Drivers    

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You  

•74%  of  bookings  come  from  OTAs  

OTA74%

Online  Direct26%

OTA  includes  a  small  amount  of  other  online  intermediaries  such  as  tour  operators  and  wholesalers.

Phocuswright & h2c Research OTA vs. Direct – Online Revenue Share European Hotels

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Your  Mindset  

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Step  1  – Promote  Team  Synergy  

Booking  System  

Bell  Hop  

Front  Desk  

House  Keeping  

Room  Service  

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Step  1  – Promote  Team  Synergy  

Advertising DirectMarketing

WebSEO/SEM

PublicRelations Email

SocialMedia

Sales

Events

CallCenter

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Step  2  – Proactive  Diagnosis

1. Regular  strategy  and  technology  audits  2. Guest  touch  point  analysis3. Regular  Smarketing meetings4. KPI  Dashboards

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Step  3  – Acquisition  Mindset

http://www.free-power-point-templates.com/articles/tag/early-adopters/

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Micro  Open  Innovation  

Acquisition  Mindset

Proactive  Diagnosis

TeamSynergy  

New  Mindset

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Trouble  in  Paradise

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MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S

2008 2009 2010 2011 2012 2013 2014 2015

Revenue  Index12-­‐month  moving  average

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Marketing  Audit  – Topline  

⇑ Competitive  marketing  budget⇓ Low  awareness⇓ Using  7  different  outside  firms

⇑ Quality  database⇓ Not  used  effectively  

⇓ Underperforming  website  ⇓ Increasingly  OTA  dependent  ⇓ TripAdvisor  (#29  of  43)

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Marketing  Directives

1. Significantly  increase  revenue2. New  responsive  website3. Rank  among  top  10  on  TripAdvisor4. Embrace  a  new  mindset  

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Email  Marketing

• Relationship  building  and  promotional  communications• Targeted  messaging,  direct  marketing  best  practices• Above  average  engagement• Trackable  direct  revenue

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Revenue  Doubled  With  Their  New  Mind  Set  

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M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S

2008 2009 2010 2011 2012 2013 2014 2015

Revenue Index12-month moving average

+96%

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Doubled  Web  Traffic

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50

100

150

200

250

Users Page  Views

Website  Performance  Index

FY2012-­‐13

FY2013-­‐14

FY2014-­‐15

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Driving  Direct  Bookings

54%

39%

72%

0%

20%

40%

60%

80%

Total OTA Direct

Revenue  Share  IncreaseFY2014-­‐15  vs  2013-­‐14

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Conquering  TripAdvisor

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Micro  Open  Innovation  

Acquisition  Mindset

Proactive  Diagnosis

TeamSynergy  

New  Mindset

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Jason  McDonald+33  (0)  6  47  62  67  05

jason@marketingluxuryhotels.comMarketingLuxuryHotels.com  

Thank  You