Briefing: Data culture creates new risks

Data has become a key tool that a hospitality business needs to perform at its best. Now businesses must recognise the importance of using the data they have in a responsibile way. A misuse of data could be a risk to a business and could destroy trust between it and its customers. The latest research by Accenture has found that 83% of executives agree trust is the cornerstone of the digital economy.

Four hospitality experts discuss how they work with data:

As these videos show, in hospitality data can help deliver better service, and help understand how products can be marketed. It is very beneficial to embrace this in your business and culture. Technology systems in the industry are getting better at gathering and uniting data. But there is still a way to go for optimum use.

New risks arising from data use should be present in the mind of any business that take data on. According to Accenture; ‘81 percent of executives agree that as the business value of data grows, the risks companies face from improper handling of data are growing exponentially.’ And ‘80% of executives report strong demand among knowledge workers for increased ethical controls for data.’ Risk can come out of using customer data in ways they did not agree to, or unethical use of insights taken from data.

A report form Sabre suggests that with all that data use requires continual refinement as more sophisticated computer programs are created to automate data analysis processes and more and more objects become able to capture data as the “Internet of things grows”. Sabre say that “we’re still several years away from having a robust understanding of how this degree of information will change how we conduct business.”

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Trust issues hold back the Sharing Economy

New research shows that the Sharing Economy in the UK is being held back because of a lack of trust and understanding. A survey by Trust Pilot found that 29% of people have previously avoided using a sharing economy platform because of a lack of clarity on who would hold responsibility when something goes wrong. The survey also found that 42% of people would usually wait until a friend or family member has used a sharing economy scheme before using it themselves.

In these videos our experts discuss the impact of the sharing economy in hospitality:

A separate survey by Veridu also found similar results.  The survey states that ‘A lack of understanding of the Sharing Economy in the UK is impacting growth with 41% of respondents citing this as a reason for not participating.’ Other reasons given for avoiding participation were unwillingness to share possessions with strangers (41%), concerns for personal safety (34%), and worries that possessions would be damaged (29%).

Some Sharing Economy business have grown faster than others, and Airbnb is a clear success story, although it still has hurdles to overcome. Trust Pilot’s survey found that 58% of respondents had used property rental sharing economy services (e.g. Airbnb) whereas only 28% of people has used private car loan services or car sharing schemes (e.g. Zipcar).

With word of mouth remaining such a strong driver of growth, trust is sure to keep growing over time and emerging Sharing Economy business will continue to present competition to more traditional business.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Industry disruptors – Innovative hospitality business models

Hospitality is changing. Consumers have more and more options to choose from and increasingly original ways to purchase them. Innovative companies are creating new business models to maximise income from hospitality products. Consumers are even selling amongst themselves in the so-called “sharing economy”.

According to experts, disruptive plays and business model innovation are now more important than traditional strategies based around competition and internal efficiency. Accessibility via digital platforms means disruptors can build large market share within just a few years. Therefore every company must look at their assets and how they might innovate, even if primarily to defend their market.

Discussing these new hospitality business models are:

  • Frank Croston, Partner, Hamilton Hotel Partners on how consumers win in the competition with new wave hospitality

  • Preben Vestdam, Managing Director, HotelSwaps on a bartering programme based on hotel rooms

  • Stephen Balzer, Chief Executive Officer, Red Onion GmbH on what the sharing economy means for consumers

  • Sean Worker, Chief Executive Officer, BridgeStreet Global Hospitality on a company re-branding that responded to customer demand for transparency

 

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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