1. © 2014 Grant Thornton International Ltd. All rights reserved. Hotels 2020: Welcoming tomorrow's guests Gillian Saunders Global leader – hospitality and tourism

2. © 2015 Grant Thornton International Ltd. All rights reserved. Rolling out the red carpet for the customer led industry of 2020 unprecedented change in the hotel industry some of biggest questions: –how will hotels attract the business and leisure guests of tomorrow? –how can they compete in a digital world? –and what will their future business models look like?

3. © 2013 Grant Thornton International Ltd. All rights reserved. Risk and reward: putting mobile personalisation at the heart of hotel experience

4. © 2013 Grant Thornton International Ltd. All rights reserved. 46% of millennials agree that being able to check in/out using a mobile device would motivate them to return

5. © 2015 Grant Thornton International Ltd. All rights reserved. Act now to welcome 2020 consumer expectations are evolving as rapidly as mobile technology differentiate through effective mobile-centric mass personalisation data analytics to mine insights digital native Millenials multicultural / foreign markets digitise the entire customer journey

6. © 2015 Grant Thornton International Ltd. All rights reserved. Risk and Rewards understand cyber security/ personal data risks maintain the human touch surprise and delight customers at multiple touch points cyber cyber- enabled physical traditional

7. © 2013 Grant Thornton International Ltd. All rights reserved. The key questions 1.Where is human interaction a value-add and where is techno-based speed and convenience better? By customer segment, at each step in the customer journey? 2.Where can mobile deliver more personalised services? 3.What emerging technologies will play a role in future services? How are you keeping abreast? 4.How you would like to use customers’ personal data and how are you communicating and managing this? 5.Do you have robust processes to mitigate cyber ‑ risk?

8. © 2013 Grant Thornton International Ltd. All rights reserved. The digital ready hotel: recruiting tomorrow's talent upping the IT infrastructure and R&D

9. © 2015 Grant Thornton International Ltd. All rights reserved. Act now to welcome 2020 hotels not geared up for digital business era prioritise investment in talent and technology the battle for talent is fierce –may require creative thinking /partnering the cost of technology and R&D may be prohibitive winners: –hoteliers that can collect and act on data –hoteliers that can integrate cyber with the experience at every step

10. © 2015 Grant Thornton International Ltd. All rights reserved. Implications staff skill sets ease of use of technology staff roles and organisational structure training (including hotel schools) technology and R&D investment legacy systems

11. © 2013 Grant Thornton International Ltd. All rights reserved. The key questions 1.In which areas will you need digital talent - now & 2020? are your front-of-house teams prepared? have you identified the digital talent needs? how will you handle R&D? 2.Will you bring talent/R&D in-house, or look for strategic alliances? 3.Do your systems have the capability needed to support mobile apps and big data in real time/"predictive time"?

12. © 2013 Grant Thornton International Ltd. All rights reserved. Brand matters: winning the battle for relevance

13. © 2013 Grant Thornton International Ltd. All rights reserved. 48% of guests will not visit the hotel’s website before arrival Six years ago, there were 20 million reviews on TripAdvisor. Last year there were million 170

14. © 2015 Grant Thornton International Ltd. All rights reserved. Act now to welcome 2020 convenience and price overtaking brand - OTAs and aggregators brands' relevance - only if they understand and deliver on market segment needs and/or have a unique differentiator impact of technology and brand fragmentation – balance mass personalisation – segment of "1" vs brands per segment – lifestyle hotels hotel brands will need meaningful content and unique touch- points in digital age

15. © 2015 Grant Thornton International Ltd. All rights reserved. challenge of same guest and different needs depending on purpose of travel

16. © 2013 Grant Thornton International Ltd. All rights reserved. The key questions 1.Which guest segments will be most valuable to you over the next five years? 2.What content are these guests looking for, how do they prefer to consume it? 3.What experiences are they looking for, whether travelling for business or for leisure? 4.Can you deliver these experiences in one physical hotel under one brand? Can you fragment your brand without weakening its power? 5.Can you ensure your employees know what your digitally- augmented, personalised-experience brand stands for and can they deliver on your brand promise?

17. © 2013 Grant Thornton International Ltd. All rights reserved. New business models: disrupting the disruptors

18. © 2015 Grant Thornton International Ltd. All rights reserved. 343% growth in number of Airbnb's website visits between June 2012 and June 2014

19. © 2013 Grant Thornton International Ltd. All rights reserved. Over rooms available via Airbnb by the end of 2014, up from 300,000 earlier in the year 1 million

20. © 2015 Grant Thornton International Ltd. All rights reserved. Act now to welcome 2020 wait and see is not a solution revisit underlying business models and ask how they best meet customer needs: –multi-pricing –destination integrated experiences –deconstructing the hotel - physically, organisationally –mix of technology touch points, cyber-enabled physical touch points and the traditional –the entire customer journey –mass personalisation

21. © 2015 Grant Thornton International Ltd. All rights reserved. Act now to welcome 2020 accept the sharing economy is here to stay assess the current and future challenge to your brand/property of the sharing economy act to compete on the sharing economy "benefits"? integrate with sharing economy elements

22. © 2013 Grant Thornton International Ltd. All rights reserved. The key questions 1.Are you clear about your unique selling points for target segments? 2.Could you effectively unbundle your pricing, or introduce more dynamic pricing elements? 3.Are there partners you could engage/experiment with, to refresh your offering e.g. the F&B space? 4.Are there more radical business model adjustments? Setting up wholly new room or service offerings? 5.What more could you do to create a more integrated online-offline offering for guests

23. © 2013 Grant Thornton International Ltd. All rights reserved. Are you ready to welcome tomorrow’s guest ?