The hotel industry is a dynamic and rapidly evolving sector, with constant changes in customer needs, expectations, and preferences. In order to remain competitive in such a fast-paced industry, it is important to innovate and adapt to changing trends and demands. In this article, we will explore some of the key strategies for innovating in the hoteling industry.
We bring key insights from Alexander Mirza who has pioneering experience in the hospitality sector. Mogul Hospitality, a venture-backed company with the mission to perfect meritocracy and hasten diversity, is led by Alexander, who also serves as its co-founder and CEO. The first AI-powered talent marketplace for the hospitality industry, MogulRecruiter, was created in collaboration with data scientists and software developers. A comprehensive Talent Engine and an ESG hotel brand with work-live designs, employee ownership, and sustainability have been developed by Mogul Hospitality.
Alexander has over 25 years of experience working for prestigious companies like Starwood, Hilton, Caesars, and SBE Group as a management consultant and C-suite executive in the hospitality industry. He was also a founding member and CEO of Cachet Hotels, one of the top luxury lifestyle companies in Asia.5 Years – Co founder/Venture Backed Tech CEO, Mogul Hospitality
CEO of Cachet Hotels, a leading luxury hotel chain, for five years. 10 Years as Divisional President at Caesars, Hilton, and Starwood. Senior Executive/Management team in corporate development. Management consulting for five years at prestigious companies like Deloitte. Alexander began his career as a management consultant, advising CEOs of Fortune 500 companies, national government officials, and the World Economic Forum.
Innovating in the hoteling sector can be a key driver of success and growth, as it enables hotels to stay competitive and meet the evolving needs of customers. Here are some key stats on this topic:
- According to a report by McKinsey & Company, hotels that invest in digital technologies and personalized services can achieve significant revenue growth, with the potential to increase revenue per available room (RevPAR) by up to 10%.
- A survey by Oracle Hospitality found that 94% of hotel guests believe that technology improves their overall hotel experience. This highlights the importance of leveraging technology to enhance the guest experience and drive innovation in the industry.
- Another survey by J.D. Power found that hotels that offer unique and innovative amenities, such as in-room yoga mats or complimentary wine tastings, tend to receive higher guest satisfaction scores. This suggests that innovation can be a key driver of guest loyalty and repeat business.
- According to a report by CBRE Hotels Americas Research, hotels that offer sustainable and eco-friendly amenities, such as energy-efficient lighting and water-saving fixtures, can achieve cost savings and improve guest satisfaction. The report found that hotels that invest in sustainability initiatives can achieve up to a 6.6% increase in RevPAR.
- Finally, a survey by Hospitality Technology found that hotels that invest in artificial intelligence (AI) and machine learning technologies can achieve significant benefits, including improved revenue management, personalized marketing, and more efficient operations. The survey found that 68% of hoteliers believe that AI will be a key competitive advantage in the industry in the years to come.
Investing in Technology
One of the most significant areas of innovation in the hotel industry is technology. Technology has the potential to transform the guest experience, from booking and check-in processes to in-room amenities and services.
Some examples of technology-based innovations in the hoteling industry include:
- Mobile apps and self-service kiosks for check-in and check-out
- Smart rooms with features such as voice-activated controls and personalized lighting and temperature settings
- Virtual and augmented reality experiences for guests
By investing in technology, hotels can create a more streamlined and efficient guest experience, as well as offer innovative and unique amenities that set them apart from their competitors.
Sustainability and Environmental Innovation
Another important area of innovation in the hoteling industry is sustainability and environmental innovation. Consumers are increasingly conscious of their environmental impact, and hotels that prioritize sustainability can attract and retain customers who are passionate about eco-friendliness and reducing their carbon footprint.
Some examples of sustainability and environmental innovations in the hoteling industry include:
- Energy-efficient lighting and HVAC systems
- Water-saving measures, such as low-flow toilets and showerheads
- Recycling and waste reduction programs
- Locally sourced and organic food and beverage offerings
By implementing sustainable practices, hotels can reduce their environmental impact, appeal to eco-conscious customers, and potentially even save money on energy and water costs.
Personalization and Customization
Personalization and customization are also important areas of innovation in the hoteling industry. Today’s consumers expect personalized experiences that are tailored to their individual preferences and needs.
Some examples of personalization and customization innovations in the hoteling industry include:
- Personalized room amenities and decor based on guest preferences and previous stays
- Customized food and beverage offerings based on dietary preferences or allergies
- Recommendations for local activities and attractions based on guest interests
By offering personalized experiences, hotels can build stronger relationships with their guests and potentially increase repeat business and positive reviews.
Innovative Marketing and Branding Strategies
In addition to product and service innovations, innovative marketing and branding strategies are also important for success in the hoteling industry. Hotels can differentiate themselves from their competitors by creating a unique and memorable brand that resonates with their target customers.
Some examples of innovative marketing and branding strategies in the hoteling industry include:
- Social media campaigns that showcase the hotel’s amenities and services in creative and engaging ways
- Influencer marketing partnerships with social media influencers and travel bloggers
- Collaborations with local artists and designers to create unique and visually striking guest spaces
By developing innovative marketing and branding strategies, hotels can create a distinct and recognizable brand that stands out in a crowded marketplace.
The hoteling industry is an ever-evolving sector that requires constant innovation and adaptation to remain competitive. By investing in technology, sustainability, personalization, and innovative marketing and branding strategies, hotels can differentiate themselves from their competitors and create unique and memorable experiences for their guests.
One of the gifted skills that Alexander has exemplified is strong business skills, especially when it comes to cutting deals. He further comments on how a successful deal is materialized, what are the key factors of its success and the skillset one could professionally acquire.
Successfully striking business deals is crucial for any organization or individual in the modern business landscape. Here are some tips to help you improve your skills at striking business deals.
- Know your objectives and your limits: Before entering into any negotiations, it is important to have a clear understanding of your objectives and limits. This means defining what you want to achieve from the negotiation, as well as understanding the minimum acceptable outcome. Knowing your limits can prevent you from making a deal that is unfavorable to your interests.
- Research the other party: It is important to research the other party before entering into any negotiation. This includes understanding their needs, motivations, and interests. This information can be useful in identifying potential areas of agreement and in anticipating potential objections.
- Build a relationship: Building a relationship with the other party is important in establishing trust and rapport. This can be achieved by finding common ground and focusing on shared interests. Building a relationship can make it easier to find areas of agreement and can make negotiations more productive and effective.
- Be confident and assertive: Being confident and assertive can help you to maintain control of negotiations and to communicate your position clearly. This means speaking with conviction and not being afraid to state your position clearly. It also means being willing to walk away from a deal if it is not in your best interests.
- Listen actively: Active listening is an important skill in striking successful business deals. This means paying attention to what the other party is saying and asking questions to clarify their position. Active listening can help you to understand the other party’s needs and interests and to identify areas of agreement.
- Be creative: Creativity is important in finding solutions to complex problems and in identifying areas of agreement. This means thinking outside the box and exploring new ideas and approaches. Being creative can help you to find win-win solutions that benefit both parties.
- Use objective criteria: Objective criteria can help to anchor negotiations and to establish a baseline for agreement. This means using quantifiable and measurable standards to evaluate the success of a negotiation. Using objective criteria can help to ensure that both parties are satisfied with the outcome.
Successfully striking business deals requires a combination of skills and strategies, including clear objectives, research, relationship-building, confidence, active listening, creativity, and the use of objective criteria. By developing these skills and strategies, you can increase your chances of striking successful business deals that benefit all parties involved.