A2040-407 exam Dumps Source : Assessment: IBM Notes and Domino 9.0 convivial Edition System Administration B
Test Code : A2040-407
Test designation : Assessment: IBM Notes and Domino 9.0 convivial Edition System Administration B
Vendor designation : IBM
: 118 actual Questions
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February 11, 2019 Alex Woodie
they negate decent things Come to people who wait. The IBM i group has waited over 10 years for a new unlock of Domino and Notes, and that they maintain been rewarded closing week when IBM announced version 10 is now obtainable on IBM i.
Domino and Notes 10 is the first fundamental unlock of the server Part of the commerce collaboration platform seeing that Domino eight.5 changed into launched pass back in 2008 (edition 9 was a minor unencumber). The future of the platform turned into up within the air for a long time, and a lot of individuals who maintain dedicated a chunk of their careers to engaged on it maintain been in doubt even if IBM would proceed to better it.
At one factor in the early 2000s, the iSeries changed into the 2d greatest server platform for Domino (the server factor of what become the Notes-Domino platform, and which now IBM is asking the Domino and Notes Platform), trailing handiest windows NT. loads of IBM i stores ran their email servers on the Notes and Domino software, specifically after IBM nixed OfficeVision/four hundred. the primary committed AS/four hundred computing device, you'll bear in mind, became the yellow-striped “Bumblebee” providing, which was a success satisfactory for IBM to tender further dedicated servers.
As Domino and Notes gained new performance – together with convivial media, mobile interfaces, and swift utility pile capabilities – many IBM i stores stayed with it, besides the fact that they didn’t utilize the new features. while the numbers are surely down from their early 2000s top, anecdotal facts says there’s noiseless a considerable Put in basis of Domino on IBM i clients.
Domino’s route to redemption started within the drop of 2017, when IBM enlisted the aid of HCL technologies to co-boost Domino, Notes, and linked items, comparable to Sametime, tourist, and Verse. The groups hosted the Domino2025 Jam event to generate interest amongst loyal customers and solicit fresh concepts for brand new points in a drawing near version 10 liberate.
That edition 10 release shipped for windows, Linux, and other mainstream OSes in 2018, bringing a bunch of latest elements, comparable to assist for Node.js for creating new Domino/Notes apps, removing the deserve to subsist taught Xpages, and new self-curative capabilities for clustered deployments, among different aspects.
while the more suitable Domino community was popping champagne to celebrate the birth of Domino and Notes 10, the IBM i crowd was left striking for a bit. The pass forward for Domino and Notes on IBM i – which traditionally has constituted a huge percentage of the Domino and Notes installed basis – nonetheless turned into no longer cemented in area with a start date.
The suspense become popped remaining week when IBM introduced that Domino 10.0.1 and visitor 10.0.1.1 on IBM i edition 7.2 and 7.3 grew to subsist available on February 5. The tidings become welcomed via Kim Greene, who has made a career as a Domino on IBM i developer and consultant at Kim Greene Consulting.
“i hope you're as excited as i'm to collect this exceptional, characteristic prosperous, self-curative unlock purchasable on the hardware platform this is most synonymous with Domino, the IBM i,” she wrote on her Domino Diva blog remaining week. “It’s integrated, comfy, scalable, and totally purchasable.”
The undeniable fact that IBM i 7.2 became supported together with IBM i 7.3 become a particularly first rate piece of information, Greene wrote. “The releases supported are: 7.2, 7.3, and seven.four (when it turns into obtainable),” she wrote. “The great relief is that 7.2 is supported, whew!”
there were a number of IBM i-certain enhancements delivered with Domino 10.0.1, in response to Greene, together with a new function to simplify the administration of sunlight hours reductions Time. With this unencumber, Domino will default to *TIMEZONE for those who configure a brand new server, she says. up to now, it turned into commonplace for administrators to misconfigure the equipment. It’s “long late,” she writes.
another configuration gotcha that has been smoothed over with the brand new liberate has to execute with changing the JVM configuration. The default JVM is the 32-bit JVM 8, but some Domino on IBM i clients might too requisite to exercise the 64-bit JVM 8 unlock as a substitute. because of new variables introduced to the setup, it’s now less difficult to circulation between 32-bit and 64-bit JVMs, based on Greene. Domino 10.0.1 will too now turns MEMCHECK on by pass of default, so that it will assist when admins are debugging courses.
There are too changes to the default library where the licensed application executables deploy. “With libraries having a maximum length of ten characters, the nomenclature of QDOMINO8xx and QDOMINO9xx no longer works with edition 10.x,” writes Greene, who’s the vital at Kim Greene Consulting. “hence the library structure alterations to QDOM100001 for edition 10.0.1.”
Domino 10.0.1 is available in English. a bunch 1 language pack is available that brings sheperd for
German, Spanish, Italian, French, Brazilian Portuguese, japanese, Korean, simplified chinese language, and touchstone chinese language. IBM has additionally Put together a webpage explaining what’s new in Domino 10.0.1 for IBM i.connected studies
Domino On IBM i Poised For A Comeback
Domino users: are you able to Hear Me Now?
Indian enterprise Takes Over Notes/Domino construction
HCL technologies (HCL), a world know-how business, today introduced a collaboration with IBM (NYSE: IBM) designed to aid strengthen the hybrid cloud journeys of agencies international.
HCL nowadays introduced new re-platforming and refactoring capabilities to permit firms to construct and migrate purposes to IBM Cloud private from within the company’s HCL Cloud indigenous Labs. The capabilities should subsist orchestrated and available from HCL’s Cloud indigenous Labs in London, long island, and Noida, later this yr.
HCL choices encompass cloud pass planning, application transformation, cloud-native cultural transformation, proof of concept constructing, and subsequent-era cloud indigenous application pile functions – gross of which are being prolonged to encompass the IBM Cloud choices.
additionally, HCL will present services to assist migrate ISV options to IBM Cloud. ultimately, HCL and IBM map to collaborate to assist customers in pile joint solutions that consist of IBM AI capabilities.
“HCL will give the essential capabilities to enable a customer’s cloud indigenous event overlaying portfolio assessment, platform design / construct, purposes transformation, software engineering, and platform operations, which makes this collaboration massive,” mentioned Kalyan Kumar, HCL corporate vp and CTO. “The HCL teams will now assist customers to maintain in mind the knack of the viable, and note where ICP / IBM hybrid cloud can permit their cloud indigenous journey. The HCL Cloud indigenous Labs would become a unique region where the finished IBM tooling and methodologies Come together and tender the client a unified cloud enablement suffer based on the total set of IBM capabilities.”
“application & Platform Transformation is a essential entry aspect for groups on their hybrid cloud event, yet they note that best few enterprise workloads had been modernized thus far,” famed Denis Kennelly, widely wide-spread manager for IBM Hybrid Cloud Integration. “Our IBM hybrid cloud options combined with the odds HCL will simplify this for customers and accelerate their adventure to the cloud enabled by pass of their Cloud indigenous Labs. they are excited to labor with HCL to compel actual transformation for shoppers global.”
About HCL technologies
HCL applied sciences (HCL) is a number one international expertise commerce that helps global firms re–imagine and transform their agencies via Digital technology transformation. HCL operates out of 44 countries and has consolidated revenues of US$ 8.4 billion, for 365 days ended thirty first December, 2018. HCL makes a speciality of providing an integrated portfolio of capabilities underlined by its Mode 1–2–three augment approach. Mode 1 encompasses the core services in the areas of functions, Infrastructure, BPO and Engineering & R&D capabilities, leveraging DRYiCE™Autonomics to seriously change customers' enterprise and IT panorama, making them 'lean' and 'agile'. Mode 2 makes a speciality of adventure–centric and result–oriented built-in offerings of Digital & Analytics, IoT WoRKS™, Cloud indigenous capabilities and Cybersecurity & GRC functions to power enterprise consequences and allow enterprise digitalization. Mode 3 approach is ecosystem–driven, growing imaginative IP–partnerships to construct items and systems company. HCL leverages its world network of integrated co-innovation labs and international birth capabilities to deliver holistic multi–service start in key commerce verticals together with economic features, Manufacturing, Telecommunications, Media, Publishing, leisure, Retail & CPG, lifestyles Sciences & Healthcare, Oil & fuel, energy & Utilities, trip, Transportation & Logistics and govt. With 132,328 experts from divide nationalities, HCL makes a speciality of creating precise cost for shoppers with the aid of taking 'Relationships past the Contract'. For greater tips, gratify visitwww.hcltech.com.
View supply version on businesswire.com: https://www.businesswire.com/information/home/20190214005768/en/
source: HCL applied sciences"> <Property FormalName="PrimaryTwitterHandle" value="@hcltech
Media Contact:Anne CoyleHCL TechnologiesAnne.Coyle@HCL.com
Copyright enterprise Wire 2019
equipment and capabilities designed to assist businesses installation new purposes across hybrid cloud environments with protection and effectivity
SAN FRANCISCO, Feb. 12, 2019 /PRNewswire/ -- IBM believe -- IBM (NYSE: IBM) today introduced new hybrid cloud choices to support groups migrate, combine and manage applications and workloads seamlessly and with safety throughout any public or private cloud and on-premises IT environment.
IBM supplier logo. (PRNewsfoto/IBM)greater
The IBM Institute for enterprise cost estimates that by 2021, 98 % of agencies surveyed map to undertake hybrid architectures, but just 38 % can maintain the approaches and materiel they deserve to function that environment1. The pass nowadays is difficult since it is largely sheperd with most vital security implications and an absence of consistent administration and integration tools.
As Part of trendy news, IBM is launching new hybrid cloud tools and functions designed to aid organisations navigate the complexities of this new landscape:
"At Aetna, a CVS health business, they note hybrid cloud as an essential component of their transformation journey," observed Claus Torp Jensen, Chief expertise Officer, Aetna. "We wish to exercise the highest quality capabilities from a number of cloud providers to create a seamless consumer adventure and digitalize underlying commerce procedures. For that, we're taking an API-centric approach to integration and making positive that gross of their APIs are readily accessible throughout their hybrid cloud ecosystem."
New Cloud Integration Platform Designed to Dramatically chop back Coding Time, Complexity
The IBM Cloud Integration Platform is designed to soundly combine functions, utility and services from any dealer inspite of no matter if these methods are on-premises, in a public cloud or a non-public cloud. The platform brings collectively a finished set of integration tools in a unique pile environment. it will possibly assist augment productivity as a result of integration experts can write, examine and comfy code as soon as, retain it in the platform and reuse it – an exhausting chore that once monopolized their time. this may assist organizations reduce the time and price of integration by using 1/3, while staying within their pleasing necessities for protection and compliance2.
Integration is vital as firms optimize commerce processes and create extra personalized consumer experiences. despite the fact, integration is fitting more and more complicated as a result of many enterprises surveyed are already the usage of between two to 15 diverse clouds and wish to deploy new cloud capabilities such as AI, analytics and blockchain to reside ahead of the competition3.
With the IBM Cloud Integration Platform, businesses can right away convey to market new capabilities whereas liberating up integration consultants to center of attention on the greater complex, system-degree integrations.
"Most astronomical corporations maintain facts and workloads unfold throughout divide public and private clouds, SaaS and on-premises environments – occasionally on account of their commerce system infrastructure, but additionally for compliance, regulatory and statistics privacy factors," observed Denis Kennelly, everyday manager, cloud integration, IBM. "The problem in this ambiance is to overcome statistics and expertise siloes to right now deploy new company services and purposes with protection. these days, we're launching new capabilities designed to support unleash the plenary vigour of the hybrid cloud."
gain information of greater about the new IBM Cloud Integration Platform by means of journeying: www.ibm.com/cloud/integration/platform
New end-To-conclusion IBM Hybrid Cloud capabilities
IBM is launching new IBM capabilities for Cloud strategy and Design, a comprehensive set of services designed to pose shoppers on a pass to architect the confiscate holistic cloud pass from design, migration, integration, street mapping and architectural capabilities to navigating their adventure to cloud. IBM features is establishing committed teams of consultants who are certified specialists within the newest functions and technologies across dissimilar cloud structures. groups will exercise open and at ease multicloud recommendations, drawing upon IBM's suffer in IT transformation and collaboration with an ecosystem of cloud companions. the new capabilities leverage IBM's business-leading Cloud Innovate components, automated resolution accelerators and IBM Cloud storage approach to assist valued clientele with co-introduction and scaled innovation in software construction, migration, modernization and management.
building off of a contemporaneous partnership expansion announcement with ServiceNow, IBM is too introducing new IBM services for Multicloud management to give a unique gadget to aid businesses simplify the management of their IT supplies across divide cloud providers, on-premises environments and private clouds.
The birth of IBM capabilities for Multicloud administration includes three layers designed to provide a unique management and operations system:
additionally, it contains a unified, self-service suffer to clients to facilitate sooner and less difficult access to cloud capabilities by means of an atmosphere built-in with the ServiceNow Portal to configure and buy cloud functions and options from dissimilar cloud suppliers. It too provides performance management features and offers the means to monitor and manipulate the fitness of the cloud.
"As they develop their digital business, stirring their functions to the cloud is vital to assist modernize their processes and deliver even more advantageous experiences for their valued clientele. Adopting the right approach and migration approach to cloud needs to subsist seamless and requires an figuring out of their IT landscape," talked about Sarp Uzkan, vice president, IT, Tribune Publishing. "IBM cloud advisory functions and materiel provided a minute assessment that decided no longer most efficacious which purposes can subsist most efficient to movement to the cloud however a powerful company case that would meet their needs and enabling us to explore the surest approach for stirring to the cloud."
be taught extra in regards to the new IBM features via traveling: http://www.ibm.com/blogs/cloud-computing/2019/02/12/new-ibm-functions-multicloud-world/
industry-leading security for statistics and functions in the Public Cloud
security continues to subsist a accurate concern throughout gross industries and markets when deploying apps and facts in hybrid cloud environments. to subsist able to minimize threats, companies should the potential to tender protection to statistics at every stage of its journey, quite simply control access and identity and profit visibility into the security carriage for gross of their functions.
IBM is launching the IBM Cloud Hyper tender protection to Crypto carrier, which is designed to give business-main protection on the universal public cloud and is made feasible with the aid of bringing IBM LinuxONE into IBM's world cloud statistics facilities. This carrier will supply encryption key administration with a dedicated cloud hardware protection module (HSM) built on the handiest FIPS one hundred forty-2 stage four-based mostly know-how offered by using a public cloud provider4.
here's Part of the IBM Cloud Hyper tender protection to household of features, which is already providing businesses fancy DACS and Solitaire Interglobal with business-leading safety and resiliency for his or her functions. To supply lofty degrees of security across each public and personal clouds, IBM is additionally asserting mammoth enhancements to IBM Cloud deepest on Z.
learn more about IBM's new capabilities in cloud safety by using touring: https://ibm.com/blogs/bluemix/2019/02/cloud-safety-appropriate/
About IBM suppose:At account 2019, IBM will silhouette new choices, client engagements, partnerships, expertise breakthroughs and developer tools that underscore how IBM and companions are changing the pass the realm works. For extra assistance, consult with the IBM assume 2019 Newsroom: https://newsroom.ibm.com/believe. result the convention on Twitter at #think2019 and @ibmlive, and Go to https://www.ibm.com/pursuits/feel/ for the total time table and are animate streaming agenda.
IBM's statements related to its plans, directions, and intent are discipline to exchange or withdrawal without word at IBM's sole discretion. suggestions regarding talents future products is meant to define their common product path and it will now not subsist relied on in making a deciding to buy resolution. The information mentioned involving skills future products isn't a commitment, promise, or legal responsibility to convey any material, code or performance. suggestions about capabilities future products might too not subsist integrated into any contract. The building, liberate, and timing of any future aspects or performance described for their items is noiseless at their sole discretion.
Footnotes1. IBM Institute for company cost: Assembling Your Cloud Orchestra, October 20182. according to client event and complete economic maintain an repercussion on methodology developed through Forrester analysis, Inc. (the gross pecuniary impress of an API management answer, February 2017)3. IBM Institute for company cost: Assembling Your Cloud Orchestra, October 20184. presently attainable in beta, planned for widely wide-spread availability March 2019
Media Contact:Sarah MurphyIBM Media family members email@example.com
View fashioned content to download multimedia:http://www.prnewswire.com/information-releases/ibm-unveils-new-choices-for-faster-and-greater-secured-course-to-hybrid-cloud-300794061.html
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A group of U.S. intelligence veterans urges President Trump to halt his administration’s wrong claims about Iran being the leading condition sponsor of terrorism when U.S. allies, such as Saudi Arabia, are clearly much guiltier.
MEMORANDUM FOR: The President
FROM: Veteran Intelligence Professionals for Sanity
SUBJECT: Is Iran the “World’s Leading Sponsor of Terrorism?”
We are concerned by recent strident and stark public statements from key members of your Administration that paint Iran in very alarmist terms. The medium American, without the profit of history, could easily subsist persuaded that Iran poses an imminent threat and that there is no alternative for us but military conflict.
We find this uncomfortably chummy territory. Ten years ago former President George W. Bush was contemplating a war with Iran when, in November of 2007, intelligence analysts issued a formal National Intelligence appraise (NIE) debunking the prevalent conventional wisdom; namely, that Iran was on the verge of getting a nuclear weapon. The NIE concluded that Iran had stopped working on a nuclear weapon in 2003.
Recalling this second in his memoir, decision Points, President Bush famed that the NIE’s “eye-popping” intelligence findings stayed his hand. He added this rhetorical question: “How could I possibly elaborate using the military to raze the nuclear facilities of a country the intelligence community said had no lively nuclear weapons program?”
We believe that you are facing a similar situation today. But instead of an inaccurate claim that Iran has nuclear weapons, the new canard to warrant war with Iran is the claim that Iran remains the “world’s leading condition sponsor of terrorism.” This is incorrect, as they elaborate below.
* * *
One of the recurring astronomical bipartisan lies being pushed on the public with the enthusiastic assist of a largely pliant media is that Iran is the prime sponsor of terrorism in the world today.
In the recent presentation of your administration’s National Security Strategy for 2018, the point is made that:
“Iran, the world’s leading condition sponsor of terrorism, has taken odds of instability to expand its influence through partners and proxies, weapon proliferation, and funding. . . . Iran continues to perpetuate the cycle of violence in the region, causing grievous harm to civilian populations.”
Those sentiments are echoed by several other countries of the Middle East. Saudi Arabia’s foreign Minister, Adel al-Jubeir, for example, declared in October 2015 that: Iran “is the biggest sponsor of terrorism in the world, and it is working on destabilizing the region.”
The Saudi foreign minister conveniently declined to mention that 15 of the 19 terrorists who hijacked planes and attacked America on 11 September 2001 were Saudis, not Iranians. And, while Iran was an lively promoter of terrorism two decades ago, it is no longer in the forefront of global terrorism. Ironically, that dubious distinction now goes to Iran’s accusers — first and foremost, Saudi Arabia.
The depiction of Iran as “the world’s leading condition sponsor of terrorism” is not supported by the facts. While Iran is guilty of having used terrorism as a national policy tool, the Iran of 2017 is not the Iran of 1981. In the early days of the Islamic Republic, Iranian operatives routinely carried out car bombings, kidnappings and assassinations of dissidents and of American citizens. That has not been the case for many years. Despite frequent claims by U.S. officials that Iran is engaged in terrorism, they simply note that the incidents recorded annually in the U.S. Department of State’s Patterns of Global Terrorism rarely identifies a terrorist incident as an act by or on behalf of Iran.
Iran’s relationship with Hezbollah too has evolved radically. In the early years of the Islamic Republic, Hezbollah was often a proxy and sub-contractor for Iran. But during the eventual 20 years Hezbollah has become an entity and political compel in its own right. It fought Israel to a standstill in 2006 in southern Lebanon, which was a watershed second in establishing Hezbollah’s transformation into a conventional army. In the intervening years, Hezbollah, which is now Part of the Lebanese government, too has turned away from the radical, sanctimonious driven violence that is the hallmark of the Sunni extremists, fancy ISIS.
Iran’s Asymmetrical Response
After Iran fell under the rule of the Ayatollah in 1979 terrorism, its role in lofty profile terrorist attacks, such as the taking of U.S. hostages and the bombings of the U.S. Embassy and the Marine barracks in Lebanon, fed understandable U.S. animosity towards Iran. But Iran’s actions were not driven primarily by blind hatred or radical sanctimonious views. For Iran terrorism was a pass to punch back against more powerful foes, principally the United States, which was providing military and intelligence support to Iran’s neighbor and enemy, Iraq.
The Iranians were too pragmatic and had direct dealings with Israel. During the early days of the Iranian revolution the Mullahs, despite publicly denouncing Israel, happily accepted surreptitious military support from the Israelis. Israel was equally pragmatic. The Israeli leaders ignored the Mullahs and gave the support as a means of helping counter the threat posed by Iraqi President Saddam Hussein. A classic case of the enemy of my enemy is my friend.
The public image of Iran as a hotbed of fanatical terrorists has been usurped since the August 1998 bombings of the U.S. Embassies in east Africa by Al Qaeda and other radical Sunni entities. The U.S. Government’s own list of terrorist attacks since 2001 shows a theatrical drop in the violence carried out by Iran and an accompanying surge in horrific acts by radical Sunni Muslims who are not aligned with Iran. The latest edition of the Global Terrorism Index, a project of the U.S. Department of Homeland Security, shows that four groups accounted for 74 percent of gross fatalities from terrorism in 2015 — Boko Haram, Al-Qaeda, the Taliban and ISIS.
Thirteen of the 14 Muslim Groups identified by the U.S. intelligence community as actively hostile to the US are Sunni, not Shia, and are not supported by Iran:
– ISIS (Sunni)
– The Al-Nusra Front (Sunni)
– Al-Qa’ida Central (Sunni)
– Al-Qa’ida in Magheb (Sunni)
– Al-Qa’ida in Arabian Peninsula (Sunni)
– Boku Haram (Sunni)
– Al-Shabbab (Sunni)
– Khorassan Group (Sunni)
– Society of the Muslim Brothers (Sunni)
– Sayyaf Group in the Philippines (Sunni)
– Taliban in Pakistan and Afghanistan (Sunni)
– Lashgar i Taiba (Sunni)
– Jemaa Islamiya (Sunni)
– Houthis (Shia)
The eventual major terrorist attack causing casualties that is linked to Iran was the July 2012 bombing of a bus with Israeli tourists in Bulgaria. That departure from Iran’s more recent policy on terrorism was retaliation for what Iran perceived to subsist Israel’s role in assassinating five Iranian scientists involved with Iran’s Nuclear program, between January 2010 and January 2012 (the dates and names of those attacked are appended).
One can easily imagine the outrage and lust for revenge that would sweep the U.S., if Americans believed a foreign country sent operatives into the United States who in turn murdered engineers and scientists working on sensitive U.S. defense projects.
There maintain been other terrorist attacks inside Iran manner the handprint of support from the United States. Author Sean Naylor, Relentless Strike, which details the history of operations carried out by U.S. Joint Special Operations Command (JSOC) over the past 30 years, sheds light on this uncomfortable truth:
“JSOC personnel too worked with the Mujahideen-e-Khalq (MEK), a militant Iranian exile group that had based itself in Iraq after falling afoul of the ayatollahs’ regime in Tehran. The condition Department had placed the MEK on its list of designated terrorist organizations, but that didn’t halt JSOC from taking an attitude of “the enemy of my enemy is my friend” toward the group. “They were a group of folks that could transit the border, and they were willing to assist us out on what they wanted to execute with Iran,” said a special operations officer.”
The MEK were classified as a terrorist group, until the United States decided that as long as the MEK would assist Kill Iranians rather than Americans, that they were no longer terrorists. The MEK’s history of terrorism is quite clear. Among more than a dozen examples over the eventual four decades these four are illustrative:
Despite this history, a bipartisan parade of prominent U.S. political and military leaders has lobbied on behalf of MEK and has been well compensated in return.
Benighted Policy So Far
In the ultimate ironic turn, the U.S.-led 2003 war in Iraq played a critical role in Iran’s resurgence as a regional power. Saddam Hussein was replaced by Shia muslims who had received sanctuary in Iran for many years and Baathist institutions, including the Army, were taken over by Iraqis sympathetic to Tehran.
Iran has Come out ahead in Iraq and, with the 2015 nuclear agreement in place, Iran’s commercial and other ties maintain improved with key NATO allies and the other major world players—Russia and China in particular.
Official pronouncements on critical national security matters requisite to subsist based on facts. Hyperbole in describing Iran’s terrorist activities can subsist counterproductive. For this reason, they muster attention to Ambassador Nikki Haley’s recent statement that it is hard to find a “terrorist group in the Middle East that does not maintain Iran’s fingerprints gross over it.” The veracity is quite different. The majority of terrorist groups in the region are neither creatures nor puppets of Iran. ISIS, Al-Qaeda and Al-Nusra are three of the more prominent that Come to mind.
You maintain presented yourself as someone willing to converse hard truths in the visage of establishment pressure and not to accept the status quo. You spoke out during the drive against the 2003 U.S. invasion of Iraq as a historic mistake of epic proportions. You too correctly captured the temper of many Americans fatigued from constant war in far away lands. Yet the torrent of warnings from Washington about the dangers supposedly posed by Iran and the requisite to confront them are being widely perceived as steps toward reversing your pledge not to collect embroiled in new wars.
We inspirit you to reflect on the warning they raised with President George W. Bush almost 15 years ago, at a similar historic juncture:
“after watching Secretary Powell today, they are convinced that you would subsist well served if you widened the discussion … beyond the coterie of those advisers clearly bent on a war for which they note no compelling judgement and from which they believe the unintended consequences are likely to subsist catastrophic.”
LIST OF IRANIAN SCIENTISTS ASSASSINATED IN IRAN
January 12, 2010: Masoud Alimohammadi, Iranian Physicist:
Killed by a car bomb. The perpetrator reportedly confessed to having been recruited by Israeli intelligence to carry out the assassination.
November 29, 2010: Majid Shahriari, Iranian nuclear scientist:
Killed by a car bomb. According to German media, Israel was the sponsor.
November 29, 2010: Assassination attempt on Fereydoon Abbasi Iranian nuclear scientist:
Wounded by a car bomb.
July 23, 2011: Darioush Rezaeinejad, Iranian electrical engineer, unclear scientist
Killed by unknown gunmen on motorcycle. Specialist on high-voltage switches — a key component of nuclear warheads. Assassinated by Israeli intelligence, according to the German press.
January 11, 2012: Mostafa Ahmadi-Roshan, Iranian nuclear scientist
Killed at Natanz uranium enrichment facility by a magnetic bomb of the identical kindhearted used in earlier assassinations of Iranian scientists.
Richard Beske, CIA, Operations Officer (ret.)
William Binney, former NSA Technical Director for World Geopolitical & Military Analysis; Co-founder of NSA’s Signals Intelligence Automation Research Center
Marshall Carter-Tripp, foreign Service Officer (ret.) and Division Director, condition Department Bureau of Intelligence and Research
Bogdan Dzakovic, Former Team Leader of Federal Air Marshals and Red Team, FAA Security, (ret.) (associate VIPS)
Philip Giraldi, CIA, Operations Officer (ret.)
Larry C. Johnson, former CIA and condition Department Counter Terrorism officer
Michael S. Kearns, Captain, USAF (Ret.); ex-Master SERE Instructor for Strategic Reconnaissance Operations (NSA/DIA) and Special Mission Units (JSOC)
John Kiriakou, Former CIA Counterterrorism Officer and former senior investigator, Senate foreign Relations Committee
Karen Kwiatkowski, former Lt. Col., US Air compel (ret.), at Office of Secretary of Defense watching the manufacture of lies on Iraq, 2001-2003
Edward Loomis, NSA, Cryptologic Computer Scientist (ret.)
David MacMichael, National Intelligence Council (ret.)
Ray McGovern, former US Army infantry/intelligence officer & CIA analyst (ret.)
Elizabeth Murray, Deputy National Intelligence Officer for Near East, CIA and National Intelligence Council (ret.)
Torin Nelson, former Intelligence Officer/Interrogator (GG-12) HQ, Department of the Army
Todd E. Pierce, MAJ, US Army referee Advocate (ret.)
Coleen Rowley, FBI Special Agent and former Minneapolis Division Legal Counsel (ret.)
Greg Thielmann — Former director of the Strategic, Proliferation, and Military Affairs Office of the condition Department’s intelligence bureau (INR) and former senior staffer on the Senate Intelligence Committee
Kirk Wiebe — former Senior Analyst, SIGINT Automation Research Center, NSA
Lawrence Wilkerson, Colonel (USA, ret.), Distinguished Visiting Professor, College of William and Mary (associate VIPS)
Sarah G. Wilton, CDR, USNR, (Retired)/DIA, (Retired)
Robert Wing — former foreign Service Officer (associate VIPS)
Ann Wright, Col., US Army (ret.); foreign Service Officer (who resigned in opposition to the war on Iraq)
By Tyler Titherington
I am a restaurateur. I’m behind schedule. Again. Not because I am disorganized or maintain too much to do, more so because I maintain a hierarchy of tasks that are addressed based on priority. Guest needs are my first priority, staff needs are a near second and everything else last. There is a tertiary hierarchy in the eventual basket as well. Some tasks with a lower priority drop through the cracks. Not because they are unimportant, but rather there just was not enough time. The veracity is that I am obsessively organized. I fancy “To Do” lists, calendars, flood charts and the accomplishment of tasks. I devour projects for breakfast, while animate on the edge of chaos and complete catastrophe. Short staffed? Yawn. Drains flooding? Been there, done that. POS system crash during service on a weekend? Bring it. I am the duck – unruffled above water and feet stirring nonstop below. However, how execute I manage gross the curveballs and noiseless manage to gain time without compromising any of my other priorities? It is very simple – reconcile and embrace technology wherever possible, specifically, cloud-based computing solutions that allow one to subsist in many places at one time. These applications simplify daily tasks for management teams and staff, which will ultimately leverage senior management down to focus on the bigger picture. Maybe even collect a day off…
Over the eventual 10 years or so, the increased availability of cloud-based computing solutions (using network computers over the internet rather than property-based hard drives) has been a major paradigm shift for many industries. However, as with most technological advances, the restaurant industry has been very slack to adapt. taut margins, resistance to change, and scare of unknown outcomes maintain long driven the restaurateur’s decision-making process. However, with increased options, cheaper costs, and ease of use, that mindset is quickly becoming a thing of the past. Restaurant operators are beginning to embrace cloud-based solutions for everything from Point of Sale and Tableside Payment to Menu Design and Scheduling.
Our foray into cloud computing began with an luckless set of circumstances that the entire industry was facing. The year was 2010 and the impending doom of PCI Compliance was upon us. At best, their network infrastructure was dated and they needed to act quickly to collect it into compliance. fancy most operators, their hand was forced and they had no choice. What is PCI Compliance? The respond depends on who you ask.
Your guests maintain never heard of it and maintain no thought what it is. Most restaurant operators will counsel you that PCI Compliance is an almost unachievable set of network security standards designed to protect the credit card giants, who already suffuse them pass too much for credit card processing and continually squeeze them with a plethora of monthly fees. The definition of PCI Compliance is below, according to PCI ComplianceGuide.org
“The Payment Card Industry Data Security touchstone (PCI DSS) is a set of security standards designed to ensure that gross companies that accept, process, store or transmit credit card information maintain a secure environment. The PCI Security Council Card focuses on improving payment account security throughout the transaction process. It is an independent cadaver that was created by the major payment card brands (Visa, MasterCard, American Express, determine and JCB.).”[i]
PCI DSS is mandatory for any and gross businesses that accept credit cards. It involves a process of assessment, remediation and reporting. Operators must identify network vulnerabilities, physical vulnerabilities, and operational vulnerabilities that could result in a credit card infraction and fix them. In summary, it is a painfully tedious, extremely time consuming, and potentially expensive process.
It is extremely vital for the security of their guest’s payment information, both for ensuring reliance with their customers and limiting legal liabilities. In 2017-8, major retail stores including Home Depot, Macy’s, Sears, Kmart, Best Buy and Lord & Taylor made headlines across the country for data breaches possibly compromising customer’s credit card personal information. The restaurant industry is too plagued with security breaches, including great chains such as Darden (Cheddar’s), Panera Bread, Sonic and Arby’s. The number of customers whose credit card information may subsist compromised totals into the millions.[ii]
At Grafton Group, the process of obtaining Credit card security involved working directly with their IT vendor and POS vendor to achieve PCI compliance. The first order of commerce was to collect their network infrastructure in order. Some of the major network upgrades that they undertook were upgrading wiring, locking down patch panels, securitizing external ports, adding wireless access points (WAPs), and replacing firewalls. The WAPs and new firewalls were the heart of the upgrades and would ultimately allow us to operate unencumbered in the cloud. The new access points give their guests their own network and preclude them from accessing ours. The security firewalls preclude intrusions and too allow their IT vendor remote access so they can construct changes without actually being in the restaurant. What used to subsist a scheduled visit from their IT vendor that may maintain taken weeks, is now a simple email and can often subsist addressed online in minutes. In a nutshell, PCI DSS forced us to upgrade their network, which ultimately allowed us to operate in the cloud. This unintended outcome to a painful requirement was truly a blessing in disguise and it pushed us into new territory – the cloud! Being in the cloud has allowed us access to exciting applications and services that would otherwise subsist unavailable to us.
IBM defines cloud computing as “the delivery of on-demand computing resources — everything from applications to data centers — over the internet on a pay-for-use basis.”[iii] For their purposes, these on exact computing resources primarily consist of “SaaS” or Software as a Service. Here are some of the areas where cloud computing can streamline their operation.Point of Sale
POS systems are the most curious area of cloud-based solutions for restaurant operators. Legacy systems such as Positouch, Micros, and Aloha are bulkier, more expensive, and much harder to program and implement. There are quite a few cloud-based POS options, most notably Boston-based Toast. Toast has done a mighty job streamlining and simplifying the interface for both front and back halt users. Management can access the system remotely for screen programming, troubleshooting or reviewing sales. It is extremely intuitive, fancy using a smartphone, thus needing very itsy-bitsy training. As wireless POS solutions evolve, legacy systems will eventually subsist phased out. It is only a matter of time.Tableside Payment
EMV (Europay, MasterCard and Visa) is another set of regulations that are coming to the restaurant industry. “EMV is a global touchstone for cards equipped with computer chips and the technology used to authenticate chip-card transactions.”[iv] Used in Europe for years, the credit card never leaves the customer and gross transactions are processed tableside with a handheld device. One example of an EMV compliant, cloud-based device for tableside payments that they at Grafton Group are currently analyzing and map on implementing is Pay My Tab. Pay My Tab will fully integrate with their POS system and eliminates many bulky PCI DSS requirements. Many similar systems are already in exercise at quick service operations, where guests and staff maintain easily adapted to them. In addition to tougher security, the implementation should dwindle payment time, eliminate paper receipts (emailed instead) and simplify the process for management to search for specific receipts.
Reservations and Floor Management
There are a variety of solutions for reservations and floor management systems. Their firm has been using OpenTable for over 15 years, so when they rolled out their cloud-based system, GuestCenter, they were early adopters. This has been one of the unique best applications in terms of roll out, ease of use, and seamless integration. It is iPad-based and eliminates gross the wiring and host stand actual estate. It is compatible to smart phones that allows for remote access, allowing management to check flood of service, identify unique reservations, and construct positive that waitlists are being managed appropriately. Soon to Come is an interface with POS systems that automatically applies any “guest notes” from GuestCenter to the server’s check, such as special occasions, etc. Most importantly, due to its intuitive design, their millennial hosts exercise the system seamlessly.Private Event Management
Private events are the foundation of most plenary service restaurant operations. They are the incompatibility between a generous week and a mighty week. However, it can subsist a very confusing process with gross of the stirring parts. In order to sojourn organized, they exercise TripleSeat to manage leads, create BEOs and track their events calendar. The cloud-based event management system allows their Private Event Coordinators to respond at any given time from anywhere, giving them a leg up on the competition, giving them the occasion to merit fees for each event. Since their coordinators receive an administrative fee for each event, they bask in responding when available off-site; generous communication is key for making positive work-life equilibrium is maintained.Bar at the Russell House Tavern in Cambridge, MA. Photo: graftongrouphospitality.com Inventory
An area which the cloud has really saved their restaurants time is with food & beverage inventories. No more paper and no more transposing paper to spreadsheet. Inventories can subsist uploaded in actual time using a tablet, laptop or even a smart phone. BevSpot is used for both their food and beverage inventories. They maintain too given access to their accounting firm, in order to reduce bulky invoice scans and uploads. gross information can subsist entered into the cloud and accessed by gross of their approved users. It too allows for multiple people to hold inventory simultaneously. One person can subsist on the bar, another in the walk in fridge, and another in the liquor room, gross at the identical time. In addition to being a major time saver, it has helped Grafton Group to reduce sitting inventory by a significant amount across gross properties.Scheduling
Staff scheduling is a weekly administrative headache for managers, but there are cloud-based scheduling applications that lessen the pain. They maintain institute HotSchedules to fitting their needs as it interfaces with their POS system and allows their firm to execute some creative reporting in regards to budgeting and forecasting, as well as taking employees requests and requirements into consideration.Email and File Sharing
Grafton Group has Come a long pass from sharing access to a desktop version of Outlook and toggling between accounts. They were able to eliminate their main server entirely and now they exercise Office 365 for their email and file sharing needs. Not only is this highly securitized, it has redundancy so their information is always backed up. They access both their email and files from anywhere in the world. This has greatly improved productivity and allowed their management teams to communicate in actual time.Grafton Street in Cambridge, MA. Photo: graftongrouphospitality.com Computer Hardware
Our office hardware now consists of much less expensive “Network Computers”, which execute not require expanded memory for giant programs, CD drives for downloading drivers, or expansion slots for extraneous drives. They can purchase more computers at a reduced cost and their managers no longer maintain to partake computer access in the office.Menu Design
For their menu design need, they maintain institute InDesign to subsist the most efficient program, which is Part of the Adobe Creative Cloud. This program can now subsist selected a la carte from Adobe’s menu of programs and paid for on a month to month basis for under $20. This is much more palatable than paying $600 for the entire Adobe suite.
These are just a handful examples of how cloud computing has impacted their operations and ultimately saved time for their management team and staff. Ten seconds here, 5 minutes there, an hour tomorrow – it adds up to impactful chunks of time that can subsist better spent elsewhere. They maintain only scratched the surface as an industry – they will note more and more options for cloud-based solutions to actual world restaurant problems. Although the solutions highlighted above create efficiency and reclaim time, they execute not serve guests and they don’t understand the knack of hospitality. It is imperative that as restaurateurs they continue to create a positive environment, embrace innovation, and engage and train their employees in the knack and skill of hospitality.
There are some things you will never maintain time for in the restaurant industry, regardless of cloud-based advancements. “Lunch”, for example, I maintain heard is a meal that takes station in the middle of the day. For me, “lunch” is the sandwich that I devour in 30 seconds somewhere between 2pm and 6pm standing over a trash can in the back of the kitchen. There is no technology for that…
PDF Version Available HereReferences [i] “PCI Compliance sheperd FAQ.” PCIComplianceGuide.Org. September, 2018. https://www.pcicomplianceguide.org/faq/#1. [ii] Green, D. and Hanbury, M. (Aug. 22, 2018). “If you shopped at these 16 stores in the eventual year, your data might maintain been stolen.” https://www.businessinsider.com/data-breaches-2018-4 [iii] “What Is Cloud Computing?” IBM.com. September, 2018. https://www.ibm.com/cloud/learn/what-is-cloud-computing. [iv] Kossman, Sienna. ” 8 FAQs about EMV credit cards.” CreditCards.com. August 29, 2017. https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php. Tyler was born and raised in Portland, Maine and has lived in the Boston area since attending Boston University. After graduating from the Boston University School of Hospitality Administration, Mr. Titherington operated a handful of bars and restaurants in Boston. He has been with Grafton Group since October 2007.
By Christopher Muller
In Part 1 of this analysis of the restaurant delivery system they looked at the owner/operator models which noiseless tender some measure of control over price and quality. This is hasty becoming an issue with the mount of the Ghost Kitchen where the ODP is an integral Part of the equation. Here they present the larger challenges from the dominant ODP control of the marketplace. It is generous to remember that most of the ODPs themselves are noiseless looking to find profits in what they do, a suggestion that those profits will requisite to Come at the expense of the restaurant providers in one pass or another.5. The Aggregator or On-Line Delivery Provider (ODP) – No Driver Fleet
If someone were to say, “Let me hold care of gross of your delivery problems for a minute chop of your revenues” many restaurant operators, especially those fervent to collect into the market with the least amount of upfront investment, would jump at the chance. Enter the On-Line Delivery Provider with a commerce model built upon a brand designation customer-facing APP, website or phone number and an mammoth amount of back office computing power to drive order volume.
At its core, to subsist successful the Aggregator needs to subsist a world-class matchmaker for food orders, with both a great customer database of users and a broad assortment of restaurant menus offered in major cities. fancy many of what MIT’s Bill Aulet calls an Innovation Driven Enterprise (IDE) the cost of customer acquisition is the key hurdle in entering this distribution channel. What it doesn’t requisite is its own fleet of employee delivery drivers. Capitalizing on the DIY gig economy, drivers are hired on a contractual basis, working as independent delivery agents with their own vehicles.
The barrier to lowering this lofty cost of entry has favored early market entrants and great well-funded digital innovators. Worldwide, the fastest growing ODP is Uber Eats, the natural extension of car service provider, Uber, with its existing mammoth data basis of users, an ever expanding fleet of drivers, and the understanding for a driver that delivering food with an APP-based pre-payment system is considerably faster and easier than dealing with human passengers.
The upside for restaurant companies using an ODP such as Uber Eats, from those as dominant as McDonalds or as minute as the local pizzeria, is that there is no requisite to hire and train non-core employees. As touted by Uber Eats delivery service can launch almost immediately upon signing up. The downside, that has a potential for long term impact, is two-fold. The fee structure for traditionally low margin restaurants can subsist between 20-30% of a menu detail price, leaving itsy-bitsy to cover remaining expenses. Worse though is that the restaurant gives away its brand and trade dress image to the company making the delivery to the front door. McDonalds hamburgers may subsist in the bag, but the designation on the ordering APP and the uniform on the person handing it to the customer says Uber Eats.
6. The Consolidator – Bulk “Bus Stop”
As noted, the most expensive unique piece of the delivery mystify is getting food from the restaurant to the front door, what is called “the eventual mile.” One proven pass to minimize that expense is to maintain the customer meet the food delivery at a central drop-off spot (see: Amazon ). A start-up, Yun Ban Bao, in new York City is taking odds of ethnic Chinese food deserts through direct targeted marketing using the dominant Chinese online service provider, WeChat. By doing so it is creating a captive delivery market with the odds of pre-ordering and payment.
Taking online requests for delivery on the next commerce day, then consolidating orders using a bulk delivery model, Yun Ban Bao is lowering the cost of delivery while maintaining control with its own fleet of drivers. It advertises a data analytics service for smaller restaurants as well as being a revenue growth accelerator for restaurants in suburban locations which otherwise could not find new or broader market opportunities.
Using a pre-arranged group delivery network, often outside parks, office towers or apartment buildings, the system mirrors a bus route, not the more traditional taxi route model of one-on-one delivery. This too affords the network of restaurants a pass to lower operating costs by controlling the production process in advance.7. The Aggregator ODP – Owned Fleet
Some of the largest ODP players started in the delivery commerce by controlling their own fleets of employee managed delivery drivers. The global leader, Just Eat, has used this model throughout the UK, Europe and worldwide. But it too has worked directly with restaurants who maintain their own in-house deliver fleets to create a broad partnership. Just devour acts as the online ordering platform, but then allows the local branded company to subsist the visage at the door.
The competence to present a standardized customer facing brand identity means that reliance may subsist established with the customer directly. While this can Come at the risk of the restaurant losing its direct brand relationship, what Just devour has been able to master is the collection of a vast customer database of its users. It has created a relationship with many of its restaurant partners to assist them in finding example store locations, menu detail design and creative targeted pricing and promotions programs which would not otherwise subsist affordable or even available to smaller companies.
For these ODP companies, the costs for maintaining their own fleets or working as a hybrid with a local restaurant creates a higher operating expense, but these are often offset with a higher fee partake from both the restaurant and the consumer. It too creates a competitive odds by pile a broader network of restaurants to pick from for the customer, which builds long term loyalty and habitual purchase behaviors.
8. The ODP Aggregator – shaded Kitchens
One of the greatest threats to the bricks and mortar restaurant delivery partners is the emerging concept of a shaded Kitchen. This is a space created by an OPD to facilitate the lowest cost per delivery mile from restaurant kitchen to the highest density of users. While this is similar to the Cloud Kitchen model, in this case the OPD establishes a cluster of minute dedicated but competitive restaurant kitchens in a unique site. A shaded Kitchen is too similar to the trending food hall concept, but comes with no direct customer interaction—no walk-in guest visits these production facilities. In the UK this was pioneered by Deliveroo with its urban RooBox or Editions concepts. colleague restaurants rent portable kitchen space from the delivery service and pay a larger percentage fee to cover the build-out costs for their space. Restaurants staff the kitchens at their own expense, as well.
Earlier this year, Grubhub invested $1 million in Green apex Group (see Ghost Kitchen in Part I), a startup with nine virtual restaurants operating from a unique kitchen. DoorDash is renting extra space from the Santa Clara Fairgrounds in San Jose, Calif., and making it available to foodservice operators who want to create delivery-only options. In Los Angeles, Postmates leased a commissary kitchen space so its restaurants can attain new customers. And UberEATS is exploring the concept with Poke Café in Chicago — a virtual restaurant serving Hawaiian poke bowls.
“We can labor with existing restaurant partners to create delivery-only menus. (They would) appear as entirely new restaurants on the UberEats app,” Ambika Krishnamachar, UberEats product manager, said in an article on Mashable.
And again, while on its visage this appears to subsist a positive occasion for independent or chain restaurants to lower costs or disaggregate the dine-in from the delivery production process, it is not cost free. In fact, as a ratiocinative progression would suggest, the OPD Deliveroo service has realized that the actual local restaurant in this amalgamate is not a necessity for success. Instead by using its own “innovation fund” it will to Go directly into the restaurant commerce itself, creating “from scratch” concepts by working with personage chefs and data mining information from its mammoth customer data base. 
As more of the OPDs glimpse to find profits to pass along to the aggressive investors who maintain funded rapid growth, they will inevitably glimpse to chop out the middleman and provide meals themselves to augment margins. The kitchen that may actually Go “dark” is the local one on the corner down the street in an independent restaurant.
This is undoubtedly both an curious and a challenging time for the restaurant industry and the Online Delivery Providers who are feeding from it. Neither side seems to maintain figured out how to construct the new consumer exact for off-site delivery labor to their complete advantage.
It is impossible to believe that any restaurant can survive if it gives away up to 30% of its top line revenues when the medium net profit is less than 10%. No amount of increased volume in sales will construct up for that. As Cameron Keng wrote in his column “Why Uber Eats Will devour You Into Bankruptcy” in March, 2018:
Based on the medium profit margins above, every restaurant that engages Uber Eats will lose money on every order they take. The more orders coming from Uber Eats, the more money a restaurant would lose.
At the identical time, while it is hard to collect exact information, it appears that almost nonexistent of the largest On-Line Delivery Providers, in any of the described segments is actually showing a profit. Uber Eats is only profitable in 27 of its more than 100 urban markets, and while Deliveroo’s sales rose in 2017 to £277 million ($356 million), the company lost an astounding £185 million ($237 million). Yet Uber Eats is offering over $2 billion to purchase/merge with Deliveroo.
Finally, as Jonathan Maze wrote in his Bottom Line column in early October the restaurant industry is simply unprepared for what appears to subsist a tectonic shift in traditional restaurant segments, consumer behavior, labor utilization, actual Estate valuation and investor interest.
If delivery is the future of the restaurant business, the restaurant commerce as it is currently constructed is in trouble.
The service is growing rapidly. But it’s increasingly replacing existing restaurant commerce rather than taking commerce away from grocers or other food retailers. 
As they famed in the beginning, it took the lodging industry almost 20 years to launch to construct this kindhearted of tectonic change and it is nowhere near complete. A few very great hotel companies, through merger and acquisition, maintain consolidated enough power to start the mosey away from handing over gross of their pricing to the OTA’s. In economic terms, hotel companies are trying to Go from being price Takers to price Setters.
At this early stage of the restaurant OPD’s domination of the delivery cycle, it is not limpid that any restaurant organization is great enough to shatter the fever, especially now that McDonald’s is partnering with Uber Eats. While it may appear that the On-line Delivery Provider is a restaurant’s partner, friend or even savior, it is nonexistent of those. In fact, in order to become profitable the OPD is looking to become a direct competitor.
What is certain is that few restaurant companies, and certainly no independent operations, can survive the next two decades letting third parties impose what convenience and price mean. In fact, this might subsist a generous time to collect out of the house and Go visit your favorite local restaurant. Sacrificing some convenience for a mighty suffer is a generous value and that restaurant may not subsist around the next time you want to array up.
PDF Version Available HereReferences  note Bill Aulet, Disciplined Entrepreneurship,  The Financial, October 25, 2018, https://www.finchannel.com/~finchannel/business/76317-amazon-expands-grocery-delivery-and-pickup  Menqi Sun, WSJ, September 9, 2018, https://www.wsj.com/articles/how-to-get-food-delivered-from-your-favorite-faraway-restaurant-1536516000  See https://www.just-eat.com/  James Cook, commerce Insider, April 5, 2017, https://www.businessinsider.com/deliveroo-editions-pop-up-restaurants-roobox-2017-4  Tim York, The Packer, March 23, 2018, https://www.thepacker.com/article/rise-virtual-restaurant Sophie Witts, astronomical Hospitality, May 21, 2018, https://www.bighospitality.co.uk/Article/2018/05/21/Deliveroo-to-create-own-restaurant-brands-using-5m-fund#  Cameron Keng, Forbes, March 26, 2018, https://www.forbes.com/sites/cameronkeng/2018/03/26/why-uber-eats-will-eat-you-into-bankruptcy/#778a3b0621f6  Ibid., DealBook, September 21, 2018  BBC News, October 1, 2018, https://www.bbc.com/news/business-45707700  Jonathan Maze, Restaurant commerce Online, October 17, 2018 https://www.restaurantbusinessonline.com/financing/delivery-could-force-changes-restaurant-business-model Christopher C. Muller is Professor of the exercise of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: firstname.lastname@example.org
By Christopher Muller
The entire restaurant industry, from the simplest quick service joint to the most tangled fine dining jewel, is caught in a veritable frenzy of delivery. It may be, unfortunately, a very risky path to travel for the uninitiated restaurant operation, but delivery is driving the investment community to a fever pitch.  They maintain entered into the time of the restaurant On-Line Delivery Provider (ODP) which mirrors in many ways the On-Line Travel Agent (OTA) which has so disrupted the lodging industry.
In two complimentary BHR articles here, they present a glimpse at the 8 different models of restaurant delivery and how they are affecting both senior management and customer choices.
A Quick Lesson From Pricing History
For observers of the global Hospitality Industry this should dispatch up warning flags. In a galaxy far, far away, the Lodging industry managed revenues by using simple seasonal or credit pricing models (On-, Shoulder- and Off-Peak rates, or premiums for “A scope With A View”) and sold some limited excess inventory through a network of independent Travel Agents (at an onerous 10% commission!).
Then, as the Internet expanded, and the travel market imploded after the 9-11 tragedy, a new and exciting model emerged – the On-Line Travel Agent (OTA) acting as a third party aggregator appeared. Hotel companies willingly gave open access to gross of their unsold scope inventory to the OTAs (Expedia, Travelocity, Priceline, Booking.com, Kayak, Trivago, etc.) to sell directly at deep discounts, often between 25 and 30% off posted Rack Rates. Occupancies rose, but medium Daily Rates plummeted, and profits quickly diminished. Hotels, relying on the former pricing models were caught competing “with themselves” and watched as formerly loyal customers switched their buying habits and loyalties to the OTA that gave them the best rate. Customers could scroll through pages of prices, often for the exact identical scope in the identical hotel, searching for the cheapest rate. Hotel rooms, instead of being unique destinations became interchangeable commodities.
It has taken almost twenty years, but through brand consolidation and a total system-wide transformation into a Revenue Management based pricing model, the hotel commerce has been transformed and the OTAs are being aggressively challenged for dominance. This should subsist a lesson for the restaurant owner/operator, the OTAs drove nothing but price as a decision attribute, the ODPs are poised to execute the identical thing with both price and convenience, unfortunately restaurants probably won’t maintain decades to recover.
Today’s Restaurant Delivery Frenzy –The mount of the ODP
Whether it’s the savvy but shape-shifting Millennial, the rapidly aging Baby Boomer, or the rising adolescent digital indigenous from the i-Generation, it seems that customers in gross shapes and sizes just want to maintain their meals brought to them at home, the office, or somewhere in between. Breaking the code of the delivery model—becoming the customer’s altenative of who serves up breakfast, lunch or dinner at home, labor or play—has emerged as the Holy Grail of the foodservice business. But it may subsist more fancy the other mythic shaded Ages metaphor, the Plague, potentially killing upwards of 30% of existing restaurant units.
So, what exactly is “delivery” today, how did it evolve into such a big, expanding component of the restaurant offering and what are the implications going forward for the industry? Just how execute the On-Line Delivery Providers, the ODP, dominate the market?
We can launch by agreeing that delivery is a divide and rapidly growing distribution channel, although it has been around in one contour or another for a very long time. And while not exactly a new technology, nor necessarily a profitable one, the exploding market for the delivery of food is poised for an inevitable quiver out as it quickly approaches a age angle consolidation.
In late 2018 delivery is gross about instant gratification, not just for the diner but some would imply for the restaurant as well. At first glance, it gross feels so simple and easy. But fancy so much in restaurant management, there is more than one pass to collect something done, even the simplest of things.
Emerging Key Success Factors
Like so many emerging commerce models in the on-line digital age, food delivery is developing its own metrics and factors to subsist considered and mastered. While noiseless evolving, among these now are:
Delivery of food, especially from a restaurant to a consumer, has become a multi-billion dollar segment of the industry. Some are predicting that it will overtake the traditional dine-in segment completely within a decade, although the complexity of getting it right and turning a profit while doing so, can noiseless subsist elusive even for the largest players. And of course, no one should forget that Amazon is over in the corner waiting to note how things evolve in an online delivery world they basically invented.
Traditional and Controlled
As noted, the delivery of food from a restaurant directly to a local customer is not a new thought although traditionally the customer came to the restaurant and picked up or carried out their food order. Both delivery and carry-out were best suited to a restaurant with a simple, easily transported menu. Where a significant amount of the value of the meal was the dining suffer and table service, meals to Go were often comprised of a package of leftovers or the long gone term “doggie bags.”
Here is a glimpse at four models with some measure of control for restaurant owners and operators over the quality and profitability of their offerings.
1. The Independent – One Shot
As a service provider a restaurant may settle that in order to meet the needs of its local customer basis it should provide a delivery option. At one time, only a few restaurants in an urban core would maintain delivery offers and these might typically subsist delicatessens or Chinese restaurants with few seats and a very tough focus on offering takeout options. The food can subsist cooked, boxed, wrapped and brought quickly to an office or apartment within a few blocks on foot or by bicycle.
This model is the most basic – a caller, the kitchen, and an employee bringing flaming food directly to the customer. The restaurant controls the quality, manages the relationship with the diner and absorbs the plenary cost and gross the revenues. It typically comes with higher operating costs for labor (primarily from an in-house paid delivery driver fleet) and with premium rent from the requisite for an attractive customer-facing retail space. On the plus side, gross local customer information may subsist controlled by the restaurant and there are no fees to partake with an outside third-party service.
But as the independent operator reaches for the brass ring on the delivery merry-go-round, they too requisite to subsist careful not to lose their grip on their existing ride. A new distribution channel can subsist much more challenging that just taking a customer order. As famed by Jennifer Marston:
…restaurants are under pressure to adapt…More and more, that means altering the physical restaurant space so it can better accommodate this influx of new orders. Extra meals require extra bodies to cook and package the food, after all, not to mention extra space for third-party devices, and somewhere to Put completed orders waiting to subsist picked up by a delivery driver.
An curious twist on this unique restaurant model of trying to find a pass to both control and expand the delivery system while maintaining some measure of profitability is one recently proposed in the restaurant trade magazine Restaurant commerce Online:
He (CMO Nabeel Alamgir) explained that Bareburger is already striving to transfigure customers ordering through third parties’ apps into users of the chain’s own channels. Patrons of an Uber Eats or Postmates might subsist offered a 10% discount on their next order if it’s placed through Bareburger’s website. The chain can afford a discount that deep because the pecuniary repercussion is noiseless less than the 20% or 30% discount an outside service typically charges.
Alamgir famed at the start of the panel’s presentation that a service started by restaurants for restaurants would maintain been an attractive alternative to some of the third-party giants. “Let’s construct their own platform. Let’s construct their own Grubhub,” he said.
2. The Cloud Kitchen – A Hub & Spoke System
It can subsist argued that today’s focused delivery channel began in earnest when Domino’s offered up a “30 Minute or Free” guarantee in 1973. In order to construct this guarantee effective, the company created a hub and spoke system, in upshot pile a progression of franchised units in low cost locations. They were characterized by being geographically market-centered but with no requisite for a “High Street” customer facing address. This was directly in contrast to the overwhelming market odds owned by Pizza Hut and its network of “Red Roof” plenary service pizzerias with their focus on dine-in and takeout service. But the competitive odds that came from having units with no dine-in, limited customer carry-out, and which were serviced by a central commissary set in motion the shift away from the traditional eat-in model.
“The reality is, when the red roof restaurant was created, the thought of delivery wasn’t Part of the concept,” said Pizza Hut chief executive David Gibbs, a 26-year veteran at parent company Yum Brands…”so in many cases, their commerce has outgrown the capabilities of those restaurants…”
Now, four decades later Domino’s is the world leader in delivery, pizza or otherwise. It has done this by controlling the entire process or what is called the “full stack” in the delivery cycle. Now describing itself as an IT and logistics company that sells pizza, the backbone of the system is that they control the customer ordering process, the production quality process, and through a vast franchise network the delivery process.
Next to come, using new GPS and AI technologies, Domino’s predicts that it will subsist able to construct deliveries not just to a formal pile address, but to anywhere a customer can subsist located by tracking their cellphone, even if that is a park bench or a blanket on the beach.
But Domino’s is not the only leader to subsist expanding its Cloud Kitchen delivery system. Already designed on a commissary production system model, giant hasty casual leader, Panera Bread, tested delivery in Boston and then announced an expansion across the United States in early May, 2018 with a system based upon using its own delivery drivers.  Following the trend in October the largest chicken sandwich chain, Chick-fil-A, announced it was beginning to test the hub and spoke model of delivery in Nashville, TN and Louisville, KY.
Chick-fil-A is opening two new restaurants that don’t maintain something you commonly associate with the chain: seats.
Chick-fil-A, the Atlanta-based chicken sandwich chain, is testing catering and delivery locations in Nashville and Louisville, Ky., that will open this month.
The locations, according to an announcement on the chain’s website, maintain no dining rooms or drive thru’s and are designed to subsist hubs for catering and delivery orders. The restaurants will not accept cash, either.
The Cloud Kitchen model can subsist very efficacious for restaurant companies with great enough scale, whether in a unique city or across a region, to hold odds of a unique production kitchen site with remote staging kitchens. Ultimately the “full stack” control from order to front door can Come from as few as three restaurants or as many as 3000. This too means that the foundation is laid for vast proprietary customer data collection and eventually data mining by the most forward-looking operators.
It can subsist argued that the Food Truck movement of the past decade is a subset of the Cloud Kitchen model. By most local health code laws, food trucks must maintain a “home kitchen” or commissary for their bulk production that meets gross health and sanitation code requirements. In many urban centers, to be successful a food truck company needs to maintain multiple trucks on the road acting as a distribution network. While this is too a classic Hub & Spoke model, it comes with similarities to a model in the next article, #6 The Consolidator, with distribution on a bus halt route and not a one-to-one eventual mile taxi route.
3. The Ghost Kitchen
One further refinement of the Cloud Kitchen is the Ghost Kitchen. As delivery becomes more of a threat to the traditional dine-in restaurant option, some imply that this model, in fact, is the future of restaurants—basically a highly efficient hybrid of menu concepts, specialized production and logistics, and low labor cost with no eat-in customers.
In that way, this model is identified by three key components.
First, it removes the dining scope or takeout from the restaurant completely, working out of a kitchen whose location is based on nearness to its core customer market yet in a typically low rent out-of-the-way space.
Second, it does not hire any paid employees to deliver, instead making exercise (through partnership or agreement) of the many third-party delivery companies fancy GrubHub, Postmates or Doordash.
Third, and possibly the most important, because of the flexibility of only needing an APP, website or traditional telephone ordering system, more than one cuisine can subsist produced in the identical kitchen space. simple to prepare, cook and deliver foods such as salads, sandwiches, Asian and other ethnic dishes, or gourmet pizza can gross subsist offered while cross-utilizing similar ingredients in creative menu offerings.
This can best subsist described as an “order only” restaurant. The most prominent or well-known of these Ghost Kitchens would subsist Green apex (see transition to #8 shaded Kitchen in Part 2). While garnering a generous amount of press, the personage chef David Chang’s Maple, closed its operation in 2017 with some assets stirring to London and the delivery company Deliveroo. Chef Chang sold the physical kitchen space, Ando, to Uber Eats after ceasing operations in January, 2018. 
Because no customer ever sets foot through the front door the owners can Put gross of their investment in kitchen materiel and the technology of ordering. A Ghost Kitchen offers customers great menu choices, and just as its cousin the Cloud Kitchen, has the option to retain track of its own proprietary customer data set through the direct ordering process. The tradeoff is that ownership sacrifices the customer interface at delivery of the Cloud Kitchen model. Operating and start-up costs are low and efficiency can subsist very high. The risk is that a great portion of the margin (sometimes up to 30%) from market-driven menu prices is taken by the delivery partnership, who too control the brand image when customers receive their orders off-site.4. Virtual Restaurants
Along with disrupting the taxi business, Uber Eats is about to globally disrupt the restaurant delivery business. As of October, 2018, Uber Eats had over 1600 “virtual restaurants” around the globe, with almost 1000 in its US partnership portfolio. The majority of these are not the Cloud or shaded Kitchen models mentioned above, but are existing restaurants with new brands that only exist through Uber Eats. This model, while charging very lofty fees to the restaurant, allows them to technically not compete with themselves in the home delivery marketplace. Uber Eats gains more menus to offer, and limits any requisite for an investment in a commissary space.
For SushiYaa, Kim says the virtual restaurant concept has been transformative. “Because this concept worked so well for us, they actually changed one of their restaurants from a sushi buffet concept to a regular restaurant with 8 different virtual restaurant brands inside it. The buffet sales weren’t doing so well and the delivery side was doing better, so they thought — let’s change it completely so we’re focused more on delivery.” From a sales standpoint, he says it’s “almost as if they maintain another restaurant without paying additional rent and labor, even though [Uber Eats] takes about 30 percent.”
One other sort of Virtual Kitchen involves the licensing of existing restaurant recipes and menu items in a curated virtual model. The start-up concept generous Uncle is using this to compete in the university meal map segment, offering a ambit of pricing options for higher quality prepared meals, delivered by their own delivery fleet using the bus halt common drop off method. This is a limited menu, limited target market, which benefits from a direct marketing approach, lower operating costs, and uses both a subscription and premium fee based pricing system. It is a Virtual Kitchen because there is no restaurant or other customer facing facility, it exists only online.
Part One – Conclusions
Delivery models, some traditional, some evolving, tender many opportunities for restaurant operators, especially those in the QSR and hasty Casual segments, where precipitate and price and convenience are the drivers of consumer choice.
The challenge in today’s delivery market is how owners and operators can maintain both lofty quality and long-term profitability in the products/services they offer. For many meals, the time and distance from kitchen to table can subsist more than 30 minutes or multiple miles. quality of presentation and flavor may quickly diminish. More importantly, where the medium annual profitability for restaurants across gross segments in the USA is considerably less than 10%, losing up to 30% of top line revenues is not a path to a successful future, (even if total sales augment by 20%).
PDF Version Available HereReferences  Heather Haddon and Julie Jargon, The Wall Street Journal online, October 24, 2018, https://www.wsj.com/articles/investors-are-craving-food-delivery-companies-1540375578?mod=cx_picks&cx_navSource=cx_picks&cx_tag=contextual&cx_artPos=4#cxrecs_s  Liam Proud, DealBook, NYTimes, September 21, 2018, https://www.nytimes.com/2018/09/21/business/dealbook/uber-eats-deliveroo.html  Jennifer Marston, The Spoon, July 31, 2018, https://thespoon.tech/delivery-is-making-these-restaurants-literally-redesign-the-way-they-do-business/  Peter Romeo, Restaurant commerce Online, Oct. 19, 2018 https://www.restaurantbusinessonline.com/operations/3-big-changes-looming-restaurants  Karen Robinson-Jabos, Dallas News, Jan 6, 2016. https://www.dallasnews.com/business/business/2016/01/06/pizza-hut-is-ditching-the-iconic-red-roof-for-a-more-modern-look  Janelle Nanos, Boston Globe, May 7, 2018, https://www.bostonglobe.com/business/2018/05/07/panera-expanding-its-delivery-service-cities/sZg4pO0yTw9cEdYpv514tL/story.html?event=event12  Jonathan Maze, Restaurant commerce Online, Oct. 09, 2018 https://www.restaurantbusinessonline.com/financing/chick-fil-opening-new-delivery-focused-prototype  Neal Ungerleider, 01.20.17 hasty Company https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out  Closing announcement from Maple, May 8, 2017 https://maple.com/letter/  Whitney Filloon, Eater, October 24, 2018, www.eater.com/2018/10/24/18018334/uber-eats-virtual-restaurants  note the online Audiopedia site https://www.youtube.com/watch?v=BKO5JFbqKTA  Ibid, Eater, October 24, 2018  note https://www.gooduncle.com/ Christopher C. Muller is Professor of the exercise of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: email@example.com
By Makarand Mody and Monica Gomez
For a long time, the hotel industry did not account Airbnb a threat. Both the industry and Airbnb claimed they were serving different markets and had different underlying commerce models. Over the years, as Airbnb become more successful and grown to being larger than the companies in the hotel industry, the rhetoric has changed. The hotel industry began to realize they had something to worry about.
A stage of denial was followed by the American Hotel & Lodging Association (AH&LA) attacking Airbnb by sponsoring research to demonstrate its negative impacts on the economy and lobbying governments to impose taxes and regulations on homesharing. The association is arguing for a smooth playing field between homesharing and hotels (and rightly so). The next stage of this battle involves competition and integration. Not only are hotels looking to add homesharing-like attributes and experiences to their properties, to more effectively compete with Airbnb, but are too looking to tap into the platform-based commerce model that underlies Airbnb’s success.
The Past: How does Airbnb repercussion the hotel industry?
Airbnb’s disruption of the hotel industry is significant, both existentially and economically. A recent study by Dogru, Mody, and Suess (2018) institute that a 1% growth in Airbnb supply across 10 key hotel markets in the U.S. between 2008 and 2017 caused hotel RevPAR to decease 0.02% across gross segments. While these numbers may not appear substantial at first, given that Airbnb supply grew by over 100% year-on-year over this ten year term means that the “real” dwindle in RevPAR was 2%, across hotel segments. Surprisingly, it was not just the economy but too the frill hotel segment that was hard hit by Airbnb supply increases, experiencing a 4% actual decline in RevPAR. The repercussion of Airbnb on ADR and occupancy was less severe. In Boston, RevPAR has decreased 2.5%, on average, over the eventual ten years due to Airbnb supply increases. In 2016 alone, this 2.5% dwindle in RevPAR amounted to $5.8 million in revenue lost by hotels to Airbnb. Brands that felt the repercussion the most were those in the midscale and frill segments, with a dwindle in RevPAR of 4.3% and 2.3% respectively. These supply increases are too fueling Airbnb taking an increasing partake of the accommodation market pie. For example, in new York City, Airbnb comprised 9.7% of accommodation demand, equaling approximately 8,000 rooms per night in Q1 2016 (Lane & Woodworth, 2016). As a whole, Airbnb’s accommodated exact made up nearly 3% of gross traditional hotel exact in Q12016.
Buoyed by a growth rate of over 100% year on year, Airbnb now has over 4 million listings, with the U.S. being its largest market. The company too has significant scope to grow in other countries, particularly emerging markets in Africa and India. The company has Run into some competition in China, with local rivals Tujia and Xiaozhu. Also, within the U.S., the generous tidings is that Airbnb will not grow at 100% indefinitely and will eventually plateau as it reaches a saturation point (Ting, 2017a). In view of this, the company has turned to alternative strategies to continue to augment supply. It is now targeting property developers to turn entire buildings into potential Airbnb units, through its newest hotel-like brand, Niido. Currently, there are two Airbnb branded Niido buildings in Nashville, TN and Orlando, FL with over 300 units each and Airbnb plans to maintain as many as 14 home-sharing properties by 2020 (Zaleski, 2018). Niido works by encouraging tenants to list their units on Airbnb, with Airbnb and Niido taking 25% of the revenue generated. Airbnb has too clearly evolved from its original premise of “targeting a different market” to attracting segments traditionally targeted by hotels, such as the leisure family market, commerce travelers, and the upscale traveler, as evidenced through its latest offering, Airbnb Plus. These homes maintain been verified for quality, comfort, design, maintenance, and the amenities they offer. They too maintain simple check in, premium internet access, and fully equipped kitchens. Their hosts are typically rated 4.8+, and Go above and beyond for their guests. Through Airbnb Experiences, travelers can partake in everything from the mighty outdoors—hiking and surfing—to “hidden” concerts and food and wine tours. In addition to these products, Airbnb has too “created” its own segments of travelers: novelty and suffer seekers who are looking for unique and unconventional accommodation fancy yurts, treehouses, and boats, gross things that a traditional hotel company cannot provide.
The Present: Understanding what consumers want lies at the heart of the battle between hotels and Airbnb
There are larger societal trends that are impacting what consumers seek travel, and they assume this has implications for the Airbnb and hotel dynamic. These trends include:
What execute these trends mean? They require marketers and suffer designers to re-think what the travel suffer means to the customer. The notion of the suffer economy was created by Pine and Gilmore in 1998, and included four dimensions: escapism, education, entertainment, and esthetic. Leveraging one, or ideally, more of these dimensions creates memorable experiences for customers, which in turn results in brand loyalty. This dynamic has been fairly well-established in the academic literature. However, Airbnb has changed the game for the suffer economy by emphasizing the sharing lifestyle and a sense of community, cleverly incorporating the above highlighted trends into its communications with customers. Because of Airbnb popularity and success, six new dimensions maintain been incorporated into the suffer economy, in the context of the travel experience: personalization, communitas, localness, hospitableness, serendipity, and ethical consumerism, as was presented by Mody in 2016.
Interestingly, in a recent study by Mody and colleagues (Mody, Suess, & Lehto, 2017), the researchers institute that Airbnb outperformed hotels on gross the dimensions of this new, expanded, accommodation experiencescape. Airbnb outperforms hotels in the personalization dimension because of its wide array of homes and locations, enabling genuine micro-segmentation and the “perfect match” between guest and host (Dolnicar, 2018). Moreover, no one home is similar to another, giving customers a unique suffer every time, enhancing the serendipity associated with an Airbnb stay. Airbnb elevates the sense of community that consumers seek, particularly when sharing space with other travelers and/or with the host, and allows consumers unparalleled access to “the local”—that café or cute itsy-bitsy store that only locals know about. However, there are areas where hotels hold their own. For example, the pathways between these dimensions and memorability were just as tough for hotels as for Airbnb, emphasizing the requisite for hotels to engage customers by leveraging the “right” dimensions for the brand—dimensions that align with the brand’s mission, story, and personality.
One such dimension where hotels discharge just as well as Airbnb is hospitableness, as confirmed in a study by Mody, Suess, and Lehto (2018). More “investor units” on the Airbnb platform means that the host is often not present when guests arrive to the home; moreover, gross communication is done electronically and with someone who “manages” the Airbnb unit and doesn’t necessarily own or live in it. In turn, hotels that leverage the human factor—the welcome of a friendly check-in agent, the helpfulness of the concierge, the warm greeting and genuine interaction between guest and food and beverage staff—create more positive emotions, which subsequently lead to higher brand loyalty. It is imperative that hotel brands really assume about the high-tech, lofty touch suffer they are looking to provide, particularly in the golden age of brand proliferation that they live in.
From a non-experience standpoint, regulation is another bone of contention that merits near inspection. After years of denying that Airbnb was a competitor, in 2016, the American Hotel & Lodging Association first began an extensive lobbying application for the imposition of taxes and regulations on Airbnb that smooth the playing field. Over the eventual brace of years, the voices of the hotel lobby and other community groups maintain translated into governments taking some action, in the U.S. and abroad. However, in a study of regulation across 12 European and American cities, Nieuwland and van Melik (2018) institute that governments maintain been fairly lenient towards short-term rentals with itsy-bitsy to no (meaningful) regulations thus far. Moreover, regulations maintain been designed to alleviate the negative externalities of Airbnb on neighborhoods and communities rather than to smooth the playing field between Airbnb and hotels. Another challenge with regulating the peer to peer economy has been enforcement. In new York City, under the Multiple Dwelling law, it is illegal for a unit to subsist rented out for less than 30 days unless the owner is present in the unit at the time the guest is renting. However, it is noiseless feasible to find “entire homes” on Airbnb in new York City, even though, in principle, these typically comprehend homes where the host is not present during the guest’s stay. Moreover, Nieuwland and van Melik (2018) and Hajibaba and Dolnicar (2017) maintain institute that regulations tend to subsist very similar across cities, without accounting for the specificities of a particular location, which makes the process perfunctory and superficial. There too remains the danger of over-regulating Airbnb, given that there is noiseless very itsy-bitsy information about efficacious ways of regulating these innovations in the sharing economy, thus stifling their potential. Avoid over-regulation is critical, since Airbnb has significant welfare effects in the economy. In addition to stimulating travel to previously inaccessible markets, Airbnb too creates customer surplus (Farronato & Fradkin, 2018), an vital economic value measure. Moreover, other research has suggested that the medium resident is not as negative towards the Airbnb as media rhetoric might imply (Mody, Suess, & Dogru, 2018). The requisite for a data-driven approach to Airbnb regulation remains paramount.
The Future: Competing with the sharing economy requires re-thinking the brand and the experience
While regulation is outside the control of the hotel industry, the brand and the customer suffer are not. They contend that these are the areas where hotel companies’ efforts requisite to subsist focused. Hotels requisite to re-think the brand promise, both for the parent brand as well as individual brands in the portfolio, and how it defines and shapes the guest experience. Recent research by Mody and Hanks (2018) indicates that while Airbnb leverages the authenticity of the travel experience—by enabling local experiences that provide a sense of self and sense of place, hotel brands that are perceived as being authentic—original, genuine, and sincere—can generate higher brand loyalty. Thus, while it’s hard to compete with homesharing in terms of experiential authenticity, brand authenticity is a pillar on which hotels can build a tough foundation for loyal brand relationships. This is particularly vital because while Airbnb promotes experiential authenticity as a key judgement to exercise the brand, most travelers tend to sojourn with the brand for much more functional requirements, such as space and price (Chen & Xie, 2017; Dogru & Pekin, 2017)
There is no one definition for or manifestation of an “authentic” brand. It’s a perception, a emotion that consumers maintain about what you stand for. An actual brand has at its core the brand promise, an actual value proposition that gives consumers a raison d’etre for associating with the brand. However, what an actual brand does require is efficacious storytelling. A brand is perceived to subsist authentic, if it has an actual record that feeds it. Brand stories can Come from many sources: a brand’s values, personality, heritage, uniqueness, or its quest and purpose. What is vital is telling compelling and coherent stories across the brand’s various touchpoints to engage consumers at a visceral, emotional level. Taking off industry blinders, and looking for inspiration outside the hotel industry, is critical. Tom’s Shoes is an excellent example of leveraging its quest—One for One—in creating a compelling brand story. As another example, in an industry typically focused on the in-store, “physical” experience, Burberry has set the gold touchstone for authentic, digitally-led and emotive storytelling, by looking within and leveraging over 150 years of history (Watch the YouTube Video here). In this vein, they assume that Fairfield Inn and Suites’ revert to “where it gross began”—the Marriott family’s Fairfield Farm in the Blue Ridge Mountains of Virginia— to craft the brand suffer of the future, from a design and communications standpoint, is an excellent example of leveraging authenticity and crafting a compelling brand vow (Ting, 2017b).
Another thought that lies at the heat of the brand vow is what they muster the experiential value proposition, or EVP. For the longest time, hotel marketers maintain relied on the guest scope as the primary source of value for the guest. But assume about the eventual time you traveled. Was it the prospect of the hotel scope that got you excited about your trip? Or was it everything that the hotel enables you to execute – the suffer outside the guestroom? From experiencing knack and music in the lobby to its proximity to the must-do craft beer garden, hotel marketers must realize that it’s the complete package—what’s inside and outside the room—that customers exercise as cues for making their decision to pick an accommodation. They muster this proposition offered by the hotel—what’s inside and outside the guest room, enclosed within an suffer of hospitableness and a connection to humanity—its EVP. They present the EVP in figure 1. The EVP mirrors the value paradigm of the modern traveler, something that must subsist reflected in the hotel brand’s sales, marketing and pricing and revenue management efforts. Thinking about a brand through the lens of the EVP paradigm has the power to re-orient the customer’s mindset from one of price-shopping to experience-shopping.
Figure 1. The Experiential Value Proposition Framework
How does a hotel marketer apply the EVP paradigm? Its application can open up many avenues. Hotels can start by rethinking the design of their primary digital channels, led by the website by adding more rich, vivid content that goes beyond the guestroom, in order to better integrate aspects of the wider hotel and local experience. The touchstone Hotels serves as an excellent example (http://www.standardhotels.com/) Its website feels more fancy a local lifestyle and culture magazine than a digital media property “selling” a hotel room. The website’s moneyed images and stories draw the visitor into wanting to learn more about what the brand has to offer. While not every hotel can or would want to Go the touchstone way, since the brand has its own divide voice and personality, there is a case to subsist made for going beyond static images of beds in guestrooms, which tend to blend into one indistinguishable gross after a point, particularly on OTA websites. When was the eventual time the image of a hotel bed excited you to want to sojourn there? Yet, when you glimpse at the imagery Put out by most hotels, this is what marketers noiseless focus on.
Placing an stress on humanity and providing a sense of hospitableness can too enhance a brand’s EVP. Instead of technology replacing the human connection, the industry needs to glimpse for ways in which technology can actually free up employees so that they can expend their time crafting more personal and unique experiences, delighting guests instead of performing routine transactions. Moreover, if the human connection is what people seek out when traveling with Airbnb, why is it that hotel confirmation emails noiseless collect sent out by automated systems that highlight the “facelessness” of the hotel entity. Why not exercise that as an occasion to truly welcome the guest; a simple touch such as a welcome epistle from the GM with his/her photo, or that of an employee who is “assigned” as “your personal host” during your sojourn can Go a long pass in emulating the human connection that the sharing economy enables.
The design of the hotel’s public spaces can subsist used to enhance the guest’s suffer of “communitas”. Ian Schrager would accord (Schaal, 2017). After all, with much of Airbnb’s supply being dominated by investor units that provide itsy-bitsy or no host contact, what better an occasion for hotel brands to array that they are the original connectors of human beings? Sheraton has been sage in incorporating some of these communal elements into its brand makeover by introducing productivity tables and studio spaces and a day-time coffee bar that transforms into a bar at night. In terms of another design element, Airbnb’s attractiveness to family and group travelers can subsist offset by offering connecting and/or multiple rooms for one price, with other suffer value-adds thrown in (as with the Marriott family scope connecting rooms package.
Finally, the role of the loyalty program cannot subsist emphasized enough. Loyalty programs must mosey beyond programmatic levels to being able to leverage data from guest history, convivial media, and other marketing data sources, powered by predictive analytics, to personalize and individualize the guest suffer of the brand. In an age of instant gratification, the loyalty program has to subsist gamified to unlock value-adds and tender creative bundling.
At the smooth of the hotel company, beyond the individual brand, the hotel industry has started participating in the home sharing commerce and is increasingly looking to integrate these platform commerce models. For example, while Accor purchased Onefinestay, Marriott has teamed up with Hostmaker to create Tribute Portfolio Homes, a partnership that was recently expanded to four European cities (Fox, 2018). From an organic brand progress standpoint, Accor’s newest Jo & Joe brand mimics the sharing economy within the confines of a traditional hotel space. Other, more innovative and bold ways of integrating the sharing economy ethos into a hotel could comprehend offering an “Airbnb floor”, an antithesis to the club floor, one that would not tender housekeeping and other hotel services and thus subsist offered at a lower price. With hotel brands becoming “branded marketplaces” for accommodation and not just hotel rooms, perhaps there is merit in listing hotel rooms on alternative accommodation platforms. HomeAway is already adding hotels to its platform through the Expedia Affiliate Network, while Airbnb is making a propel for bed-and-breakfasts and boutique hotels. Homesharing providers hope that by adding these options to their listings, they will fulfill their goal of being “for everyone”, while allowing independent and boutique hotels to gather the benefits of branded distribution at a lower cost than traditional OTA brands.
In sum, hotels must adopt a sales, marketing, and revenue management approach that is both strategic and tactical.
At a strategic level, hotel brands requisite to re-think their story, and how they portray and fulfill their authenticity and brand promises. At a tactical level, it’s the suffer and value beyond the guestroom that must subsist factored into what is presented to current and potential guests, what they are charged for it, and how it is leverage to create “memorable memories” that lead to higher net promotor scores and brand loyalty. They present a graphical summary of the past, present, and future of Airbnb vs. hotels in figure 2.
Figure 2. Summarizing the past, present and future of Airbnb vs. hotels
PDF Version Available HereReferences Chen, Y., & Xie, K. (2017). Consumer valuation of Airbnb listings: a hedonic pricing approach. International Journal of contemporaneous Hospitality Management, 29(9), 2405–2424. http://doi.org/10.1108/IJCHM-10-2016-0606 Dogru, T., Mody, M., & Suess, C. (2018). Adding evidence to the debate: Quantifying Airbnb’s disruptive repercussion on ten key hotel markets. Dogru, T., & Pekin, O. (2017). What execute guests value most in Airbnb accommodations? An application of the hedonic pricing approach. Boston Hospitality Review. Dolnicar, S. (2018). Unique Features of Peer-to-Peer Accommodation Networks. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 1–14). Oxford: Goodfellow Publishers Ltd. Farronato, C., & Fradkin, A. (2018). The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb. Fox, J. (2018). Marriott expands homesharing program in Europe. Hotel Management. Retrieved from https://www.hotelmanagement.net/own/marriott-expands-homesharing-program-to-3-european-cities Hajibaba, H., & Dolnicar, S. (2017). Regulatory Reactions Around the World. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 120–136). Oxford: Goodfellow Publishers Ltd. Lane, J., & Woodworth, M. (2016). The Sharing Economy Checks In: An Analysis of Airbnb in the United States. Retrieved from http://www.cbrehotels.com/EN/Research/Pages/An-Analysis-of-Airbnb-in-the-United-States.aspx Mody, M. A., Suess, C., & Lehto, X. (2017). The accommodation experiencescape: a comparative assessment of hotels and Airbnb. International Journal of contemporaneous Hospitality Management, 29(9), 2377–2404. http://doi.org/10.1108/IJCHM-09-2016-0501 Mody, M., & Hanks, L. (2018). Parallel pathways to brand loyalty: Mapping the consequences of actual consumption experiences for hotels and Airbnb. Mody, M., Suess, C., & Dogru, T. (2018). Not in my backyard? Is the anti-Airbnb discourse truly warranted? Annals of Tourism Research. http://doi.org/10.1016/j.annals.2018.05.004 Mody, M., Suess, C., & Lehto, X. (2018). Going back to its roots : Can hospitableness provide hotels competitive odds over the sharing economy ? International Journal of Hospitality Management. http://doi.org/10.1016/j.ijhm.2018.05.017 Nieuwland, S., & van Melik, R. (2018). Regulating Airbnb: how cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 0(0), 1–15. http://doi.org/10.1080/13683500.2018.1504899 Schaal, D. (2017). Ian Schrager Calls Out Hotel Industry’s Airbnb Strategy as Misguided. Skift. Retrieved from https://skift.com/2017/12/08/ian-schrager-calls-out-hotel-industrys-airbnb-strategy-as-misguided/ Ting, D. (2017a). Airbnb Growth record Has a Plot Twist — A Saturation Point. Skift. Retrieved from https://skift.com/2017/11/15/airbnb-growth-story-has-a-plot-twist-a-saturation-point/ Ting, D. (2017b). Marriott and altenative hold Varied Approaches to Reviving Classic Midscale Brands. Skift. Zaleski, O. (2018). Airbnb and Niido to Open as Many as 14 Home-Sharing Apartment Complexes by 2020. Retrieved from https://www.bloomberg.com/news/articles/2018-08-14/airbnb-and-niido-to-open-as-many-as-14-home-sharing-apartment-complexes-by-2020 Makarand Mody, Ph.D. has a varied industry background. He has worked with Hyatt Hotels Corporation in Mumbai as a Trainer and as a quality Analyst with India’s erstwhile premier airline, Kingfisher Airlines. His most recent experience has been in the market research industry, where he worked as a qualitative research specialist with India’s leading provider of market research and insights, IMRB International. Makarand’s research is based on different aspects of marketing and consumer behavior within the hospitality and tourism industries. He is published in leading journals in the field, including the International Journal of contemporaneous Hospitality Management, Tourism Management Perspectives, Tourism Analysis and the International Journal of Tourism Anthropology. His labor involves the extensive exercise of inter and cross-disciplinary perspectives to understand hospitality and tourism phenomena. Makarand too serves as reviewer for several leading journals in the field. In drop 2015, he joined the faculty at the Boston University School of Hospitality Administration (SHA). He received his Ph.D. in Hospitality Management from Purdue University, and too holds a Master’s degree from the University of Strathclyde in Scotland. Monica Gomez is a graduate student in the School of Hospitality Administration at Boston University. She received her Bachelor’s degree in Tourism, Recreation, and Sport Management from the University of Florida and has held previous internship positions in hotel operations and event management. She is a member of the Hospitality Sales and Marketing International Association and is interested in hotel revenue management.
By Christian E. Hardigree, J.D.
Today’s hospitality conversations are rife with dialogue about sustainability, initiatives ranging from linen reuse programs, to donating toiletries, to auto dimming lights, to food sourcing, etc. Hospitality practitioners’ quest to define the ROI (return on investment) is often at foiled by a concept that includes intangible metrics and differing definitions of what “sustainability” really means. The oft-used “Triple Bottom Line – People, Planet, Profit” embodies the commonly agreed upon themes of sustainability, which comprehend ensuring a hale environment, improving economic prosperity, and implementing convivial justice initiatives that ensure the well-being and quality of life for current and future generations.
Companies struggle to determine what role they play in advancing and addressing convivial and global challenges while enhancing their brand, ensuring consumer loyalty, and expanding their market share. Many companies evaluate and refine their efforts for engaged brand activism, particularly through marketing, which they equilibrium with efforts to implement higher standards for suppliers, better equality among workers, and retain pricing competitive – falling in line with the universal categories of most corporate convivial responsibility efforts: 1) environmental efforts; 2) philanthropy; 3) ethical labor practices; and 4) volunteering.The “Arms Race” of Corporate convivial Responsibility Reporting
For many companies, particularly in hospitality, corporate convivial responsibility (CSR) reporting has emerged as a key commerce approach to articulate the benefits to the company’s stakeholders through strategic initiatives. According to the Governance and Accountability Institute, sustainability reporting by S&P 500 companies increased from 19% in 2011 to 85% in 2017.[i]
Companies now esteem the marketing value of CSR reporting, particularly as a mechanism to attract and retain customers. Increased societal pressure for greater regulation and transparency, coupled with research showing that consumers demonstrate a preference toward companies they perceive are more responsible, maintain resulted in a new “arms race” with companies are making operational decisions that are more tightly linked to ethical values, environmental stewardship, and respect for the human equity. They want to ensure those efforts are known to their stockholders, investors, and the public.
While many CSR disclosures are currently willful in the United States, there are increasing requirements mandated by various statutes. Such mandates, commonplace in the European Union, are increasingly required in the United States. In particular, there is growing market exact for a more responsible and transparent corporate supply chain. Current statutory requirements ambit from the Mandatory Reporting of Greenhouse Gases rule for great emitters of greenhouse gases to the California Transparency in Supply Chains Act of 2010 to ensure that great retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from their supply chains.[ii] The Dodd-Frank Wall Street Reform and Consumer Protection Act, which impacted virtually every Part of the US pecuniary services industry too includes provisions for certain reporting on their exercise of due diligence in the source and chain of custody of certain minerals that are associated with armed conflicts in and around the Democratic Republic of the Congo, minerals that are associated with the manufacturing of devices such as cell phones, computers, and digital cameras.[iii] Most recently, the European Union’s sweeping Global Data Protection Regulations (GDPR) went into upshot May 25, 2018. Intended to give EU citizens greater control of their own, widely-define personal data, GDPR has far reaching implications for any company doing commerce with citizens of the EU. For the hospitality industry, new processes are required to subsist implemented to protect things fancy IP addresses and cookie data, similar to the protections currently provided to ensure privacy for addresses and convivial security numbers. In the three months prior to GDPR going into effect, it was estimated that 79% of companies were unprepared.[iv] The mandatory disclosure landscape is changing fast, and hospitality is challenged to retain up.Not gross Changes Are Mandated
As consumers are holding corporations accountable for effecting convivial change in their commerce practices and beliefs, ultimately impacting the bottom line, companies refine their sustainability initiatives as a result of public advocacy, stockholder proposals, or consumer feedback. A 2017 study by Cone Communications illustrated some key elements, including:[v]
To illustrate, on February 6, 2018, in a commitment associated with improved packaging in betterment of the planet, Dunkin’ Donuts announced it would angle out the exercise of polystyrene foam cups by 2020 and supersede them with double-walled paper cups, estimated to maintain a net repercussion of eliminating over a billion cups annually from the consume stream.[vi] This was on the heels of McDonald’s announcing in January that it would angle out the exercise of foam packaging in gross global markets by the halt of 2018.[vii] Straws and stirrers construct up over 7% of plastic institute in the environment, an issue initially addressed (and banished) by George McKerrow, co-founder of the restaurant chain Ted’s Montana Grill, that has gained widespread attention as consumers are reminded that they exercise 500 million straws a day, a habitude that widely impacts wildlife and the oceans.[viii] Just this month, Bon Appétit announced they were banning plastic straws from their over 1000 café locations in 33 states.[ix] As cities fancy Miami and Malibu maintain banned unique exercise straws (and in Malibu, banned gross unique exercise plastic utensils and stirrers), they find some municipalities are forcing hospitality businesses to incorporate sustainable practices.Avoid Greenwashing
As hospitality companies seek to out-promote each other, they would subsist well-advised to avoid greenwashing – today’s version of “snake oil”, more akin to “eco-fraud” – when a company holds itself out as more environmentally friendly than it actually is in practice. Clearly consumer preferences demonstrate an increasing trend for purchasing products and services that are sustainable – for their repercussion on the environment, in how they are manufactured, and/or how the workers are treated. Between 2009 and 2010, the number of “greener” products increased by 73%.[x] In order to capitalize on this trend, many brands are trying to competitively out-do each other with their eco-credentials – exaggerating their claims, or at times, completely manufacturing them. In legalese, greenwashing may amount to deceptive marketing, misrepresentation, and/or fraud.
In the “sins” of greenwashing, hospitality entities would subsist sage to avoid vague, over-reaching, or unverifiable assertions. Hotels increasingly inspirit their guests to embrace green practices – shut off lights, reuse towels, avoid changing the linen as frequently, etc. Research by faculty at Washington condition University institute that a perceived ulterior motive of a hotels’ environmental claims evoked consumer skepticism, which negatively influenced consumer’s goal to participate in the linen reuse program, as well as negatively effecting the consumers’ goal to revisit the hotel.[xi] At a time when as many as 79% of travelers accord that eco-friendly practices is an vital factor in their altenative of lodging, companies risk losing valuable restate customers if their motives are self-serving. As a result, to avoid the negative aspects, hoteliers are cautioned to install comprehensive green programs, train their staff to implement practices, and ensure their green claims are accurate and not overreaching, perhaps through third party certification.For Goodness Sakes, Don’t Greenwash the Food
Greenwashing is of particular concern in today’s environment, particularly in the context of food. For example, in 2016, organic food sales jumped 8.4%, to over $43 billion, while overall food sales only increased 0.6%.[xii] Similarly, organic non-food items jumped 88% to $3.9 billion in sales. As restaurants and hotels are asked questions by their customers about the source of their products, facilities requisite to subsist sensible of the claims they are making to ensure they are not overreaching or deceptive, as greenwashing has become the “flavor of the month” in consumer class litigation. Claims challenging products advertised as “natural” are the most frequent suits encountered.
While no definition of “natural” is provided by the FDA, food products in the US labeled as “natural” construct up roughly $40 billion in sales, and are growing by an medium of 6.6% annually. According to Food Navigator, there were 20 food labeling class actions pending in federal court in 2008 – a number that rose to 425 by 2016. Cases that specifically focus on “natural” claims increased by 22% from 2016 to 2017, notably with suits against universal Mills’ Nature Valley bars and Dr. Pepper Snapple’s Mott’s Apple Sauce. Of particular note is that three quarters of federal court food class actions are in four states: California (36%), new York (22%), Florida (12%), and Illinois (7%).[xiii] Many of the suits are rooted in claims that items such as lofty fructose corn syrup, lofty maltose corn syrup, soy flour, soy lecithin, and GMA yellow corn flour, as well as synthetically derived vitamins, are not “natural”, and thus such claims are fraudulent.[xiv] Overreaching statements can subsist a source of eroding consumer confidence, destroying customer loyalty, and/or litigation.Conclusion
Sustainability initiatives will continue to subsist an imperative Part of a hospitality entities’ brand, evaluated by gross stakeholders. In order to ensure consumer confidence, it is imperative that those initiatives subsist actual in their implementation, supported by third party verification, and in alignment with the legal requirements of the jurisdiction. In doing so, their efforts in supporting the three E’s – environment, economic, and equity – their industry will collectively mount in to better the future for ourselves and for future generations.
PDF Version Available HereReferences [i] Retrieved May 30, 2018 from https://www.ga-institute.com/press-releases/article/flash-report-85-of-sp-500-indexR-companies-publish-sustainability-reports-in-2017.html [ii] 40 CFR Part 9; and California Civil Code §1714.43 [iii] https://www.gpo.gov/fdsys/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf [iv] Retrieved April 6, 2018 from https://www.forbes.com/sites/forbestechcouncil/2018/03/27/u-s-businesses-cant-hide-from-gdpr/#33b76ef052c8 [v] Retrieved April 6, 2018 from http://www.conecomm.com/research-blog/2017-csr-study [vi] Retrieved April 16, 2018 from https://news.dunkindonuts.com/news/dunkin-donuts-to-eliminate-foam-cups-worldwide-in-2020 [vii] Retrieved April 16, 2018 from https://www.bizjournals.com/chicago/news/2018/01/10/mcdonalds-phasing-out-foam-packaging-this-year.html [viii] Retrieved May 30, 2018 from https://www.forbes.com/sites/megykarydes/2018/05/23/the-future-of-take-out-exhibit-how-we-can-eliminate-packaging-waste/#37a1213c7580 [ix] Retrieved May 31, 2018 from https://www.npr.org/sections/thesalt/2018/05/31/615580695/last-straw-for-plastic-straws-cities-restaurants-move-to-toss-these-sippers [x] Retrieved April 6, 2018 contour http://sinsofgreenwashing.com/index5349.pdf [xi] Rahman, I., Park, J., & Geng-qing Chi, C. (2015). “Consequences of “greenwashing”: Consumers’ reactions to hotels’ green initiatives”, International Journal of contemporaneous Hospitality Management, Vol. 27 Issue: 6, pp.1054-1081, https://doi.org/10.1108/IJCHM-04-2014-0202 [xii] Retrieved May 31, 2018 from https://www.foodbusinessnews.net/articles/9394-u-s-organic-food-sales-jump-more-than-8 [xiii] Retrieved May 31, 2018 from http://www.instituteforlegalreform.com/uploads/sites/1/TheFoodCourtPaper_Pages.pdf [xiv] Examples comprehend Janney et al. v. universal Mills, 3:12-cv-03919, U.S. District Court for the Northern District of California; Rojas v. universal Mills, Inc. 3:12-cv-05099, U.S. District Court for the Northern District of California; Bohac v. universal Mills, Inc., 3:12-cv-05280, U.S. District Court for the Northern District of California; Van Atta v. universal Mills, 1:12-cv-02815, U.S. District Court for the District of Colorado
As Founding Director and Professor of the Michael A. Leven School of Culinary Sustainability and Hospitality at Kennesaw condition University, Dr. Hardigree oversees the Bachelor of Science degree program which houses over 260 majors and services over 1500 students enrolled in classes each semester. Addressing both “sustainability on the plate” as well as “sustainability beyond the plate” in terms of water, consume and energy efficiencies, this highly material management program provides a competitive odds and discernible point of differentiation as the epicenter for teaching, research and best practices in sustainable culinary and hospitality management. The flexibility of the program’s curriculum allows students to emphasize careers in beverage management, event planning, specialized cuisines, and the hotel industry. Christian conducts research and presents nationally at industry conferences as related to her areas of expertise, including food safety, risk management, sustainability, workplace violence and employment/management issues. She is a national expert on bed bug litigation, speaking across the country on the subject. After obtaining her B.S., cum laude, from the William F. Harrah College of Hotel Administration at UNLV, Christian obtained her Juris Doctorate from the Walter F. George School of Law at Mercer University, focusing on employment discrimination, arbitration/mediation, and labor management relations. She is of counsel with the law firm of Parnell & Associates. Christian serves on a variety of committees and advisory boards, including the ConServe Sustainability Advisory Council for the National Restaurant Association, the KSU Brian Jordan center for Excellence and Professional progress at LakePoint Sporting Community, and formerly on the Women in Lodging Advisory Council for the American Hotel & Lodging Association.
By Martin Zsarnoczky
Digitalization is among the most vital changes in their rapidly evolving world. Digital innovations and technological novelties are engines of progress and array their repercussion everywhere, especially in the field of manufacturing, ICT and other service industries. Given the fact that tourism is based on the cooperation between a wide ambit of services and products, the benefits of the digital revolution in the sector are quite obvious.
Our animate environment is a combination of online and offline spaces that co-exist together, defining their everyday habitat. In tourism, the special exercise of spaces has always been a unique feature of the industry, and as of today, the spaces of the digital world maintain become Part of it. The rapid progress of the digital world brings novel and innovative solutions into the digital tourism spaces by the day. Peer-to-peer communication is outstandingly vital in the technological environment of tourism. This sort of communication, together with the spreading of smart devices maintain revolutionized scheduling, administration and finances, and too opened new horizons for the introduction of innovative sales and marketing technologies in the gross tourism industry. As a result of the digital revolution, the international progress trends in tourism maintain opened the pass for novel solutions fancy cloud-based booking sites or information and suffer sharing via digital platforms.
In line with the new trends of travelling, there is a dynamically growing exact for special tailor-made offers beyond mass tourism, as conscious consumers hope personalized solutions that respond their individual needs. As of today, the vast majority of tourism market stakeholders maintain access to minute information on their consumers and can closely result and track consumer behavior and its changes. These novel systems of personalized products and services are available thanks to various resilient follow-up techniques fancy CRM client databases. The cloud-based CRM client database systems – ones that create offers by analyzing previous sales records and demographic data – maintain evolved rapidly. As of today, they can analyze huge datasets by astronomical data analysis and scaling methods in a cost efficacious and anonymous way, searching for significant event points. Although astronomical data research is based on working with great samples, it is the most efficient pass to divulge individual personal preferences (Stadler, 2015).How did sharing economy pave the pass to personalized tourism services?
In previous decades, the results of digital progress maintain opened the door for the actual life implementation of shared economy theories. It was almost ten years ago that Chris Anderson (2009) introduced his pricing theory in digitalization, basically suggesting giving away products for free, based on the principle of shared goods and resources. Although at the time Anderson’s theory was considered as a technological solution, the principle of digital sharing maintain induced grave convivial changes as well. One of the most vital positive messages of shared economy is the maximum exercise of resource capacities for the purpose of convivial well-being (Sundararajan, 2014). convivial well-being is too a key priority in tourism, because a well-managed tourism industry brings profit not only for the commerce operators but too for the local communities.
In the sharing economy model, the stakeholders – who are too consumers at the identical time – tender their excess capacities for collective exercise in order to maximize the exploitation of their goods and resources. These economic processes consist of so-called hybrid transactions with maximum capacity exercise (Hyde, 2007), for both commercial and convivial purposes. An vital drive in the evolution of collaborative consumption theory was the realization of the fact that using or possessing the identical consumer goods can result in different advantages. The core factor of the model is that sellers tender their excess capacities, while the consumers in requisite exercise them in revert for payment. In the sharing economy (based on the aforementioned primary idea), more and more industrial, commercial and service providers tender innovative solutions.
The principle of sharing is not a new thought in the tourism industry. In the case of some accommodation services, seasonal price reduction has always been a practice. Hostels and youth hotels maintain always been common – these facilities are often used as dormitories throughout the academic year and lease their rooms for backpackers in the summer season, when the students are away. Of course, these seasonal options would not maintain been enough for creating a new market sector; the dawn of the new commerce era was marked with the emergence of wide platform solutions fancy Airbnb, Booking.com, Agoda, etc.
In the strategy of digital platform tourism businesses, consumers are considered as partners in the commerce activities. This shared operation can subsist best defined as a postmodern commerce model. Although the tangled thought of postmodernism is quite difficult to describe, its main characteristics – shared participation and the subjective fire of each contributor – can lead closer to understand the phenomenon. It is limpid that postmodernism will change some processes of the classic market laws in the near future. While “shared experience” has become a key marketing term for selling goods and services, specialized offers inevitably lead to a market fragmentation that will result in the fragmentation of users as well. In a disintegrated market, consumers will behave differently in fragmented times and spaces, paving the pass for personalized services and tailor-made solutions. At the identical time, individualism has become the key characteristics of the younger generations (McCrindle et al., 2009); a phenomenon that will maintain to subsist taken into account whilst creating commerce strategies. Due to the emergence of individualism, more and more adolescent people are trying to create something unique that can serve the long-term profit of the community. Their drive for creating businesses based on their own ideas and suffer accounts for the increasing popularity of start-up businesses. These aspects of uniqueness, community thinking and experience-centered approach hold a huge occasion for the future of the tourism industry.The Future: AI, VR/AR, Blockchain
While looking through their photos, tourists usually maintain a positive suffer remembering their travels, experiences and the destination they had visited. Some specialized digital technologies can tender this assumed positive suffer in a searchable and changeable form. With regards to actual life objects, their connections and relations, there is only a limited amount of information available in a format that could subsist handled by computers. The main problem is that computers requisite adequate coding solutions created by simulated intelligence to subsist able to store, handle and organize information. The methods of coding for tourism suffer purposes impress the speed, efficiency and knowledge/experience-based computing abilities of today’s computers.
According to the forecasts of product progress strategies in various industries, almost gross of their everyday objects and materiel will subsist accessible through the internet in the future. As a result, gross devices that are capable of two-way communication will belong in the framework of IoT (Internet of Things). The devices of the future, unlike the devices of today, will communicate in a bidirectional way, where robust safe data handling, personalized differentiation and adequate decision management will subsist Part of the user experience. As a result of the continuous data collection during the exercise of these devices, gross material information will eventually halt up in a final centralized system at the top of the dataset.
Previously, tourism used to subsist an industry based on personal relations and connections, where the trends – and therefore travelers’ decisions – were set out by a limited number of great international tourism and travel enterprises. As a result of the digital revolution, the transparency of “hidden markets” had been revealed and numerous other factors maintain to subsist taken into account (Fig.1.).
The early progress of ICT resulted not only in the better capacity utilization of airlines, but too on the compatibility of the prices; and soon, the emergence of the discount airlines had led to the innovation of the gross industry and forced out efficiency in gross segments. The novel travel recommendation sites (Expedia, Orbitz, Kayak, etc.) were created with the train to construct travelers’ decisions easier; however at the identical time, a lot of tourism service providers who could not retain up with the new challenges were forced out of the market. Although the new trends fancy travel packages (including car rental) or taking into account the reviews of previous travelers (Lonely Planet) were from many aspects antithetical to the former commerce models, the rapidly increasing popularity of online offers required quick and user-friendly tourism product progress from the industry.
With the arrival of Google, which was able to rank the sites’ appearance in internet searches, a fierce competition begun between blogs, tourism recommendation sites and price-comparing OTA systems. The bidirectional communication started with the exercise of cookies 2.0; since then, consumers maintain become an integral Part of the commerce models, because businesses who seek to subsist successful in the long run, requisite to know their customers’ demands in detail. The progress of digital services require the identification of the user, information on their individual preferences and a decision-based calibration (by AI). In AI-based decision making solutions, the former crucial factors are replaced by a virtual personal assistant, which is able to map the consumer’s preferences based on their digital footprint, and create an optimal personalized tender from the available astronomical data systems (Fig. 2.)
The technological progress cannot subsist stopped; however, with adequate flexibility and openness, tourism businesses can prepare for the upcoming challenges. In the tourism of the future, the new consumers will bring forth new priorities and new demands. As a revolutionary approach, the members of the IoP (Internet of People) community tender their free time in order to attain joint IT/industrial goals, where frameworks are created in line with the preferences of other people, for a yet not specified consumer segment (Miranda et al., 2015). Beyond innovative technologies, gross new spaces maintain opened in tourism, completely different from the usual destinations. University researchers maintain been carried out to study the possibilities of online tourism spaces and their opportunities for the tourism and hospitality industry. In virtual reality, with a special “glass”, the user can glimpse into an optional tourism space, from which the actual world is completely shut out. The Augmented reality is a different technological solution, where digital elements are projected into a actual life space.
The newest technological developments and the innovation in the exercise of animate spaces are gross connected to the alternative payment options that can subsist used in tourism as well. The emergence of Bitcoin and other cryptocurrencies has led to the creation of a novel payment system. The Blockchain payment system is a shared database, which records a continuously growing list of data blocks, preventing any counterfeiting or alteration of the data. One obscure consist of a list of transactions and the results of computations made by the stored programs. For example, if a customer buys some cryptocurrency or any other kindhearted of currency, and then transfers it to anywhere in the world to another partner, who exchanges it instantly, both partners can avoid any loss caused by exchange rate fluctuations; furthermore, the gross transaction takes only minutes instead of the usual brace of commerce days. This solution can subsist of value a revolutionary innovative payment option for everyone in the tourism industry.
The applicability of the blockchain system is independent from currency rates. In the case of cryptocurrencies, it is not the exchange rate that really matters – instead, the honest value of the currency lies in the safety of the blockchain technology and in the authentic, transparent, unalterable and decentralized recording system (Pilkington, 2016). This payment system offers a new smooth of encryption safety and intervention-free operation, and the data handled in the system cannot subsist modified in any way. Another huge profit of the system is that the transactions are realized without any intermediate agents, thus eliminating any additional transaction costs. By the time of the “maturity” of blockchain payment solutions, today’s great service intermediators fancy Airbnb, Booking.com, Agora, etc. are foreseen to lose some of their market positions, as consumers and service providers will probably deal with their transactions directly.Will simulated Food subsist the next meal on the table?
With the worldwide population boom, the exact for food is too increasing. To satisfy this growing requisite for food, the extension of agricultural areas is required for food material production, and at the identical time, adequate land management is needed for animal husbandry. The greatest challenge of sustainable agriculture lies in the fact that the agricultural areas can only subsist further expanded at the expense of forested lands. In addition, the current changes in the environment has too led to the dwindle of fishing possibilities, another vicissitude in the availability of food materials.
The decreasing resources of food materials will compel the food production industry to re-think their former concepts. new technologies fancy 3D food printers can even bring the hasty food era to an end. The novel inventions of food production and food engineering – fancy artificially flavored drinks, chocolates and dairy products – maintain been on the market of more than a decade now, and so far, they maintain not had a negative upshot on the common tang of consumers.
In the concept of 3D food printing, popular sweets and delicacies are synthesized by a layered printing technology, using the various pre-mixed powders, flavorings, fixers and oils that are stored in the “toners” of the printer. These simulated foods are already available: specialized franchise restaurants fancy the Food Ink chain tender a wide variety of printed meals for consumers who are curious about the future of gastronomy. It is too likely that with the next generation of the food printers, they will subsist able to calibrate the nutritional values and energy content of the meals.
The 3D food printing technology is not only vital for HoReCa businesses, but holds a mighty occasion for the health industry, too, especially in the field of special diets and medication. Using 3D food printing for these purposes can augment cost-effectiveness, efficiency and sustainability, thus supporting the food industry and hospitality and tourism businesses alike.
The option of personalized 3D food printing is just one of the innovative technological solutions in the tourism and hospitality industry. The Henn-na Hotel  in Huis Ten Bosch, Japan is the first hotel in the world, where customers are served exclusively by robots. At another Asian location in China, there are 24/7 cafés that result the no-staff commerce model of Amazon Go. As for the restaurant market, the Chinese food brand Wufangzhai has recently opened the first unmanned restaurant in Hangzhou, capital city of east China’s Zhejiang Province.
The question is: how long will it hold until food production and consumption will requisite no human resources at all?Summary
For innovative enterprises, the efficiency of interactivity is of key importance for the success of their business. The rapid progress of ICT solutions has brought immense changes in the tourism industry. Previously, consumers’ decision making was mainly affected by the industrial environment. The era of digital tourism spaces – preceded by theme parks and thematic destinations – started with the emergence of information websites; however, this targeted information flood used to subsist one-directional with narrow choices. In today’s digital era, the new generation of commercial activities hold station in VR or AR spaces, and the instant analysis of the customer’s reactions and behavior support the enhancement of their buying willingness. The traditional decision making processes are gradually being replaced with personalized offers, further increasing the importance of AI.
With the progress of shared economy, greater stress is Put on convivial well-being, as user suffer slowly becomes more vital than ownership. This new approach is too expressed in novel forms of payment, which can seriously dwindle the profits of intermediate activities. The new trends execute not seem to subsist problematic in the tourism industry, mostly because in this sector, the exact costs and incomes are not clearly visible yet. On the other hand, the quality progress of the 3D printing technology holds a mighty occasion for the tourism and hospitality sector. The progress of digitalization has finally reached a smooth where it can truly support the cost-effectiveness and sustainability of industrial food production, paving the pass to the future of tourism and hospitality businesses.
PDF Version Available HereReferences Anderson, C. (2009). Free: The Future of a Radical Price. Hyperion, new York. Hyde, L. (2007). The Gift: Creativity and the Artist in the Modern World. new York: Random House Inc. McCrindle, M. – Wolfinger, E. (2009). The ABC of XYZ: Understanding the Global Generations, University of new South Wales Press, Sidney. pp. 1-22. Miranda, J. – Mäkitalo, N. – Garcia-Alonso, J. – Beroccal, J. – Mikkonen, T. – Canal, C. – Murillo, M. J. (2015) From the Internet of Things to the Internet of People. IEEE Internet Computing, 19 (2): 40-47. Stadler, G. (2015). astronomical data – tömeges adatelemzés gyorsan. HTE Medianet 2015, Kecskemét. LLX. pp. 44-48 Pilkington, M. (2016). Blockchain technology: priciples and applications. Research Handbook on Digital Transformation. Edward Elgar Publishing, Northampton, MA. pp. 225-253. Sundararajan, A. (2014). Peer-to-Peer Businesses and the Sharing (Collaborative) Economy: Overview, Economic Effects and Regulatory Issues. NYU center for Urban Science and Progress, new York. Zsarnoczky, M. (2017a). How does simulated Intelligence impress the Tourism Industry? Vadyba Journal of Management 31 (2): 85-90. Zsarnoczky, M. (2017b). The future of sustainable bucolic tourism development: the impacts of climate change. Annals of the Polish Association of Agricultural and Agribusiness Economists. XIX. (3): 337-344. Martin Zsarnoczky, Ph.D. has several years of suffer in the huge tourism and hospitality industry. He has worked with P&O Princess Cruises, Intercontinental and Marriott Hotels in Budapest. Between 2005 and 2015, he was the founder, developer and CEO of Casa de la Musica Hostel and Event’s Hall, one of the largest multifunctional private tourism & hospitality businesses in Budapest downtown. He holds a BSc degree in Tourism and Hospitality from the Budapest commerce School, and graduated at MSc/Med smooth as Teacher of Economics in Tourism and Hospitality. During his studies, he had spent short a term mobility term at Utwente University in the Netherlands, and later earned his Ph.D. in Regional Sciences at Szent Istvan University. At the moment, he is noiseless very lively as an entrepreneur and is actively involved in community development. He is too a board member of the Budapest Chamber of Commerce and Industry, and works as a mentor for the adolescent Entrepreneurs Association Hungary. With regards to his academic career, he is a plenary time lieutenant professor at the Institute of Marketing and Media at the Tourism Department of Corvinus University of Budapest.
By Leora Lanz and Namrata Sridhar
In the Winter 2018 edition of the Boston Hospitality Review, they brought forth suggestions for the 10 Best Practices for Organic Visibility —ways to better search results through organic search, or execute not cost the company a monetary investment. Rather, these rankings were based on elements such as keywords, location, and mobile friendliness. Suggestions for improving a company’s organic search comprehend utilization of backlinks, hyperlinks between websites, and content enhancement in relation to local listings such as ensuring quick website load speed, lofty quality imagery, and conspicuous links to convivial media channels.
This second installation of a two-part progression will converse to the matter of search engine functionalities as a result of paid queries. For independent or smaller companies, this brief but powerful set of tips obtained from industry experts can enable a commerce to become more “searchable” for optimal revert on investment.Search Engine Marketing (SEM) Best Practices: 1. Understand the Paid Media Landscape:
According to the Associate Director for Organic Search and Content Strategy at Boston-based Connelly Partners, Dan Hurley, the most vital Part of SEM is to comprehend the paid media landscape. It is critical to know who one’s competitors truly are and understand how they are marketing, from a tactical standpoint.1 It is too vital to research the types of ad drive structures that are surfacing in the category of interest, on both desktop and mobile devices. Then one must adopt those that appear efficacious and fitting commerce goals appropriately. For restaurants and hotel-related queries, “this strategy is especially pertinent because these searches generally transfigure very quickly; mobile searchers will likely patronize a restaurant within a few hours.”
In order to subsist the most efficient with a company’s paid advertisements, Todd Philie, president of Southcoast Marketing Group in Wareham, MA, too encourages companies to determine how consumers are searching for them on the Internet. For example, “utilize the query search tool via the Google AdWords™ platform to determine what terms and phrases are used to attain your own site and then array your ads.”
Additionally, Kym Parker, associate search marketing director at Connelly Partners, emphasizes the importance of using the company’s brand to ensure a tough search presence. By utilizing paid search bids, a hotel or restaurant can subsist the first result a web surfer sees when conducting a search.2
“Sometimes, competitors will bid on your brand terms – which means that if someone searches for your company name, for example, the competitor could array up ahead of you in the search results,” Parker notes. “You can preclude this by ‘protecting’ your brand terms. Always subsist bidding on them, at least a itsy-bitsy bit, to ensure that you maintain a better random of staying on top of the results when someone searches your designation and other brand terms.”2: exercise of Google AdWords™:
The major player in the world wide web is Google, which has created various platforms to optimize searching. Using keywords, Google users can pay to promote their advertisements for a set budget. This Google functionality allows a company (hotel or restaurant) to understand how it ranks in comparison to direct competitors.
Also retain ‘negative keywords’ in mind, adds Philie. “Negative terms generally means terms that you are not specifically telling AdWords™ that you execute not want to appear in specific results for other searches. For example, suppose you are marketing a seafood restaurant that does not tender steak on its menu. You want to bid on the phrase ‘best restaurant in Boston’ but you execute not want to consume money on clicks from customers who want steak. You might set ‘steak’ and ‘steakhouse’ as negative terms so that if someone searched ‘best steak restaurants in Boston” you execute not array up in that search.
The Google AdWords™ functionality too offers companies the random to enhance the listing. An incredibly important, yet often overlooked, input is the “click to call” functionality and its presence on a mobile site, too known as the muster extension. “These additional factual details, known as “ad extensions” too comprehend location, information from different pages on your website, and even testimonial reviews,” adds Seth Cargiuolo, director of communication strategy at Chestnut Hill, MA-based D50 Media. “Making exercise of ad extensions is essential because it helps the customer learn more about the commerce with a quick glance pre-click, and can assist differentiate a hotel or restaurant (or any product) against its competitors.” Ad extensions too augment the visual footprint of an ad, which can propel competitors’ ads and organic listings down the page and out of view, particularly on mobile devices.
For marketers just starting to utilize SEM and Search Engine Optimization (SEO), Google AdWords™ too offers free tutorials and trainings. Zachary Azar, D50 Media’s senior manager of paid search notes, “These tutorials provide clients with the occasion to collect the most out of the program and create efficacious campaigns.”
To properly manage an efficacious AdWords campaign, Google Analytics can subsist a helpful tool as it reveals which content on a website is most useful and curious to customers. This will assist in the creation of resonating ad copy and can too subsist a sheperd for aligning keyword selection and website copy to augment the “Quality Score” of an ad campaign.
However, Philie too cautions individuals not to subsist completely reliant on Google’s suggestions for keywords. “Often times, these keywords are pluralized and can occasions companies to expend more or not subsist as effective.” He warns companies to pick how to Put their key words “out there” when bidding. Companies must pick best matched keywords for their ads and pick between “exact match,” “phrase match,” “broad search” and “modified broad search” – gross of which will succumb varied returns. Campaigns should utilize a equilibrium of gross match types, but should “skew more heavily towards exact and phrase, utilizing broad match only for keyword prospecting and expansion opportunities.”3. Always Start with Non-Paid Efforts or SEO
When optimizing a company’s searches, Cargiuolo and Azar imply the first thing that the company should focus on is actually the SEO. First and foremost, it is vital to ensure that a website is user- and mobile-friendly. Another vital factor is a quick load speed. “Google has institute that sites that hold longer than three seconds to load lose 40% of their traffic, and for mobile traffic, that jumps to 53%,” reports Azar. This is vital for paid search as well; Cargiuolo adds, “It’d subsist sinful enough for a user to abandon your page when it’s an organic search – but now imagine if you’d paid for that click and those dollars were totally wasted.”
In order to reduce the load speed, it is vital to not maintain “big” images—think kilobytes, not megabytes. Web copy should subsist concise and “bandwidth-hogging” scripts and plugins minimized. “Additionally, given that over half of web traffic is on mobile devices, ensure that pdfs (which you want to avoid anyway) glimpse acceptable on a smart phone too,” Cargiuolo says.
Kristin Metzler, Print and Web Marketing Coordinator of Frasca Design Group, too echoes that mastery of SEO is the first step in a successful digital marketing campaign. Websites built with a tough attention to keywords and content will minimize spending on pay-per-click campaigns.4. Don’t expend on Paid Search if You Can’t Afford It
Hurley cautions that one requisite not expend money on advertising to collect traffic. Because so much information is provided in the search results, there may not subsist any clicks on your page during the search process. Companies should never Put any money into paid search, array advertising or paid convivial that the company cannot afford to lose.3
Cargiuolo emphasizes that when a company starts advertising, it should not hope an immediate return,4 which is oftentimes an assumption that businesses make. Initially, many may not subsist chummy with the bidding process; keywords; or how to build, optimize, and manage an efficacious campaign. subsist cautious not to expend money needed for other resources. Start slack and expend time learning before committing astronomical budgets.
One final word of caution: There are easily incurred expenses that can Come from paid search marketing, such as additional costs from agencies that hold a portion of a monthly budget. Being conscious of your daily budget is critical in avoiding overspending.
When taking the steps to build a search campaign, it is critical to execute research and mosey slowly at the beginning. Understand how the market is reflected in consumer searches and what keywords are being utilized. Before jumping into methods that require payment, a company should ensure that its website is optimized for searches and never expend more than what can subsist budgeted, as it will hold time to note a revert on investment.
As Cargiuolo reminds, businesses must remember that Google serves the user first. Thus as the marketer, one must assume as a user would when pile a paid search campaign. People Come to Google with questions. The marketer that best answers the user’s questions, both pre-click and post-click, is going to subsist one that is most successful.
PDF Version Available Here1 Inc. Staff. “How to Conduct Competitive Research.” Inc. Magazine. May 2010 2 Ratcliff, Christopher. “What is PPC and Why execute You requisite it?” Econsultancy. 13 November 2013. 3 Kumar, A.J. “SEO vs PPC: Knowing Which is Better for Your Website.” Entrepreneur. Editorial. 21 May 2012 4 Steimle, Josh. “How Long Does SEO hold to Start Working?” Editorial. Forbes. 7 February 2015. Namrata Sridhar is a marketing communications coordinator at LHL Communications and a rising senior at Boston University’s School of Hospitality Administration (BU SHA). She has too previously worked in marketing communications capacities at RealFood Consulting where she helped design an internal marketing map to rebrand their company. Namrata too serves as the President of the Student Government of BU SHA. She is an lively member of the National Society of Minorities in Hospitality, the American Hotel and Lodging Association, and the Hospitality Sales and Marketing Association International. Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is too a plenary time faculty member at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.
By Sarah AndersenAfter completing the senior capstone Hospitality Leadership course at Boston University, I had the random to reflect on the class topics and apply the teachings to my personal life. The course explored several different levels of leadership, from the head of a major corporation role to developing self-leadership. I erudite the importance of a mission, vision, and values in an organization, better understood the components of change management, and worked with a group throughout the semester to develop my teamwork skills. I was able to critically analyze concepts and models presented in leadership literature as well as better my own leadership skills. I then interviewed three prominent leaders in hospitality and institute connections between their industry insights and my leadership class discussions. Dan Donahue, President of Saunders Hotel Group, Len Wolman, Chairman and CEO of Waterford Hotel Group, and Geoff Ballotti, President and CEO of Wyndham Hotel Group kindly shared their experiences and explained their personal values and company’s culture, revealing the five keys to successful leadership.
“Leadership is the capacity totranslate vision into reality.”
-Warren G. BennisEstablishing Shared Beliefs, Values, and Goals
When an organization wants to achieve its goals, it needs a vision. Effective leadership starts with the competence to recognize and silhouette those goals and inspire others to follow. Leaders paint a picture of how that vision will impress the company as a whole, as well as each individual. A leader’s competence to articulate that vision into a mission statement corresponds to the lively implementation of goals and the company’s bottom line success. A productive vision goes beyond a written organizational mission statement, but instead permeates throughout gross levels of a company and manifests into actions and beliefs. John P. Kotter, author of commerce Leadership, writes, “A vision says something that helps clarify the direction in which an organization wants to mosey [and] is relatively simple to communicate, appealing to customers, stockholders, and employees.”1 It is therefore up to hospitality leaders to set and clearly communicate a vision, and to inspire those around them to partake and implement it.
A vision does not belong only to a leader. It must subsist a shared vision that attracts everyone to sustain lofty levels of motivation and withstand challenges. According to The Leadership Challenge, by James M. Kouzes and Barry Z. Posner, leaders can envision the future by imagining the possibilities and finding a common purpose.2 In addition, leaders must spark a sense of sense and purpose in those around them. Dan Donahue agrees that, “My job, as someone who has the vision, is to collect you inspired and committed to sharing that vision and sharing that creativity to the point where you maintain buy-in.”
After seven years of rigorous research, a landmark study of the observations from more than 100 CEOs and over 8,000 employees institute that “leaders who were limpid about their values delivered as much as five times greater returns for their organizations as did leaders of weak character.”3
So how execute illustrious CEOs and successful leaders in their industry shape the parameters for success through a shared vision for a future? How execute they empower and inspire those around them to construct decisions and labor towards their goals?
Balancing Accountability and Autonomy
When asked what his core values were, Len Wolman responded, “First and foremost, their organization has been built on integrity and transparency. They maintain four core values that they live by on a daily basis which are to (1) to wow the customer, (2) to continuously improve, (3) to subsist a passionate and committed team, and (4) to partake and sustain their bottom line success.”
Dan Donahue, established that, “Our values are simple. Their values are people. They allow them the flexibility and latitude to execute their jobs under the sheperd of taking care of the guest, but too taking care of themselves as well.” To strengthen others, exemplary leaders augment people’s credence in their competence to construct a difference. They mosey from being in control to giving over control. Developing associates into leaders and enhancing self-determination creates a culture of empowerment and confidence. Geoff Ballotti agrees that, “In terms of motivating others, it is letting them construct decisions. It’s not micromanaging, but rather letting them Come up with the solutions.”
Geoff Ballotti continues, “Our core value statement is three words, ‘Count On Me,’ which is gross about accountability. It is about people being able to subsist counted on at any time, for any issue, any question, any decision, and any support that their owners, franchisees, and associates need. It is built on the principal of integrity in terms of taking personal responsibility for your actions.” Accountability is vital because it results in an extremely efficient and productive team. According to the U.S. Office of Personnel Management, accountability in the workplace is linked to higher performance and increases in commitment to labor and employee morale.4
Dan Donahue, states, “A vision has to subsist fluid. To collect to an achievable goal and vision, whether short term or long term, you requisite to subsist present, you requisite to understand that if you want it to subsist successful you requisite to subsist there, you requisite to subsist accountable to it, and you requisite to subsist accountable to the people that want to partake that.” When accountability becomes embedded into culture, company’s are able to set meaningful goals, develop team buy-in, build reliance through support and encouragement, and celebrate successes together. Accountability is about creating a culture where people value responsibility. When associates understand that accountability involves a certain degree of autonomy, mutual respect develops between gross levels of an organization.
Mr. Ballotti adds, “The third leg of their values is gross about respect. Respecting everyone everywhere both on their ownership side and the community side.” When leaders develop mutual respect, associates are more likely to labor harder to accomplish shared goals. Harvard commerce Review examined employee needs and determined through a query of more than 19,000 workers that most employees want renewal, value, focus and purpose.5 emotion a sense of value and respect can instill an employee with assurance and motivation. Len Wolman adds that, “I’ve been in the industry for many years, I was educated in the industry and then worked my pass up through the industry, so I’m fortunate in that I maintain the perspective of having worked in various positions. So I maintain empathy, understanding, and respect for each position. Everyone needs to subsist treated with mutual respect and understanding.”
Modeling by Example
An vital Part of being an efficacious leader is educating others on what the organization stands for and why it matters. When leaders sincerely express a commitment to their core values, they’re too making a commitment on behalf of the entire organization. Therefore, leaders must construct positive there is collective agreement on the shared values amongst everyone they lead.So how execute leaders become a role model for what the organization stands for?
The respond is pretty simple. They set the example for others to follow. Holding others accountable to values and standards means leaders must live the values themselves. Dan Donahue responds, “I would never seek information from an employee to execute something I wouldn’t execute myself.” Len Wolman agrees adding, “You always want to set an example and never want to hope anyone to execute anything that you wouldn’t execute yourself.” Researcher on behavioral integrity demonstrates that the alignment between a leader’s words and actions has a powerful repercussion on how much constituents reliance the leader and on their subsequent performance levels.6 mighty leaders effectively translate goal into reality by acting on the values they train and the things they negate to those around them.Showing Vulnerability and Visibility
Confidence is an vital skill to possess as a leader. However, having vulnerability as a leader is just as essential to recognize and appreciate. Every leader has vulnerability, but great leaders have the self-awareness to recognize this fact and feel comfortable expressing their weaknesses. Showing vulnerability is a relatable trait and Geoff Ballotti finds that, “The greatest leaders I know out there are very comfortable talking about their weaknesses, about what it is that they requisite to labor on, to better upon, and to execute better.” efficacious leaders invest the thinking, the time, the energy and are prepared for the vulnerability of connecting with others.So how execute these leaders merit trust, inspire, and build bonds with those they lead?
Great leaders inspire their associates and guests by genuinely connecting to them through a consistent presence and visibility. Visibility as a leader not only includes having a physical presence, but too aligning everyone to the purpose behind their shared vision through natural conversations and casual exchanges on a daily basis. When asked how he communicates company goals and the overall vision, Dan Donahue replied, “If you maintain a presence, it happens organically. It doesn’t requisite to subsist contrived.” The purpose of this hearty visibility is not about the requisite to “check on employees,” but rather an honest want to interact with associates in order to gauge motivation and learn if employees requisite support or help. Mr. Wolman agrees that, “It is critical to operate with an open door policy and listen to everyone’s perspective and ideas, particularly the people who are executing the day to day functions, and I assume you’ve got to subsist constantly evaluating that.”
Mr. Ballotti adds, “I too assume showing empathy is key and the best pass mighty leaders execute that is through the knack of storytelling when they’re up in front of their associate basis or leadership team, being able to counsel stories that connect and engage and inspire and motivate in terms of the culture your want to set and want to build.” Storytelling is a powerful pass to partake knowledge, propel information at people or drag them into a company’s vision and mission by reinforcing the intent behind actual leadership. According to Edgar Schein, Professor Emeritus at the MIT Sloan School of Management, “[Stories] too strengthen the framework and the importance of an organization’s culture by establishing norms and values.”7 generous stories compel, persuade, and unify others around the leaders’ vision.Creativity Breads Adaptability
“Hospitality isn’t about a product on the shelf. Hospitality is about creating something that changes day to day, hour to hour, or minute by minute.” – Dan Donahue
IBM’s 2010 Global CEO Study, which surveyed more than 1,500 CEOs from 60 countries and 33 industries worldwide, concluded that creativity is the most vital leadership quality for success in business, outweighing competencies such as integrity and global thinking.8 Geoff Ballotti agrees that, “Creativity is critical, especially in the commerce that we’re in. We’re trying to redefine and reposition their brand from a creative standpoint in terms of experience.” What defines one brand from another and what makes one brand more successful than another is the creativity that it delivers as well as the suffer it delivers to its guests. Understanding how to generate mighty ideas is a crucial leadership trait in hospitality’s innovation-driven industry. Successful leaders create an environment where associates can contribute their fantasy and insight, which is critical because most innovations draw upon the contributions of many.
Today’s commerce environment is unpredictable, changeable and increasingly complex. Therefore, the competence to create something that is both innovative and applicable is on the top of leader’s minds. Mr. Donahue states, “Nothing in their commerce can subsist or should subsist cookie cutter. It’s about curating an suffer for each person who spends to subsist with you.” Len Wolman adds, “If you’re not creative and open to change in todays world with the disruptors that exist in their industry, particularly with technology, you will not subsist successful. You requisite to subsist creative in terms of staying ahead, staying current and relevant, and collect managing the costs associated with change in a pass that your organization can noiseless subsist successful and profitable.”
In an industry of constant change, mighty hospitality leaders requisite to capitalize on the opportunities that are ripe for the present context and map for the likely future state. Change requires creating a new system, which demands efficacious leadership. It is crucial that leaders first concede how hard it can subsist to drive others outside of their console zones and propel for change. When asked how he responds to change, Len Wolman replied, “A crucial factor is feedback. They collect daily feedback that is current and relevant, whether it subsist Trip Advisor, direct contact with their guests, or direct contact with their associates. They requisite to listen to it, they requisite to respond to it, and they requisite to adjust to the things that people are looking for whether it subsist the consumer or the labor environment.” Those who create new initiatives, programing, design, and brand essence are the ones who succeed. By supporting creativity and commanding change, leaders can augment workplace satisfaction and build driven teams that craft original, valuable ideas.Figure 1: Interview Questions
It has been made limpid through the interview process of these three prominent industry leaders that establishing shared values, balancing accountability with autonomy, modeling by example, showing vulnerability through visibility, and having a creative mindset that is open to change are gross essential factors to being a successful leader. The common theme amongst gross these traits and elements to successful leadership, however, is each leader’s dependence and reliance for their associates. At one point during the interview, Mr. Ballotti pointed out that, “Great leaders are those who gird themselves with mighty people…who are brighter, and smarter, and more diverse in thought than they are. And who are able to build a team that knows how to support and reliance each other.” It is limpid that efficacious leadership boils down to a leaders competence to unlock the plenary potential in those around them. Len Wolman adds that it “We hold care of their associates so that they hold care of their guests, which keeps the guests coming back and is the judgement they are in business.“ Dan Donahue too notes, “You maintain to realize each individual employee’s needs. construct a connection with your employees every unique day.” gross generous leaders were once followers themselves and maintain erudite to establish and foster reliance over time. A honest leader passes praise and shares the blame, lifting up those around them.9 Without followers, mighty leaders cannot lead.
PDF Version Available HereSarah R. Andersen is a senior at Boston University’s School of Hospitality Administration. Her areas of interest comprehend integrated marketing communications and actual estate development. Beyond her studies in hospitality, she is a member of the BU Women’s Lacrosse team. She plans to continue her studies at Boston University after graduating with her bachelor’s degree by enrolling in the School of Hospitality’s Master of Management in Hospitality program. References
By Juan Lesmes and Leora Lanz
It wasn’t that long ago when digital marketing surfaced as requisite exercise for the hospitality industry. As time moved forward, hotel marketing departments established roles to manage the digital positioning and visibility of the property. Thus, they witnessed hospitality brands which were ‘present’ on convivial media outlets, adopting paid search as a permanent component of their marketing amalgamate and abiding by well-known website best practices. They mention to this term as angle I of the Hospitality Digital Marketing Revolution.
Phase II quickly blossomed, and hotels realized that the competition to penetrate the digital space was tough and arduous. Brands started focusing on and investing in the internet user-experience (UX), negotiating partnerships with online travel agencies (OTAs), understanding the landscape of search engine result pages (SERPs), separating high-value budgets exclusively for search engine marketing (SEM), and delving into the intricacies of search engine optimization (SEO) for their own websites. convivial media served as a competitive odds and quickly escalated as paramount for marketing, branding, reputation management, and organic visibility. Paid search, via Google AdWords platform, is not to subsist confused with the organic approaches minute here.
As they delve into 2018, angle III emerges clearly. OTAs dominate and in some instances consume Google searches with first page results. Consequently, hotels are realizing that digital marketing efforts should subsist shifted from a haphazard online presence to one that is strategic – one that capitalizes on each micro-moment of the guest travel planning journey (most of which, if not all, occurs on the web). As convivial media forces Instagram and Facebook solidify their roles as prominent search engines, paid ‘posts’ within users’ ‘feeds’ continue to convey the power of personalized sponsored content.
With a myriad of stakeholders now involved in the simple act of searching for hotel rooms, is it a battle worth fighting? The respond is absolutely. But before addressing the how, it is crucial to identify and differentiate the digital marketing scope of branded and non-branded hotels. Branded hotels, especially those flagged with hospitality powerhouses, profit from a more powerful domain authority coming from the parent chain, making it easier for them to rank higher on the SERPs. hold Marriott.com/hotel vs. hotelname.com for example. Domain authority is the overall power of the domain designation considering traffic size, popularity, and number of links to the site (backlinks). It is too a top ranking factor for Google.
Branded hotels too tend to maintain significant budgets to expend on Pay-Per-Click (PPC) and paid search, ensuring top first page visibility for valuable destination and branded queries. In addition, branded hotels maintain wider access to digital partnerships, including listings, local directories, event sponsorships, travel influencers, and online features – gross of which provide authoritative backlinks to the hotel’s site, further contributing to its domain authority.
Because independent and small-scale hotels rarely profit from domain authority, maintaining and monitoring digital marketing best practices to boost Google rankings should subsist a requirement, not merely a recommendation. Digital marketing practices command their own dedicated efforts. Yet online marketing should subsist well-equipped with its own strategy and utilize expertise in the nuances and intricacies of hotels, restaurants, leisure activities, and attractions – overall, hospitality.
The question then becomes, how can hotels strive for visibility in this Wild West of a digital landscape, particularly if they are competing against each other, the OTAs, and a powerful sharing economy?1. Execute a Carefully Crafted Keyword Strategy
Optimizing for search queries, too known as keywords, is perhaps the core of any digital marketing tactic aiming to build visibility – both organic and paid. Identifying those keywords with the highest search volume, such as ‘Miami hotels,’ is the intuitive process. Presence on Google’s first page for lofty search-volume keywords requires a robust SEM budget, an ongoing and long-term SEO strategy, or both. This puts independent and small-scale properties, which often execute not maintain the necessary budget and fundamental team, at a notable disadvantage.
However, niche keywords present a different scenario. These queries are typically ’long-tail’ sense they accommodate more than four words. Though niche keywords execute not maintain the highest search popularities, it is much easier to actually capture their search volume, which then results in higher click-through rates (CTR). Hotels can leverage niche keywords by identifying their unique amenities and value propositions, and turning them into valuable keywords. For example, ‘Miami hotels with a rooftop bar,’ ‘Miami hotels with free breakfast’ and ‘Miami hotels with nightclubs’ are terms to utilize as they leverage a more specific travel goal that easily turns into conversions (booked business). It is crucial to assume as the customer would.
Some independent hotels, because of the virtue of their uniqueness and often niche-market, can maintain the upper hand in this situation. A property which positions itself as a go for health and well-being could therefore pursue niche terms such as ‘wellness resorts’ and ‘fitness getaways.’ The key is to identify the brand’s top performing unique selling propositions (USPs) and translate them into humanized search queries, gross while keeping the guests’ travel planning journeys in mind.
Finding a balanced amalgamate of both high-search volume terms and niche queries secures strategic keywords. Nevertheless, actually optimizing for them by ensuring they are naturally or comfortably present throughout the website’s titles, content, metadata and bidding efforts too assist secure a carefully crafted keyword strategy.2. Optimize for Local Search
Our termed “Phase II” too Put the spotlight on search engine commerce directories such as Google My commerce and Bing Places for Business. In angle III, hotel listings on these directories is no longer a recommendation, it is a necessity. Optimizing for local search entails driving the visibility of a property’s commerce listing via a two-part process:
3. Attain and Maintain a Star Rating on Google
One of the key components of local search results is the Star Rating associated with a commerce listing. In fact, star reviews on SERPs are an efficacious pass for hotels to augment digital visibility by standing out from the competition. Star ratings assist augment the site’s CTR and provide an influential benchmark for online reputation management (ORM). Once an exclusive credit for paid results, star ratings now too appear on organic results through Google’s ‘Rich Snippets.’ These snippets are a contour of structured data which Google extracts from multiple websites and presents it as a ‘preview’ in search results, too known as Google’s information Graph.
Therefore, obtaining and retaining star ratings involves safeguarding reviews on trusted and authoritative review sites. Google then aggregates this rating data and displays an medium star rating. Hotels (restaurants, attractions, etc.) should inspirit satisfied guests to submit reviews to their booking channel (i.e. Expedia) because they are by default ‘trusted’ sites. However, they should too inspirit reviews for their own Google My commerce listing in an attempt to augment the hotel’s chances of being featured on local search results.
It is vital to clarify that there is a technical component to obtaining a Google star rating. Codes Put onto the website to assist search engines revert more informative results to users. Hotels requisite to ensure that their web developers too comprehend star rating information within the markup code.4. Enhance Content on Local Listings
A hotel’s content for its local listings should subsist strategically optimized. Whether it is in Foursquare, CitySearch, or any other listing, valuable keywords should subsist incorporated throughout the copy – including local search ‘near’ queries such as ‘hotel in Miami near Brickell’. If the brand image is mischievous and tongue-in-cheek, the content on local listings should too reflect that. Some listings even allow for a featured message. Rather than a generic ‘Welcome!’ hotels can exercise this space to promote current offers or highlight special amenities (complimentary champagne, sunset yoga, free breakfast).
Other content elements such as images should subsist of the highest quality, showcasing provocative yet realistic visuals of the property’s exterior, interior, and overall ambiance. Links to gross the property’s convivial media channels should subsist present in the listings, which allows the user to access other hotel assets including brand personality and online reputation.5. Optimize for Voice Search
With increasing utilization of smart personal assistants such as Alexa and Google Home, voice search is a prime topic of conversion within the digital marketing realm. In order to subsist visible in results derived from these devices, hotels requisite to ensure they are optimizing their site and keyword strategy for voice search too. Since users are more likely to exercise longer natural queries via voice, employing niche, long-tail keywords is an efficacious pass to optimize for this trend.
Long-tail keywords are fruitless without the material content on a hotel or restaurant’s website. Hotels requisite to maintain specific landing pages that parallel the niche keywords. If a hotel seeks ‘Hotels in Miami with rooftop pools’—a keyword likely used by the voice search user—it must appear in the material landing page.
Incorporating questions and answers within the site, perhaps via the ever-popular Frequently Asked Questions (FAQ) page, is another efficacious pass to accommodate voice search. With this strategy, hotels can provide answers not only about the property itself, but too about their destination and local attractions as a result of quick detection by voice-activated devices.
It is vital to note that recently, numerous hotel properties and companies maintain been contacted by law firms representing travel consumers with disabilities. These law firms report that websites are not abiding by accessibility guidelines in accordance with the Americans with Disabilities Act (ADA). If a guest is unable to exercise a hotel website to find information or construct a reservation, hotels can in fact subsist fined. Today hotel websites must enable these assistive technologies to allow travel consumers with disabilities to collect the information they requisite and complete any necessary transactions.6. Adopt a ‘Mobile First’ Mantra
Much has been said about Google’s ‘mobile first’ index. This means Google will start to rank its search results based on the mobile version of the content, even in desktop search listings. If one thing is certain, websites requisite to subsist optimized to subsist mobile-friendly (responsive). Hotels requisite to ensure they launch a fully-responsive website that serves users of any device the identical consistent content. The more ‘mobile-friendly’ a site’s user suffer is, including factors such as typography, navigation map, and website design, the higher the site will rank on Google’s search.7. Leverage Google Hotel Ads
Google Hotel price Ads (HPA) showcases a hotel’s real-time (dynamic) rates on Google search across gross devices. Users will note the hotel’s ad when they are actively looking to book a scope in the area. However, the hotel only pays when the ad generates a click or a booking.
Google has recently introduced a unique call-to-action (CTA) button for booking hotels in its search results. A keyword can trigger a ‘BOOK A ROOM’ button to appear. Clicking this will activate a sub-menu to browse gross enlisted HPAs for the hotel, which includes booking direct and via OTAs.
This feature, which too appears in Mobile and Maps, demonstrates Google’s determination to grow its price Ads service. The increased exposure provides more incentive for hotels to capitalize on this contour of pay-per-click in order to promote direct bookings.8. augment Backlinks, Actively
A backlink is as simple as a hyperlink to a website from another website. Yet, it carries a lot of weight when it comes to a hotel’s organic digital visibility. Each backlink tells the search engine that a hotel website has a ‘vote’ from another entity, which in revert builds credibility and domain authority. Branded hotels maintain the upper hand here since the company usually has a corporate parent site that a plethora of other websites will link to (such as Marriott.com or IHG.com).
There are technicalities to backlinks, including the quality of the backlink determined by elements such as anchor text and link context. These technical factors play a role in the algorithm the search engine uses to determine the value of a backlink. In theory, the more quality backlinks a hotel website has, the more chances to rank higher on search engines.
Actively pursuing material backlinks should subsist imperative for hotels to obtain first page ‘real-estate’. Obtaining links from local directories, current hotel vendors, editorial publications, and .EDU and .GOV sites should subsist the gateway for enhancing the site’s link equity. However, to continuously grow the number of backlinks, hotels requisite to subsist generating quality, shareable content that interlinks with convivial media initiatives.9. remember Optimal convivial Media = (Quality + Authenticity) x Engagement
Much has been contemplated about what comprises a successful convivial media strategy. Although there is no ultimate recipe for the faultless convivial media post, three factors that boost performance are quality, authenticity, and engagement. Optimal convivial Media = (Quality + Authenticity) x Engagement. Each piece of content maximizes visibility, both organic and paid. When posts are actual and of lofty quality, users are more likely to relate and validate them. When posts are authentic, of lofty quality, and facilitate some sort of user engagement, the content becomes shareable.
When content generates more likes, followers, and overall visibility it establishes an influential ranking factor. Therefore, search engines tend to rank higher those brands that maintain a robust organic convivial media basis (not paid or ‘spammy’ followers). This is why it is vital for hotels to intertwine their convivial media strategy with their SEO efforts by creating quality, authentic, and engaging content that increases overall digital exposure.10. account the Technicalities of SEO
Technical SEO is a science of its own and deserves its own team of specialists, budget, and time. Technical SEO means optimizing a website so search engines can successfully crawl and index its content. It lays a powerful foundation to give a hotel’s website the best random it can to rank higher for material keywords. Technical factors comprehend site speed, removing unnecessary tags, cleansing duplicate metadata, adding tags to images, and implementing proper redirects to maximize the site’s link equity. Whether there is a one-man team or a staff of professionals continually optimizing the website, there are tools to assist provide the technical support.
Hotels, restaurants, museums, attractions, and leisure activities gross requisite to assertively compete online to grab the attention of potential guests. Those who tend to the organic visibility maintain a notable competitive. This and integrated paid search campaigns that mutually support organic search strategies will assist secure first page visibility. Overall, while the requisite to upkeep search engines’ potent algorithms and ranking methodologies will always remain, an understanding of the process will assist smaller or independent hospitality businesses chop through the clutter in today’s complicated digital landscape.
PDF Version Available HereJuan Lesmes is a digital marketing strategist specializing in SEO at HEBS Digital the leading hospitality technology, full-service digital marketing and website design firm. A 2017 graduate of Boston University’s School of Hospitality Administration (SHA), Juan’s previous suffer includes labor at hospitality marketing advisory LHL Communications, The Ritz London, and Lets collect Weddy in London. Since his time at SHA, Juan has been recognized as a thought leader in hospitality marketing, with lively contributions to the Boston Hospitality Review, HotelOnline and HospitalityNet. Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is too plenary time faculty at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.
By Nick Cohen
The year is 2001, and the world is noiseless recovering from the tragedy of September 11th. The travel industry is in a downward spiral as fears of flying and terrorism ripple across the United States and beyond, and hotels maintain lost significant occupancy due to a dwindle in demand.
Simultaneously, a fledgling technology is emerging which will eventually hold odds of the internet explosion, as well as hotel management’s desperation to fill rooms. It will reshape their industry forever, and this platform now commonly referred to as Online Travel Agencies, or OTAs, will allow hotels to easily sell their rooms on the internet through new consumer facing websites such as Expedia, Travelocity and Orbitz.
Fast forward to 2017. The OTA’s maintain gained the majority of market partake for online reservations, and digital platforms fancy Booking.com and Ctrip.com maintain loyal member volumes that far surpass brand websites. In many cases, the OTA companies are valued well beyond traditional hotel brands (as of May 2017, Priceline Group has a market capitalization of nearly USD 92 Billion). They maintain too helped to create a new concept as they grew in popularity and scale over the eventual number of years, and it was the precedent of transparency. Pricing that was once hidden to the everyday user, could now subsist exposed to the gross world, publicly, with a few clicks online. As OTA channels grew enormously with time, so did the access to actual time rates and availability for virtually every hotel around the world.
With this concept in mind, from the OTA’s they maintain seen the rapid expansion of ‘meta search’ channels. These are one-stop price comparison platforms where a customer can view a price for a unique hotel scope across multiple websites (without having to browse those websites one-by-one). Sites within this category comprehend Kayak, Trivago, TripAdvisor, Qunar and Google, and they are gross working to simplify the travel research process for consumers.
With the OTA channels continuing to grow through massive marketing efforts and superior technology, and with meta search sites following their lead, a relatively new challenge has emerged for hoteliers. It represents a very tangled dynamic between one of the most traditional ways to sell a hotel room, and one of the most modern ways to sell a hotel room. This once again gross comes back to the concept of price transparency. Wholesale has been a core commerce driver in hotels for many years, helping properties build basis commerce through private negotiated rates and partnerships. Historically, these wholesalers would sell their inventory offline to their own private networks of contacts. Even though the pricing would typically subsist lower than publicly available RACK rates, it was a trustworthy foundation of occupancy for hotels to build off of.
As technology has become more sophisticated with Application Programming Interfaces (APIs) readily available, they maintain seen the rapid growth of wholesale rates being sold publicly, online, through some of the powerful meta search channels mentioned above. This means that wholesalers are selling discounted rates, which directly undercut brand websites and OTAs, to anyone who has access to the internet. Beyond just meta search, some OTA websites are now even positioning themselves as ‘online marketplaces,’ where they too will sell wholesale inventory directly instead of the inventory provided by the hotels. To remain competitive and augment market share, online channels want to sell the lowest price possible, even if it means reducing their own margins by selling a cheaper scope to the customer.
You would assume that hoteliers would want to fix this problem immediately. Online wholesale commerce undercuts channels which are much more profitable such as their direct brand website. This issue however is multi-layered and is not simple to remedy for the following key reasons:Hotels noiseless want wholesale business!
Hotels noiseless maintain tough relationships with a number of wholesale partners, astronomical and small, and they reckon on these partnerships to generate basis business. Turning off these channels would potentially subsist of value the loss of significant revenues, at least in the short term. Although wholesale channels can undercut other websites when sold online, they too noiseless generate incremental commerce when sold offline through the traditional methodFinding the source of gross commerce online can subsist very difficult
When wholesale rates appears online, it’s generally very difficult to know which wholesaler specifically is providing that inventory. The wholesale partners themselves don’t generally sell rooms through their own websites, but sell their rates through wholesale aggregation channels such as Amoma.com. It’s channels fancy Amoma who then sell the rates online through their own interface, and promote their rates through larger meta search intermediaries such as Trivago and TripAdvisor. Generally the only pass to find the honest source is to construct a test booking online, and then track how that reservation comes into the hotel’s central reservation system (each reservation is typically flagged with an inventory source). Many hotels are reluctant to execute this since a booking requires exercise of a credit card and sometimes even pre-payment, and then cancellation of that test booking is not always simple to do. The test booking process is both cumbersome to manage at scale, and is too financially risky for a hotel if those booking cannot subsist cancelled.Employee incentives are at stake
Within hotel sales departments, team members are noiseless incentivized to drive wholesale volume, regardless of where that volume is being sold (offline or online). Wholesale partners generally don’t provide specifics on how they are selling their inventory, and as long as scope allotments are sold, the responsible sales team members are satisfied. This is creating an unavoidable rift between the direction of some sales leaders with the revenue management and digital strategy teams.So what’s next?
Hotel companies are dealing with this situation in a variety of ways. Some are cutting off wholesale altogether since they simply can’t control where their inventory is ending up. Others are maintaining the partnerships, but are working to mosey away from static scope allotments and over to dynamic pricing and availability where the hotels maintain more control over the inventory they dispatch to the wholesalers. This is a major problem facing the industry that very much remains unsolved.
If they hold ourselves back to the 2001, price transparency was a challenge for hoteliers. Properties simply didn’t maintain direct access to a great enough segment of customers, therefore traditional partnerships fancy wholesale was an absolute necessity. With the growth of the OTAs though, and the emergence of new technologies such as meta search, that access is no longer an issue. The world is accessible for each hotel with a few quick key strokes on a computer. It is now only a matter of time until hoteliers construct one of the following decisions:
PDF Version Available HereNick Cohen is based in Hong Kong and leads digital strategy for Hyatt Hotels in Asia Pacific. He oversees online marketing efforts for gross Hyatt brands and properties across the region, and manages a variety of e-Commerce and digital platform projects to assist augment online revenues for the company. Prior to joining Hyatt, Nick held senior e-Commerce and digital marketing roles at Langham Hospitality Group, Mandarin Oriental Hotel Group and Sabre Hospitality Solutions. Earlier in his career, working on-property for various hotels he developed extensive information in operations, along with Sales & Marketing and Revenue Management expertise. Nick too holds a graduate diploma in Hotel and Tourism commerce Management from Boston University. Sources:
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