Value Innovation The New Future For Hotels

Now is the time for Hotels to be proactive and not think tomorrow will look like today, but anticipate change and prepare their Social Media Strategies.

Social Media Value Innovation is the key component for the future.

Three key factors to become a leader of Social Media Hospitality are;

Value proposition: The Hotels promise to deliver on particular combination of values – price, quality, performance, selection and convenience.

Value driven Hotel: Combination of operation processes, management systems, hotel structure, and a culture that provide the hotel to deliver its value proposition.

Value discipline: Combining operation models and value propositions to be the best in their markets.

Social Media Innovation and Marketing

Social Media Marketing does not differ so much from traditional Hotel Marketing. Hotels still has to focus on the markets and segments they intend to serve.

Social Media will add new value to traditional Hotel Marketing Strategies, and with a proper Social Media Strategy in place it will open new doors for your Hotel.

Traditional Hotel Marketing measure values through:

  • Operational Excellence – which represent consistent quality at the best price, standardized business system that minimize cost and difficulty the customers experience acquiring the Hotels product
  • Performance Superiority – is attained by continuous, fast-paced innovations that create a steady flow of leading-edge products that constantly push the state of the art technology or enhance customer use
  • Customer Responsiveness – represent the Hotel focus groups; individuals or micro-segments where Hotels nurture long-term relationships

Social Media Innovation are even more radical today, Innovation require Hotels to pursue new untapped market segments, exploit new technologies, and introduce new concepts into traditional Hotel Marketing Strategies.

The Hotel Tipping Point

Social Media Innovation is not meant to replace traditional Hotel Services, but add value to new reference points.

Instead of focusing on customer differences, Hotels need to build on powerful commonalities in what customer’s value. This allow Hotels to reach beyond exciting demands to unlock a new mass of customers that did not exist before.

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Value Innovation

Hotel Value Equation

The Social Media Tipping point for Hotels lays in Value Innovation. Value Innovation is created where a Hotels action favorable affect both its cost structure and its value proposition to buyers. Cost savings are made by eliminating and reducing factors that the Hotel Industry compete on.

As the Image show the principle is to drive cost down while simultaneous drive value up for the customer.

Collaboration: Tomorrows Hotel Value

Collaboration - Tomorrows Hotel Value

Your Hotels Collaboration Strategy has to build on mutual trust and respect. Beside this point the main concept build on the already existing Hotel Marketing Values. Social Media don’t require you reinvent the wheel, but just regroup existing values.

Customer Responsiveness becomes the primary value point. As you see from the image above your Community and Social Network will now be the drivers of your Hotels values.

This will allow you to create;

  • New uncontested market segments
  • Make competition irrelevant
  • Create and capture new demands
  • Break the value-cost trade-off
  • Align your strategies with Hotel reference points in pursuit of differentiation and low cost

This new approach does not take Operational Excellence and Performance Superiority out of the equation. On a day-to-day basis of Hotel Operations excellence at the Hotel is still the most valuable reference point.

Are Hotels today prepared for bringing on new values and customer segments?

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