There are two fundamental challenges:
I. Bluetooth needs to be activated on the recipient’s mobile device. Currently, about 70% of all Smartphone users deactivate Bluetooth in order to maximize battery life.
II. The user has to download and activate a special app on his Smartphone. The usage of apps is increasing, but is limited to only a few such as Facebook, Youtube, or news apps. In general, customers are getting tired of apps. Hotel apps have a low spread and there are only a few successful ones, as consumers refuse to download a hotel app, if there is no added value.
Considering these challenges, the beacon technology should be critically assessed.
But why is a smart company like HRS investing huge amounts in this technology?
HRS is losing market share and in my opinion the management is looking for new paths. Only the apps of the big OTAs are somehow accepted and used. If HRS integrates the beacon technology in its app and a beacon sender is installed in the hotel lobby, HRS guests could be offered a better service than guests who came via other channels. This would mean that a guest who comes through an expensive OTA would get a better service than the more valuable guest, who booked directly at the hotel.
On top, the collected data would remain with the app provider and not with the hotel.
Nowadays, data is more precious than stones. The stock prices of Priceline versus Marriott or Hilton reflect this clearly. The investment could indeed be interesting for HRS, depending on how many hotels are installing beacons. But what is in for the hotelier? It remains interesting to see who will actually make the connection.
About Dr. Michael Toedt
Graduate MBA, Dr. Michael Toedt is Managing Partner and CEO of Toedt, Dr. Selk & Coll. He is responsible for the fields of marketing technology, consulting and data protection. In the past, Dr. Toedt was regional vice president of SANSORA INTERNATIONAL, a subsidiary company of the Schoerghuber corporate group and accompanied many hotel associations during the production of their central customer and marketing data base.
He was raised in his parents’ hotel and after completing a mercantile apprenticeship he graduated as cook to be employed in the 5-stars restaurant Hotel Koenigshof in Munich. 1995 he began his course of studies of business economics at the University of Applied Sciences in Munich. During this time he visited the Cornell University, NY and is now Vice President of the German Chapter.
Besides his activities with Toedt, Dr. Selk & Coll., Dr. Michael Toedt is assistant lecturer at the University of Applied Sciences of Munich for the subject “Customer Relationship Management in Tourism” and as guest lecturer at various universities such as the University of Applied Sciences of Bad Honnef, Kempten or NDS Hôtelleriesuisse and responsible as HSMA vice president for the South-East region.
He is also participant of the doctoral program of the University of Latvia and University of Applied Sciences of Kufstein and writes his dissertation about the effects of communication on sales performance within Customer Relationship Marketing in the hotel business. Dr. Michael Toedt has published also a lot of articels and whitepapers about CRM and Marketing.
dailypoint™ software made by Toedt, Dr. Selk & Coll. GmbH
TS&C is a software and consulting company in the field of marketing communications and CRM and coincides with the dailypoint™ – software the complete marketing cycle of the hotel industry. dailypoint™ is the professional marketing and CRM solution for modern hoteliers. Whether individual hotel or group, dailypoint™ provides the right solutions complete system from a single source. With the Booking Manager, all correspondence will be covered around the booking, with dailypoint 360° you get a system for your entire marketing and CRM. Each solution is tailored to your specific needs and a team of experts will help you at all times, in all areas.
The company was founded in 2005 by the Directors, Dr. Michael Toedt, Dr. Robert Selk and Rainer Aumiller. Our customers include large international companies as well as small and medium-sized houses. TS&C is Preferred Partner of the IHA (International Hotel Association Germany) for the CRM and data protection, partner of ÖHV (Austrian Hotel Association) and an official member of the HTNG (Hotel Technology Next Generation), hsmai (Hospitality Sales and Marketing Association International) and HOSPA (hospitality professionals association).