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Photographing airline meals, writing about room service and reviewing hotel properties... the social media is becoming an insane and irresistible force, Hutchinson tells Abhilasha Ojha
In the backdrop of the protracted economic slowdown have you noticed any major changes in consumer preferences over the past few years?
Consumers in the hospitality industry were not price sensitive; it was always about getting value on what they were spending. The notable difference has been in the evolution of the transactions - be it business or leisure travel, the interaction between customers and brands has changed completely. Earlier, you didn't know much about the city you were travelling to; now you even know which seat in the plane you'll book.
One of the global surveys conducted recently by our group showed that on an average, a family of four travels with an average of eight devices. Obviously, then, a hotel room has to make changes to accommodate these shifting behavioural patterns. Hotels have to be prepared for 'connectivity' - the biggest change of our times - and integrate and adapt to it.
What are those key things that companies in your industry need to do to adapt quickly and reflect the change?
I'll speak about the Hilton Group because it has been at the helm of recognising change and applying strategies to quickly adapt. We have a history of firsts: Hilton was the first hotel to put telephones and colour television sets in hotel rooms, for instance.
The world has never been static, so services by companies cannot be static. Innovation and lateral thinking has to be an integral part of what one does. I'll give you an example. I was in Shanghai a month ago where leaders of Hilton Asia Pacific met for thinking innovatively (this is something our company does routinely). Someone spoke about a supermarket in Amsterdam that pins up a new food recipe every day. Based on the recipe, grocery, vegetables etc are displayed. Customers pick up products based on the recipe and the supermarket ensures sales of more items this way. This is a fine example of lateral thinking; it is going ahead of the curve and thinking (even before the customer does) of what can benefit her.
Conrad Concierge, driven completely by technology, is an example of innovation. Conrad Concierge has a mobile app that helps us drive a positive experience. You just download the app, and even if you are sitting in your office, you can create a list of what you expect from us when you reach the suite. Hamburger at 4:00 pm, room cleaning at 6:00 pm... you command and we deliver. To be sure, at Hilton, we constantly review our products every 10-12 months.
A Deloitte Hospitality Report has identified seven key 'challenge' areas for the industry, including developing markets, brands, technology, human capital and so on. Is there a silver bullet that can answer all these issues?
Such reports are generic expressions of what the industry might face but for me, the devil is in the details. The strategic weapon is 'thinking global, cooking local'. Our strategy for India has to be different from Europe or even China for that matter. Garden Inn, for example, is a high growth segment in India but may function differently in Europe where the customer doesn't expect room service, being greeted etc. In India, the involvement is more.
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The hospitality industry faces a high attrition rate. How can it be tackled?
Business managers and leaders should understand what drives attrition. Also, Gen Y typically work for fewer years, study further before coming back to work. But wherever it can be managed, attrition should be managed.
How leaders communicate, provide employees with the right environment is important. After all, team members who feel valued deliver value.
At Hilton, we have 300-400 different programmes focusing on educating and growing our employees. We have tie-ups with leading universities all over the world because learning is important for people development. We have world-class training programmes that track people in various departments and every 16-18 months the progress of our employees is tracked.
How do you view the potential of the social media? What sort of challenges does it pose for your industry?
One has to accept social media as one of the biggest changes of our times. Companies can't sift through online conversations. If they do, they will fail. It is a global phenomenon, awe-aspiring, an irresistible force. People are photographing airline meals and posting them on websites, people are writing about experiences in hotels, talking about room service… it is insane but it is what it is.
Sometimes, it is also used to manipulate - 'give a free night or I'll write negatively about it on a website' is a common refrain in our industry. Companies have to continue offering the best experience to customers. Hilton has created a new vertical to take care of the needs emerging from social media.
Coming specifically to the Hilton Group, don't so many brands end up confusing for the consumer?
For us at Hilton, a multi-brand strategy is very important because what Conrad offers is different from, say what Double Tree, Hilton Garden Inn or even Hampton would offer. Remember, the customer cannot have value removed. That is why it is important for the right brand to capture the right opportunity in the right location. You cannot stretch to fit an opportunity, you cannot disappoint the customer, you cannot over-deliver at one time and under-deliver at another. A multi-brand strategy - especially in a market like India - offers opportunity and scale to tap consumers at different levels.
