Tell Newsletter #65
AI some unbiased thoughts, Can Chief Digital Officers change the industry? How Reddit is replacing Tripadvisor in travel. And a few other goodies.
Hello ,
A few discussions with some excellent hotel technology people last week sparked the thought, what if Digital Officer is the solution to the digital transformation our industry so desperately needs? Several of the big chains have started changing things around already. See my post on Linkedin or down below.
Best, Martin
About me: I'm a fractional CMO for large travel technology companies helping turn them into industry leaders. I'm also the co-founder of 10minutes.news a hotel news media that is unsensational, factual and keeps hoteliers updated on the industry – also it is the most read hotel newsletter in Europe. See the international edition of the newsletter and subscribe to it here. 
The impact of tourism
The concept of tourism is undergoing a critical reassessment in light of its potential to both aid economic recovery and environmental impact. McClanahan's "The New Tourist" delves into this dichotomy, highlighting Iceland's economic revival through tourism juxtaposed with the negative consequences of over-tourism, such as cultural dilution, displacement of residents, and environmental damage. I personally think travel has a much deeper positive impact on people. Discovering other cultures, realizing that one’s own way isn’t the only way, becoming a foreigner, broadening one’s viewpoint of what happiness looks like in other cultures, and coming home with a bigger viewpoint of one’s fellow is a good thing. It is easy to dislike what one doesn’t understand, travel has the possibility of helping people understand. These are difficult to quantify in a balance of economy, environmental impact etc. But should be taken into account. But maybe I’m just an idealist.
RETHINK TOURIST IMPACT
Privacy, advertising and cookies
Criteo (an advertising technology platform) tested Google's Privacy Sandbox to see the potential revenue impact for publishers with the deprecation of third-party cookies. The testing, suggests a possible average revenue decrease of 60% from Chrome users for publishers (sites that display ads). This research underscores, yet again, the challenges that regulations can create. In this case, regulation will increase power to Google and push out alternative solutions. Hotels and other businesses reliant on digital advertising must stay informed about these developments and adapt their strategies accordingly. Yes, we need to find a balance between privacy and effective advertising, and explore alternative solutions that can deliver personalized experiences without infringing on privacy. The DMA has already made it harder for hotels to attract direct revenue. Concentrating more power to single channels will not make it easier.
GOOGLE'S PRIVACY SANDBOX
Is Reddit the new Tripadvisor?
Travel inspiration incredibly still comes mostly from friends and family. But then there are those other channels that one doesn’t really think about. For destinations, Influencers on TikTok and Instagram should be top of mind. And then there are sites such as Reddit, where people will discuss and share ideas. Things people used to do in Tripadvisor (and probably still do) are now being done on Reddit. Maybe it is a generational thing? In that case Discord will soon be the next big place to discuss travel.
SEE POINT 6
Hotels, once the cutting edge of tech
It seems unreal to think that hotels were once the showcase for new technology. For decades (before smartphones) hotels were the best place to see the latest technology before it was available at home. Some years ago I was invited to work with André Baljeu, Hotel School Den Haag and some others to research the history of technology in hotels. We didn’t really know where it would lead us. It started in the midst of COVID and we wanted to see if there were any correlations between global crises and innovation in the hotel industry. We didn’t really find any. But we did find that pre-smartphones - hotels were always at the forefront of innovative tech. And since then have lagged behind. See my post below on my thoughts of how we might be able to change that back again.
VISUAL HISTORY OF TECH IN HOTELS
AI in Marketing
Coca-Cola's global CMO Manolo Arroyo discussed the significant role of AI in reshaping marketing, with a focus on growth and effectiveness. Coca-Cola has shifted its AI efforts and media investments, partnering with OpenAI since early 2023, and emphasizes innovation and learning from past mistakes. AI will transform marketing, rapid iterations of ads, the ability to personalize ads automatically based on large data sets, customizing visuals, finding similar audiences to promote to, etc. Hotels need to work with their agencies to work on this and try things out. The shift is happening, and in marketing it is a certainty. So unlike waiting many years before making a mobile website and booking engine, I think the marketing teams should start iterating rapidly.
COCA-COLA AI MARKETING
AI call-centers?
The idea of having an easy-to-call AI for room service, basic questions isn’t so far away. Simple things could go to an AI, and then move over to a human if needed. In fact hotels could even try it right now.
CHARACTER AI
A neutral look at AI and tech
Benedict Evans, an analyst in the technology space, has a great interview on the possible impacts of AI, he is neither an enthusiast nor a doomer. He just tries to explain what AI will do for various businesses. If hotels are still uncertain of what it means, how things will shift etc. This unbiased take is quite good.
BEN EVANS ON NYSE
MORE THOUGHTS:
Are Digital Officers replacing Technology Officers?
The current trend with the major brands to shift from Technology Officers to Digital Officers might be the change our industry needs for a real digital transformation. Let me explain, our industry exists for one purpose only: To deliver good experiences to guests during their stay.
The building, the beds, the decorations, the interiors, the service, the housekeeping and the staff only exist for that reason. But technology in the last 20 years has been somewhat at odds with that.
PMS, POS and a lot of tech in hotels exists to facilitate management of hotels. Enforcing processes, data collection, accounting, management etc. But it did almost nothing to service the guests. Check-in didn't get faster, front desk people now have a screen to hide behind rather than facing the guest, etc.
Tech was rarely, if ever, was designed as a means to enhance guest experience. And in most cases if it was, the complexities and old standards imposed made great ideas mediocre. (Example QR codes to pay at the restaurant but then still needing to check with the waiter if it was actually paid, self check-in on one's phone still requiring one to wait in line to do the real check-in, to name a couple).
The reason is we never really set it up to succeed. We brought in Technology Officers to ensure the systems were running smoothly and securely –and it isn’t an easy job– systems require a lot of work, security, up-time, compliance, compatibility etc are tough problems. But, we didn't design the system to enhance the guest experience.
A Digital Officer has a different view. Because they’re trying to develop guest experiences, their focus isn’t only about keeping systems up (systems need to be up, it is a sub function of keeping guests happy). However a Digital Officer is there to design better user experiences using technology.
If guests are unable to easily self check-in, a Digital Officer's role will be to rethink it. Whereas a Technology Officer's role is to make sure the existing system works. If there is no casting in the room, the Digital Officer's role is to find a solution, whereas a Technology Officer's concern might be to keep the existing wifi system functioning (that can't deal with casting).
I'm not picking on Technology Officers, they have a tough job. But the premise with which those jobs were designed wasn't to act like a GM for tech experiences (GMs obsess about keeping guests happy).
So maybe, the shift to Digital Officers might be the change we need to begin using technology as a tool for better guest experiences. Today, almost all interactions happen via a digital device. Except in hotels where they don't really help the experience. I think we can do better.
But is the new title the solution? Or is it just another fancy title-fad that comes and goes?
WHAT DO YOU THINK? JOIN THE CONVERSATION
