Mobile isn’t “producing”? Mobile is too small to invest money now? It is not a priority task on your list? Ian Carrington, Google’s search engine director of mobile, made it very clear to the Travolution Summit audience in October 2011: “No mobile strategy, no future”, he said. This statement is backed by the fact that searches from mobile devices account for 14% of Google’s traffic; up from 10% in the previous year. 50% of the web interactions via a mobile phone start with a search query – have you thought about the impact on your search engine optimization/ search engine marketing strategy as search results are not identical with a “normal” web search?

This year, combined shipments of smartphones and tablets will outperform those of PCs. Next year, the growth of smartphones and tablets is expected to almost double vs. 2011 (Source: Morgan Stanley, The Economist). Gartner expects Android to continue outperforming Apple’s iOS by almost triplicating its worldwide mobile communication device sales in 2015. Priceline is expecting a 50% increase of smartphone users over the forthcoming 12 to 18 months (that’s why they have launched HotelTonight – a same-day booking app for the iPhone). The most recent PhoCusWright European Consumer Travel Report revealed that although today mobile phone users are using their phone mostly for sending SMSs, making photos/ videos, emailing and browsing the Internet, mobile hotel search and mobile bookings are expected to double over the next 12 months.

How does mobility impact hospitality?

Look at the graphic below. The impact of mobility on hotels is multi-faceted: sales and marketing, operations, guest services and customer retention management are the most relevant areas that require restructuring as the mobile strategy of your hotel/ hotel chain is evolving.

The question who should be involved in a mobile strategy development process is not always easy to answer as mobility spans across all guest touch points at the hotel (points of sale), distribution channels, hotel operations, pre- and post-stay guest communication activities and other guest relations subjects such as reputation management. Mobility affects the search, shop, buy and retain process in all areas and guest interaction actually overlap throughout the value chain where every guest touch point adds to the entire experience (see graphic on mobile guest interactions below). Although maybe a challenge to hotel management, it should not turn out to be a threat: internal communication and coordination with other departments are more crucial than ever. Open discussions with all parties involved, the definition of clear responsibilities and procedures how to go ahead are a good basis for success, e.g. involving sales, marketing, revenue management, operations, IT and most likely accounts (e.g. for future mobile payment options). Once the mobile strategy brainstorming has been finalized, a task force should be made available to structure the ideas and oversee the implementation process. The management’s major task is to translate the vision into opportunities, set the directions (e.g. KPIs) and instill the mobile “spirit” so that the team knows where to head to.

MoLoSo (Mobile, Local, Social – or the other way around): What are the priorities for a mobile strategy?

First, the creation of awareness is an important element. Never forget to put your customer’s needs in front of everything you do. With mobility, consumers look for local and immediate information. Exchange with their peers via socializing platforms is more important than ever. With mobile devices, we are always “on”, ready to share, communicate, interact, leave our “footprint”.

Today, the majority of mobile hotel bookings are being made 24 hours prior to arrival. Thus brand promotions and special offerings for guests who book last-minute need to be made available. Revenue management and single image inventory (selling up to the last room capacity) are crucial to not miss out on opportunities and do not leave the business to Online Travel Agencies and other 3rd party websites who have introduced a mobile website and/ or application to search, shop and buy hotels rooms. There is stiff competition from Online Travel Agencies and Meta-Search engines alike that have identified this area as a fast growing market.

Make sure your offerings are mobile search engine optimized and in combination with your search engine marketing strategy, it is smart enough to attract customers to book via your own mobile website and/ or mobile app. It is worth to spend some time on the question what you would like to achieve with a mobile app versus a mobile website. For example, a mobile website has more impact in attracting (new) customers to your website while a mobile app can ideally be used for customer retention purposes such as loyalty guests. However, there is no right or wrong. Factors like guest mix, guest demographics and preferences, their shopping behavior, the desire to expand into new markets (e.g. Asia with millions of mobile device users) and the available budgets play a role in determining to what extent a mobile website and/ or a mobile app should be used. By 2013, HTML5 will enable even more desktop-like functionalities and transcode web-content into mobile web.

With this technology in mind, so called “liquid website design” allows for a flexible adaption of design elements to different mobile screens. Content should be parsed from the original Web CMS with the possibility to customize certain areas.

During stay, room-based services like mobile keys, entertainment, special offerings, restaurant reservations and concierge services can be offered. Near field communication (NFC) enables smartphones to act as door keys and allows mobile payments – a new technology that will soon arrive and is expected increase traction within the next 2-3 years as RFID-enabled phones will reach 247 million by 2015 (from approx. 4 million in 2011 - ABI Research). Sharing experience is another important feature while staying in the hotel, e.g. via Facebook and Google Like-Buttons or online in-house guest satisfaction surveys that may increase the “conversion” of the number of guests filling out the survey and can be “merged” with the online guest reviews for better management. QR (Quick Reference) codes represent an ideal opportunity to combine off- and online marketing by pushing a special offer including “freebies” for one of the hotel restaurants or the hotel bar to the guest.

What impact has a mobile application/ website on my conversion rate?

Based on a recent published article of Bookassist’s CEO Dr. Des O’Mahony, conversion rates increased immediately after having introduced a mobile application in 2010 for a small European city hotel group (from 1.24 to 2.31%). With supporting marketing activities, the conversion rate was at 2.99% by the end of the 3rd quarter 2011. In the same article, O’Mahony said that “iPad users convert a whopping 8 times their Android cousins at 6.5%”. Conversion rates for iPhone were at 2.5% compared to Android with only 0.8% in this specific case.

Mobile “ideas” translated into practice

Loews Hotels has recently announced the launch of a geo-locating feature on their mobile website detecting the location of the mobile device accessing the website. The website does not only offer the services of providing information about the closest property but also helps filling in addresses faster and offers directions personalized to the guest.

An independent property in Switzerland sends pre-stay emails to its guests including personalized services such as quick check-in via mobile devices, personalization of stay based on the guest’s preferences stored in the property management system (PMS), destination information, a map with targeted content information such as fitness studios within walking distance and weather forecasts or reports. A customized information page can be accessed by clicking on a link provided with the email where the guest has access to the hotel’s “store” with ancillary sales functionality.

A Customer Relationship Management system provider in Germany offers hoteliers the usage of an application that allows targeted messaging based on special guest preferences stored in their CRM database. The guest just needs to register via a link upon arrival to have access to this application. Based on capacity of the hotel’s outlets, targeted push emails can be sent to the guest’s mobile device including special promotions containing the offering of additional services and thus pushing up-selling opportunities.

What technology can be used?

Mobile websites and apps for distribution, guest relations management and others are made available by property management system and central reservation system provider companies as well as web agencies specialized in hospitality and tourism. There is a large variety of offerings that you can choose from. This can make a final decision difficult if you have not yet defined your mobile strategy and the features that you like to provide on your website. It is mission-critical to take each aspect of the guest journey into consideration and only then defining the required criteria. I recommend designing a straight-forward specification document so that you can compare offerings and associated cost.

How can hotel operations benefit from mobility?

Last but not least, mobility has arrived for hotel operations, e.g. checking-in guests via tablets or using them for housekeeping to flag a room available for check-in. The major property management system provider companies have introduced applications to access arrivals, departures, in-house guests, waiting-lists, manage traces, manage housekeeping tasks and allow availability requests and reports generation just to name a few. Even job hiring is being used via an applications called “Job Around Me” that allows its users to identify job offers listed in their area and send their CV within 3 clicks (recent announcement by French Louvre Hotels Group who seek to hire 1,400 people).

Mobility has arrived in hospitality commerce, opportunities are numerous. Rethinking your strategy based on consumer preferences using mobile devices is crucial to be competitive and provide “uniqueness”. Don’t miss out on the numerous opportunities to create value for both your customers and employees.

Reprinted from the Hotel Business Review with permission from www.hotelexecutive.com.