The Digital Disruptions Hotel Leaders Should Be Most Concerned About

Cindy Estis Green, CEO and co-founder of Kalibri Labs, discusses the costs and implications of the latest digital disruptors in the hotel space. In the accompanying video, she provides an in-depth analysis on the increased intermediation and the future state of the industry.

Cindy explains Google, Amazon, and Facebook are just a few of the large tech titans that have their sights set on travel. The concern is that these tech players have strong connections to such a vast audience that the connection to their users may supersede the connection that hotels have to their customers. Anytime there is a 3rd party involved, there are costs associated, so the more hotels spend on customer acquisition costs the less they have to reinvest in the property, staff or to improve the guest experience. The sheer scale of these players is unlike any of the intermediaries the industry has worked with in the past, so it is new territory, and one that should be met with caution. Hoteliers must ensure their customers stay connected to their brand and beyond understanding the cost it takes to acquire the guest initially, leaders need to think about what it takes to keep that customer over time.

So as an industry, we must track the costs, but it's more than that. It’s about maintaining the critical relationship between a hotel, its brand and its customers.

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