Inside Hilton Hotels Post-Pandemic Digital Reinvention

Why Digital Technology is the Key to Hilton's Next Chapter

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Few industries have been impacted by the global Coronavirus pandemic than hospitality.  In fact, according to a new report by Oxford Economics released by the American Hotel & Lodging Association (AHLA), state and local tax revenue from hotel operations dropped by $16.8 billion in 2020 due to the sharp drop in travel demand. 

For leisure travelers, full recovery to pre-pandemic levels is not expected until 2023 at the earliest. However, when it comes to business travelers, the bread & butter for many hotels, recovery could be slower and more uneven. 

Furthermore, even before the pandemic the hospitality industry was changing. In between Airbnb and the rise of non-traditional event venues, traditional hotels were facing more competition than ever. In addition, a new generation of travelers were pushing the industry to become more sustainable, digital and localized. 

Despite the challenges ahead, hospitality giant, Hilton, has its reasons for being optimistic. As Chris Nassetta, president & CEO, Hilton recently stated "For more than a century, Hilton has pioneered many of the elements that define the hospitality industry today. In the last year, the pandemic has accelerated our innovation engine – we've thought of it as a decade of change in just 12 months. And though the experience in our hotels will be different as people begin to travel more freely, our Team Members around the world are eager to welcome our guests, sharing the light and warmth of our hospitality once again."

To more effectively accommodate the demands of the post-pandemic traveller, Hilton is embracing digital technology as a means to both engage and better understand its customers. 

 

Digital Guests Experiences

Over the past decade Hilton has developed some truly unique digital guests experiences. For example, Hilton HHonors members can use the hotel’s mobile app to do everything from book a room to activate contactless check-in. Soon guests will be able to run everything — from temperature, TV, and lighting controls to ordering room service — from their app.

In a recent interview with Travel Data Daily, Jonathon Wardman, Vice President CRM at Hilton explained, “By giving Hilton HHonors members the ability to turn their phone into the “remote control” of their stay, members can personalize their stay and take any friction out of the travel experience. For example, members can use the app to view the hotel floor plan and choose their room based on the best view. Or if members want to by-pass the front desk, they can enable Digital Key to go straight to their room. By utilizing the app, we are also able to pull these preferences and gain a better understanding of what our guests expect and what they want out of their travel experience.”

 

Personalization 

Today’s consumers are more distracted than ever. In fact, an estimated 82% of travel bookings are abandoned. One way Hilton combats this issue is through personalization. Using the data collected by Hilton’s mobile app and loyalty program [Hilton HHonors], Hilton Marketers are able to develop personalized messages and offerings based on the consumers past behavior and preferences. 

As Wesley Albaugh, Manager of Personalization for Hilton explained in an interview with SmarterHQ, “We see success whenever we leverage behavioral data coupled with loyalty data. Personalizing messages by incorporating behavioral data and telling customers, for example, “You’re only two stays away from Gold. Go ahead and book that trip to New York you’ve been thinking about,” is crucial. Mixing loyalty and behavioral data drives great results for us.”

Using this user data, they can also more effectively match guests with the best suited room and make more informed recommendations regarding restaurants, tourist activities, shopping and other local attractions.

It’s well known that Hilton’s mantra for people management is “happy employees lead to happy customers.” One way Hilton does this is by optimizing the digital employee experience (DEX) to minimize the time employees have to wrangle with internal systems and maximize the time they spend with guests. 



Hilton EventReady Hybrid Solutions

A significant portion of Hilton’s revenues comes from the corporate events and conferences industry, another sector that has undergone massive disruption in the wake Covid-19. 

Going forward, events will likely take on a hybrid structure whereby attendees can choose between attending the event in-person or online. To support this new approach, Hilton has developed a new suite of offerings that include high speed bandwidth, cameras and the other technical requirements required to execute. 


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