The Mobile Revolution Is Here: Are You Ready?

With the rise of smartphones and tablets, travelers now have remarkable connectivity that allows them to make travel arrangements and share information before, during, and after their trips. A 2014 survey by the Pew Research Center found that 58 percent of adults in the United States owned a smartphone.1 With that rapid expansion of mobile devices, one concern is that the hospitality industry might not be ready for the level of mobile accessibility and functionality that customers expect. In that regard, an analysis by the Boston Consulting Group (BCG) found that although most travel companies recognize that mobile is increasing in importance, they do not yet understand its full reach and impact.2 Compared to PCs, mobile use patterns, behaviors, and expectations are different, and each phase of the travel cycle requires a distinctive approach for mobile

Positioning a Place: Developing a Compelling Destination Brand

The process of building a brand begins with a clear understanding of what consumers desire from a particular product or service. This understanding is then translated into a promise, which is the basis of the brand and tells consumers what they will receive. This report details a methodical six-step process for brand building, the “Process Framework for Strategic Brand Development,” using the case of Zambia. That nation’s tourism officials engaged a team of graduate students from the Cornell University School of Hotel Administration to develop a new destination brand. Using data from potential visitors to the country, the team first identified the motivational factors for Zambia tourism. They next evaluated the nation’s value proposition and assessed its competitive brand position, as compared to the nearby African nations that constitute its competitive set. The next step was to develop core brand elements, based on the traveler motivations. With the brand elements in place, the group created possible brand promises and tested them with key suppliers and sponsors in Zambia. A refined set of potential brand concepts was tested with potential customers. Finally, a set of symbolic brand touch points was developed to become part of brand messages and images. The method used by the Cornell “Brand Zambia” team is applicable to any tourism destination—and to hospitality products that aim to create an emotion-inducing, memorable guest experience

When the Lights Went Out: Hotel Managers\u27 Perceptions of the Blackout of \u2703

When power failed late in the afternoon of August 14, 2003, hotels in the northeastern United States and southern Canada were left without electricity for as long as two days. To assess the lodging industry\u27s response to the event, a study of hoteliers was conducted by surveying selected participants in the Smith Travel Research database. Of the 147 respondents, 93 were from hotels that lost power and 54 were from hotels that retained power during the blackout. On average, the blackout lasted 16 hours for the responding hotels- meaning that guests at half the hotels being studied spent an entire night without electricity. Many managers considered the Blackout of \u2703 to be an aberrant event. Nevertheless, hotel managers should review their emergency plans and stockpiles of emergency supplies. The relatively high incidence of facilities failures and process problems calls into question managers\u27 perceptions of the service quality provided during the blackout. Whether guests\u27 perceptions match those of managers is a critical open question and one that deserves future research-ideally, before the lights go out again

Travel Packaging: An Internet Frontier

The internet has revolutionized travel packaging, in terms of both travel package development and distribution. Although tour packages are still assembled and sold in the traditional fashion by tour operators, customers who use the web have access not only to assembled tour products, but also to an array of travel-element bundles. These offers take various forms, depending on the approach of the many suppliers and intermediaries who sell directly to customers via the internet. Packaging travel elements benefits suppliers by reducing the price transparency created by the internet, because the prices of those individual travel elements are bundled and therefore difficult for the package buyer to discern. Moreover, with the growth of online communities, suppliers can observe consumers\u27 stated desires for travel and make proposals for travel packages, rather than wait for consumers to search out the packagers. A notable development is consumers\u27 creation of their own packages in real time, based on changes in vendors\u27 inventories and revenue management pricing. The efficacy of this process depends on the connectivity and computing power of the suppliers, packagers, and intermediaries. A framework presented here assesses value-creation aspects of the following package value drivers: component quality levels, reductions in the opportunity cost of time, flexibility of time and destination choice, and risk management. Based on the value-creation assessment, the report suggests a research agenda and a checklist for package value creatio

Surprise, Anticipation, and Sequence Effects in the Design of Experiential Services

The most salient or peak aspect of a service experience often defines customer perceptions of the service. Across two studies, using the same novel form of a scenario-based experiment, we investigate the design of peak events in a service sequence by testing how anticipated and surprised peaks influence customer perceptions. Study 1 captures the immediate reactions of participants and Study 2 surveys participants a week later. In both studies we find a main effect for the temporal peak placement, confirming the positive influence of a strong peak ending. When assessing the peak design strategies of surprise and anticipation, we find in Study 1 that surprise and anticipation moderates the temporal peak placement (e.g., early peak versus late peak) on overall customer perceptions, with the surprise peak at the end of an experience yielding the strongest effect. In Study 2 we see that the remembered experience of a surprise peak positively affects customer perceptions compared to an anticipated peak regardless of the temporal placement of the peak. We also find that the infusion of a surprise peak ending has a lasting effect that amplifies the peak-end effect of remembered experiences. Drawing on these findings, we discuss the role of surprise, anticipation, and sequence effects in experience design strategy