The hotel industry needs to focus on personalising guest experiences in order to fight off challenges from the likes of Airbnb and other sharing economy providers.

That is one of the major findings of a report into the hotel sector published by Grant Thornton.

Richard Ratcliffe, a director at Grant Thornton in the Isle of Man, said the report contains research the Isle of Man’s tourism sector could find useful.

The report, The Power of Personalisation: Hotels’ Roadmap to 2020, finds hotels are not making the best use of new technology and guest data to ensure they deliver the services people demand today. It says there is an increasing expectation of receiving the same level of personalised experience we enjoy at home and work when we stay in a hotel, but the industry has been slow to react leaving it vulnerable to competition. The report highlights examples of good practice by leading chains, such as Starwood Hotels and Holiday Inn, and explains what steps others need to take to maintain or grow their market share.

A key element is getting to grips with data. Hotels can use guest information to tailor specific and relevant offers, and to provide a truly personalised experience during the stay, from letting guests choose what room they want, what they want in the mini-bar and even what scent they’d like in the room.

The personalisation of a guest’s experience should start at booking, be paramount throughout the stay and continue afterwards, with preferences recorded for the future. The report explains these points in detail, as well as offering advice on the need to invest in people and technology to modernise the industry to meet today’s customers’ expectations.

Mr Ratcliffe said: ‘The extensive international research which went into this report will be valuable to all members of the hotel trade, regardless of size, as the industry fights competition from alternative accommodation providers.

‘While it is focused on the international market, I believe there are lessons the Isle of Man’s hotel sector could learn from it. After witnessing many hotel closures in recent years, there are signs of a renaissance with the Mannin Hotel in Douglas opening in April, the recent news the Mount Murray has been bought and will re-open and a number of potential hotel developments under discussion.

‘This report contains information on what today’s travellers expect in terms of personalised experience, what can be achieved through smart use of data and, importantly, advice on how to achieve both. It may help hotels here attract more people to the Isle of Man if they were to adopt some of the lessons this report contains and offer the level of service guests are increasingly demanding.’

Gillian Saunders, Global Leader for Travel, Tourism and Leisure at Grant Thornton, added: ‘Hotels are under pressure. Airbnb and other sharing economy providers are growing in popularity. More and more guests are booking through online travel agents that take substantial commissions. And when guests do arrive, they expect the same immediacy of service and control they get at home and at work through their smartphones.

‘Personalisation is one answer for hotels looking to maintain or grow their market share in this challenging environment. By meeting guests’ individual needs, hotels can win greater loyalty. From online check-in, to the app that customises the minibar, personalisation helps hotels stand out from the crowd. Personalise or perish should be the mantra at the heart of hotel companies’ efforts to build their brands and lay platforms for long term-success. But many are struggling to make the necessary inroads to remain relevant to the guests of tomorrow.

‘At Grant Thornton we believe that digital innovation is creating bold new opportunities for hotels to personalise the guest experience. In this report, we draw out examples of hotels leading the way and outline a way ahead for others.’

The report, The Power of Personalisation: Hotels’ Roadmap to 2020, is available to read at http://www.grantthornton.co.im/Publications/Global-Business-Reports.aspx. 

Photo - Richard Ratcliffe.