DEL MAR, CA—Each hotel in each market is unique, and owners and operators must know who their customer is at each hotel and figure out how to meet their needs, speakers at RAR Hospitality's 10^th Annual Lodging Industry Forecast here told attendees Friday. The second panel of two, “Evolving Travel Expectations,” tackled factors such as Airbnb and Millennials' expectations and how hoteliers can develop the strategies necessary to compete in a challenging marketplace.

Moderator Cameron Lamming, partner and chief development officer for RAR, talked about the changing landscape of lodging and asked the panelists how different generations choose between different types of hotels. Paul Sacco, president and chief development officer for TPG Hotels & Resorts, said the big, branded hotel companies have focused on brand experience in their marketing, but the industry is now about creating experiences for travelers. “We are in the infancy stage” of a sea change in the lodging industry. “The big branded companies will look very different in 15 years than they do today.”

Lamming asked, when it comes to choosing a hotel for business versus leisure, is there really a difference for Millennials? Michael Polino, senior product manager for Data Science, said, “When it comes to social media, I'm on less than my parents.” We need to “move past the juvenile definition of Millennials” and recognize the “difference between being along and being disconnected. I step away from technology” to get disconnected, while his parents travel far away. “I tend to make business-travel decisions quickly; leisure travel requires more research.”

Lamming suggested that Millennials combine their business and leisure lodging decisions, and Sacco said, “I think people on a business trip focus on location and price—that's where the assuredness in business travel comes into play with a branded hotel. With leisure travel, it's nice to try something different.” He added that hotels' answer to Airbnb is Curio. “I don't think the greater traveler has veered away from that; the big-brand stamp is helpful.” Carlos Sayde, director of global business development for the Walt Disney Co., said his firm is always thinking in advance to keep up with what guests' current desires and needs are.

Lamming shifted gears by talking about data collection on guests and the feeling that hotels need more information on their guests. “Do we have enough?” Sayde said, “You can get lost in the data if you don't know what you're looking for. You can address your core customers' needs, but a lot more needs to be delivered. We try to make sure the hotel experience connects with the overall travel experience.”

Polino said if the hotel industry hasn't jumped into the world of data yet, “you shouldn't jump into the deep end. You need to experiment and track one thing” first.

Sacco said from a data perspective, the issue is the hotel industry is extracting information second hand and making to relevant to hotels. “Hotels have been trying for decades to extract information about guests and personalize, but they haven't succeeded.”

Lamming turned to Airbnb and asked how the Uber/taxi battle is different from the Airbnb/hotel battle. Sacco said, “It's easy to use the Uber app, but I don't think the experience is that reliable; yet the price and ease of bookings is why I stay. With hotels, the experience becomes more prominent; it's not a direct comparison.”

Sayde said people don't go to Airbnb for the same reasons they come to Walt Disney hotels. “There's more room in the hotel industry to battle than in the taxi industry.”

And Polino added, “Hotels have a brand; taxis don't. So, brands have had a chance to pose themselves. Having brands at your back can be huge.” He added that travelers have expectations in the booking phase, and hoteliers need to capture that first expectation to combat the Airbnb effect without having to change operations.

Lamming said, “So there is low-hanging fruit we could learn from Airbnb that we're starting to grab hold of—the ease of booking, the digital key (which has to work without going to the front desk). There's more we can do to maintain ownership of the boat.”

Sacco said, yes, ease of booking is important, but then people aren't getting a great experience. He pointed out that you have to know your guests and what they desire, not just what's “popular.” For example, with regard to breakfast many boutique hotels are moving away from the chafing dishes with eggs and sausage to the “Dean & DeLuca” experience of fresher, gourmet-oriented fare. But in some markets, that model is not desirable. “Many people still like what's going on and don't want change.”

Lamming pointed out that there is no one-size-fits-all to hotels—hoteliers need to know their guest and connect to them, figure out how to cater to them and find the uniqueness in each property.

Polino said if the hotel industry hasn't jumped into the world of data yet, “you shouldn't jump into the deep end. You need to experiment and track one thing” first.

Sayde said people don't go to Airbnb for the same reasons they come to Walt Disney hotels. “There's more room in the hotel industry to battle than in the taxi industry.”

Lamming pointed out that there is no one-size-fits-all to hotels—hoteliers need to know their guest and connect to them, figure out how to cater to them and find the uniqueness in each property.

Instant Insights /

There is No One-Size-Fits-All for Hotels

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