It’s been over 25 years since I sold soap powder. However, in that time the marketing of hotel rooms has become a lot like promoting detergent. What?
Global internet giants like Booking.com seem to have lost sight of the fact that travel is an experience, something that changes the brain chemistry forever – not a fleeting commodity. So why the race to the bottom on price?
First, a quick story about discovery. I was listening to Joe Rogan’s Podcast with Laid Hamilton… and the legendary waterman mentioned a book called The Blue Mind. Then, on a long flight between Melbourne and Dubai, I watched a documentary about how surfing helps veterans recovery from PTSD – Resurface – which also mentioned the book.
So back to the problem with the Travel industry in the time of AI and venture capital. So a quote from The Blue Mind for some context…
In neuroeconomics, we try to understand why we value something, and how human beings trade off between the different things they value—goods, like money, and experiences, like a water view. Some value judgements are easy; choosing a new smartphone, for example, might be a matter of comparing features and ease of use among different models, and then factoring in how much you are willing to pay.
It’s harder to put a value on experiences, however, because the value provided is more subjective and individual, and even involves different value computations in the brain. One person will choose a hotel room with a view of the beach and palm trees, while another will opt for a room with no view and put the money toward an iPad.
Wallace J. Nichols – “Blue Mind: How Water Makes You Happier, More Connected and Better at What You Do”
There is an opportunity here. Hotel operators are struggling to compete with the OTAs – the Agodas of the world. They give up 25% of their revenue – just as local restaurants reluctantly pay companies like Deliveroo for their brand of aggregation.
But Hotels should know their customers better. They are the ones delivering the experience. They are the ones in control of the altered brain chemistry that results from a stay. Though you wouldn’t think it to look at some of the websites and social media feeds.
It is in the interest of the whole travel industry to walk away from the price comparison model of selling experiences. It’s time to stop sorting search results by price, or worse – margin – and start thinking about more sophisticated marketing strategies.
It’s 2019 and we are still educating Hotel brands about buyer personas and value propositions. It’s that simple. Understanding those two concepts is the way to win against the OTAs.
Your hotel room is not a box of soap powder. You and your team need to understand that.