Hospitality Services

the way we see it

Succeeding in a Boom
or Bust
Implementing Branded Guest Experiences
for the Hospitality Industry

Market Landscape
In correlation with the current
economic crisis, leisure travel, business
travel, meetings and groups travel are
all in decline in what the hotel industry
is calling the worst hospitality recession
in two decades.1 For 2009, estimates
project a 9.8% year-over-year decline in
revenue per available room (RevPAR), a
6.5% decline in occupancy and a 3.6%
decline in average daily room rate
(ADR). Through the first quarter of
2009, actual results were below
estimates with RevPAR down 17.7%,
occupancy down 10.9% and ADR
down 7.7%.2

low employee morale, inability to recruit

top talent and rising operation costs.
Despite these challenges, hoteliers face
falling budgets and investment capital
leading them to increasingly
concentrate on overhead cost reduction,
asset utilization yields, operations,
construction-cost efficiencies and limited
capital improvements.3
In a time when hoteliers have an
opportunity to differentiate themselves
in a highly competitive market, they
are facing mounting pressure to
drive out costs, often at the
expense of growing the
business.

Additionally, the falling revenues, room

rates and occupancies have been and
continue to be met with

TOGETHER.

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YOUR

ENERGIES

Their future success depends on how

well they are able to balance these
pressures. Hoteliers must consequently
avoid questions such as, How can I
survive the current downturn? or
How can I best prepare for the next
upturn? as these will inevitably lead to
short-term strategies focused on
surviving rather than long-term
strategies centered around succeeding
regardless of the current business cycle.
This is especially true in relation to
hoteliers focus on the guest.
Instead of cutting spending for shortterm gains and allowing their guest
experience focus to be pushed to the
back burner, hoteliers must look to
differentiate their brand through a
renewed focus on the guest. This is not
a new concept for hoteliers. Guests
have always been at the core of the
hospitality industry. However, as travel
distribution channels have shifted,
media consumption preferences have
changed, and technology has continued
to evolve, hoteliers need to look
beyond delivering traditional, isolated
guest experiences through independent
operations at the property-level and
towards delivering closed-loop,
differentiated guest experiences that
evoke strong emotional connections
between their hotel and their guests.
We call this the Branded Guest
Experience (BGE).
The Branded Guest Experience
BGE is a consistently superior guest
experience delivered through three
synchronized foundational elements: 1)
an adaptive technology portfolio, 2)
closed-loop business processes and 3) a
focus on personalized interaction every
time between service personnel and the
guest regardless of the luxury tier. The
Foundational Elements of the Branded
Guest Experience table (see Figure 1)
depicts the contrast between hotels that
deliver Branded Guest Experiences and
those that do not. BGE is not a onetime
reconciliation of guest needs with the
current state. Rather, it is an ongoing
program that incorporates change and
2

transformation as the underpinnings for

everyday business activities, tools and
personnel to achieve the consistency
necessary for a strong, differentiated
brand.
BGE ties strong guest service and
experiences not only to the particular
stay or property, but rather to the hotel
brand itself. The result is an emotional
attachment to the brand that creates a
higher level of brand loyalty. As stated
in the Branded Customer Service The
New Competitive Edge:
In a few years, businesses will
make a clear distinction between
generic customer service and
branded customer service. The
distinction will be similar to that
between generic products and
branded products such as with
generic prescription drugs versus
brand-name drugs.4
Successful distinction between generic
and branded guest service is, to this day,
a notable achievement in the U.S.
hospitality industry. Those who
successfully implement a BGE program
can expect positive results over time such
as: increased RevPAR, occupancy and
ADR; enhanced brand loyalty and guest
satisfaction; efficient operational costs;
and, ultimately, improved market share.
Those that resist will be left to compete
on price in an overcrowded market.
Some would remark that BGE seems to
focus on luxury providers that already
get the idea of a branded experience.
However, BGE must be scalable for all
segments. So whether it is as simple as
freshly-baked cookies at the front-desk,
as detailed as a web-based database
solution to track and monitor currentand-past guest requests, or as
technology-advanced as enabling guests
to use mobile phones as hotel keys,
hoteliers must establish the various
types of Branded Guest Experiences to
employ given their management
structure and/or property segments.

Hospitality Services

the way we see it

Figure 1: Foundational Elements of the Branded Guest Experience

Foundational
Foundational Element
Element

Technology Portfolio

Technology
Portfolio

Business Process

Standard Experience

IT solutions focus on automating

internal processes to save costs

Supports base-line transactional

tasks (e.g., check-in, check-out,
reservations, etc.)

IT departments maintain control

over technology

Applications deployed on each

individual property

Technologies are difficult and

costly to maintain and update

Independent business processes

across the organization

No common goals and objectives

shared/communicated
throughout organization

Business
Processes

Guest Interactions

Disparate guest experiences are

delivered across guest lifecycle
from property to property

Business technology solutions are

integrated and directly address
guest and business requirements

Focus on supporting and

transforming the way decisions
are made and guest experiences
are delivered

Entire service team and guests

are empowered via technology to
dynamically manage experiences

Adaptive systems delivered

via Software as a Service
(SaaS) to lower maintenance
cost and improve cycle time
for business change

Closed loop business processes

that integrate the entire
organization (ranging from hotel
owners to management
companies to call centers) under
a common goal of delivering
Branded Guest Experiences

Connected groups operate in

unison to improve guest experience

Consistent guest experiences

delivered across guest lifecycle
from reservation to check-out to
repeat stays across properties

Front-line employees not enabled

or encouraged to deliver
personalized guest experiences

Front-line employees empowered

to deliver personalized branded
guest experiences

Front-line employees not

recognized as the most
important aspect of delivering
guest experiences

Employees viewed as a
commodity with no differentiation
of rewards based on ability to
impact the customer experience

Recognized that no matter how

strong the brand, how beautiful
the hotel or how compelling the
offer, all guest experiences will
succeed or fail at the hands of the
employee the guest encounters

Pivotal roles to impact the

customer experience clearly
identified and targeted for rewards
for delivering BGEs

Customized training, targeted

recruiting, ongoing performance
management and total reward
programs offered to equip and
incentivize front-line employees to
deliver strong guest experiences

Guest
Interactions

Succeeding in a Boom or Bust

Various groups operate

autonomously to improve guest
experience

Branded Guest Experience

Standard training delivered to

front-line employees on
transactional-related techniques
(e.g., guest check-in, etc.)

The Branded Guest Experience

is a closed-loop, differentiated
guest experience that evokes
strong emotional connections
between the hotel and the
guest to drive repeat stays.

The Approach
Capgemini has developed an approach
for collaborating with organizations
across various industries to develop and
implement successful branded
experience programs. We ensure that
each program is customized and
aligned to fit the strategic objectives of
our clients organization.

deliver guest experiences pre-, during

and post-stay to develop brand loyalty
and help ensure repeat stays.
With the invention of hotel loyalty
programs and offers to promote repeat
stays, hotels are migrating away from this
lifecycle in search of an ongoing, closedloop cycle (see Figure 3) focused on
maximizing the lifetime value of guests
by developing and cultivating brand
loyalty and capitalizing on the emotional
connection opportunities that sit
between each major lifecycle phase.

The first step of the approach is to gain

an accurate understanding of our
clients guest lifecycle. As a result, we
are able to understand the level to
which our clients currently deliver
BGEs and map their performance on
the Branded Guest Experience
Continuum (see Figure 2).

Today, the majority of hotel

organizations guest lifecycle can be
categorized as a semi closed-loop. Hotels
operating under this lifecycle are often
delivering guest experiences in a
piecemeal fashion, but are unable to
mobilize the entire operation towards
working in sync to deliver closed-loop
Branded Guest Experiences. We work
with our clients to help move them along
the continuum by helping them to
design and successfully implement their
unique BGEs based on their portfolio of
hotels, brand strategy and target
demographic.

Traditionally, the widely-accepted,

transaction-based guest lifecycle has a
linear focus designed to treat each stay as
its own separate lifecycle where the guest:
1. Researches the hotel/offers
2. Makes a reservation
3. Checks in
4. Stays in the hotel
5. Checks out
The problem with the linear guest
lifecycle is that it focuses on optimizing
guest transactions (e.g., reservation call
center), rather than the overall guest
experience that ensures repeat stays.
Thus, hoteliers operating under this
lifecycle miss key opportunities to

To paint a clearer picture, consider the

scenario in which a hotel capitalizes on
emotional connection opportunities to
deliver a Branded Guest Experience
(see case study on page 5).

Figure 2: Branded Guest Experience Continuum

Improved guest satisfaction
brand loyalty
operational costs
Improved market share

Enhanced
Efficient

High

GUEST LIFETIME VALUE

Low
Transaction-Based
Guest Lifecycle

Semi Closed-Loop
Guest Lifecycle

BGE Closed-Loop
Guest Lifecycle

GUEST LIFECYCLE FOCUS

*RevPAR- Revenue per available room

Source; Capgemini

*ADR - Average daily room rate

Hospitality Services

In order to implement the

opportunities desired by their guests,
hoteliers first need to understand what
the opportunities are and how to satisfy
them. Capgeminis end-to-end BGE
program (see Figure 4) consists of four
key parallel phases designed to deliver
tested recommendations and
implementation strategies.
Current State Analysis
Guest and Employee Design Sessions
Validation and Roadmap Development
Implementation

the way we see it

Through this approach Capgemini

works directly with hoteliers from
hypothesis development through
implementation to test each
opportunity for its user desirability,
business viability and technical
feasibility. By only recommending the
opportunities that are desirable, viable
and feasible, Capgemini helps hoteliers
to prioritize their time and investments
towards the opportunities with the
highest potential impact on delivering
strong Branded Guest Experiences.

Figure 3: The BGE Guest Lifecycle & Emotional Connection Opportunity Examples
Ability to attach
laptop to plasma flat
screen with HDMI
cable, in-room
assistance

eMail confirmation with

personalized restaurant
recommendations, room
number and cell phone
activated key

Mobile Application
for easy
reservations via
PDA

Make
Reservation

Research
hotel/offers

Check-In

Branded Guest
Experience

Stay

Check-Out
Satisfaction survey,
updated offers,
loyalty points

eMail receipt with

list of all properties
under hotel brand
= Emotional Connection Opportunity

Source; Capgemini

Figure 4: The BGE Approach

Guest Insight Guest Design Sessions

Current State Analysis

Voice of the
Guest
Sessions

Goal /Objective
Defining

Prioritization
High Frequency / High Priority Guest Journeys
Lifecycle
CRM Custo
Stage FrequencyPriority Princi mer I
ple want

Internal Interviews

Data Analysis

Target

Analyze

(e.g., RevPar, NPS, etc.)

Assessment of
Pivotal BGE Roles

Competitor
Benchmarking

Gaps
In Current
State

Segment
Prioritization
Employee
Focus Groups

Future
State
Guest
Experience

Validate
Initiatives
To Drive
New
Guest
Experience

Initiatives
Prioritization

Validation
Session

Current State Assessment

And Gaps For Key Processes

BGE Best Practices

Employee Insight Employee Design Sessions

(Guest-Centric View)
Source; Capgemini

Succeeding in a Boom or Bust

5

Capgemini guides hoteliers along the

implementation roadmap to
successfully deliver the opportunities
and experiences through a singular,
focused, closed-loop BGE program
rooted in an alignment between an
adaptive technology portfolio, closed
loop business processes and a focus on

personalized guest interactions.

Through this alignment the BGE
program becomes a critical part of the
hotel organizations DNA and way of
doing business that maximizes the
lifetime value of the guest and positions
the hotelier to succeed in an economic
boom or bust.

BGE Case Study

George is a young, successful manager at a leading media company and is required to
spend three nights per week in hotels. His simple expectations include a clean, comfortable
room which provides the functionality and convenience of being at home coupled with
efficient, friendly service.
During a recent stay at a mid-scale, full service hotel, his expectations were blown away.
Upon booking, George noted that the hotel promised to go above and beyond to deliver an
unforgettable guest experience, but he dismissed this as nothing more than a marketing
ploy. However within minutes, the hotel took the first step towards making good on that
brand promise.

Emotional Connection #1: He promptly received an eMail confirmation that included a

personalized message from the hotel manager thanking George for his reservation and
offering local restaurant recommendations based on preferences he voiced to the
concierge of a different hotel property operating under the same brand weeks ago. The
day before his expected arrival, George received an SMS message on his PDA providing
him with his room number and a secure electronic key that would allow him to avoid the
check-in lines, go directly to his room and use his cell phone to open the door.

Emotional Connection #2: The room itself brought Georges experience to the next level.
Most exciting was the 42-inch plasma flat screen with a HDMI cable that enabled him to
attach his laptop and view his favorite TV show that he missed online via the hotels free
hi-speed Wi-Fi service. When George had trouble connecting his laptop, he only had to
select the send help button on the TV and within minutes, a hotel technician arrived at
his room to assist.

Emotional Connection #3: To ensure that George was aware of the hotel brands other
properties, the hotel included a list of all of their properties within close proximity to the
offices of Georges company in his stay receipt e-mail.

With this information, the hotel came much closer to securing Georges loyalty to the hotel
brand and their properties across the globe. All in all, the experience went above Georges
expectations as promised and he was sure to stay at the hotel the next time he was in town.

Starkov, Max, and Mariana Mechoso. "Getting Back to the Basics Part II: Case Studies & Best
Practices from the Hotel Internet Marketing Trenches." HospitalityNet. 8 May 2009. 14 May
2009 http://www.hospitalitynet.org/news/4041312.html.

"STR Releases Updated Projected for 2009 and 2010." HotelNewsNow.com. 03 May 2009.
STR. 15 May 2009 http://www.hotelnewsnow.com/Articles.aspx?ArticleId= Barlow, Janelle,
and Paul Stewart. Branded Customer Service The New Competitive Edge. New York: BerrettKoehler, 2006.1081&ArticleType=0.

US 2009 Lodging Report. Rep. Ernst & Young. 15 May 2009

http://www.ey.com/Publication/vwLUAssets/2009_edition_of_US_lodging_report/$File/Industry
_Real_Estate_US_2009_lodging_report.pdf.

Barlow, Janelle, and Paul Stewart. Branded Customer Service The New Competitive Edge.
New York: Berrett-Koehler, 2006.

About Capgemini and the

Collaborative Business Experience

Capgemini, one of the

world's foremost providers
of consulting, technology and outsourcing
services, enables its clients to transform
and perform through technologies.
Capgemini provides its clients with insights
and capabilities that boost their freedom to
achieve superior results through a unique
way of working, the Collaborative Business
Experience. The Group relies on its global
delivery model called Rightshore, which

aims to get the right balance of the best

talent from multiple locations, working as
one team to create and deliver the
optimum solution for clients. Present in
more than 30 countries, Capgemini
reported 2008 global revenues of
approximately $12.74 billion and employs
over 90,000 people worldwide.

Mark Landry
Vice President & Lead
North America Media & Entertainment Group
Capgemini
818-736-8130
mark.landry@capgemini.com

Dennis Ortiz
Manager, Media and Entertainment Group
Capgemini
917-880-8266
dennis.ortiz@capgemini.com

Nick Dryfuse
Principal, Media and Entertainment Group
Capgemini
202-441-1477
nicholas.dryfuse@capgemini.com
Copyright 2009 Capgemini. All rights reserved.

More information is available at

www.capgemini.com.

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www.us.capgemini.com