Sameer Mehra, CRO, Hersha Hospitality Management shares his insights on total RM
Automatically Generated Transcript (may not be 100% accurate)
A lot of the things we're talking about. I. I don't know and repeated at the same thing over the last ten years. So our question out of that on the clutch yet blocked what we're doing. A lot of talk about loyalty. Atop what privatisation. There in the I'm going to give just a lot of it a good example of user in the white collar toddler and securing his advantage of them were excellent return we will use. And call that it. A man just generally. Infrastructure. 1 of the biggest issues with respect for analytics as a practice in the business. Not function and I think go ex model for Q4 four mention that today. Is we think your bid as a functional group. And loss of the organisation of the familiar with. There does not what you do with who create the practice. In every group. And with that practice you evolve you intelligence. Right so. Let's get started but now I took the presentation. Forum two years ago. And I change a bit of the last thing question in a different question from two years ago. It both end. Ryder. Chief. Along with a please. Chloe I have no intelligence here. That's not the story. We look. Look at. So I thought this was a kick all. Ed I kept getting myself I don't wanna see the forget what I frets that the for the about eight years ago. But more and more. Obviously we're not let him as an industry. Felt we talk about the L like revenue model but let's have a different than we've got the car rental albeit. The traditional model really revolved around the core assets of the business. Ship you know airplay charts. How many of them you have. The hard real estate you got. Revenue manager read what I call traditional revenue management. But basically grand. Again you know just general frequented position. With those with of that Winchell them burn your something Iraq horsham. Slump how best. Cargo. Which is the bill your view that of the business. And that really thought about as a pure adds we're play. M then the word customer experience that little left over a blue 2000. But all of that we get what we considered an airline Brent today. But as you well they'll not be a vibrant. Future around the top 200. Why because. There's or. No. Experience. Right now what did we do next. Because of the oil price. Because of our cost structure of the union's. We wade into M slogans of the and say hey what else can we do make money. But we're not good at that and look at the toy you'll Bill White and all the extra played a part in the F. Birch trees were two well European health. And burned. I put virtual cabin is yet or but nothing Iran seats. But we don't think of the that we we just think of sea trees right. For a rare then which in the US has now all the rage because delta said and sorrow of the guy from doubly. We're all gonna introduce the first three. In both it now for those locales guys have spurred character and America when after the fresh correct. All of that was supposed to do to create the next rebel what are we doing. We're going to the lowest common denominator. Kerry. And here's what's happening we're repeating history. I L I can see this working for an airline that has. A brand concept that people actually choose to fly. M it changes your viewpoint Leicester Carly managed this business. So what's going on today bag fees as our industry stand. What are you either they. As revelatory. Fit fees although it's now an industry standard free. I. Bio boring or your look at all the blame board apartments that look like crap. Would you get that burger would you spend your with fifteen bucks for the burger wind down their prices slumped by two would you expect it's going to be crap. It's a what's the McDonnell. Fell what experience you create. So it's really. Troy is a lack of a choice. Great pride your lines. That operate here anymore. The trouble as Barbara experience Ibn boarding as the US until my arm about our divided. Well. Children go for a small families go for a so what about your networks. But they're like six differently in subordinate khelil experience with. And all the previous not all Hollywood upwardly angle together we're interest absolute crap. Although scrap. From the airports that the alliance crap. Let's be real. Right and so if you look at things from a analytical mind. And become the nation ever will combine with the idea about your cell and various experiences and glad her to think in that way. You stand to see the ability. To have hundreds of touch point a bit further actually make insect tree. I. And we talked about oil few revenues what we're gonna sell Croat right look it's a frequent flier program that's not loyalty program. It's one another loyalty program. Right that's all we go. Correct. Felt in that respect. I put the sort of like cakes like but it seems that to bring about again be cuts. We don't understand it with the basics or blow something that we segment. Wrecked. Yeah whether progress group will talk a bit about the segmentation. But the segmentation level. Yeah if I want little bit. I'll do things are quite my choice. Like. I want to do everything myself. What did I wanna try to do elsewhere do in the different weight given that it. The high end customer. Who most of us will think has the corporate customer. What are the proper customer at the end of the day most of them never made the choice of Clark. There are bound by contract. It's a procurement exercise. And as such with that procurement exercise the choice spotlighted the what ultimately yukos marked a 100%. It's also will further. Along that contract. So why they're put up a buoy Europe's premier program. Right. It really shouldn't be about that small business person that I have a counter with. It'll be about the manager press who flies five times a year or seven times every two years and his Utah dot. That leaves your higher cost. And how you treat that pressured gold could hit that qualification levels trigger a true that would in any respect whatsoever. Right if anyone did any analytics. Around the block your customer you know that. But. Felt. What's changing today because that. Duration. I say beginning duration of your travel experience. There's going to be number one. Those. Entities they create evacuation. Will disrupt this both. And I'll show you where that's gonna happen. I hear it. The Kuby has experience in the acquisition of customers. Want to find support David of the smaller like. Focused on the city airport ride in the level. A bleak. What's the find a way to get the customer's attention. It was a highly acquit the role like weather brings us back into bitter via a partly accurately manage the traditional base that. In being highly acquisitive. You have to get the customer interest of the flying. How many airlines did today Nina in particular state. A hair do the right it bristle factors. I have to do anything peculiar should apply. Right and so they're not innovator of when he constitute acquisition. Then therefore they don't use customer data. Insights that the insight with its site to be able to bring both customers and for the door isn't a need for. Instead they have Expedia and other overseas demand for. So. That is where the money years and that gets back in tune right price. For next alike can use that term. Right like time. Get. Right product. How to avoid getting into the dot. Then the other piece of the pie. Is your experience around that do applied to deal departure deal departure in flight. And once you get a better apply. But more importantly when things go wrong. Right. That happens every day yet we've got built product around that experience the flex that. In that requires. Tremendous about the bidder will next have come up with the Q with a product. Let me give an example. Missed connections happen every day. And will continue to happen every day. Salt your front line needs eight product. Opt product management collect. Smart policy. It's not experience. How do we traded. Bolivia must collect the really. In early. Although experience. Surely. Nobody else. Will go now fled his law refocused attention. It's relevant again. In my airline we're actually triggered life. With a capital. The entire infrastructure the airline business as around the trick. And if someone little something that ticket gets answered. And it takes a lot together ticket back into format to treat a customer mythical what's the bribe them with technology today. It's very simple I just override something. Italy vat. Infrastructure as a point here. Right. Now all the Tories come around the prosperity for bright. Yes under departure the kiosk you can get an upgrade. But fundamentally. There's upgrades still haven't been right in with the helter. I was on the merger. Flight. And my upgrade was 1500. Plus a modified people only a 150 bucks for the Tokyo at trust we have not buying amount grouper for a few hundred bucks. Gets might obviously personalisation systems built me injecting. Right sorry American backed its that view it's just the way we have managed these products. Right and it's not different thing I don't know differently doctor. Phil. He is really where the crux of the beginning of the issuers. And money is what customer centric go slow forget that to a does Intel took regular attract. And calms we've just simple. My commitment Belgians as well as optimisation work which. Behaviour preference to purchase cycle for nearly one has to get. Well I heard someone say here I can never figure out the will of the people we can build a couple of good model to come out come somewhere in that role. Well let me time for frequent flyer in live if you fall five times in five years. What you by words. What was the double time departure. However your wellness to peers then there's a will Vista play. If I'll go for Atlanta the separatist got a lot 300 bucks. That's my wildest apply. Now you might push up to 350. But I know whether to sacrifice something to do that you don't know that as the supply. But you don't see my. Behaviour. Over the last five years and trust me that did is available today. Readily bill. The simple model will give view closer cerberus and approximation. Or who will must apply. Based approaches behaviour. That's an economic decision. Very simple. We're talking is that how many airlines through their bid away a lot. How many airlines here. Nine. OK. How many of you use group data. Price and splitting. Inability now. For high yields available watch competition's doing. Now. OK that's a fresh trouble. Get. The many things you can find out where. You know I liked I think you YouTube you touched that I can pilot evident on the company's vision about what mine tunnel customers doing. N come up with that relative positions as to what off three. Based on player optimisation and on the spending I know when to send the message back tree. I don't added Bradley back into my fault Tebucky. That is the use of market in charge of the we're equality Euro goal what do you want to let a product. Right at the same time the product but after you today. Package has not consider the product. I considered and O why we're still this that this fall bags. Happens to be either number one thing that you do when you travel you carry something would you there's a product. Created a product. If you do that you know how to solve the product. Don't attempt. How many airlines have done that today. And hear crickets. Fit right. Against the term virtual counter. People still trying to use on all the clicks the final conversion rates for kept that. Create the feed products. The other oil export count. It. Without a yet use oil looks to find out the right price point. Here we're trying to find a conversion rate and seats. Get back to the basics. In the rest will happen. A rival product that's the oil nothing else that you don't know about. The upper. So. Weber finisher for a quick care or just a short one what's life traceable. Highly acquisitive airline. The how we manage. Flights beef I'm highly acquisitive he sale. Emails. Digital acquisition. If you don't have the right deal that you become very erratic behaviour. Were. I think optimisation and marketing felt so that we re cut staff offers a way. It. It. It. That's basic Kyra. Am very difficult to bring in the US because of the Arab systems. What copper Cingular albeit. So it's very smooth. We've been able to improve our roguish tremendously. Just by applying this choose. Q. Poster practices to get. Sell but lacks bite and after initial year of my time is up is about service delivery. Cream experience means also a deal to deliver the service. If you have to deliver the service. The front lines. And whoever is in charge of that that role must understand the product in the data around with a deal. The fundamental shrewd from the in the open as business. The very separate. And clearly tailored service when things go wrong. Is what this industry lacks. And grow much like what you say and we're in the Michael colleagues here from the united. What other tailored services to fix these props. When they do all right. The biggest issue until I doesn't. The server story. And intelligence or. And everything we do on the commercial side drives at. And that impact your culture. With that culture. Which you have going for you. With an infrastructure like this. As the father. You win customers. Queued for example. We have tremendous. Behavioural. Was Harvard or from the front lines engage with our customers. With customers comment of that reputedly. We have Caesar scored with a score for the tremendous internal about yet. Ideally. The entire engagement has very approachable. That are not from the likely worst oil like uno signs do we get bigger that's going to be more children. But with that hole through a dealer. That works. And create experiences. You get really improvements and Matt and that's corn today struck a thank you free time. And help by shook up the place of the.