Hotel asset success is witnessing a paradigm shift. While traditional factors such as location, reputation, and promotional strategies continue to be vital, an emerging consumer behavior trend—micro-moments—is significantly reshaping the hospitality sector.
Micro-moments, a term coined by Google, are the sudden needs that prompt consumers to turn to their devices. Want to know how much it costs to fly to Fiji? Your favorite booking app is there to answer in an instant.
However, research from Google’s Customer Insights reveals that only 23% of travelers use dedicated apps from travel brands to fulfill these needs, signaling a gap between the industry’s potential for targeted engagement and its current state.
As a result, hotels capable of responding to micro-moments gain a competitive advantage in attracting and retaining clients throughout the traveler’s journeys.
This article explores the influence of micro-moments on the travel sector and offers valuable insights for investors interested in pinpointing which hotel assets are leveraging this trend.
What Are Micro-Moments?
A micro-moment is a brief instance when a person turns to a device to quickly fulfill a need. These needs usually revolve around learning, doing, discovering, or buying something in their immediate environment. In the travel industry, these micro-moments occur throughout the traveler’s journey as consumers pursue their ideal getaway experience.
How Are Micro-Moments Impacting the Travel Industry?
Hotels and other travel industry assets will continue to rely on location, reputation, and branding to get an edge in their field, but micro-moments are changing the landscape.
For example, rather than visit the concierge to learn about convenient on-campus shopping options, exclusive amenities, or partnered bistros within the hotel’s ecosystem, guests are turning to their devices to discover what’s next.
Further, guests might choose to book hotels located in areas optimized to respond to micro-moments instead of hotels with the best staff, services, or guest experiences.
Whether it’s searching where to spend a long weekend, planning an itinerary around a tourist destination, or getting quick information about local hot spots, micro-moments have serious implications on consumer behaviors.
The Impact of Micro-Moments Throughout the Traveler’s Journey
The traveler’s journey can be broadly divided into four main stages: dreaming, planning, booking, and experiencing. Each of these stages is marked by distinct micro-moments that influence the decision-making process. Here’s how micro moments impact each aspect of the traveler’s journey:
Dreaming — “I-Want-To-Get-Away” Moments:
This is the initial stage where travelers are looking for inspiration. They might not have a specific destination or even a timeline in mind, but they’re beginning to entertain the idea of getting away.
Micro-moments at this stage might include browsing through travel blogs, scrolling through Instagram photos of exotic locations, or reading reviews of different travel experiences.
This is the time when travelers are most open to new ideas, setting the stage for hotels to rise to the top of micro-moment search results to capture interest.
Planning — “Time-To-Make-A-Plan” Moments:
Once travelers have been inspired to take a trip, they move into the planning stage. Now, they’re looking for specific information about potential destinations, accommodation options, available dates, and other logistics.
Micro-moments in this stage might involve comparison shopping, looking at maps of different locations, and searching for flights.
Spots on the map with the most engaging information are likely to influence consumer travel plans.
Booking — “Let’s-Book-It” Moments:
After making a plan, travelers are ready to finalize their decisions. They’ve chosen a destination and identified their preferred dates, so they’re ready to book their accommodations, flights, and other travel details.
Micro-moments in this stage are focused on the booking process.
Here, the ease of looking up prices, selecting room preferences, and entering essential information on the e-store checkout is paramount. A difficult digital booking process can cause potential guests to reconsider their options.
Experiencing — “Can’t-Wait-To-Explore” Moments:
Finally, travelers arrive at their destination and start to enjoy their trip. At this stage, micro-moments continue to play a crucial role.
At the destination, travelers will look up restaurant reviews, seek directions to local attractions, and even make last-minute bookings for tours.
The ability of hotels to provide useful, real-time information during these moments can significantly enhance guests’ experiences and their overall impression of the trip. For example, hotels might use a mobile concierge app, text notifications, or an email newsletter to share their top travel picks of the day.
Innovative Approaches for Hotels to Leverage Micro-Moments
While many hotels have yet to capitalize on micro-moments, there are some innovative practices gaining traction in the industry. Here are a few ways hotels using micro-moments to stay ahead of the curve:
Hyperlocal Marketing
Understanding that the consumer is at the center of their own experience, hotels are employing hyperlocal marketing strategies. This involves offering recommendations based on a guest’s immediate location and interests.
For example, if a hotel guest is near the property’s spa around midday, a push notification about a lunchtime special could be a welcome intrusion.
Predictive Analytics
Some hotels are also using predictive analytics to anticipate the needs of their guests. For instance, if a guest tends to request room service around the same time each evening, the hotel might proactively offer to take their order before they ask.
Chatbots and AI Assistants
To address the “I-want-to-know” and “I-want-to-do” moments, some hotels are integrating chatbots and AI assistants into their guest services. These tools can provide instant responses to guests’ queries and facilitate bookings for amenities or local attractions.
Seamless Digital Experience
More hotels are investing in enhancing their digital platforms to provide a seamless experience from planning to booking and during the stay. This includes creating mobile-responsive websites, offering virtual tours of rooms and amenities, simplifying the booking process, and offering digital concierge services.
Conclusion: Hotel Investors Should Consider Micro-Moment Evaluations
For the hospitality industry and, more specifically, for hotel investors, capitalizing on these moments presents a compelling opportunity. It extends the realm of evaluation beyond the traditional parameters of location, reputation, and aesthetics to include a hotel’s ability to meet guests in their micro-moments.
As micro-moments forge stronger customer relationships, drive loyalty, and enhance revenue potential, investors who can adapt their evaluation methods to include this digital trend gain a competitive insight.
Visit us today to start a conversation about your multifamily residential project and enjoy the certainty Black Collie Capital solutions provide.