000-M90 exam Dumps Source : IBM Content Analytics Theory Technical Mastery Test v1
Test Code : 000-M90
Test name : IBM Content Analytics Theory Technical Mastery Test v1
Vendor name : IBM
: 49 true Questions
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February 4, 2019 Alex Woodie
there's a huge statistics analytics revolution taking region that threatens to sever the AI haves from the have-nots. groups that elope the IBM i server wish to deserve in on the analytics action similar to everyone else, however AI discussions frequently stray away from IBM i. Now Fresche options is working to close that disconnect with a collection of educational lessons headquartered squarely on the intersection of IBM i and Watson.
last 12 months, Fresche solutions labored with IBM closing yr to position collectively a collection of onsite training seminars aimed at giving IBM i professionals the academic materiel they should enforce Watson of their organizations. The onsite courses believe been so successful that Fresche determined to parlay that content material into a collection of on-line lessons that IBM i authorities can access at their entertainment through their internet browser.
Fresche produced a total of six classes which are divided into two courses, which can subsist bought one after the other or as share of a bundle. every lone lessons combine a mixture of lectures and demos, and are accessed remotely through Fresche’s practising website at working towards.freschesolutions.com.
The instructor for the lessons is Mike Pavlak, the Fresche IT strategist and IBM Champion. in line with Pavlak, the primary course, which is titled “Connecting IBM i applications to Watson,” is geared towards utility builders, while the 2nd path, titled “Connecting IBM i facts to Watson,” is geared toward statistics engineers and statistics scientists.
the primary course starts with a simple introduction to Watson, earlier than stepping into extra advanced issues within the 2nd phase, comparable to the usage of cleaning soap and leisure APIs to connect IBM i purposes to Watson. in the third section, attendees deserve in-depth instruction on how to employ open source analytics programs, such as Python, with Watson and their IBM i functions.
The 2d course begins with the fundamentals of creating database connections between IBM i and Watson, as well as getting access to audit journals and using Watson to research sociable media. The 2nd facet offers builders extra superior guidelines on some of the underlying HTTP and JSON concepts. The third facet courses attendees in the course of the procedure of constructing a true-world utility that comprises records marts, ETL, and Watson’s desktop getting to know tech.
The identify “IBM Watson” can besides conjure up every lone styles of concepts in americans’s minds, but it’s basically no longer every lone that advanced, according to Pavlak. “Watson is practically a web provider,” he says. “It’s software as a provider. That’s it. That’s every lone it is.”
The service can conclude plenty of things, from yardstick sample consciousness and facial awareness to “full on records analytics,” Pavlak continues. “however’s in basic terms a service-oriented offering — that means, in case you want to employ Watson, you’re going to believe to thrust your statistics and quiz it questions and then deserve a response back and parse that as you behold healthy.”
The courses are fine for anybody who desires more tips on how Watson technologies can integrate with IBM i applications. but Pavlak desires to subsist confident that the handicap is relevant to different applied sciences, and is profitable in different contexts, too.
“We’re going to via now not simply RPG fundamentals in the type, but besides the perquisite passage to leverage Watson from open supply tech, and a few of those more moderen technologies infatuation Python, php, and the like,” he says. “There’s lots of Python that makes up the desktop gaining information of and abysmal getting to know space. Watson itself has Python components.”
“What I’m greater involved is how i will subsist able to leverage Python from my IBM i to leverage Watson. Or how am i able to employ RPG or php. What I are looking to subsist confident purchasers believe the figuring out that they’re not tied into a selected know-how, they’re now not locked into ‘Oh my gosh, i can best employ RPG for this or Python for that.’ you believe flexibility and alternatives obtainable.”
In constructing the curriculum, Fresche labored considerably with the IBM Cognitive group, as well as with IBM leaders from the Rochester lab, including DB2 for i commerce architect Scott Forstie and Jesse Gorzinski, IBM i open supply enterprise architect. “They had been instrumental in assisting us,” says Fresche solutions senior director of advertising Christine McDowell.
The on-line lessons had been accessible considering early October, and Fresche is now ramping up the attention crusade to generate demand. “We’re truly excited about this,” McDowell says. “here's every puny thing you want to find out about Watson.”
Alison Butterill, product offering manager for IBM i, says she’s extremely completely satisfied to celebrate the direction evaporate browsing. “We’re working intently with Fresche and collectively we’re leveraging their international reach and huge associate network to obtain confident that every person is conscious of how handy it's to employ Watson on IBM i,” Butterill says.
Fresche, which got BCD software, looksoftware, Databorough, and different well known IBM i providers, is essentially concentrated on selling software used for application modernization. When Fresche engages consumers in a modernization initiative, they regularly delivery with a discovery phase, which naturally ends up in approach and product roadmap phases down the road.
“a lot of times the conversation will flip to records analytics,” McDowell says. “Our interest is fully is making confident that we’re neatly-versed in what customers can conclude with AI, and making bound that flows via so they could obtain decisions for the future.”
offering working towards for IBM Watson is a natural evolution for Fresche, says Andy Kulakowski, the president and chief government officer of the Montreal, Quebec-based mostly business.
“We deliver strategic IT assistance for digital transformation enablement and software modernization solutions to aid IBM i clients leverage their IT property,” Kulakowski says. “Our purchasers seize skills of up to date technologies together with AI, cloud, internet and cellular as materiel for achievement. We’re excited to convey practicing so that you can aid IBM i purchasers raise productivity and supply sustainable growth for the long run.”
each analytics rendezvous is pleasing to a specific enterprise’s mannequin and its method. however early big records analytics and AI patterns believe emerged, and practitioners are seeing common topics, equivalent to inspecting sociable media content material, developing enhanced customer personalization, and optimizing give chain decisions. These are every lone areas which are ripe for disruption via AI.
“As organizations exhibit to modernize, they’re looking at operational efficiencies, they’re taking a celebrate at offering on extra company cost, they’re looking at aggressive threats,” McDowell says. “They’re looking at where they wish to subsist in five years. expertise is a major share of that. It’s an incredible driver. And analyzing what analytics can conclude for them is a huge a share of what we’re dealing with.”
Fresche’s two classes can subsist create for $450 every, or a bundle with each may besides subsist bought for $799. For extra assistance, behold working towards.freschesolutions.com.connected stories
Fresche Takes $60 Million To gasoline boom, Consolidate Market
A Fresche stress On features
Fresche Makes bold circulation In IBM i Modernization arena
IBM Corp. may no longer carry the equal variety of clout within the public cloud as opponents reminiscent of Amazon net capabilities Inc. and Microsoft Corp., but it’s managing to compete in specific belt of interest industries where its pleasing simulated intelligence and information analytics capabilities can obtain the entire change.
Such is the case with sensible energy Water, which has just agreed a multimillion-greenback deal to plod some of its most captious workloads to IBM’s cloud from an additional main cloud platform. SEW, which gives consumer engagement, workforce rendezvous and massive information analytics capabilities to power and utilities groups, eminent it’s poignant to IBM’s cloud with a view to seize information of big Blue’s particularly really fine AI, records analytics and “information superhighway of issues” capabilities.
The thought is that it could tap into these functions with a purpose to champion its consumers ensure that the power they provide is used extra efficaciously. To try this, SWE gives services to champion organizations exploit their power grids more with no trouble. It additionally sells sensible meter tools that champion buyers to preserve tabs on their own energy employ extra simply.
IBM reckons its skills is advantageous to energy sector businesses like SEW because many are struggling to movement applications and workloads from on-premises environments to the clouds. That’s since the energy commerce is without doubt one of the most closely regulated on earth, and most businesses easily don’t recognize the spot to begin, it observed.
IBM’s claims are backed by passage of the colossal variety of energy establishments with which it has currently partnered. as an instance, it’s working with TenneT keeping B.V.’s subsidiary TenneT energy, which offers energy to purchasers in Germany and the Netherlands. IBM is helping TenneT to build a blockchain platform on its cloud that could subsist in a position to exploit the company’s electrical energy grid more comfortably, helping it to reduce the cost of providing vigour from fluctuating renewable power sources.
other IBM companions in the energy industry consist of Ista UK solutions Ltd., which makes employ of its cloud to host an interactive power metering and billing platform. There’s besides Hydro Ottawa maintaining Inc., which relied on IBM’s skills to abide by industry rules when migrating to its cloud platform.
to this point this 12 months, IBM has signed more than $3 billion worth of recent cloud contracts, together with novel shoppers akin to BNP Paribas S.A., Juniper Networks Inc. and the fiscal institution of the Philippine Islands.image: SEW/facebook on the grounds that you’re perquisite here …
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IBM (s ibm) announced a novel product dedicated to helping purchasers accomplish sentiment evaluation of sociable media information on Thursday, in addition to a brand novel program with the Yale faculty of administration’s core for consumer insight to educate students in superior records analysis skills. With agencies more and more getting hip to sociable media as a means of connecting with valued clientele, and with an trade-vast want for analytics knowledge, both the product and challenge are well-timed.
the novel product, known as Cognos customer perception, is developed upon IBM’s Cognos commerce intelligence know-how along with Hadoop to system the piles of unstructured sociable media records. in line with Deepak Advani, IBM’s VP of predictive analytics, there’s loads of value in performing textual content analytics on facts derived from Twitter, facebook and different sociable boards to assess how businesses or their products are faring amongst buyers. Cognos lets purchasers view sentiment ranges over time to check how efforts are working, he brought, and expert analysts can augment their Cognos consumer perception usage with IBM’s SPSS product to bring predictive analytics into the mix.commercial
The partnership with Yale is designed to address the existing dearth of analytic abilities amongst commerce leaders, Advani stated. although the software will involve training on analytics technologies, Advani defined that enterprise individuals quiet want some grounding in analytic theory and considering as opposed to just figuring out a passage to employ a selected piece of software. “I account the primary point is for college students to subsist taught analytically,” he observed, with a purpose to assist know which expertise to spot to toil on what records, and how.
within many groups, he delivered, the leading problem is that they’re now not the employ of analytics at the point of altenative or throughout every lone their company approaches. Advani says partnerships infatuation these with Yale will assist instill the scheme technique of using mathematical algorithms as a substitute of gut emotions.
To strengthen these desires, Advani spoke of IBM will provide both application and technical consultants to aid train college students. It additionally will connect students with IBM customers who exigency to ameliorate their analytics efforts so both agencies can toil through the greatest methods for doing so. Working best with IBM utility could subsist a puny limiting on the expertise side, but the celebrate in solving true-world problems with facts analytics should subsist profitable regardless the materiel attainable.
We’ve been speakme about the want for superior analytics capabilities for a long time now — highlighted through the extreme require for information scientists — but the want spans every lone stages of company users. As Advani referred to, even the U.S. Bureau of Labor has observed analytics jobs will raise 24 p.c over the subsequent eight years.
graphic courtesy of Flickr consumer James Sarmiento.
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Many questions arise at the mention of the Security Content Automation Protocol (SCAP): What is it, how does it...
work, and how can it subsist useful for an enterprise?
This tip is intended to tender some background on what SCAP is and when and how an organization would benefit by relying on this protocol to enhance enterprise security.
What is SCAP?According to SCAP NIST guidance (.pdf), SCAP -- pronounced as either "S-CAP" (ESS'-cap) or as each epistle individually: S-C-A-P -- is:
"…a suite of specifications that standardize the format and nomenclature by which security software products communicate software flaw and security configuration information."
SCAP was developed to 1) organize, 2) express and 3) measure security information in standardized ways, thus providing an automated approach to maintaining the security of enterprise systems.
More specifically, the NIST guidance lists three ways in which SCAP can subsist used to maintain the security of enterprise systems, including:
The primary driver for SCAP's evolution is to aid organizations that exigency to comply with the U.S. Federal Desktop Core Configuration (FDCC) and the United States Government Configuration Baseline (USGCB)1 initiative, which has evolved from the Federal Desktop Core Configuration mandate requirements. SCAP-validated scanning tools can subsist used to scan affected systems and provide reports regarding whether those systems are compliant with FDCC. This is a time-saver and will aid organizations subsist more readily prepared for audits that require FDCC compliance.
SCAP has two major elements:
First, it is a protocol. SCAP is a suite of four open specifications that standardize the format and nomenclature by which software communicates information about publically known software flaws and security configurations annotated with common identifiers and embedded in XML. Essentially this is a means of establishing some automated "on/off" switches when checking to behold if a server or desktop is compliant with the yardstick in question. This is practical because the output is a standardized, non-proprietary format that can subsist used across different organizations. Each specification is known as an SCAP component. (NIST besides gives more information on SCAP v1.0 components.)
So, there's SCAP content (i.e., reference data) and SCAP components (i.e., security specifications). In order to obtain these toil effectively, the SCAP authors believe integrated the SCAP content and the SCAP components into SCAP-expressed checklists that employ a standardized language to express what platform is being discussed (think Common Platform Enumeration (CPE)) and what security settings should subsist addressed (think Common Configuration Enumeration (CCE)). It would besides subsist practicable to employ the checklists in a manual manner to set up the system in question. However, the number of settings is substantial, and, as such, an automated system infatuation SCAP is preferred.
The National Checklist Program (NCP) website is the repository for SCAP-expressed checklists.
An specimen of a checklist page from this website for FDCC Windows XP is shown in design 1 below:
Click to enlargeFigure 1: Checklist for FDCC Windows XP
As a note, if you celebrate at the Supporting Resources section of this page, there is a "Human Readable" or "prose" version of the settings that, when downloaded, provides a spreadsheet of the policy setting and name, the CCE reference, the registry setting, as well as the description and what the Federal Desktop Configuration should subsist for each policy (e.g., Disabled, Enabled, etc.). An specimen of the spreadsheet is shown in design 2.
Click to enlargeFigure 2: Human Readable Version of FDCC Settings
Each checklist is assigned a tier relative to its automation operability as pertains to the SCAP protocol. The tiers are designated as I - IV.
Tier I checklists are prose-based, i.e., narrative descriptions of how a person can manually alter a product's configuration.
Tier II checklists watch to list the recommended security settings in a proprietary, machine-readable format.
Tier III checklists employ the SCAP protocol to document their recommended security settings in machine-readable, standardized SCAP formats.
Of note, organizations obligated to comply with federal mandate for SCAP are required to employ the highest tier for their computer security automation. Also, there are plans for a Content Validation Program to allow vendors or anyone else to believe their content posted to the NVD as Tier III or Tier IV content. However, a date for when this will subsist implemented is not currently available.
How can an enterprise seize handicap of SCAP?According to NIST, organizations interested in taking handicap of SCAP tools (.pdf) should adhere to the following recommendations as eminent in the publication:
Use SCAP-expressed security configuration checklists to automatically ameliorate and monitor a system's security. The SCAP-expressed checklists aid automatically generate assessment and compliance evidence and can subsist downloaded from the National Checklist Program website referred to above. It is principal to note, however, that the current version of SCAP does not fix or redress any discrepancies eminent between actual configuration and the checklist –- that is anticipated for future SCAP tools and is already in some proprietary applications.
Take handicap of SCAP to demonstrate compliance with high-level security requirements that originate from mandates, standards and guidelines, such as FDCC. This besides can aid an agency subsist better prepared for a FISMA audit.
Use standardized SCAP enumerations, identifiers and product names such as Common Vulnerabilities and Exposures (CVE), Common Configuration Enumeration (CCE) and Common Platform Enumeration (CPE) nomenclature. In other words, employ a common language so descriptions of vulnerabilities or exposures operate with the selfsame terminology and reference the selfsame MITRE CVE/CCE/CPE database. This allows organizations to better understand the system vulnerabilities and affected configurations when cross-talking between organizations and referring to security-related software flaws, security configuration issues and platforms.
Use SCAP for quantitative and repeatable vulnerability measurement and scoring through the combination of Common Vulnerability Scoring System (CVSS), CVE and CPE. Because SCAP does provide for some scoring during the analyses, you can employ the scores to plot and establish trends, comparisons, etc.
Acquire and employ SCAP-validated products. U.S. Federal agencies and those companies supporting U.S. government agencies must employ SCAP-validated FDCC scanners for testing and assessing FDCC compliance.
Of note, NIST has established both an SCAP product-validation program and a National deliberate Laboratory Accreditation Program (NVLAP). These programs are coordinated to ensure the SCAP products are effectively tested and validated to conform to SCAP requirements. NIST maintains a list of accredited laboratories and currently validated products. A graphic showing some of the currently validated products is shown in design 3.
Click to enlargeFigure 3: SCAP Validated Products (Examples)
In addition to the NIST SP 800-117 suggestions above, Karen Scarfone, a computer scientist and project manager with NIST, gave an excellent SCAP Overview Presentation (.pdf) that eminent these common uses of SCAP:
Perform security configuration verification: Here you can employ an SCAP-expressed checklist and compare it to a system's actual configuration. You can verify and audit a system before deployment using these checklists. Also, you can map individual system settings to high-level requirements such as FDCC, etc. using the checklist capability.
BenefitsSCAP is poignant along and is being implemented primarily due to federal mandate by the U.S. Office of Management and Budget. SCAP v1.0 is being adopted and products are being developed and tested for accreditation by NIST-approved laboratories. Version 1.1 was expected in late 2010 and candidate specifications for version 1.2 are already under review, per Karen Scarfone.
What are the potential organizational benefits of using SCAP? Here are a few:
By using SCAP, you can increase automation and reduce manual ail to obtain assessment results, determine those corrective actions needed and thus provide substantial cost savings.
Because you are using the common language mandated by SCAP, the resulting XML-coded results will allow for easier communication of results across the other SCAP system users. Also, this will allow for easier comparison of issue sets between security organizations because the vulnerabilities are described using the selfsame codex of CVSS, CVE and CPE.
By using SCAP-validated products, organizations are more likely to subsist better prepared for FDCC audits.
I suspect they will every lone hear more about SCAP implementation in the future, and, with the newer versions of the protocol, there will subsist even more potential benefits for automated security.
1The United States Government Configuration Baseline (USGCB) will subsist the successor to FDCC and will contain Win 7 as well as other operating system coverage infatuation Red Hat, Solaris, etc… when their content is finalized. USGCB is expected to subsist incorporated into SCAP 1.1.
About the author:Ernest N. Hayden (Ernie), CISSP, CEH, is an experienced information security professional and technology executive , providing thought leadership for more than 10 years in the areas of information security, cybercrime/cyberwarfare, commerce continuity/disaster recovery planning, leadership, management and research. Based in Seattle, Hayden holds the title of “managing principal – energy security” at Verizon’s Global Energy & Utilitiespractice, devoting much of his time to energy, utility and smart grid security on a global basis. Prior to his current position at Verizon, Hayden held roles as an information security officer/manager at the Port of Seattle, Group Health Cooperative (Seattle), and Seattle City Light. Hayden’s independent recommendation does not necessarily reflect every lone positions held by Verizon. Read more of Hayden’s expert adviceon his contributions to the Verizon assume Forward blog. Submit questions or comments for Ernie Hayden via email at firstname.lastname@example.org.
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By Tyler Titherington
I am a restaurateur. I’m behind schedule. Again. Not because I am disorganized or believe too much to do, more so because I believe a hierarchy of tasks that are addressed based on priority. Guest needs are my first priority, staff needs are a close second and everything else last. There is a tertiary hierarchy in the final basket as well. Some tasks with a lower priority descend through the cracks. Not because they are unimportant, but rather there just was not enough time. The truth is that I am obsessively organized. I infatuation “To Do” lists, calendars, tide charts and the accomplishment of tasks. I consume projects for breakfast, while animate on the edge of chaos and complete catastrophe. Short staffed? Yawn. Drains flooding? Been there, done that. POS system crash during service on a weekend? Bring it. I am the duck – composed above water and feet poignant nonstop below. However, how conclude I manage every lone the curveballs and quiet manage to gain time without compromising any of my other priorities? It is very simple – adapt and embrace technology wherever possible, specifically, cloud-based computing solutions that allow one to subsist in many places at one time. These applications simplify daily tasks for management teams and staff, which will ultimately leverage senior management down to focus on the bigger picture. Maybe even deserve a day off…
Over the final 10 years or so, the increased availability of cloud-based computing solutions (using network computers over the internet rather than property-based arduous drives) has been a major paradigm shift for many industries. However, as with most technological advances, the restaurant industry has been very late to adapt. tense margins, resistance to change, and supervision of unknown outcomes believe long driven the restaurateur’s decision-making process. However, with increased options, cheaper costs, and ease of use, that mindset is quickly becoming a thing of the past. Restaurant operators are ascend to embrace cloud-based solutions for everything from Point of Sale and Tableside Payment to Menu Design and Scheduling.
Our foray into cloud computing began with an ill-started set of circumstances that the entire industry was facing. The year was 2010 and the impending doom of PCI Compliance was upon us. At best, their network infrastructure was dated and they needed to act quickly to deserve it into compliance. infatuation most operators, their hand was forced and they had no choice. What is PCI Compliance? The retort depends on who you ask.
Your guests believe never heard of it and believe no scheme what it is. Most restaurant operators will relate you that PCI Compliance is an almost unachievable set of network security standards designed to protect the credit card giants, who already saturate them passage too much for credit card processing and continually squeeze them with a plethora of monthly fees. The definition of PCI Compliance is below, according to PCI ComplianceGuide.org
“The Payment Card Industry Data Security yardstick (PCI DSS) is a set of security standards designed to ensure that every lone companies that accept, process, store or transmit credit card information maintain a secure environment. The PCI Security Council Card focuses on improving payment account security throughout the transaction process. It is an independent corpse that was created by the major payment card brands (Visa, MasterCard, American Express, discover and JCB.).”[i]
PCI DSS is mandatory for any and every lone businesses that accept credit cards. It involves a process of assessment, remediation and reporting. Operators must identify network vulnerabilities, physical vulnerabilities, and operational vulnerabilities that could result in a credit card infraction and fix them. In summary, it is a painfully tedious, extremely time consuming, and potentially expensive process.
It is extremely principal for the security of their guest’s payment information, both for ensuring confidence with their customers and limiting legal liabilities. In 2017-8, major retail stores including Home Depot, Macy’s, Sears, Kmart, Best Buy and Lord & Taylor made headlines across the country for data breaches possibly compromising customer’s credit card personal information. The restaurant industry is besides plagued with security breaches, including big chains such as Darden (Cheddar’s), Panera Bread, Sonic and Arby’s. The number of customers whose credit card information may subsist compromised totals into the millions.[ii]
At Grafton Group, the process of obtaining Credit card security involved working directly with their IT vendor and POS vendor to achieve PCI compliance. The first order of commerce was to deserve their network infrastructure in order. Some of the major network upgrades that they undertook were upgrading wiring, locking down patch panels, securitizing external ports, adding wireless access points (WAPs), and replacing firewalls. The WAPs and novel firewalls were the heart of the upgrades and would ultimately allow us to operate unencumbered in the cloud. The novel access points give their guests their own network and avert them from accessing ours. The security firewalls avert intrusions and besides allow their IT vendor remote access so they can obtain changes without actually being in the restaurant. What used to subsist a scheduled visit from their IT vendor that may believe taken weeks, is now a simple email and can often subsist addressed online in minutes. In a nutshell, PCI DSS forced us to upgrade their network, which ultimately allowed us to operate in the cloud. This unintended outcome to a painful requirement was truly a blessing in mask and it pushed us into novel territory – the cloud! Being in the cloud has allowed us access to exciting applications and services that would otherwise subsist unavailable to us.
IBM defines cloud computing as “the delivery of on-demand computing resources — everything from applications to data centers — over the internet on a pay-for-use basis.”[iii] For their purposes, these on require computing resources primarily consist of “SaaS” or Software as a Service. Here are some of the areas where cloud computing can streamline their operation.Point of Sale
POS systems are the most challenging belt of cloud-based solutions for restaurant operators. Legacy systems such as Positouch, Micros, and Aloha are bulkier, more expensive, and much harder to program and implement. There are quite a few cloud-based POS options, most notably Boston-based Toast. Toast has done a much job streamlining and simplifying the interface for both front and back halt users. Management can access the system remotely for screen programming, troubleshooting or reviewing sales. It is extremely intuitive, infatuation using a smartphone, thus needing very puny training. As wireless POS solutions evolve, legacy systems will eventually subsist phased out. It is only a matter of time.Tableside Payment
EMV (Europay, MasterCard and Visa) is another set of regulations that are coming to the restaurant industry. “EMV is a global yardstick for cards equipped with computer chips and the technology used to authenticate chip-card transactions.”[iv] Used in Europe for years, the credit card never leaves the customer and every lone transactions are processed tableside with a handheld device. One specimen of an EMV compliant, cloud-based device for tableside payments that they at Grafton Group are currently analyzing and diagram on implementing is Pay My Tab. Pay My Tab will fully integrate with their POS system and eliminates many bulky PCI DSS requirements. Many similar systems are already in employ at quick service operations, where guests and staff believe easily adapted to them. In addition to tougher security, the implementation should abate payment time, eradicate paper receipts (emailed instead) and simplify the process for management to search for specific receipts.
Reservations and Floor Management
There are a variety of solutions for reservations and floor management systems. Their solid has been using OpenTable for over 15 years, so when they rolled out their cloud-based system, GuestCenter, they were early adopters. This has been one of the lone best applications in terms of roll out, ease of use, and seamless integration. It is iPad-based and eliminates every lone the wiring and host stand true estate. It is compatible to smart phones that allows for remote access, allowing management to check tide of service, identify unique reservations, and obtain confident that waitlists are being managed appropriately. Soon to near is an interface with POS systems that automatically applies any “guest notes” from GuestCenter to the server’s check, such as special occasions, etc. Most importantly, due to its intuitive design, their millennial hosts employ the system seamlessly.Private Event Management
Private events are the foundation of most replete service restaurant operations. They are the dissimilarity between a fine week and a much week. However, it can subsist a very confusing process with every lone of the poignant parts. In order to stay organized, they employ TripleSeat to manage leads, create BEOs and track their events calendar. The cloud-based event management system allows their Private Event Coordinators to respond at any given time from anywhere, giving them a leg up on the competition, giving them the occasion to deserve fees for each event. Since their coordinators receive an administrative fee for each event, they subsist pleased responding when available off-site; fine communication is key for making confident work-life equipoise is maintained.Bar at the Russell House Tavern in Cambridge, MA. Photo: graftongrouphospitality.com Inventory
An belt which the cloud has really saved their restaurants time is with food & beverage inventories. No more paper and no more transposing paper to spreadsheet. Inventories can subsist uploaded in true time using a tablet, laptop or even a smart phone. BevSpot is used for both their food and beverage inventories. They believe besides given access to their accounting firm, in order to reduce bulky invoice scans and uploads. every lone information can subsist entered into the cloud and accessed by every lone of their approved users. It besides allows for multiple people to seize inventory simultaneously. One person can subsist on the bar, another in the walk in fridge, and another in the liquor room, every lone at the selfsame time. In addition to being a major time saver, it has helped Grafton Group to reduce sitting inventory by a significant amount across every lone properties.Scheduling
Staff scheduling is a weekly administrative headache for managers, but there are cloud-based scheduling applications that lessen the pain. They believe create HotSchedules to happy their needs as it interfaces with their POS system and allows their solid to conclude some creative reporting in regards to budgeting and forecasting, as well as taking employees requests and requirements into consideration.Email and File Sharing
Grafton Group has near a long passage from sharing access to a desktop version of Outlook and toggling between accounts. They were able to eradicate their main server entirely and now they employ Office 365 for their email and file sharing needs. Not only is this highly securitized, it has redundancy so their information is always backed up. They access both their email and files from anywhere in the world. This has greatly improved productivity and allowed their management teams to communicate in true time.Grafton Street in Cambridge, MA. Photo: graftongrouphospitality.com Computer Hardware
Our office hardware now consists of much less expensive “Network Computers”, which conclude not require expanded reminiscence for giant programs, CD drives for downloading drivers, or expansion slots for extraneous drives. They can purchase more computers at a reduced cost and their managers no longer believe to share computer access in the office.Menu Design
For their menu design need, they believe create InDesign to subsist the most efficient program, which is share of the Adobe Creative Cloud. This program can now subsist selected a la carte from Adobe’s menu of programs and paid for on a month to month basis for under $20. This is much more palatable than paying $600 for the entire Adobe suite.
These are just a handful examples of how cloud computing has impacted their operations and ultimately saved time for their management team and staff. Ten seconds here, 5 minutes there, an hour tomorrow – it adds up to impactful chunks of time that can subsist better spent elsewhere. They believe only scratched the surface as an industry – they will behold more and more options for cloud-based solutions to true world restaurant problems. Although the solutions highlighted above create efficiency and deliver time, they conclude not serve guests and they don’t understand the knack of hospitality. It is imperative that as restaurateurs they continue to create a positive environment, embrace innovation, and engage and train their employees in the knack and skill of hospitality.
There are some things you will never believe time for in the restaurant industry, regardless of cloud-based advancements. “Lunch”, for example, I believe heard is a meal that takes spot in the middle of the day. For me, “lunch” is the sandwich that I consume in 30 seconds somewhere between 2pm and 6pm standing over a trash can in the back of the kitchen. There is no technology for that…
PDF Version Available HereReferences [i] “PCI Compliance lead FAQ.” PCIComplianceGuide.Org. September, 2018. https://www.pcicomplianceguide.org/faq/#1. [ii] Green, D. and Hanbury, M. (Aug. 22, 2018). “If you shopped at these 16 stores in the final year, your data might believe been stolen.” https://www.businessinsider.com/data-breaches-2018-4 [iii] “What Is Cloud Computing?” IBM.com. September, 2018. https://www.ibm.com/cloud/learn/what-is-cloud-computing. [iv] Kossman, Sienna. ” 8 FAQs about EMV credit cards.” CreditCards.com. August 29, 2017. https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php. Tyler was born and raised in Portland, Maine and has lived in the Boston belt since attending Boston University. After graduating from the Boston University School of Hospitality Administration, Mr. Titherington operated a handful of bars and restaurants in Boston. He has been with Grafton Group since October 2007.
By Christopher Muller
In share 1 of this analysis of the restaurant delivery system they looked at the owner/operator models which quiet tender some measure of control over expense and quality. This is quickly becoming an issue with the ascend of the Ghost Kitchen where the ODP is an integral share of the equation. Here they present the larger challenges from the preponderant ODP control of the marketplace. It is fine to recollect that most of the ODPs themselves are quiet looking to find profits in what they do, a suggestion that those profits will exigency to near at the expense of the restaurant providers in one passage or another.5. The Aggregator or On-Line Delivery Provider (ODP) – No Driver Fleet
If someone were to say, “Let me seize supervision of every lone of your delivery problems for a miniature crop of your revenues” many restaurant operators, especially those alive to to deserve into the market with the least amount of upfront investment, would jump at the chance. Enter the On-Line Delivery Provider with a commerce model built upon a brand name customer-facing APP, website or phone number and an huge amount of back office computing power to drive order volume.
At its core, to subsist successful the Aggregator needs to subsist a world-class matchmaker for food orders, with both a big customer database of users and a broad assortment of restaurant menus offered in major cities. infatuation many of what MIT’s Bill Aulet calls an Innovation Driven Enterprise (IDE) the cost of customer acquisition is the key hurdle in entering this distribution channel. What it doesn’t exigency is its own fleet of employee delivery drivers. Capitalizing on the DIY gig economy, drivers are hired on a contractual basis, working as independent delivery agents with their own vehicles.
The barrier to lowering this elevated cost of entry has favored early market entrants and big well-funded digital innovators. Worldwide, the fastest growing ODP is Uber Eats, the natural extension of car service provider, Uber, with its existing huge data basis of users, an ever expanding fleet of drivers, and the understanding for a driver that delivering food with an APP-based pre-payment system is considerably faster and easier than dealing with human passengers.
The upside for restaurant companies using an ODP such as Uber Eats, from those as preponderant as McDonalds or as miniature as the local pizzeria, is that there is no exigency to hire and train non-core employees. As touted by Uber Eats delivery service can open almost immediately upon signing up. The downside, that has a potential for long term impact, is two-fold. The fee structure for traditionally low margin restaurants can subsist between 20-30% of a menu particular price, leaving puny to cover remaining expenses. Worse though is that the restaurant gives away its brand and trade dress image to the company making the delivery to the front door. McDonalds hamburgers may subsist in the bag, but the name on the ordering APP and the uniform on the person handing it to the customer says Uber Eats.
6. The Consolidator – Bulk “Bus Stop”
As noted, the most expensive lone piece of the delivery bewilder is getting food from the restaurant to the front door, what is called “the final mile.” One proven passage to minimize that expense is to believe the customer meet the food delivery at a central drop-off spot (see: Amazon ). A start-up, Yun Ban Bao, in novel York City is taking handicap of ethnic Chinese food deserts through direct targeted marketing using the preponderant Chinese online service provider, WeChat. By doing so it is creating a captive delivery market with the handicap of pre-ordering and payment.
Taking online requests for delivery on the next commerce day, then consolidating orders using a bulk delivery model, Yun Ban Bao is lowering the cost of delivery while maintaining control with its own fleet of drivers. It advertises a data analytics service for smaller restaurants as well as being a revenue growth accelerator for restaurants in suburban locations which otherwise could not find novel or broader market opportunities.
Using a pre-arranged group delivery network, often outside parks, office towers or apartment buildings, the system mirrors a bus route, not the more traditional taxi route model of one-on-one delivery. This besides affords the network of restaurants a passage to lower operating costs by controlling the production process in advance.7. The Aggregator ODP – Owned Fleet
Some of the largest ODP players started in the delivery commerce by controlling their own fleets of employee managed delivery drivers. The global leader, Just Eat, has used this model throughout the UK, Europe and worldwide. But it besides has worked directly with restaurants who believe their own in-house deliver fleets to create a broad partnership. Just consume acts as the online ordering platform, but then allows the local branded company to subsist the face at the door.
The skill to present a standardized customer facing brand identity means that confidence may subsist established with the customer directly. While this can near at the risk of the restaurant losing its direct brand relationship, what Just consume has been able to master is the collection of a vast customer database of its users. It has created a relationship with many of its restaurant partners to assist them in finding exemplar store locations, menu particular design and creative targeted pricing and promotions programs which would not otherwise subsist affordable or even available to smaller companies.
For these ODP companies, the costs for maintaining their own fleets or working as a hybrid with a local restaurant creates a higher operating expense, but these are often offset with a higher fee share from both the restaurant and the consumer. It besides creates a competitive handicap by structure a broader network of restaurants to select from for the customer, which builds long term loyalty and habitual purchase behaviors.
8. The ODP Aggregator – murky Kitchens
One of the greatest threats to the bricks and mortar restaurant delivery partners is the emerging concept of a murky Kitchen. This is a space created by an OPD to facilitate the lowest cost per delivery mile from restaurant kitchen to the highest density of users. While this is similar to the Cloud Kitchen model, in this case the OPD establishes a cluster of miniature dedicated but competitive restaurant kitchens in a lone site. A murky Kitchen is besides similar to the trending food hall concept, but comes with no direct customer interaction—no walk-in guest visits these production facilities. In the UK this was pioneered by Deliveroo with its urban RooBox or Editions concepts. confederate restaurants rent portable kitchen space from the delivery service and pay a larger percentage fee to cover the build-out costs for their space. Restaurants staff the kitchens at their own expense, as well.
Earlier this year, Grubhub invested $1 million in Green climax Group (see Ghost Kitchen in share I), a startup with nine virtual restaurants operating from a lone kitchen. DoorDash is renting extra space from the Santa Clara Fairgrounds in San Jose, Calif., and making it available to foodservice operators who want to create delivery-only options. In Los Angeles, Postmates leased a commissary kitchen space so its restaurants can reach novel customers. And UberEATS is exploring the concept with Poke Café in Chicago — a virtual restaurant serving Hawaiian poke bowls.
“We can toil with existing restaurant partners to create delivery-only menus. (They would) exhibit as entirely novel restaurants on the UberEats app,” Ambika Krishnamachar, UberEats product manager, said in an article on Mashable.
And again, while on its face this appears to subsist a positive occasion for independent or chain restaurants to lower costs or disaggregate the dine-in from the delivery production process, it is not cost free. In fact, as a rational progression would suggest, the OPD Deliveroo service has realized that the actual local restaurant in this fuse is not a necessity for success. Instead by using its own “innovation fund” it will to evaporate directly into the restaurant commerce itself, creating “from scratch” concepts by working with notable chefs and data mining information from its huge customer data base. 
As more of the OPDs celebrate to find profits to pass along to the aggressive investors who believe funded rapid growth, they will inevitably celebrate to crop out the middleman and provide meals themselves to increase margins. The kitchen that may actually evaporate “dark” is the local one on the corner down the street in an independent restaurant.
This is undoubtedly both an challenging and a challenging time for the restaurant industry and the Online Delivery Providers who are feeding from it. Neither side seems to believe figured out how to obtain the novel consumer require for off-site delivery toil to their complete advantage.
It is impossible to believe that any restaurant can survive if it gives away up to 30% of its top line revenues when the average net profit is less than 10%. No amount of increased volume in sales will obtain up for that. As Cameron Keng wrote in his column “Why Uber Eats Will consume You Into Bankruptcy” in March, 2018:
Based on the average profit margins above, every restaurant that engages Uber Eats will lose money on every order they take. The more orders coming from Uber Eats, the more money a restaurant would lose.
At the selfsame time, while it is arduous to deserve exact information, it appears that almost no one at all of the largest On-Line Delivery Providers, in any of the described segments is actually showing a profit. Uber Eats is only profitable in 27 of its more than 100 urban markets, and while Deliveroo’s sales rose in 2017 to £277 million ($356 million), the company lost an astounding £185 million ($237 million). Yet Uber Eats is offering over $2 billion to purchase/merge with Deliveroo.
Finally, as Jonathan Maze wrote in his Bottom Line column in early October the restaurant industry is simply unprepared for what appears to subsist a tectonic shift in traditional restaurant segments, consumer behavior, labor utilization, true Estate valuation and investor interest.
If delivery is the future of the restaurant business, the restaurant commerce as it is currently constructed is in trouble.
The service is growing rapidly. But it’s increasingly replacing existing restaurant commerce rather than taking commerce away from grocers or other food retailers. 
As they eminent in the beginning, it took the lodging industry almost 20 years to open to obtain this kindly of tectonic change and it is nowhere near complete. A few very big hotel companies, through merger and acquisition, believe consolidated enough power to start the plod away from handing over every lone of their pricing to the OTA’s. In economic terms, hotel companies are trying to evaporate from being expense Takers to expense Setters.
At this early stage of the restaurant OPD’s domination of the delivery cycle, it is not transparent that any restaurant organization is big enough to burst the fever, especially now that McDonald’s is partnering with Uber Eats. While it may exhibit that the On-line Delivery Provider is a restaurant’s partner, friend or even savior, it is no one at all of those. In fact, in order to become profitable the OPD is looking to become a direct competitor.
What is confident is that few restaurant companies, and certainly no independent operations, can survive the next two decades letting third parties ordain what convenience and expense mean. In fact, this might subsist a fine time to deserve out of the house and evaporate visit your favorite local restaurant. Sacrificing some convenience for a much suffer is a fine value and that restaurant may not subsist around the next time you want to demonstrate up.
PDF Version Available HereReferences  behold Bill Aulet, Disciplined Entrepreneurship,  The Financial, October 25, 2018, https://www.finchannel.com/~finchannel/business/76317-amazon-expands-grocery-delivery-and-pickup  Menqi Sun, WSJ, September 9, 2018, https://www.wsj.com/articles/how-to-get-food-delivered-from-your-favorite-faraway-restaurant-1536516000  See https://www.just-eat.com/  James Cook, commerce Insider, April 5, 2017, https://www.businessinsider.com/deliveroo-editions-pop-up-restaurants-roobox-2017-4  Tim York, The Packer, March 23, 2018, https://www.thepacker.com/article/rise-virtual-restaurant Sophie Witts, big Hospitality, May 21, 2018, https://www.bighospitality.co.uk/Article/2018/05/21/Deliveroo-to-create-own-restaurant-brands-using-5m-fund#  Cameron Keng, Forbes, March 26, 2018, https://www.forbes.com/sites/cameronkeng/2018/03/26/why-uber-eats-will-eat-you-into-bankruptcy/#778a3b0621f6  Ibid., DealBook, September 21, 2018  BBC News, October 1, 2018, https://www.bbc.com/news/business-45707700  Jonathan Maze, Restaurant commerce Online, October 17, 2018 https://www.restaurantbusinessonline.com/financing/delivery-could-force-changes-restaurant-business-model Christopher C. Muller is Professor of the drill of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: email@example.com
By Christopher Muller
The entire restaurant industry, from the simplest quick service joint to the most complicated fine dining jewel, is caught in a veritable frenzy of delivery. It may be, unfortunately, a very risky path to travel for the uninitiated restaurant operation, but delivery is driving the investment community to a fever pitch.  They believe entered into the time of the restaurant On-Line Delivery Provider (ODP) which mirrors in many ways the On-Line Travel Agent (OTA) which has so disrupted the lodging industry.
In two complimentary BHR articles here, they present a celebrate at the 8 different models of restaurant delivery and how they are affecting both senior management and customer choices.
A Quick Lesson From Pricing History
For observers of the global Hospitality Industry this should forward up warning flags. In a galaxy far, far away, the Lodging industry managed revenues by using simple seasonal or ascribe pricing models (On-, Shoulder- and Off-Peak rates, or premiums for “A latitude With A View”) and sold some limited excess inventory through a network of independent Travel Agents (at an onerous 10% commission!).
Then, as the Internet expanded, and the travel market imploded after the 9-11 tragedy, a novel and exciting model emerged – the On-Line Travel Agent (OTA) acting as a third party aggregator appeared. Hotel companies willingly gave open access to every lone of their unsold latitude inventory to the OTAs (Expedia, Travelocity, Priceline, Booking.com, Kayak, Trivago, etc.) to sell directly at abysmal discounts, often between 25 and 30% off posted Rack Rates. Occupancies rose, but average Daily Rates plummeted, and profits quickly diminished. Hotels, relying on the traditional pricing models were caught competing “with themselves” and watched as formerly loyal customers switched their buying habits and loyalties to the OTA that gave them the best rate. Customers could scroll through pages of prices, often for the exact selfsame latitude in the selfsame hotel, searching for the cheapest rate. Hotel rooms, instead of being unique destinations became interchangeable commodities.
It has taken almost twenty years, but through brand consolidation and a total system-wide transformation into a Revenue Management based pricing model, the hotel commerce has been transformed and the OTAs are being aggressively challenged for dominance. This should subsist a lesson for the restaurant owner/operator, the OTAs drove nothing but expense as a conclusion attribute, the ODPs are poised to conclude the selfsame thing with both expense and convenience, unfortunately restaurants probably won’t believe decades to recover.
Today’s Restaurant Delivery Frenzy –The ascend of the ODP
Whether it’s the savvy but shape-shifting Millennial, the rapidly aging Baby Boomer, or the rising youthful digital indigenous from the i-Generation, it seems that customers in every lone shapes and sizes just want to believe their meals brought to them at home, the office, or somewhere in between. Breaking the code of the delivery model—becoming the customer’s altenative of who serves up breakfast, lunch or dinner at home, toil or play—has emerged as the Holy Grail of the foodservice business. But it may subsist more infatuation the other mythic murky Ages metaphor, the Plague, potentially killing upwards of 30% of existing restaurant units.
So, what exactly is “delivery” today, how did it evolve into such a big, expanding component of the restaurant offering and what are the implications going forward for the industry? Just how conclude the On-Line Delivery Providers, the ODP, dominate the market?
We can open by agreeing that delivery is a distinct and rapidly growing distribution channel, although it has been around in one configuration or another for a very long time. And while not exactly a novel technology, nor necessarily a profitable one, the exploding market for the delivery of food is poised for an inevitable shudder out as it quickly approaches a ripen facet consolidation.
In late 2018 delivery is every lone about instant gratification, not just for the diner but some would imply for the restaurant as well. At first glance, it every lone feels so simple and easy. But infatuation so much in restaurant management, there is more than one passage to deserve something done, even the simplest of things.
Emerging Key Success Factors
Like so many emerging commerce models in the on-line digital age, food delivery is developing its own metrics and factors to subsist considered and mastered. While quiet evolving, among these now are:
Delivery of food, especially from a restaurant to a consumer, has become a multi-billion dollar segment of the industry. Some are predicting that it will overtake the traditional dine-in segment completely within a decade, although the complexity of getting it perquisite and turning a profit while doing so, can quiet subsist elusive even for the largest players. And of course, no one should forget that Amazon is over in the corner waiting to behold how things evolve in an online delivery world they basically invented.
Traditional and Controlled
As noted, the delivery of food from a restaurant directly to a local customer is not a novel scheme although traditionally the customer came to the restaurant and picked up or carried out their food order. Both delivery and carry-out were best suited to a restaurant with a simple, easily transported menu. Where a significant amount of the value of the meal was the dining suffer and table service, meals to evaporate were often comprised of a package of leftovers or the long gone term “doggie bags.”
Here is a celebrate at four models with some measure of control for restaurant owners and operators over the trait and profitability of their offerings.
1. The Independent – One Shot
As a service provider a restaurant may settle that in order to meet the needs of its local customer basis it should provide a delivery option. At one time, only a few restaurants in an urban core would believe delivery offers and these might typically subsist delicatessens or Chinese restaurants with few seats and a very stout focus on offering takeout options. The food can subsist cooked, boxed, wrapped and brought quickly to an office or apartment within a few blocks on foot or by bicycle.
This model is the most basic – a caller, the kitchen, and an employee bringing torrid food directly to the customer. The restaurant controls the quality, manages the relationship with the diner and absorbs the replete cost and every lone the revenues. It typically comes with higher operating costs for labor (primarily from an in-house paid delivery driver fleet) and with premium rent from the exigency for an attractive customer-facing retail space. On the plus side, every lone local customer information may subsist controlled by the restaurant and there are no fees to share with an outside third-party service.
But as the independent operator reaches for the brass ring on the delivery merry-go-round, they besides exigency to subsist heedful not to lose their grip on their existing ride. A novel distribution channel can subsist much more challenging that just taking a customer order. As eminent by Jennifer Marston:
…restaurants are under pressure to adapt…More and more, that means altering the physical restaurant space so it can better accommodate this influx of novel orders. Extra meals require extra bodies to cook and package the food, after all, not to mention extra space for third-party devices, and somewhere to assign completed orders waiting to subsist picked up by a delivery driver.
An challenging twist on this lone restaurant model of trying to find a passage to both control and expand the delivery system while maintaining some measure of profitability is one recently proposed in the restaurant trade magazine Restaurant commerce Online:
He (CMO Nabeel Alamgir) explained that Bareburger is already striving to convert customers ordering through third parties’ apps into users of the chain’s own channels. Patrons of an Uber Eats or Postmates might subsist offered a 10% discount on their next order if it’s placed through Bareburger’s website. The chain can afford a discount that abysmal because the fiscal impact is quiet less than the 20% or 30% discount an outside service typically charges.
Alamgir eminent at the start of the panel’s presentation that a service started by restaurants for restaurants would believe been an attractive alternative to some of the third-party giants. “Let’s obtain their own platform. Let’s obtain their own Grubhub,” he said.
2. The Cloud Kitchen – A Hub & Spoke System
It can subsist argued that today’s focused delivery channel began in earnest when Domino’s offered up a “30 Minute or Free” guarantee in 1973. In order to obtain this guarantee effective, the company created a hub and spoke system, in upshot structure a series of franchised units in low cost locations. They were characterized by being geographically market-centered but with no exigency for a “High Street” customer facing address. This was directly in contrast to the overwhelming market handicap owned by Pizza Hut and its network of “Red Roof” replete service pizzerias with their focus on dine-in and takeout service. But the competitive handicap that came from having units with no dine-in, limited customer carry-out, and which were serviced by a central commissary set in motion the shift away from the traditional eat-in model.
“The reality is, when the red roof restaurant was created, the scheme of delivery wasn’t share of the concept,” said Pizza Hut chief executive David Gibbs, a 26-year veteran at parent company Yum Brands…”so in many cases, their commerce has outgrown the capabilities of those restaurants…”
Now, four decades later Domino’s is the world leader in delivery, pizza or otherwise. It has done this by controlling the entire process or what is called the “full stack” in the delivery cycle. Now describing itself as an IT and logistics company that sells pizza, the backbone of the system is that they control the customer ordering process, the production trait process, and through a vast franchise network the delivery process.
Next to come, using novel GPS and AI technologies, Domino’s predicts that it will subsist able to obtain deliveries not just to a formal structure address, but to anywhere a customer can subsist located by tracking their cellphone, even if that is a park bench or a blanket on the beach.
But Domino’s is not the only leader to subsist expanding its Cloud Kitchen delivery system. Already designed on a commissary production system model, giant quickly casual leader, Panera Bread, tested delivery in Boston and then announced an expansion across the United States in early May, 2018 with a system based upon using its own delivery drivers.  Following the trend in October the largest chicken sandwich chain, Chick-fil-A, announced it was ascend to test the hub and spoke model of delivery in Nashville, TN and Louisville, KY.
Chick-fil-A is opening two novel restaurants that don’t believe something you commonly associate with the chain: seats.
Chick-fil-A, the Atlanta-based chicken sandwich chain, is testing catering and delivery locations in Nashville and Louisville, Ky., that will open this month.
The locations, according to an announcement on the chain’s website, believe no dining rooms or drive thru’s and are designed to subsist hubs for catering and delivery orders. The restaurants will not accept cash, either.
The Cloud Kitchen model can subsist very effectual for restaurant companies with big enough scale, whether in a lone city or across a region, to seize handicap of a lone production kitchen site with remote staging kitchens. Ultimately the “full stack” control from order to front door can near from as few as three restaurants or as many as 3000. This besides means that the foundation is laid for vast proprietary customer data collection and eventually data mining by the most forward-looking operators.
It can subsist argued that the Food Truck movement of the past decade is a subset of the Cloud Kitchen model. By most local health code laws, food trucks must believe a “home kitchen” or commissary for their bulk production that meets every lone health and sanitation code requirements. In many urban centers, to be successful a food truck company needs to believe multiple trucks on the road acting as a distribution network. While this is besides a classic Hub & Spoke model, it comes with similarities to a model in the next article, #6 The Consolidator, with distribution on a bus quit route and not a one-to-one final mile taxi route.
3. The Ghost Kitchen
One further refinement of the Cloud Kitchen is the Ghost Kitchen. As delivery becomes more of a threat to the traditional dine-in restaurant option, some imply that this model, in fact, is the future of restaurants—basically a highly efficient hybrid of menu concepts, specialized production and logistics, and low labor cost with no eat-in customers.
In that way, this model is identified by three key components.
First, it removes the dining latitude or takeout from the restaurant completely, working out of a kitchen whose location is based on nearness to its core customer market yet in a typically low rent out-of-the-way space.
Second, it does not hire any paid employees to deliver, instead making employ (through partnership or agreement) of the many third-party delivery companies infatuation GrubHub, Postmates or Doordash.
Third, and possibly the most important, because of the flexibility of only needing an APP, website or traditional telephone ordering system, more than one cuisine can subsist produced in the selfsame kitchen space. light to prepare, cook and deliver foods such as salads, sandwiches, Asian and other ethnic dishes, or gourmet pizza can every lone subsist offered while cross-utilizing similar ingredients in creative menu offerings.
This can best subsist described as an “order only” restaurant. The most prominent or well-known of these Ghost Kitchens would subsist Green climax (see transition to #8 murky Kitchen in share 2). While garnering a fine amount of press, the notable chef David Chang’s Maple, closed its operation in 2017 with some assets poignant to London and the delivery company Deliveroo. Chef Chang sold the physical kitchen space, Ando, to Uber Eats after ceasing operations in January, 2018. 
Because no customer ever sets foot through the front door the owners can assign every lone of their investment in kitchen materiel and the technology of ordering. A Ghost Kitchen offers customers big menu choices, and just as its cousin the Cloud Kitchen, has the option to retain track of its own proprietary customer data set through the direct ordering process. The tradeoff is that ownership sacrifices the customer interface at delivery of the Cloud Kitchen model. Operating and start-up costs are low and efficiency can subsist very high. The risk is that a big portion of the margin (sometimes up to 30%) from market-driven menu prices is taken by the delivery partnership, who besides control the brand image when customers receive their orders off-site.4. Virtual Restaurants
Along with disrupting the taxi business, Uber Eats is about to globally disrupt the restaurant delivery business. As of October, 2018, Uber Eats had over 1600 “virtual restaurants” around the globe, with almost 1000 in its US partnership portfolio. The majority of these are not the Cloud or murky Kitchen models mentioned above, but are existing restaurants with novel brands that only exist through Uber Eats. This model, while charging very elevated fees to the restaurant, allows them to technically not compete with themselves in the home delivery marketplace. Uber Eats gains more menus to offer, and limits any exigency for an investment in a commissary space.
For SushiYaa, Kim says the virtual restaurant concept has been transformative. “Because this concept worked so well for us, they actually changed one of their restaurants from a sushi buffet concept to a regular restaurant with 8 different virtual restaurant brands inside it. The buffet sales weren’t doing so well and the delivery side was doing better, so they thought — let’s change it completely so we’re focused more on delivery.” From a sales standpoint, he says it’s “almost as if they believe another restaurant without paying additional rent and labor, even though [Uber Eats] takes about 30 percent.”
One other kind of Virtual Kitchen involves the licensing of existing restaurant recipes and menu items in a curated virtual model. The start-up concept fine Uncle is using this to compete in the university meal diagram segment, offering a purview of pricing options for higher trait prepared meals, delivered by their own delivery fleet using the bus quit common drop off method. This is a limited menu, limited target market, which benefits from a direct marketing approach, lower operating costs, and uses both a subscription and premium fee based pricing system. It is a Virtual Kitchen because there is no restaurant or other customer facing facility, it exists only online.
Part One – Conclusions
Delivery models, some traditional, some evolving, tender many opportunities for restaurant operators, especially those in the QSR and quickly Casual segments, where speed and expense and convenience are the drivers of consumer choice.
The challenge in today’s delivery market is how owners and operators can maintain both elevated trait and long-term profitability in the products/services they offer. For many meals, the time and distance from kitchen to table can subsist more than 30 minutes or multiple miles. trait of presentation and flavor may quickly diminish. More importantly, where the medium annual profitability for restaurants across every lone segments in the USA is considerably less than 10%, losing up to 30% of top line revenues is not a path to a successful future, (even if total sales increase by 20%).
PDF Version Available HereReferences  Heather Haddon and Julie Jargon, The Wall Street Journal online, October 24, 2018, https://www.wsj.com/articles/investors-are-craving-food-delivery-companies-1540375578?mod=cx_picks&cx_navSource=cx_picks&cx_tag=contextual&cx_artPos=4#cxrecs_s  Liam Proud, DealBook, NYTimes, September 21, 2018, https://www.nytimes.com/2018/09/21/business/dealbook/uber-eats-deliveroo.html  Jennifer Marston, The Spoon, July 31, 2018, https://thespoon.tech/delivery-is-making-these-restaurants-literally-redesign-the-way-they-do-business/  Peter Romeo, Restaurant commerce Online, Oct. 19, 2018 https://www.restaurantbusinessonline.com/operations/3-big-changes-looming-restaurants  Karen Robinson-Jabos, Dallas News, Jan 6, 2016. https://www.dallasnews.com/business/business/2016/01/06/pizza-hut-is-ditching-the-iconic-red-roof-for-a-more-modern-look  Janelle Nanos, Boston Globe, May 7, 2018, https://www.bostonglobe.com/business/2018/05/07/panera-expanding-its-delivery-service-cities/sZg4pO0yTw9cEdYpv514tL/story.html?event=event12  Jonathan Maze, Restaurant commerce Online, Oct. 09, 2018 https://www.restaurantbusinessonline.com/financing/chick-fil-opening-new-delivery-focused-prototype  Neal Ungerleider, 01.20.17 quickly Company https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out  Closing announcement from Maple, May 8, 2017 https://maple.com/letter/  Whitney Filloon, Eater, October 24, 2018, www.eater.com/2018/10/24/18018334/uber-eats-virtual-restaurants  behold the online Audiopedia site https://www.youtube.com/watch?v=BKO5JFbqKTA  Ibid, Eater, October 24, 2018  behold https://www.gooduncle.com/ Christopher C. Muller is Professor of the drill of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: firstname.lastname@example.org
By Makarand Mody and Monica Gomez
For a long time, the hotel industry did not account Airbnb a threat. Both the industry and Airbnb claimed they were serving different markets and had different underlying commerce models. Over the years, as Airbnb become more successful and grown to being larger than the companies in the hotel industry, the rhetoric has changed. The hotel industry began to realize they had something to worry about.
A stage of denial was followed by the American Hotel & Lodging Association (AH&LA) attacking Airbnb by sponsoring research to demonstrate its negative impacts on the economy and lobbying governments to impose taxes and regulations on homesharing. The association is arguing for a smooth playing field between homesharing and hotels (and rightly so). The next stage of this battle involves competition and integration. Not only are hotels looking to add homesharing-like attributes and experiences to their properties, to more effectively compete with Airbnb, but are besides looking to tap into the platform-based commerce model that underlies Airbnb’s success.
The Past: How does Airbnb impact the hotel industry?
Airbnb’s disruption of the hotel industry is significant, both existentially and economically. A recent study by Dogru, Mody, and Suess (2018) create that a 1% growth in Airbnb supply across 10 key hotel markets in the U.S. between 2008 and 2017 caused hotel RevPAR to decease 0.02% across every lone segments. While these numbers may not exhibit substantial at first, given that Airbnb supply grew by over 100% year-on-year over this ten year term means that the “real” abate in RevPAR was 2%, across hotel segments. Surprisingly, it was not just the economy but besides the frill hotel segment that was arduous hit by Airbnb supply increases, experiencing a 4% true decline in RevPAR. The impact of Airbnb on ADR and occupancy was less severe. In Boston, RevPAR has decreased 2.5%, on average, over the final ten years due to Airbnb supply increases. In 2016 alone, this 2.5% abate in RevPAR amounted to $5.8 million in revenue lost by hotels to Airbnb. Brands that felt the impact the most were those in the midscale and frill segments, with a abate in RevPAR of 4.3% and 2.3% respectively. These supply increases are besides fueling Airbnb taking an increasing share of the accommodation market pie. For example, in novel York City, Airbnb comprised 9.7% of accommodation demand, equaling approximately 8,000 rooms per night in Q1 2016 (Lane & Woodworth, 2016). As a whole, Airbnb’s accommodated require made up nearly 3% of every lone traditional hotel require in Q12016.
Buoyed by a growth rate of over 100% year on year, Airbnb now has over 4 million listings, with the U.S. being its largest market. The company besides has significant latitude to grow in other countries, particularly emerging markets in Africa and India. The company has elope into some competition in China, with local rivals Tujia and Xiaozhu. Also, within the U.S., the fine news is that Airbnb will not grow at 100% indefinitely and will eventually plateau as it reaches a saturation point (Ting, 2017a). In view of this, the company has turned to alternative strategies to continue to increase supply. It is now targeting property developers to eddy entire buildings into potential Airbnb units, through its newest hotel-like brand, Niido. Currently, there are two Airbnb branded Niido buildings in Nashville, TN and Orlando, FL with over 300 units each and Airbnb plans to believe as many as 14 home-sharing properties by 2020 (Zaleski, 2018). Niido works by encouraging tenants to list their units on Airbnb, with Airbnb and Niido taking 25% of the revenue generated. Airbnb has besides clearly evolved from its original premise of “targeting a different market” to attracting segments traditionally targeted by hotels, such as the leisure family market, commerce travelers, and the upscale traveler, as evidenced through its latest offering, Airbnb Plus. These homes believe been verified for quality, comfort, design, maintenance, and the amenities they offer. They besides believe light check in, premium internet access, and fully equipped kitchens. Their hosts are typically rated 4.8+, and evaporate above and beyond for their guests. Through Airbnb Experiences, travelers can partake in everything from the much outdoors—hiking and surfing—to “hidden” concerts and food and wine tours. In addition to these products, Airbnb has besides “created” its own segments of travelers: novelty and suffer seekers who are looking for unique and unconventional accommodation infatuation yurts, treehouses, and boats, every lone things that a traditional hotel company cannot provide.
The Present: Understanding what consumers want lies at the heart of the battle between hotels and Airbnb
There are larger societal trends that are impacting what consumers hunt travel, and they assume this has implications for the Airbnb and hotel dynamic. These trends include:
What conclude these trends mean? They require marketers and suffer designers to re-think what the travel suffer means to the customer. The notion of the suffer economy was created by Pine and Gilmore in 1998, and included four dimensions: escapism, education, entertainment, and esthetic. Leveraging one, or ideally, more of these dimensions creates memorable experiences for customers, which in eddy results in brand loyalty. This dynamic has been fairly well-established in the academic literature. However, Airbnb has changed the game for the suffer economy by emphasizing the sharing lifestyle and a sense of community, cleverly incorporating the above highlighted trends into its communications with customers. Because of Airbnb popularity and success, six novel dimensions believe been incorporated into the suffer economy, in the context of the travel experience: personalization, communitas, localness, hospitableness, serendipity, and ethical consumerism, as was presented by Mody in 2016.
Interestingly, in a recent study by Mody and colleagues (Mody, Suess, & Lehto, 2017), the researchers create that Airbnb outperformed hotels on every lone the dimensions of this new, expanded, accommodation experiencescape. Airbnb outperforms hotels in the personalization dimension because of its wide array of homes and locations, enabling genuine micro-segmentation and the “perfect match” between guest and host (Dolnicar, 2018). Moreover, no one home is similar to another, giving customers a unique suffer every time, enhancing the serendipity associated with an Airbnb stay. Airbnb elevates the sense of community that consumers seek, particularly when sharing space with other travelers and/or with the host, and allows consumers unparalleled access to “the local”—that café or cute puny store that only locals know about. However, there are areas where hotels hold their own. For example, the pathways between these dimensions and memorability were just as stout for hotels as for Airbnb, emphasizing the exigency for hotels to engage customers by leveraging the “right” dimensions for the brand—dimensions that align with the brand’s mission, story, and personality.
One such dimension where hotels accomplish just as well as Airbnb is hospitableness, as confirmed in a study by Mody, Suess, and Lehto (2018). More “investor units” on the Airbnb platform means that the host is often not present when guests arrive to the home; moreover, every lone communication is done electronically and with someone who “manages” the Airbnb unit and doesn’t necessarily own or live in it. In turn, hotels that leverage the human factor—the welcome of a friendly check-in agent, the helpfulness of the concierge, the warm greeting and genuine interaction between guest and food and beverage staff—create more positive emotions, which subsequently lead to higher brand loyalty. It is imperative that hotel brands really assume about the high-tech, elevated paw suffer they are looking to provide, particularly in the golden age of brand proliferation that they live in.
From a non-experience standpoint, regulation is another bone of contention that merits close inspection. After years of denying that Airbnb was a competitor, in 2016, the American Hotel & Lodging Association first began an extensive lobbying ail for the imposition of taxes and regulations on Airbnb that smooth the playing field. Over the final brace of years, the voices of the hotel lobby and other community groups believe translated into governments taking some action, in the U.S. and abroad. However, in a study of regulation across 12 European and American cities, Nieuwland and van Melik (2018) create that governments believe been fairly lenient towards short-term rentals with puny to no (meaningful) regulations thus far. Moreover, regulations believe been designed to alleviate the negative externalities of Airbnb on neighborhoods and communities rather than to smooth the playing field between Airbnb and hotels. Another challenge with regulating the peer to peer economy has been enforcement. In novel York City, under the Multiple Dwelling law, it is illegal for a unit to subsist rented out for less than 30 days unless the owner is present in the unit at the time the guest is renting. However, it is quiet practicable to find “entire homes” on Airbnb in novel York City, even though, in principle, these typically involve homes where the host is not present during the guest’s stay. Moreover, Nieuwland and van Melik (2018) and Hajibaba and Dolnicar (2017) believe create that regulations watch to subsist very similar across cities, without accounting for the specificities of a particular location, which makes the process perfunctory and superficial. There besides remains the danger of over-regulating Airbnb, given that there is quiet very puny information about effectual ways of regulating these innovations in the sharing economy, thus stifling their potential. Avoid over-regulation is critical, since Airbnb has significant welfare effects in the economy. In addition to stimulating travel to previously inaccessible markets, Airbnb besides creates customer surplus (Farronato & Fradkin, 2018), an principal economic value measure. Moreover, other research has suggested that the average resident is not as negative towards the Airbnb as media rhetoric might imply (Mody, Suess, & Dogru, 2018). The exigency for a data-driven approach to Airbnb regulation remains paramount.
The Future: Competing with the sharing economy requires re-thinking the brand and the experience
While regulation is outside the control of the hotel industry, the brand and the customer suffer are not. They contend that these are the areas where hotel companies’ efforts exigency to subsist focused. Hotels exigency to re-think the brand promise, both for the parent brand as well as individual brands in the portfolio, and how it defines and shapes the guest experience. Recent research by Mody and Hanks (2018) indicates that while Airbnb leverages the authenticity of the travel experience—by enabling local experiences that provide a sense of self and sense of place, hotel brands that are perceived as being authentic—original, genuine, and sincere—can generate higher brand loyalty. Thus, while it’s arduous to compete with homesharing in terms of experiential authenticity, brand authenticity is a pillar on which hotels can build a stout foundation for loyal brand relationships. This is particularly principal because while Airbnb promotes experiential authenticity as a key judgement to employ the brand, most travelers watch to stay with the brand for much more functional requirements, such as space and expense (Chen & Xie, 2017; Dogru & Pekin, 2017)
There is no one definition for or manifestation of an “authentic” brand. It’s a perception, a ardor that consumers believe about what you stand for. An bona fide brand has at its core the brand promise, an bona fide value proposition that gives consumers a raison d’etre for associating with the brand. However, what an bona fide brand does require is effectual storytelling. A brand is perceived to subsist authentic, if it has an bona fide chronicle that feeds it. Brand stories can near from many sources: a brand’s values, personality, heritage, uniqueness, or its quest and purpose. What is principal is telling compelling and coherent stories across the brand’s various touchpoints to engage consumers at a visceral, emotional level. Taking off industry blinders, and looking for inspiration outside the hotel industry, is critical. Tom’s Shoes is an excellent specimen of leveraging its quest—One for One—in creating a compelling brand story. As another example, in an industry typically focused on the in-store, “physical” experience, Burberry has set the gold yardstick for authentic, digitally-led and emotive storytelling, by looking within and leveraging over 150 years of history (Watch the YouTube Video here). In this vein, they assume that Fairfield Inn and Suites’ revert to “where it every lone began”—the Marriott family’s Fairfield Farm in the Blue Ridge Mountains of Virginia— to craft the brand suffer of the future, from a design and communications standpoint, is an excellent specimen of leveraging authenticity and crafting a compelling brand engage (Ting, 2017b).
Another scheme that lies at the heat of the brand engage is what they muster the experiential value proposition, or EVP. For the longest time, hotel marketers believe relied on the guest latitude as the primary source of value for the guest. But assume about the final time you traveled. Was it the prospect of the hotel latitude that got you excited about your trip? Or was it everything that the hotel enables you to conclude – the suffer outside the guestroom? From experiencing knack and music in the lobby to its proximity to the must-do craft beer garden, hotel marketers must realize that it’s the complete package—what’s inside and outside the room—that customers employ as cues for making their conclusion to select an accommodation. They muster this proposition offered by the hotel—what’s inside and outside the guest room, enclosed within an suffer of hospitableness and a connection to humanity—its EVP. They present the EVP in design 1. The EVP mirrors the value paradigm of the modern traveler, something that must subsist reflected in the hotel brand’s sales, marketing and pricing and revenue management efforts. Thinking about a brand through the lens of the EVP paradigm has the power to re-orient the customer’s mindset from one of price-shopping to experience-shopping.
Figure 1. The Experiential Value Proposition Framework
How does a hotel marketer apply the EVP paradigm? Its application can open up many avenues. Hotels can start by rethinking the design of their primary digital channels, led by the website by adding more rich, vivid content that goes beyond the guestroom, in order to better integrate aspects of the wider hotel and local experience. The yardstick Hotels serves as an excellent specimen (http://www.standardhotels.com/) Its website feels more infatuation a local lifestyle and culture magazine than a digital media property “selling” a hotel room. The website’s rich images and stories draw the visitor into wanting to learn more about what the brand has to offer. While not every hotel can or would want to evaporate the yardstick way, since the brand has its own distinct voice and personality, there is a case to subsist made for going beyond static images of beds in guestrooms, which watch to blend into one indistinguishable entire after a point, particularly on OTA websites. When was the final time the image of a hotel bed excited you to want to stay there? Yet, when you celebrate at the imagery assign out by most hotels, this is what marketers quiet focus on.
Placing an stress on humanity and providing a sense of hospitableness can besides enhance a brand’s EVP. Instead of technology replacing the human connection, the industry needs to celebrate for ways in which technology can actually free up employees so that they can spend their time crafting more personal and unique experiences, delighting guests instead of performing routine transactions. Moreover, if the human connection is what people hunt out when traveling with Airbnb, why is it that hotel confirmation emails quiet deserve sent out by automated systems that highlight the “facelessness” of the hotel entity. Why not employ that as an occasion to truly welcome the guest; a simple paw such as a welcome epistle from the GM with his/her photo, or that of an employee who is “assigned” as “your personal host” during your stay can evaporate a long passage in emulating the human connection that the sharing economy enables.
The design of the hotel’s public spaces can subsist used to enhance the guest’s suffer of “communitas”. Ian Schrager would harmonize (Schaal, 2017). After all, with much of Airbnb’s supply being dominated by investor units that provide puny or no host contact, what better an occasion for hotel brands to demonstrate that they are the original connectors of human beings? Sheraton has been prudent in incorporating some of these communal elements into its brand makeover by introducing productivity tables and studio spaces and a day-time coffee bar that transforms into a bar at night. In terms of another design element, Airbnb’s attractiveness to family and group travelers can subsist offset by offering connecting and/or multiple rooms for one price, with other suffer value-adds thrown in (as with the Marriott family latitude connecting rooms package.
Finally, the role of the loyalty program cannot subsist emphasized enough. Loyalty programs must plod beyond programmatic levels to being able to leverage data from guest history, sociable media, and other marketing data sources, powered by predictive analytics, to personalize and individualize the guest suffer of the brand. In an age of instant gratification, the loyalty program has to subsist gamified to unlock value-adds and tender creative bundling.
At the smooth of the hotel company, beyond the individual brand, the hotel industry has started participating in the home sharing commerce and is increasingly looking to integrate these platform commerce models. For example, while Accor purchased Onefinestay, Marriott has teamed up with Hostmaker to create Tribute Portfolio Homes, a partnership that was recently expanded to four European cities (Fox, 2018). From an organic brand evolution standpoint, Accor’s newest Jo & Joe brand mimics the sharing economy within the confines of a traditional hotel space. Other, more innovative and bold ways of integrating the sharing economy ethos into a hotel could involve offering an “Airbnb floor”, an antithesis to the club floor, one that would not tender housekeeping and other hotel services and thus subsist offered at a lower price. With hotel brands becoming “branded marketplaces” for accommodation and not just hotel rooms, perhaps there is merit in listing hotel rooms on alternative accommodation platforms. HomeAway is already adding hotels to its platform through the Expedia Affiliate Network, while Airbnb is making a thrust for bed-and-breakfasts and boutique hotels. Homesharing providers hope that by adding these options to their listings, they will fulfill their goal of being “for everyone”, while allowing independent and boutique hotels to gather the benefits of branded distribution at a lower cost than traditional OTA brands.
In sum, hotels must adopt a sales, marketing, and revenue management approach that is both strategic and tactical.
At a strategic level, hotel brands exigency to re-think their story, and how they portray and fulfill their authenticity and brand promises. At a tactical level, it’s the suffer and value beyond the guestroom that must subsist factored into what is presented to current and potential guests, what they are charged for it, and how it is leverage to create “memorable memories” that lead to higher net promotor scores and brand loyalty. They present a graphical summary of the past, present, and future of Airbnb vs. hotels in design 2.
Figure 2. Summarizing the past, present and future of Airbnb vs. hotels
PDF Version Available HereReferences Chen, Y., & Xie, K. (2017). Consumer valuation of Airbnb listings: a hedonic pricing approach. International Journal of contemporaneous Hospitality Management, 29(9), 2405–2424. http://doi.org/10.1108/IJCHM-10-2016-0606 Dogru, T., Mody, M., & Suess, C. (2018). Adding evidence to the debate: Quantifying Airbnb’s disruptive impact on ten key hotel markets. Dogru, T., & Pekin, O. (2017). What conclude guests value most in Airbnb accommodations? An application of the hedonic pricing approach. Boston Hospitality Review. Dolnicar, S. (2018). Unique Features of Peer-to-Peer Accommodation Networks. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 1–14). Oxford: Goodfellow Publishers Ltd. Farronato, C., & Fradkin, A. (2018). The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb. Fox, J. (2018). Marriott expands homesharing program in Europe. Hotel Management. Retrieved from https://www.hotelmanagement.net/own/marriott-expands-homesharing-program-to-3-european-cities Hajibaba, H., & Dolnicar, S. (2017). Regulatory Reactions Around the World. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 120–136). Oxford: Goodfellow Publishers Ltd. Lane, J., & Woodworth, M. (2016). The Sharing Economy Checks In: An Analysis of Airbnb in the United States. Retrieved from http://www.cbrehotels.com/EN/Research/Pages/An-Analysis-of-Airbnb-in-the-United-States.aspx Mody, M. A., Suess, C., & Lehto, X. (2017). The accommodation experiencescape: a comparative assessment of hotels and Airbnb. International Journal of contemporaneous Hospitality Management, 29(9), 2377–2404. http://doi.org/10.1108/IJCHM-09-2016-0501 Mody, M., & Hanks, L. (2018). Parallel pathways to brand loyalty: Mapping the consequences of bona fide consumption experiences for hotels and Airbnb. Mody, M., Suess, C., & Dogru, T. (2018). Not in my backyard? Is the anti-Airbnb discourse truly warranted? Annals of Tourism Research. http://doi.org/10.1016/j.annals.2018.05.004 Mody, M., Suess, C., & Lehto, X. (2018). Going back to its roots : Can hospitableness provide hotels competitive handicap over the sharing economy ? International Journal of Hospitality Management. http://doi.org/10.1016/j.ijhm.2018.05.017 Nieuwland, S., & van Melik, R. (2018). Regulating Airbnb: how cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 0(0), 1–15. http://doi.org/10.1080/13683500.2018.1504899 Schaal, D. (2017). Ian Schrager Calls Out Hotel Industry’s Airbnb Strategy as Misguided. Skift. Retrieved from https://skift.com/2017/12/08/ian-schrager-calls-out-hotel-industrys-airbnb-strategy-as-misguided/ Ting, D. (2017a). Airbnb Growth chronicle Has a Plot Twist — A Saturation Point. Skift. Retrieved from https://skift.com/2017/11/15/airbnb-growth-story-has-a-plot-twist-a-saturation-point/ Ting, D. (2017b). Marriott and altenative seize Varied Approaches to Reviving Classic Midscale Brands. Skift. Zaleski, O. (2018). Airbnb and Niido to Open as Many as 14 Home-Sharing Apartment Complexes by 2020. Retrieved from https://www.bloomberg.com/news/articles/2018-08-14/airbnb-and-niido-to-open-as-many-as-14-home-sharing-apartment-complexes-by-2020 Makarand Mody, Ph.D. has a varied industry background. He has worked with Hyatt Hotels Corporation in Mumbai as a Trainer and as a trait Analyst with India’s erstwhile premier airline, Kingfisher Airlines. His most recent experience has been in the market research industry, where he worked as a qualitative research specialist with India’s leading provider of market research and insights, IMRB International. Makarand’s research is based on different aspects of marketing and consumer deportment within the hospitality and tourism industries. He is published in leading journals in the field, including the International Journal of contemporaneous Hospitality Management, Tourism Management Perspectives, Tourism Analysis and the International Journal of Tourism Anthropology. His toil involves the extensive employ of inter and cross-disciplinary perspectives to understand hospitality and tourism phenomena. Makarand besides serves as reviewer for several leading journals in the field. In descend 2015, he joined the faculty at the Boston University School of Hospitality Administration (SHA). He received his Ph.D. in Hospitality Management from Purdue University, and besides holds a Master’s degree from the University of Strathclyde in Scotland. Monica Gomez is a graduate student in the School of Hospitality Administration at Boston University. She received her Bachelor’s degree in Tourism, Recreation, and Sport Management from the University of Florida and has held previous internship positions in hotel operations and event management. She is a member of the Hospitality Sales and Marketing International Association and is interested in hotel revenue management.
By Christian E. Hardigree, J.D.
Today’s hospitality conversations are rife with dialogue about sustainability, initiatives ranging from linen reuse programs, to donating toiletries, to auto dimming lights, to food sourcing, etc. Hospitality practitioners’ quest to define the ROI (return on investment) is often at foiled by a concept that includes intangible metrics and differing definitions of what “sustainability” really means. The oft-used “Triple Bottom Line – People, Planet, Profit” embodies the commonly agreed upon themes of sustainability, which involve ensuring a sound environment, improving economic prosperity, and implementing sociable justice initiatives that ensure the well-being and trait of life for current and future generations.
Companies struggle to determine what role they play in advancing and addressing sociable and global challenges while enhancing their brand, ensuring consumer loyalty, and expanding their market share. Many companies evaluate and refine their efforts for engaged brand activism, particularly through marketing, which they equipoise with efforts to implement higher standards for suppliers, ameliorate equality among workers, and retain pricing competitive – falling in line with the common categories of most corporate sociable responsibility efforts: 1) environmental efforts; 2) philanthropy; 3) ethical labor practices; and 4) volunteering.The “Arms Race” of Corporate sociable Responsibility Reporting
For many companies, particularly in hospitality, corporate sociable responsibility (CSR) reporting has emerged as a key commerce approach to articulate the benefits to the company’s stakeholders through strategic initiatives. According to the Governance and Accountability Institute, sustainability reporting by S&P 500 companies increased from 19% in 2011 to 85% in 2017.[i]
Companies now appreciate the marketing value of CSR reporting, particularly as a mechanism to attract and retain customers. Increased societal pressure for greater regulation and transparency, coupled with research showing that consumers demonstrate a preference toward companies they perceive are more responsible, believe resulted in a novel “arms race” with companies are making operational decisions that are more tightly linked to ethical values, environmental stewardship, and respect for the human equity. They want to ensure those efforts are known to their stockholders, investors, and the public.
While many CSR disclosures are currently deliberate in the United States, there are increasing requirements mandated by various statutes. Such mandates, commonplace in the European Union, are increasingly required in the United States. In particular, there is growing market require for a more answerable and transparent corporate supply chain. Current statutory requirements purview from the Mandatory Reporting of Greenhouse Gases rule for big emitters of greenhouse gases to the California Transparency in Supply Chains Act of 2010 to ensure that big retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from their supply chains.[ii] The Dodd-Frank Wall Street Reform and Consumer Protection Act, which impacted virtually every share of the US fiscal services industry besides includes provisions for confident reporting on their exercise of due diligence in the source and chain of custody of confident minerals that are associated with armed conflicts in and around the Democratic Republic of the Congo, minerals that are associated with the manufacturing of devices such as cell phones, computers, and digital cameras.[iii] Most recently, the European Union’s sweeping Global Data Protection Regulations (GDPR) went into upshot May 25, 2018. Intended to give EU citizens greater control of their own, widely-define personal data, GDPR has far reaching implications for any company doing commerce with citizens of the EU. For the hospitality industry, novel processes are required to subsist implemented to protect things infatuation IP addresses and cookie data, similar to the protections currently provided to ensure privacy for addresses and sociable security numbers. In the three months prior to GDPR going into effect, it was estimated that 79% of companies were unprepared.[iv] The mandatory disclosure landscape is changing fast, and hospitality is challenged to retain up.Not every lone Changes Are Mandated
As consumers are holding corporations accountable for effecting sociable change in their commerce practices and beliefs, ultimately impacting the bottom line, companies refine their sustainability initiatives as a result of public advocacy, stockholder proposals, or consumer feedback. A 2017 study by Cone Communications illustrated some key elements, including:[v]
To illustrate, on February 6, 2018, in a commitment associated with improved packaging in betterment of the planet, Dunkin’ Donuts announced it would facet out the employ of polystyrene foam cups by 2020 and supersede them with double-walled paper cups, estimated to believe a net impact of eliminating over a billion cups annually from the squander stream.[vi] This was on the heels of McDonald’s announcing in January that it would facet out the employ of foam packaging in every lone global markets by the halt of 2018.[vii] Straws and stirrers obtain up over 7% of plastic create in the environment, an issue initially addressed (and banished) by George McKerrow, co-founder of the restaurant chain Ted’s Montana Grill, that has gained widespread attention as consumers are reminded that they employ 500 million straws a day, a habit that widely impacts wildlife and the oceans.[viii] Just this month, Bon Appétit announced they were banning plastic straws from their over 1000 café locations in 33 states.[ix] As cities infatuation Miami and Malibu believe banned lone employ straws (and in Malibu, banned every lone single employ plastic utensils and stirrers), they find some municipalities are forcing hospitality businesses to incorporate sustainable practices.Avoid Greenwashing
As hospitality companies hunt to out-promote each other, they would subsist well-advised to avoid greenwashing – today’s version of “snake oil”, more akin to “eco-fraud” – when a company holds itself out as more environmentally friendly than it actually is in practice. Clearly consumer preferences demonstrate an increasing trend for purchasing products and services that are sustainable – for their impact on the environment, in how they are manufactured, and/or how the workers are treated. Between 2009 and 2010, the number of “greener” products increased by 73%.[x] In order to capitalize on this trend, many brands are trying to competitively out-do each other with their eco-credentials – exaggerating their claims, or at times, completely manufacturing them. In legalese, greenwashing may amount to deceptive marketing, misrepresentation, and/or fraud.
In the “sins” of greenwashing, hospitality entities would subsist prudent to avoid vague, over-reaching, or unverifiable assertions. Hotels increasingly animate their guests to embrace green practices – shut off lights, reuse towels, avoid changing the linen as frequently, etc. Research by faculty at Washington state University create that a perceived ulterior motive of a hotels’ environmental claims evoked consumer skepticism, which negatively influenced consumer’s aim to participate in the linen reuse program, as well as negatively effecting the consumers’ aim to revisit the hotel.[xi] At a time when as many as 79% of travelers harmonize that eco-friendly practices is an principal factor in their altenative of lodging, companies risk losing valuable restate customers if their motives are self-serving. As a result, to avoid the negative aspects, hoteliers are cautioned to install comprehensive green programs, train their staff to implement practices, and ensure their green claims are accurate and not overreaching, perhaps through third party certification.For Goodness Sakes, Don’t Greenwash the Food
Greenwashing is of particular concern in today’s environment, particularly in the context of food. For example, in 2016, organic food sales jumped 8.4%, to over $43 billion, while overall food sales only increased 0.6%.[xii] Similarly, organic non-food items jumped 88% to $3.9 billion in sales. As restaurants and hotels are asked questions by their customers about the source of their products, facilities exigency to subsist conscious of the claims they are making to ensure they are not overreaching or deceptive, as greenwashing has become the “flavor of the month” in consumer class litigation. Claims challenging products advertised as “natural” are the most frequent suits encountered.
While no definition of “natural” is provided by the FDA, food products in the US labeled as “natural” obtain up roughly $40 billion in sales, and are growing by an average of 6.6% annually. According to Food Navigator, there were 20 food labeling class actions pending in federal court in 2008 – a number that rose to 425 by 2016. Cases that specifically focus on “natural” claims increased by 22% from 2016 to 2017, notably with suits against common Mills’ Nature Valley bars and Dr. Pepper Snapple’s Mott’s Apple Sauce. Of particular note is that three quarters of federal court food class actions are in four states: California (36%), novel York (22%), Florida (12%), and Illinois (7%).[xiii] Many of the suits are rooted in claims that items such as elevated fructose corn syrup, elevated maltose corn syrup, soy flour, soy lecithin, and GMA yellow corn flour, as well as synthetically derived vitamins, are not “natural”, and thus such claims are fraudulent.[xiv] Overreaching statements can subsist a source of eroding consumer confidence, destroying customer loyalty, and/or litigation.Conclusion
Sustainability initiatives will continue to subsist an imperative share of a hospitality entities’ brand, evaluated by every lone stakeholders. In order to ensure consumer confidence, it is imperative that those initiatives subsist bona fide in their implementation, supported by third party verification, and in alignment with the legal requirements of the jurisdiction. In doing so, their efforts in supporting the three E’s – environment, economic, and equity – their industry will collectively ascend in to ameliorate the future for ourselves and for future generations.
PDF Version Available HereReferences [i] Retrieved May 30, 2018 from https://www.ga-institute.com/press-releases/article/flash-report-85-of-sp-500-indexR-companies-publish-sustainability-reports-in-2017.html [ii] 40 CFR share 9; and California Civil Code §1714.43 [iii] https://www.gpo.gov/fdsys/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf [iv] Retrieved April 6, 2018 from https://www.forbes.com/sites/forbestechcouncil/2018/03/27/u-s-businesses-cant-hide-from-gdpr/#33b76ef052c8 [v] Retrieved April 6, 2018 from http://www.conecomm.com/research-blog/2017-csr-study [vi] Retrieved April 16, 2018 from https://news.dunkindonuts.com/news/dunkin-donuts-to-eliminate-foam-cups-worldwide-in-2020 [vii] Retrieved April 16, 2018 from https://www.bizjournals.com/chicago/news/2018/01/10/mcdonalds-phasing-out-foam-packaging-this-year.html [viii] Retrieved May 30, 2018 from https://www.forbes.com/sites/megykarydes/2018/05/23/the-future-of-take-out-exhibit-how-we-can-eliminate-packaging-waste/#37a1213c7580 [ix] Retrieved May 31, 2018 from https://www.npr.org/sections/thesalt/2018/05/31/615580695/last-straw-for-plastic-straws-cities-restaurants-move-to-toss-these-sippers [x] Retrieved April 6, 2018 configuration http://sinsofgreenwashing.com/index5349.pdf [xi] Rahman, I., Park, J., & Geng-qing Chi, C. (2015). “Consequences of “greenwashing”: Consumers’ reactions to hotels’ green initiatives”, International Journal of contemporaneous Hospitality Management, Vol. 27 Issue: 6, pp.1054-1081, https://doi.org/10.1108/IJCHM-04-2014-0202 [xii] Retrieved May 31, 2018 from https://www.foodbusinessnews.net/articles/9394-u-s-organic-food-sales-jump-more-than-8 [xiii] Retrieved May 31, 2018 from http://www.instituteforlegalreform.com/uploads/sites/1/TheFoodCourtPaper_Pages.pdf [xiv] Examples involve Janney et al. v. common Mills, 3:12-cv-03919, U.S. District Court for the Northern District of California; Rojas v. common Mills, Inc. 3:12-cv-05099, U.S. District Court for the Northern District of California; Bohac v. common Mills, Inc., 3:12-cv-05280, U.S. District Court for the Northern District of California; Van Atta v. common Mills, 1:12-cv-02815, U.S. District Court for the District of Colorado
As Founding Director and Professor of the Michael A. Leven School of Culinary Sustainability and Hospitality at Kennesaw state University, Dr. Hardigree oversees the Bachelor of Science degree program which houses over 260 majors and services over 1500 students enrolled in classes each semester. Addressing both “sustainability on the plate” as well as “sustainability beyond the plate” in terms of water, squander and energy efficiencies, this highly relevant management program provides a competitive handicap and discernible point of differentiation as the epicenter for teaching, research and best practices in sustainable culinary and hospitality management. The flexibility of the program’s curriculum allows students to emphasize careers in beverage management, event planning, specialized cuisines, and the hotel industry. Christian conducts research and presents nationally at industry conferences as related to her areas of expertise, including food safety, risk management, sustainability, workplace violence and employment/management issues. She is a national expert on bed bug litigation, speaking across the country on the subject. After obtaining her B.S., cum laude, from the William F. Harrah College of Hotel Administration at UNLV, Christian obtained her Juris Doctorate from the Walter F. George School of Law at Mercer University, focusing on employment discrimination, arbitration/mediation, and labor management relations. She is of counsel with the law solid of Parnell & Associates. Christian serves on a variety of committees and advisory boards, including the ConServe Sustainability Advisory Council for the National Restaurant Association, the KSU Brian Jordan headquarters for Excellence and Professional evolution at LakePoint Sporting Community, and formerly on the Women in Lodging Advisory Council for the American Hotel & Lodging Association.
By Martin Zsarnoczky
Digitalization is among the most principal changes in their rapidly evolving world. Digital innovations and technological novelties are engines of evolution and demonstrate their impact everywhere, especially in the field of manufacturing, ICT and other service industries. Given the fact that tourism is based on the cooperation between a wide purview of services and products, the benefits of the digital revolution in the sector are quite obvious.
Our animate environment is a combination of online and offline spaces that co-exist together, defining their everyday habitat. In tourism, the special employ of spaces has always been a unique feature of the industry, and as of today, the spaces of the digital world believe become share of it. The rapid evolution of the digital world brings novel and innovative solutions into the digital tourism spaces by the day. Peer-to-peer communication is outstandingly principal in the technological environment of tourism. This kind of communication, together with the spreading of smart devices believe revolutionized scheduling, administration and finances, and besides opened novel horizons for the introduction of innovative sales and marketing technologies in the entire tourism industry. As a result of the digital revolution, the international evolution trends in tourism believe opened the passage for novel solutions infatuation cloud-based booking sites or information and suffer sharing via digital platforms.
In line with the novel trends of travelling, there is a dynamically growing require for special tailor-made offers beyond mass tourism, as conscious consumers expect personalized solutions that retort their individual needs. As of today, the vast majority of tourism market stakeholders believe access to particular information on their consumers and can closely supervene and track consumer deportment and its changes. These novel systems of personalized products and services are available thanks to various resilient follow-up techniques infatuation CRM client databases. The cloud-based CRM client database systems – ones that create offers by analyzing previous sales records and demographic data – believe evolved rapidly. As of today, they can dissect huge datasets by big data analysis and scaling methods in a cost effectual and anonymous way, searching for significant event points. Although big data research is based on working with big samples, it is the most efficient method to reveal individual personal preferences (Stadler, 2015).How did sharing economy pave the passage to personalized tourism services?
In previous decades, the results of digital evolution believe opened the door for the true life implementation of shared economy theories. It was almost ten years ago that Chris Anderson (2009) introduced his pricing theory in digitalization, basically suggesting giving away products for free, based on the principle of shared goods and resources. Although at the time Anderson’s theory was considered as a technological solution, the principle of digital sharing believe induced sedate sociable changes as well. One of the most principal positive messages of shared economy is the maximum employ of resource capacities for the purpose of sociable well-being (Sundararajan, 2014). sociable well-being is besides a key priority in tourism, because a well-managed tourism industry brings profit not only for the commerce operators but besides for the local communities.
In the sharing economy model, the stakeholders – who are besides consumers at the selfsame time – tender their excess capacities for collective employ in order to maximize the exploitation of their goods and resources. These economic processes consist of so-called hybrid transactions with maximum capacity employ (Hyde, 2007), for both commercial and sociable purposes. An principal drive in the evolution of collaborative consumption theory was the realization of the fact that using or possessing the selfsame consumer goods can result in different advantages. The core element of the model is that sellers tender their excess capacities, while the consumers in exigency employ them in revert for payment. In the sharing economy (based on the aforementioned primary idea), more and more industrial, commercial and service providers tender innovative solutions.
The principle of sharing is not a novel scheme in the tourism industry. In the case of some accommodation services, seasonal expense reduction has always been a practice. Hostels and youth hotels believe always been celebrated – these facilities are often used as dormitories throughout the academic year and lease their rooms for backpackers in the summer season, when the students are away. Of course, these seasonal options would not believe been enough for creating a novel market sector; the dawn of the novel commerce era was marked with the emergence of wide platform solutions infatuation Airbnb, Booking.com, Agoda, etc.
In the strategy of digital platform tourism businesses, consumers are considered as partners in the commerce activities. This shared operation can subsist best defined as a postmodern commerce model. Although the complicated scheme of postmodernism is quite difficult to describe, its main characteristics – shared participation and the subjective ardor of each contributor – can lead closer to understand the phenomenon. It is transparent that postmodernism will change some processes of the classic market laws in the near future. While “shared experience” has become a key marketing term for selling goods and services, specialized offers inevitably lead to a market fragmentation that will result in the fragmentation of users as well. In a disintegrated market, consumers will behave differently in fragmented times and spaces, paving the passage for personalized services and tailor-made solutions. At the selfsame time, individualism has become the key characteristics of the younger generations (McCrindle et al., 2009); a phenomenon that will believe to subsist taken into account whilst creating commerce strategies. Due to the emergence of individualism, more and more youthful people are trying to create something unique that can serve the long-term benefit of the community. Their drive for creating businesses based on their own ideas and suffer accounts for the increasing popularity of start-up businesses. These aspects of uniqueness, community thinking and experience-centered approach hold a huge occasion for the future of the tourism industry.The Future: AI, VR/AR, Blockchain
While looking through their photos, tourists usually believe a positive suffer remembering their travels, experiences and the destination they had visited. Some specialized digital technologies can tender this assumed positive suffer in a searchable and changeable form. With regards to true life objects, their connections and relations, there is only a limited amount of information available in a format that could subsist handled by computers. The main problem is that computers exigency sufficient coding solutions created by simulated intelligence to subsist able to store, exploit and organize information. The methods of coding for tourism suffer purposes influence the speed, efficiency and knowledge/experience-based computing abilities of today’s computers.
According to the forecasts of product evolution strategies in various industries, almost every lone of their everyday objects and materiel will subsist accessible through the internet in the future. As a result, every lone devices that are capable of two-way communication will belong in the framework of IoT (Internet of Things). The devices of the future, unlike the devices of today, will communicate in a bidirectional way, where robust safe data handling, personalized differentiation and sufficient conclusion management will subsist share of the user experience. As a result of the continuous data collection during the employ of these devices, every lone relevant information will eventually halt up in a final centralized system at the top of the dataset.
Previously, tourism used to subsist an industry based on personal relations and connections, where the trends – and therefore travelers’ decisions – were set out by a limited number of big international tourism and travel enterprises. As a result of the digital revolution, the transparency of “hidden markets” had been revealed and numerous other factors believe to subsist taken into account (Fig.1.).
The early evolution of ICT resulted not only in the better capacity utilization of airlines, but besides on the compatibility of the prices; and soon, the emergence of the discount airlines had led to the innovation of the entire industry and forced out efficiency in every lone segments. The novel travel recommendation sites (Expedia, Orbitz, Kayak, etc.) were created with the point to obtain travelers’ decisions easier; however at the selfsame time, a lot of tourism service providers who could not retain up with the novel challenges were forced out of the market. Although the novel trends infatuation travel packages (including car rental) or taking into account the reviews of previous travelers (Lonely Planet) were from many aspects antithetical to the former commerce models, the rapidly increasing popularity of online offers required quick and user-friendly tourism product evolution from the industry.
With the arrival of Google, which was able to rank the sites’ appearance in internet searches, a fierce competition begun between blogs, tourism recommendation sites and price-comparing OTA systems. The bidirectional communication started with the employ of cookies 2.0; since then, consumers believe become an integral share of the commerce models, because businesses who hunt to subsist successful in the long run, exigency to know their customers’ demands in detail. The evolution of digital services require the identification of the user, information on their individual preferences and a decision-based calibration (by AI). In AI-based conclusion making solutions, the former conclusive factors are replaced by a virtual personal assistant, which is able to map the consumer’s preferences based on their digital footprint, and create an optimal personalized tender from the available big data systems (Fig. 2.)
The technological evolution cannot subsist stopped; however, with sufficient flexibility and openness, tourism businesses can prepare for the upcoming challenges. In the tourism of the future, the novel consumers will bring forth novel priorities and novel demands. As a revolutionary approach, the members of the IoP (Internet of People) community tender their free time in order to reach joint IT/industrial goals, where frameworks are created in line with the preferences of other people, for a yet not specified consumer segment (Miranda et al., 2015). Beyond innovative technologies, entire novel spaces believe opened in tourism, completely different from the habitual destinations. University researchers believe been carried out to study the possibilities of online tourism spaces and their opportunities for the tourism and hospitality industry. In virtual reality, with a special “glass”, the user can celebrate into an optional tourism space, from which the true world is completely shut out. The Augmented reality is a different technological solution, where digital elements are projected into a true life space.
The newest technological developments and the innovation in the employ of animate spaces are every lone connected to the alternative payment options that can subsist used in tourism as well. The emergence of Bitcoin and other cryptocurrencies has led to the creation of a novel payment system. The Blockchain payment system is a shared database, which records a continuously growing list of data blocks, preventing any counterfeiting or alteration of the data. One obscure consist of a list of transactions and the results of computations made by the stored programs. For example, if a customer buys some cryptocurrency or any other kindly of currency, and then transfers it to anywhere in the world to another partner, who exchanges it instantly, both partners can avoid any loss caused by exchange rate fluctuations; furthermore, the entire transaction takes only minutes instead of the habitual brace of commerce days. This solution can import a revolutionary innovative payment option for everyone in the tourism industry.
The applicability of the blockchain system is independent from currency rates. In the case of cryptocurrencies, it is not the exchange rate that really matters – instead, the accurate value of the currency lies in the safety of the blockchain technology and in the authentic, transparent, unalterable and decentralized recording system (Pilkington, 2016). This payment system offers a novel smooth of encryption safety and intervention-free operation, and the data handled in the system cannot subsist modified in any way. Another huge benefit of the system is that the transactions are realized without any intermediate agents, thus eliminating any additional transaction costs. By the time of the “maturity” of blockchain payment solutions, today’s big service intermediators infatuation Airbnb, Booking.com, Agora, etc. are foreseen to lose some of their market positions, as consumers and service providers will probably deal with their transactions directly.Will simulated Food subsist the next meal on the table?
With the worldwide population boom, the require for food is besides increasing. To answer this growing exigency for food, the extension of agricultural areas is required for food material production, and at the selfsame time, sufficient land management is needed for animal husbandry. The greatest challenge of sustainable agriculture lies in the fact that the agricultural areas can only subsist further expanded at the expense of forested lands. In addition, the current changes in the environment has besides led to the abate of fishing possibilities, another difficulty in the availability of food materials.
The decreasing resources of food materials will coerce the food production industry to re-think their former concepts. novel technologies infatuation 3D food printers can even bring the quickly food era to an end. The novel inventions of food production and food engineering – infatuation artificially flavored drinks, chocolates and dairy products – believe been on the market of more than a decade now, and so far, they believe not had a negative upshot on the common tang of consumers.
In the concept of 3D food printing, popular sweets and delicacies are synthesized by a layered printing technology, using the various pre-mixed powders, flavorings, fixers and oils that are stored in the “toners” of the printer. These simulated foods are already available: specialized franchise restaurants infatuation the Food Ink chain tender a wide variety of printed meals for consumers who are inquisitive about the future of gastronomy. It is besides likely that with the next generation of the food printers, they will subsist able to calibrate the nutritional values and energy content of the meals.
The 3D food printing technology is not only principal for HoReCa businesses, but holds a much occasion for the health industry, too, especially in the field of special diets and medication. Using 3D food printing for these purposes can increase cost-effectiveness, efficiency and sustainability, thus supporting the food industry and hospitality and tourism businesses alike.
The option of personalized 3D food printing is just one of the innovative technological solutions in the tourism and hospitality industry. The Henn-na Hotel  in Huis Ten Bosch, Japan is the first hotel in the world, where customers are served exclusively by robots. At another Asian location in China, there are 24/7 cafés that supervene the no-staff commerce model of Amazon Go. As for the restaurant market, the Chinese food brand Wufangzhai has recently opened the first unmanned restaurant in Hangzhou, capital city of east China’s Zhejiang Province.
The question is: how long will it seize until food production and consumption will exigency no human resources at all?Summary
For innovative enterprises, the efficiency of interactivity is of key weight for the success of their business. The rapid evolution of ICT solutions has brought immense changes in the tourism industry. Previously, consumers’ conclusion making was mainly affected by the industrial environment. The era of digital tourism spaces – preceded by theme parks and thematic destinations – started with the emergence of information websites; however, this targeted information tide used to subsist one-directional with narrow choices. In today’s digital era, the novel generation of commercial activities seize spot in VR or AR spaces, and the instant analysis of the customer’s reactions and deportment champion the enhancement of their buying willingness. The traditional conclusion making processes are gradually being replaced with personalized offers, further increasing the weight of AI.
With the evolution of shared economy, greater stress is assign on sociable well-being, as user suffer slowly becomes more principal than ownership. This novel approach is besides expressed in novel forms of payment, which can seriously abate the profits of intermediate activities. The novel trends conclude not look to subsist problematic in the tourism industry, mostly because in this sector, the exact costs and incomes are not clearly visible yet. On the other hand, the trait evolution of the 3D printing technology holds a much occasion for the tourism and hospitality sector. The evolution of digitalization has finally reached a smooth where it can truly champion the cost-effectiveness and sustainability of industrial food production, paving the passage to the future of tourism and hospitality businesses.
PDF Version Available HereReferences Anderson, C. (2009). Free: The Future of a Radical Price. Hyperion, novel York. Hyde, L. (2007). The Gift: Creativity and the Artist in the Modern World. novel York: Random House Inc. McCrindle, M. – Wolfinger, E. (2009). The ABC of XYZ: Understanding the Global Generations, University of novel South Wales Press, Sidney. pp. 1-22. Miranda, J. – Mäkitalo, N. – Garcia-Alonso, J. – Beroccal, J. – Mikkonen, T. – Canal, C. – Murillo, M. J. (2015) From the Internet of Things to the Internet of People. IEEE Internet Computing, 19 (2): 40-47. Stadler, G. (2015). big data – tömeges adatelemzés gyorsan. HTE Medianet 2015, Kecskemét. LLX. pp. 44-48 Pilkington, M. (2016). Blockchain technology: priciples and applications. Research Handbook on Digital Transformation. Edward Elgar Publishing, Northampton, MA. pp. 225-253. Sundararajan, A. (2014). Peer-to-Peer Businesses and the Sharing (Collaborative) Economy: Overview, Economic Effects and Regulatory Issues. NYU headquarters for Urban Science and Progress, novel York. Zsarnoczky, M. (2017a). How does simulated Intelligence influence the Tourism Industry? Vadyba Journal of Management 31 (2): 85-90. Zsarnoczky, M. (2017b). The future of sustainable rustic tourism development: the impacts of climate change. Annals of the Polish Association of Agricultural and Agribusiness Economists. XIX. (3): 337-344. Martin Zsarnoczky, Ph.D. has several years of suffer in the huge tourism and hospitality industry. He has worked with P&O Princess Cruises, Intercontinental and Marriott Hotels in Budapest. Between 2005 and 2015, he was the founder, developer and CEO of Casa de la Musica Hostel and Event’s Hall, one of the largest multifunctional private tourism & hospitality businesses in Budapest downtown. He holds a BSc degree in Tourism and Hospitality from the Budapest commerce School, and graduated at MSc/Med smooth as Teacher of Economics in Tourism and Hospitality. During his studies, he had spent short a term mobility term at Utwente University in the Netherlands, and later earned his Ph.D. in Regional Sciences at Szent Istvan University. At the moment, he is quiet very energetic as an entrepreneur and is actively involved in community development. He is besides a board member of the Budapest Chamber of Commerce and Industry, and works as a mentor for the youthful Entrepreneurs Association Hungary. With regards to his academic career, he is a replete time assistant professor at the Institute of Marketing and Media at the Tourism Department of Corvinus University of Budapest.
By Leora Lanz and Namrata Sridhar
In the Winter 2018 edition of the Boston Hospitality Review, they brought forth suggestions for the 10 Best Practices for Organic Visibility —ways to ameliorate search results through organic search, or conclude not cost the company a monetary investment. Rather, these rankings were based on elements such as keywords, location, and mobile friendliness. Suggestions for improving a company’s organic search involve utilization of backlinks, hyperlinks between websites, and content enhancement in relation to local listings such as ensuring quick website load speed, elevated trait imagery, and conspicuous links to sociable media channels.
This second installation of a two-part series will discourse to the theme of search engine functionalities as a result of paid queries. For independent or smaller companies, this brief but powerful set of tips obtained from industry experts can enable a commerce to become more “searchable” for optimal revert on investment.Search Engine Marketing (SEM) Best Practices: 1. Understand the Paid Media Landscape:
According to the Associate Director for Organic Search and Content Strategy at Boston-based Connelly Partners, Dan Hurley, the most principal share of SEM is to comprehend the paid media landscape. It is captious to know who one’s competitors truly are and understand how they are marketing, from a tactical standpoint.1 It is besides principal to research the types of ad campaign structures that are surfacing in the category of interest, on both desktop and mobile devices. Then one must adopt those that exhibit effectual and happy commerce goals appropriately. For restaurants and hotel-related queries, “this strategy is especially pertinent because these searches generally convert very quickly; mobile searchers will likely patronize a restaurant within a few hours.”
In order to subsist the most efficient with a company’s paid advertisements, Todd Philie, president of Southcoast Marketing Group in Wareham, MA, besides encourages companies to discover how consumers are searching for them on the Internet. For example, “utilize the query search tool via the Google AdWords™ platform to discover what terms and phrases are used to reach your own site and then display your ads.”
Additionally, Kym Parker, associate search marketing director at Connelly Partners, emphasizes the weight of using the company’s brand to ensure a stout search presence. By utilizing paid search bids, a hotel or restaurant can subsist the first result a web surfer sees when conducting a search.2
“Sometimes, competitors will bid on your brand terms – which means that if someone searches for your company name, for example, the competitor could demonstrate up ahead of you in the search results,” Parker notes. “You can avert this by ‘protecting’ your brand terms. Always subsist bidding on them, at least a puny bit, to ensure that you believe a better random of staying on top of the results when someone searches your name and other brand terms.”2: employ of Google AdWords™:
The major player in the world wide web is Google, which has created various platforms to optimize searching. Using keywords, Google users can pay to promote their advertisements for a set budget. This Google functionality allows a company (hotel or restaurant) to understand how it ranks in comparison to direct competitors.
Also retain ‘negative keywords’ in mind, adds Philie. “Negative terms generally means terms that you are not specifically telling AdWords™ that you conclude not want to exhibit in specific results for other searches. For example, suppose you are marketing a seafood restaurant that does not tender steak on its menu. You want to bid on the phrase ‘best restaurant in Boston’ but you conclude not want to squander money on clicks from customers who want steak. You might set ‘steak’ and ‘steakhouse’ as negative terms so that if someone searched ‘best steak restaurants in Boston” you conclude not demonstrate up in that search.
The Google AdWords™ functionality besides offers companies the random to enhance the listing. An incredibly important, yet often overlooked, input is the “click to call” functionality and its presence on a mobile site, besides known as the muster extension. “These additional factual details, known as “ad extensions” besides involve location, information from different pages on your website, and even testimonial reviews,” adds Seth Cargiuolo, director of communication strategy at Chestnut Hill, MA-based D50 Media. “Making employ of ad extensions is essential because it helps the customer learn more about the commerce with a quick glance pre-click, and can aid differentiate a hotel or restaurant (or any product) against its competitors.” Ad extensions besides increase the visual footprint of an ad, which can thrust competitors’ ads and organic listings down the page and out of view, particularly on mobile devices.
For marketers just starting to utilize SEM and Search Engine Optimization (SEO), Google AdWords™ besides offers free tutorials and trainings. Zachary Azar, D50 Media’s senior manager of paid search notes, “These tutorials provide clients with the occasion to deserve the most out of the program and create effectual campaigns.”
To properly manage an effectual AdWords campaign, Google Analytics can subsist a helpful tool as it reveals which content on a website is most useful and challenging to customers. This will aid in the creation of resonating ad copy and can besides subsist a lead for aligning keyword selection and website copy to increase the “Quality Score” of an ad campaign.
However, Philie besides cautions individuals not to subsist completely reliant on Google’s suggestions for keywords. “Often times, these keywords are pluralized and can judgement companies to spend more or not subsist as effective.” He warns companies to select how to assign their key words “out there” when bidding. Companies must select best matched keywords for their ads and select between “exact match,” “phrase match,” “broad search” and “modified broad search” – every lone of which will bow varied returns. Campaigns should utilize a equipoise of every lone match types, but should “skew more heavily towards exact and phrase, utilizing broad match only for keyword prospecting and expansion opportunities.”3. Always Start with Non-Paid Efforts or SEO
When optimizing a company’s searches, Cargiuolo and Azar imply the first thing that the company should focus on is actually the SEO. First and foremost, it is principal to ensure that a website is user- and mobile-friendly. Another principal factor is a quick load speed. “Google has create that sites that seize longer than three seconds to load lose 40% of their traffic, and for mobile traffic, that jumps to 53%,” reports Azar. This is principal for paid search as well; Cargiuolo adds, “It’d subsist atrocious enough for a user to abandon your page when it’s an organic search – but now imagine if you’d paid for that click and those dollars were totally wasted.”
In order to reduce the load speed, it is principal to not believe “big” images—think kilobytes, not megabytes. Web copy should subsist concise and “bandwidth-hogging” scripts and plugins minimized. “Additionally, given that over half of web traffic is on mobile devices, ensure that pdfs (which you want to avoid anyway) celebrate acceptable on a smart phone too,” Cargiuolo says.
Kristin Metzler, Print and Web Marketing Coordinator of Frasca Design Group, besides echoes that mastery of SEO is the first step in a successful digital marketing campaign. Websites built with a stout attention to keywords and content will minimize spending on pay-per-click campaigns.4. Don’t spend on Paid Search if You Can’t Afford It
Hurley cautions that one exigency not spend money on advertising to deserve traffic. Because so much information is provided in the search results, there may not subsist any clicks on your page during the search process. Companies should never assign any money into paid search, display advertising or paid sociable that the company cannot afford to lose.3
Cargiuolo emphasizes that when a company starts advertising, it should not expect an immediate return,4 which is oftentimes an assumption that businesses make. Initially, many may not subsist intimate with the bidding process; keywords; or how to build, optimize, and manage an effectual campaign. subsist cautious not to spend money needed for other resources. Start late and spend time learning before committing big budgets.
One final word of caution: There are easily incurred expenses that can near from paid search marketing, such as additional costs from agencies that seize a portion of a monthly budget. Being conscious of your daily budget is captious in avoiding overspending.
When taking the steps to build a search campaign, it is captious to conclude research and plod slowly at the beginning. Understand how the market is reflected in consumer searches and what keywords are being utilized. Before jumping into methods that require payment, a company should ensure that its website is optimized for searches and never spend more than what can subsist budgeted, as it will seize time to behold a revert on investment.
As Cargiuolo reminds, businesses must recollect that Google serves the user first. Thus as the marketer, one must assume as a user would when structure a paid search campaign. People near to Google with questions. The marketer that best answers the user’s questions, both pre-click and post-click, is going to subsist one that is most successful.
PDF Version Available Here1 Inc. Staff. “How to Conduct Competitive Research.” Inc. Magazine. May 2010 2 Ratcliff, Christopher. “What is PPC and Why conclude You exigency it?” Econsultancy. 13 November 2013. 3 Kumar, A.J. “SEO vs PPC: Knowing Which is Better for Your Website.” Entrepreneur. Editorial. 21 May 2012 4 Steimle, Josh. “How Long Does SEO seize to Start Working?” Editorial. Forbes. 7 February 2015. Namrata Sridhar is a marketing communications coordinator at LHL Communications and a rising senior at Boston University’s School of Hospitality Administration (BU SHA). She has besides previously worked in marketing communications capacities at RealFood Consulting where she helped design an internal marketing diagram to rebrand their company. Namrata besides serves as the President of the Student Government of BU SHA. She is an energetic member of the National Society of Minorities in Hospitality, the American Hotel and Lodging Association, and the Hospitality Sales and Marketing Association International. Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is besides a replete time faculty member at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.
By Sarah AndersenAfter completing the senior capstone Hospitality Leadership course at Boston University, I had the random to reflect on the class topics and apply the teachings to my personal life. The course explored several different levels of leadership, from the head of a major corporation role to developing self-leadership. I scholarly the weight of a mission, vision, and values in an organization, better understood the components of change management, and worked with a group throughout the semester to develop my teamwork skills. I was able to critically dissect concepts and models presented in leadership literature as well as ameliorate my own leadership skills. I then interviewed three prominent leaders in hospitality and create connections between their industry insights and my leadership class discussions. Dan Donahue, President of Saunders Hotel Group, Len Wolman, Chairman and CEO of Waterford Hotel Group, and Geoff Ballotti, President and CEO of Wyndham Hotel Group kindly shared their experiences and explained their personal values and company’s culture, revealing the five keys to successful leadership.
“Leadership is the capacity totranslate vision into reality.”
-Warren G. BennisEstablishing Shared Beliefs, Values, and Goals
When an organization wants to achieve its goals, it needs a vision. Effective leadership starts with the skill to recognize and contour those goals and inspire others to follow. Leaders paint a picture of how that vision will influence the company as a whole, as well as each individual. A leader’s skill to articulate that vision into a mission statement corresponds to the energetic implementation of goals and the company’s bottom line success. A productive vision goes beyond a written organizational mission statement, but instead permeates throughout every lone levels of a company and manifests into actions and beliefs. John P. Kotter, author of commerce Leadership, writes, “A vision says something that helps clarify the direction in which an organization wants to plod [and] is relatively light to communicate, appealing to customers, stockholders, and employees.”1 It is therefore up to hospitality leaders to set and clearly communicate a vision, and to inspire those around them to share and implement it.
A vision does not belong only to a leader. It must subsist a shared vision that attracts everyone to sustain elevated levels of motivation and withstand challenges. According to The Leadership Challenge, by James M. Kouzes and Barry Z. Posner, leaders can envision the future by imagining the possibilities and finding a common purpose.2 In addition, leaders must spark a sense of significance and purpose in those around them. Dan Donahue agrees that, “My job, as someone who has the vision, is to deserve you inspired and committed to sharing that vision and sharing that creativity to the point where you believe buy-in.”
After seven years of rigorous research, a landmark study of the observations from more than 100 CEOs and over 8,000 employees create that “leaders who were transparent about their values delivered as much as five times greater returns for their organizations as did leaders of decrepit character.”3
So how conclude illustrious CEOs and successful leaders in their industry shape the parameters for success through a shared vision for a future? How conclude they empower and inspire those around them to obtain decisions and toil towards their goals?
Balancing Accountability and Autonomy
When asked what his core values were, Len Wolman responded, “First and foremost, their organization has been built on integrity and transparency. They believe four core values that they live by on a daily basis which are to (1) to wow the customer, (2) to continuously improve, (3) to subsist a passionate and committed team, and (4) to share and sustain their bottom line success.”
Dan Donahue, established that, “Our values are simple. Their values are people. They allow them the flexibility and latitude to conclude their jobs under the lead of taking supervision of the guest, but besides taking supervision of themselves as well.” To strengthen others, exemplary leaders increase people’s belief in their skill to obtain a difference. They plod from being in control to giving over control. Developing associates into leaders and enhancing self-determination creates a culture of empowerment and confidence. Geoff Ballotti agrees that, “In terms of motivating others, it is letting them obtain decisions. It’s not micromanaging, but rather letting them near up with the solutions.”
Geoff Ballotti continues, “Our core value statement is three words, ‘Count On Me,’ which is every lone about accountability. It is about people being able to subsist counted on at any time, for any issue, any question, any decision, and any champion that their owners, franchisees, and associates need. It is built on the principal of integrity in terms of taking personal responsibility for your actions.” Accountability is principal because it results in an extremely efficient and productive team. According to the U.S. Office of Personnel Management, accountability in the workplace is linked to higher performance and increases in commitment to toil and employee morale.4
Dan Donahue, states, “A vision has to subsist fluid. To deserve to an achievable goal and vision, whether short term or long term, you exigency to subsist present, you exigency to understand that if you want it to subsist successful you exigency to subsist there, you exigency to subsist accountable to it, and you exigency to subsist accountable to the people that want to share that.” When accountability becomes embedded into culture, company’s are able to set meaningful goals, develop team buy-in, build confidence through champion and encouragement, and celebrate successes together. Accountability is about creating a culture where people value responsibility. When associates understand that accountability involves a confident degree of autonomy, mutual respect develops between every lone levels of an organization.
Mr. Ballotti adds, “The third leg of their values is every lone about respect. Respecting everyone everywhere both on their ownership side and the community side.” When leaders develop mutual respect, associates are more likely to toil harder to accomplish shared goals. Harvard commerce Review examined employee needs and determined through a query of more than 19,000 workers that most employees crave renewal, value, focus and purpose.5 ardor a sense of value and respect can instill an employee with self-confidence and motivation. Len Wolman adds that, “I’ve been in the industry for many years, I was educated in the industry and then worked my passage up through the industry, so I’m fortunate in that I believe the perspective of having worked in various positions. So I believe empathy, understanding, and respect for each position. Everyone needs to subsist treated with mutual respect and understanding.”
Modeling by Example
An principal share of being an effectual leader is educating others on what the organization stands for and why it matters. When leaders sincerely express a commitment to their core values, they’re besides making a commitment on behalf of the entire organization. Therefore, leaders must obtain confident there is collective agreement on the shared values amongst everyone they lead.So how conclude leaders become a role model for what the organization stands for?
The retort is pretty simple. They set the specimen for others to follow. Holding others accountable to values and standards means leaders must live the values themselves. Dan Donahue responds, “I would never quiz an employee to conclude something I wouldn’t conclude myself.” Len Wolman agrees adding, “You always want to set an specimen and never want to expect anyone to conclude anything that you wouldn’t conclude yourself.” Researcher on behavioral integrity demonstrates that the alignment between a leader’s words and actions has a powerful impact on how much constituents confidence the leader and on their subsequent performance levels.6 much leaders effectively translate aim into reality by acting on the values they train and the things they swear to those around them.Showing Vulnerability and Visibility
Confidence is an principal skill to possess as a leader. However, having vulnerability as a leader is just as essential to recognize and appreciate. Every leader has vulnerability, but great leaders have the self-awareness to recognize this fact and feel snug expressing their weaknesses. Showing vulnerability is a relatable trait and Geoff Ballotti finds that, “The greatest leaders I know out there are very snug talking about their weaknesses, about what it is that they exigency to toil on, to ameliorate upon, and to conclude better.” effectual leaders invest the thinking, the time, the energy and are prepared for the vulnerability of connecting with others.So how conclude these leaders deserve trust, inspire, and build bonds with those they lead?
Great leaders inspire their associates and guests by genuinely connecting to them through a consistent presence and visibility. Visibility as a leader not only includes having a physical presence, but besides aligning everyone to the purpose behind their shared vision through natural conversations and casual exchanges on a daily basis. When asked how he communicates company goals and the overall vision, Dan Donahue replied, “If you believe a presence, it happens organically. It doesn’t exigency to subsist contrived.” The purpose of this unaffected visibility is not about the exigency to “check on employees,” but rather an honest crave to interact with associates in order to gauge motivation and learn if employees exigency champion or help. Mr. Wolman agrees that, “It is captious to operate with an open door policy and listen to everyone’s perspective and ideas, particularly the people who are executing the day to day functions, and I assume you’ve got to subsist constantly evaluating that.”
Mr. Ballotti adds, “I besides assume showing empathy is key and the best passage much leaders conclude that is through the knack of storytelling when they’re up in front of their associate basis or leadership team, being able to relate stories that connect and engage and inspire and motivate in terms of the culture your want to set and want to build.” Storytelling is a powerful passage to share knowledge, thrust information at people or tug them into a company’s vision and mission by reinforcing the intent behind bona fide leadership. According to Edgar Schein, Professor Emeritus at the MIT Sloan School of Management, “[Stories] besides strengthen the framework and the weight of an organization’s culture by establishing norms and values.”7 fine stories compel, persuade, and unify others around the leaders’ vision.Creativity Breads Adaptability
“Hospitality isn’t about a product on the shelf. Hospitality is about creating something that changes day to day, hour to hour, or minute by minute.” – Dan Donahue
IBM’s 2010 Global CEO Study, which surveyed more than 1,500 CEOs from 60 countries and 33 industries worldwide, concluded that creativity is the most principal leadership trait for success in business, outweighing competencies such as integrity and global thinking.8 Geoff Ballotti agrees that, “Creativity is critical, especially in the commerce that we’re in. We’re trying to redefine and reposition their brand from a creative standpoint in terms of experience.” What defines one brand from another and what makes one brand more successful than another is the creativity that it delivers as well as the suffer it delivers to its guests. Understanding how to generate much ideas is a crucial leadership trait in hospitality’s innovation-driven industry. Successful leaders create an environment where associates can contribute their fantasy and insight, which is captious because most innovations draw upon the contributions of many.
Today’s commerce environment is unpredictable, changeable and increasingly complex. Therefore, the skill to create something that is both innovative and applicable is on the top of leader’s minds. Mr. Donahue states, “Nothing in their commerce can subsist or should subsist cookie cutter. It’s about curating an suffer for each person who spends to subsist with you.” Len Wolman adds, “If you’re not creative and open to change in todays world with the disruptors that exist in their industry, particularly with technology, you will not subsist successful. You exigency to subsist creative in terms of staying ahead, staying current and relevant, and deserve managing the costs associated with change in a passage that your organization can quiet subsist successful and profitable.”
In an industry of constant change, much hospitality leaders exigency to capitalize on the opportunities that are ripe for the present context and diagram for the likely future state. Change requires creating a novel system, which demands effectual leadership. It is crucial that leaders first concede how arduous it can subsist to drive others outside of their comfort zones and thrust for change. When asked how he responds to change, Len Wolman replied, “A crucial element is feedback. They deserve daily feedback that is current and relevant, whether it subsist Trip Advisor, direct contact with their guests, or direct contact with their associates. They exigency to listen to it, they exigency to respond to it, and they exigency to adjust to the things that people are looking for whether it subsist the consumer or the toil environment.” Those who create novel initiatives, programing, design, and brand essence are the ones who succeed. By supporting creativity and commanding change, leaders can increase workplace satisfaction and build driven teams that craft original, valuable ideas.Figure 1: Interview Questions
It has been made transparent through the interview process of these three prominent industry leaders that establishing shared values, balancing accountability with autonomy, modeling by example, showing vulnerability through visibility, and having a creative mindset that is open to change are every lone essential factors to being a successful leader. The common theme amongst every lone these traits and elements to successful leadership, however, is each leader’s dependence and confidence for their associates. At one point during the interview, Mr. Ballotti pointed out that, “Great leaders are those who circle themselves with much people…who are brighter, and smarter, and more diverse in thought than they are. And who are able to build a team that knows how to champion and confidence each other.” It is transparent that effectual leadership boils down to a leaders skill to unlock the replete potential in those around them. Len Wolman adds that it “We seize supervision of their associates so that they seize supervision of their guests, which keeps the guests coming back and is the judgement they are in business.“ Dan Donahue besides notes, “You believe to realize each individual employee’s needs. obtain a connection with your employees every lone day.” every lone fine leaders were once followers themselves and believe scholarly to establish and foster confidence over time. A accurate leader passes acclaim and shares the blame, lifting up those around them.9 Without followers, much leaders cannot lead.
PDF Version Available HereSarah R. Andersen is a senior at Boston University’s School of Hospitality Administration. Her areas of interest involve integrated marketing communications and true estate development. Beyond her studies in hospitality, she is a member of the BU Women’s Lacrosse team. She plans to continue her studies at Boston University after graduating with her bachelor’s degree by enrolling in the School of Hospitality’s Master of Management in Hospitality program. References
By Juan Lesmes and Leora Lanz
It wasn’t that long ago when digital marketing surfaced as essential drill for the hospitality industry. As time moved forward, hotel marketing departments established roles to manage the digital positioning and visibility of the property. Thus, they witnessed hospitality brands which were ‘present’ on sociable media outlets, adopting paid search as a permanent component of their marketing fuse and abiding by well-known website best practices. They advert to this term as facet I of the Hospitality Digital Marketing Revolution.
Phase II quickly blossomed, and hotels realized that the competition to penetrate the digital space was stout and arduous. Brands started focusing on and investing in the internet user-experience (UX), negotiating partnerships with online travel agencies (OTAs), understanding the landscape of search engine result pages (SERPs), separating high-value budgets exclusively for search engine marketing (SEM), and delving into the intricacies of search engine optimization (SEO) for their own websites. sociable media served as a competitive handicap and quickly escalated as paramount for marketing, branding, reputation management, and organic visibility. Paid search, via Google AdWords platform, is not to subsist confused with the organic approaches particular here.
As they delve into 2018, facet III emerges clearly. OTAs dominate and in some instances consume Google searches with first page results. Consequently, hotels are realizing that digital marketing efforts should subsist shifted from a haphazard online presence to one that is strategic – one that capitalizes on each micro-moment of the guest travel planning journey (most of which, if not all, occurs on the web). As sociable media forces Instagram and Facebook solidify their roles as prominent search engines, paid ‘posts’ within users’ ‘feeds’ continue to convey the power of personalized sponsored content.
With a myriad of stakeholders now involved in the simple act of searching for hotel rooms, is it a battle worth fighting? The retort is absolutely. But before addressing the how, it is crucial to identify and differentiate the digital marketing scope of branded and non-branded hotels. Branded hotels, especially those flagged with hospitality powerhouses, benefit from a more powerful domain authority coming from the parent chain, making it easier for them to rank higher on the SERPs. seize Marriott.com/hotel vs. hotelname.com for example. Domain authority is the overall power of the domain name considering traffic size, popularity, and number of links to the site (backlinks). It is besides a top ranking factor for Google.
Branded hotels besides watch to believe significant budgets to spend on Pay-Per-Click (PPC) and paid search, ensuring top first page visibility for valuable destination and branded queries. In addition, branded hotels believe wider access to digital partnerships, including listings, local directories, event sponsorships, travel influencers, and online features – every lone of which provide authoritative backlinks to the hotel’s site, further contributing to its domain authority.
Because independent and small-scale hotels rarely benefit from domain authority, maintaining and monitoring digital marketing best practices to boost Google rankings should subsist a requirement, not merely a recommendation. Digital marketing practices command their own dedicated efforts. Yet online marketing should subsist well-equipped with its own strategy and utilize expertise in the nuances and intricacies of hotels, restaurants, leisure activities, and attractions – overall, hospitality.
The question then becomes, how can hotels strive for visibility in this Wild West of a digital landscape, particularly if they are competing against each other, the OTAs, and a powerful sharing economy?1. Execute a Carefully Crafted Keyword Strategy
Optimizing for search queries, besides known as keywords, is perhaps the core of any digital marketing tactic aiming to build visibility – both organic and paid. Identifying those keywords with the highest search volume, such as ‘Miami hotels,’ is the intuitive process. Presence on Google’s first page for elevated search-volume keywords requires a robust SEM budget, an ongoing and long-term SEO strategy, or both. This puts independent and small-scale properties, which often conclude not believe the necessary budget and fundamental team, at a notable disadvantage.
However, niche keywords present a different scenario. These queries are typically ’long-tail’ significance they contain more than four words. Though niche keywords conclude not believe the highest search popularities, it is much easier to actually capture their search volume, which then results in higher click-through rates (CTR). Hotels can leverage niche keywords by identifying their unique amenities and value propositions, and turning them into valuable keywords. For example, ‘Miami hotels with a rooftop bar,’ ‘Miami hotels with free breakfast’ and ‘Miami hotels with nightclubs’ are terms to utilize as they leverage a more specific travel aim that easily turns into conversions (booked business). It is crucial to assume as the customer would.
Some independent hotels, because of the virtue of their uniqueness and often niche-market, can believe the upper hand in this situation. A property which positions itself as a go for health and well-being could therefore pursue niche terms such as ‘wellness resorts’ and ‘fitness getaways.’ The key is to identify the brand’s top performing unique selling propositions (USPs) and translate them into humanized search queries, every lone while keeping the guests’ travel planning journeys in mind.
Finding a balanced fuse of both high-search volume terms and niche queries secures strategic keywords. Nevertheless, actually optimizing for them by ensuring they are naturally or comfortably present throughout the website’s titles, content, metadata and bidding efforts besides aid secure a carefully crafted keyword strategy.2. Optimize for Local Search
Our termed “Phase II” besides assign the spotlight on search engine commerce directories such as Google My commerce and Bing Places for Business. In facet III, hotel listings on these directories is no longer a recommendation, it is a necessity. Optimizing for local search entails driving the visibility of a property’s commerce listing via a two-part process:
3. Attain and Maintain a Star Rating on Google
One of the key components of local search results is the Star Rating associated with a commerce listing. In fact, star reviews on SERPs are an effectual passage for hotels to increase digital visibility by standing out from the competition. Star ratings aid increase the site’s CTR and provide an influential benchmark for online reputation management (ORM). Once an exclusive ascribe for paid results, star ratings now besides exhibit on organic results through Google’s ‘Rich Snippets.’ These snippets are a configuration of structured data which Google extracts from multiple websites and presents it as a ‘preview’ in search results, besides known as Google’s information Graph.
Therefore, obtaining and retaining star ratings involves safeguarding reviews on trusted and authoritative review sites. Google then aggregates this rating data and displays an average star rating. Hotels (restaurants, attractions, etc.) should animate satisfied guests to submit reviews to their booking channel (i.e. Expedia) because they are by default ‘trusted’ sites. However, they should besides animate reviews for their own Google My commerce listing in an attempt to increase the hotel’s chances of being featured on local search results.
It is principal to clarify that there is a technical component to obtaining a Google star rating. Codes assign onto the website to aid search engines revert more informative results to users. Hotels exigency to ensure that their web developers besides involve star rating information within the markup code.4. Enhance Content on Local Listings
A hotel’s content for its local listings should subsist strategically optimized. Whether it is in Foursquare, CitySearch, or any other listing, valuable keywords should subsist incorporated throughout the copy – including local search ‘near’ queries such as ‘hotel in Miami near Brickell’. If the brand image is naughty and tongue-in-cheek, the content on local listings should besides reflect that. Some listings even allow for a featured message. Rather than a generic ‘Welcome!’ hotels can employ this space to promote current offers or highlight special amenities (complimentary champagne, sunset yoga, free breakfast).
Other content elements such as images should subsist of the highest quality, showcasing provocative yet realistic visuals of the property’s exterior, interior, and overall ambiance. Links to every lone the property’s sociable media channels should subsist present in the listings, which allows the user to access other hotel assets including brand personality and online reputation.5. Optimize for Voice Search
With increasing utilization of smart personal assistants such as Alexa and Google Home, voice search is a prime topic of conversion within the digital marketing realm. In order to subsist visible in results derived from these devices, hotels exigency to ensure they are optimizing their site and keyword strategy for voice search too. Since users are more likely to employ longer natural queries via voice, employing niche, long-tail keywords is an effectual method to optimize for this trend.
Long-tail keywords are fruitless without the relevant content on a hotel or restaurant’s website. Hotels exigency to believe specific landing pages that parallel the niche keywords. If a hotel seeks ‘Hotels in Miami with rooftop pools’—a keyword likely used by the voice search user—it must exhibit in the relevant landing page.
Incorporating questions and answers within the site, perhaps via the ever-popular Frequently Asked Questions (FAQ) page, is another effectual passage to accommodate voice search. With this strategy, hotels can provide answers not only about the property itself, but besides about their destination and local attractions as a result of quick detection by voice-activated devices.
It is principal to note that recently, numerous hotel properties and companies believe been contacted by law firms representing travel consumers with disabilities. These law firms report that websites are not abiding by accessibility guidelines in accordance with the Americans with Disabilities Act (ADA). If a guest is unable to employ a hotel website to find information or obtain a reservation, hotels can in fact subsist fined. Today hotel websites must enable these assistive technologies to allow travel consumers with disabilities to deserve the information they exigency and complete any necessary transactions.6. Adopt a ‘Mobile First’ Mantra
Much has been said about Google’s ‘mobile first’ index. This means Google will start to rank its search results based on the mobile version of the content, even in desktop search listings. If one thing is certain, websites exigency to subsist optimized to subsist mobile-friendly (responsive). Hotels exigency to ensure they launch a fully-responsive website that serves users of any device the selfsame consistent content. The more ‘mobile-friendly’ a site’s user suffer is, including factors such as typography, navigation map, and website design, the higher the site will rank on Google’s search.7. Leverage Google Hotel Ads
Google Hotel expense Ads (HPA) showcases a hotel’s real-time (dynamic) rates on Google search across every lone devices. Users will behold the hotel’s ad when they are actively looking to book a latitude in the area. However, the hotel only pays when the ad generates a click or a booking.
Google has recently introduced a unique call-to-action (CTA) button for booking hotels in its search results. A keyword can trigger a ‘BOOK A ROOM’ button to appear. Clicking this will activate a sub-menu to browse every lone enlisted HPAs for the hotel, which includes booking direct and via OTAs.
This feature, which besides appears in Mobile and Maps, demonstrates Google’s determination to grow its expense Ads service. The increased exposure provides more incentive for hotels to capitalize on this configuration of pay-per-click in order to promote direct bookings.8. increase Backlinks, Actively
A backlink is as simple as a hyperlink to a website from another website. Yet, it carries a lot of weight when it comes to a hotel’s organic digital visibility. Each backlink tells the search engine that a hotel website has a ‘vote’ from another entity, which in revert builds credibility and domain authority. Branded hotels believe the upper hand here since the company usually has a corporate parent site that a plethora of other websites will link to (such as Marriott.com or IHG.com).
There are technicalities to backlinks, including the trait of the backlink determined by elements such as anchor text and link context. These technical factors play a role in the algorithm the search engine uses to determine the value of a backlink. In theory, the more trait backlinks a hotel website has, the more chances to rank higher on search engines.
Actively pursuing relevant backlinks should subsist imperative for hotels to obtain first page ‘real-estate’. Obtaining links from local directories, current hotel vendors, editorial publications, and .EDU and .GOV sites should subsist the gateway for enhancing the site’s link equity. However, to continuously grow the number of backlinks, hotels exigency to subsist generating quality, shareable content that interlinks with sociable media initiatives.9. recollect Optimal sociable Media = (Quality + Authenticity) x Engagement
Much has been contemplated about what comprises a successful sociable media strategy. Although there is no ultimate recipe for the faultless sociable media post, three factors that boost performance are quality, authenticity, and engagement. Optimal sociable Media = (Quality + Authenticity) x Engagement. Each piece of content maximizes visibility, both organic and paid. When posts are bona fide and of elevated quality, users are more likely to relate and validate them. When posts are authentic, of elevated quality, and facilitate some kind of user engagement, the content becomes shareable.
When content generates more likes, followers, and overall visibility it establishes an influential ranking factor. Therefore, search engines watch to rank higher those brands that believe a robust organic sociable media basis (not paid or ‘spammy’ followers). This is why it is principal for hotels to intertwine their sociable media strategy with their SEO efforts by creating quality, authentic, and engaging content that increases overall digital exposure.10. account the Technicalities of SEO
Technical SEO is a science of its own and deserves its own team of specialists, budget, and time. Technical SEO means optimizing a website so search engines can successfully crawl and index its content. It lays a powerful foundation to give a hotel’s website the best random it can to rank higher for relevant keywords. Technical factors involve site speed, removing unnecessary tags, cleansing duplicate metadata, adding tags to images, and implementing proper redirects to maximize the site’s link equity. Whether there is a one-man team or a staff of professionals continually optimizing the website, there are tools to aid provide the technical support.
Hotels, restaurants, museums, attractions, and leisure activities every lone exigency to assertively compete online to grab the attention of potential guests. Those who watch to the organic visibility believe a notable competitive. This and integrated paid search campaigns that mutually champion organic search strategies will aid secure first page visibility. Overall, while the exigency to upkeep search engines’ potent algorithms and ranking methodologies will always remain, an understanding of the process will aid smaller or independent hospitality businesses crop through the clutter in today’s complicated digital landscape.
PDF Version Available HereJuan Lesmes is a digital marketing strategist specializing in SEO at HEBS Digital the leading hospitality technology, full-service digital marketing and website design firm. A 2017 graduate of Boston University’s School of Hospitality Administration (SHA), Juan’s previous suffer includes toil at hospitality marketing advisory LHL Communications, The Ritz London, and Lets deserve Weddy in London. Since his time at SHA, Juan has been recognized as a thought leader in hospitality marketing, with energetic contributions to the Boston Hospitality Review, HotelOnline and HospitalityNet. Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is besides replete time faculty at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.
By Nick Cohen
The year is 2001, and the world is quiet recovering from the tragedy of September 11th. The travel industry is in a downward spiral as fears of flying and terrorism ripple across the United States and beyond, and hotels believe lost significant occupancy due to a abate in demand.
Simultaneously, a fledgling technology is emerging which will eventually seize handicap of the internet explosion, as well as hotel management’s desperation to fill rooms. It will reshape their industry forever, and this platform now commonly referred to as Online Travel Agencies, or OTAs, will allow hotels to easily sell their rooms on the internet through novel consumer facing websites such as Expedia, Travelocity and Orbitz.
Fast forward to 2017. The OTA’s believe gained the majority of market share for online reservations, and digital platforms infatuation Booking.com and Ctrip.com believe loyal member volumes that far surpass brand websites. In many cases, the OTA companies are valued well beyond traditional hotel brands (as of May 2017, Priceline Group has a market capitalization of nearly USD 92 Billion). They believe besides helped to create a novel concept as they grew in popularity and scale over the final number of years, and it was the precedent of transparency. Pricing that was once hidden to the everyday user, could now subsist exposed to the entire world, publicly, with a few clicks online. As OTA channels grew enormously with time, so did the access to true time rates and availability for virtually every hotel around the world.
With this concept in mind, from the OTA’s they believe seen the rapid expansion of ‘meta search’ channels. These are one-stop expense comparison platforms where a customer can view a expense for a lone hotel latitude across multiple websites (without having to browse those websites one-by-one). Sites within this category involve Kayak, Trivago, TripAdvisor, Qunar and Google, and they are every lone working to simplify the travel research process for consumers.
With the OTA channels continuing to grow through massive marketing efforts and superior technology, and with meta search sites following their lead, a relatively novel challenge has emerged for hoteliers. It represents a very complicated dynamic between one of the most traditional ways to sell a hotel room, and one of the most modern ways to sell a hotel room. This once again every lone comes back to the concept of expense transparency. Wholesale has been a core commerce driver in hotels for many years, helping properties build basis commerce through private negotiated rates and partnerships. Historically, these wholesalers would sell their inventory offline to their own private networks of contacts. Even though the pricing would typically subsist lower than publicly available RACK rates, it was a dependable foundation of occupancy for hotels to build off of.
As technology has become more sophisticated with Application Programming Interfaces (APIs) readily available, they believe seen the rapid growth of wholesale rates being sold publicly, online, through some of the powerful meta search channels mentioned above. This means that wholesalers are selling discounted rates, which directly undercut brand websites and OTAs, to anyone who has access to the internet. Beyond just meta search, some OTA websites are now even positioning themselves as ‘online marketplaces,’ where they too will sell wholesale inventory directly instead of the inventory provided by the hotels. To remain competitive and increase market share, online channels want to sell the lowest expense possible, even if it means reducing their own margins by selling a cheaper latitude to the customer.
You would assume that hoteliers would want to fix this problem immediately. Online wholesale commerce undercuts channels which are much more profitable such as their direct brand website. This issue however is multi-layered and is not light to remedy for the following key reasons:Hotels quiet want wholesale business!
Hotels quiet maintain stout relationships with a number of wholesale partners, big and small, and they reckon on these partnerships to generate basis business. Turning off these channels would potentially import the loss of significant revenues, at least in the short term. Although wholesale channels can undercut other websites when sold online, they besides quiet generate incremental commerce when sold offline through the traditional methodFinding the source of entire commerce online can subsist very difficult
When wholesale rates appears online, it’s generally very difficult to know which wholesaler specifically is providing that inventory. The wholesale partners themselves don’t generally sell rooms through their own websites, but sell their rates through wholesale aggregation channels such as Amoma.com. It’s channels infatuation Amoma who then sell the rates online through their own interface, and promote their rates through larger meta search intermediaries such as Trivago and TripAdvisor. Generally the only passage to find the accurate source is to obtain a test booking online, and then track how that reservation comes into the hotel’s central reservation system (each reservation is typically flagged with an inventory source). Many hotels are reluctant to conclude this since a booking requires employ of a credit card and sometimes even pre-payment, and then cancellation of that test booking is not always light to do. The test booking process is both cumbersome to manage at scale, and is besides financially risky for a hotel if those booking cannot subsist cancelled.Employee incentives are at stake
Within hotel sales departments, team members are quiet incentivized to drive wholesale volume, regardless of where that volume is being sold (offline or online). Wholesale partners generally don’t provide specifics on how they are selling their inventory, and as long as latitude allotments are sold, the answerable sales team members are satisfied. This is creating an unavoidable rift between the direction of some sales leaders with the revenue management and digital strategy teams.So what’s next?
Hotel companies are dealing with this situation in a variety of ways. Some are cutting off wholesale altogether since they simply can’t control where their inventory is ending up. Others are maintaining the partnerships, but are working to plod away from static latitude allotments and over to dynamic pricing and availability where the hotels believe more control over the inventory they forward to the wholesalers. This is a major problem facing the industry that very much remains unsolved.
If they seize ourselves back to the 2001, expense transparency was a challenge for hoteliers. Properties simply didn’t believe direct access to a big enough segment of customers, therefore traditional partnerships infatuation wholesale was an absolute necessity. With the growth of the OTAs though, and the emergence of novel technologies such as meta search, that access is no longer an issue. The world is accessible for each hotel with a few quick key strokes on a computer. It is now only a matter of time until hoteliers obtain one of the following decisions:
PDF Version Available HereNick Cohen is based in Hong Kong and leads digital strategy for Hyatt Hotels in Asia Pacific. He oversees online marketing efforts for every lone Hyatt brands and properties across the region, and manages a variety of e-Commerce and digital platform projects to aid increase online revenues for the company. Prior to joining Hyatt, Nick held senior e-Commerce and digital marketing roles at Langham Hospitality Group, Mandarin Oriental Hotel Group and Sabre Hospitality Solutions. Earlier in his career, working on-property for various hotels he developed extensive information in operations, along with Sales & Marketing and Revenue Management expertise. Nick besides holds a graduate diploma in Hotel and Tourism commerce Management from Boston University. Sources:
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