Restaurant And Hospitality News – January 11, 2016
By Christine Kern, contributing writer
In news this week, hoteliers are spending more on mobile marketing and the NRN predicts the innovative tech disruptions for restaurants in 2016.
New TravelClick Survey Finds Hoteliers Increasing Marketing Budgets for Mobile in 2016
More than half of hoteliers reported that they plan to increase marketing budgets in 2016, with a heavy emphasis on mobile, including search engine marketing (23.17 percent), website updates/redesigns (20.73 percent), online advertising (12.20 percent), and mobile (17.07 percent), according to a new TravelClick survey. The study also found that 35.37 percent of respondents reported anticipating the most growth in mobile bookings and therefore increasing spending on mobile to capitalize on this new trend.
Further, hoteliers plan to allocate mobile resources to enhance/improve their mobile websites (46.34 percent), improve mobile search (24.39 percent), or develop social media (21.95 percent). Additionally, nearly half of respondents said that they are increasing spend on mobile than in the past because mobile is predicted to be growing in popularity among consumers in 2016.
John Hach, senior industry analyst at TravelClick explained, “It’s clear from the data that hoteliers are expecting to see the most growth in 2016 bookings through hotel websites vial mobile, as well as through the GDS and OTA channels. This is consistent with what TravelClick has seen as part of its quarterly North American Distribution Review reports and shows both the relevance and that mobile continues to have on hoteliers around the glove. It is no longer acceptable for hoteliers to leave out mobile as part of their marketing strategies, and the data reflects hoteliers’ acceptance and embrace of mobile as an important way to significantly move the needle for their properties and reach a new group of consumers simultaneously.”
NRN’s digital disruption trends for 2016
In a recent article, editors from the Nation’s Restaurant News predicted the top digital disruption trends that will emerge in 2016. Among the food-focused digital innovations that will come in 2016 are: Restaurant companies will become tech companies; Meal Kits will influence delivery space; and Restaurants will recapture control of mobile ordering, payment and delivery. According to NRN, 2016 will see restaurant chains taking digital platforms to the next level, with serious tech players placed in top management to help guide the way. “These new hires will enable restaurant companies to move with the rapidly changing times and to better understand how restaurant diners consume technology,” the article states. This will enable restaurants to integrate tech innovation as a vital part of the overall operation, rather than a tacked-on gimmick.
NRN also predicts that meal kits will begin to influence the delivery space, supplying partially or ready-to –cook ingredients and easy-to-follow recipes that allow consumers to recreate chef-inspired meals in their own kitchens. Suppliers like Blue Apron, HelloFresh, Plated, and others have already begun to appear nationwide, typically allowing meal kits to be ordered online and delivered right to the customer’s door. While the future of these services – and their impact on the restaurant and delivery industry – is yet to be determined, Holger Luedorf, Postmates’ senior vice president of business, told NRN, “If customers want it and the business model is sustainable, it will stick around. But these competitive pressures and other players will bring more innovation out of the overall industry. In the end, the ones that serve the best food will be the ones that survive.”
And finally, the NRN predicts that restaurants will regain control over mobile ordering, payment, and delivery, as companies like Starbucks begin to integrate delivery seamlessly into their own mobile apps. Whether delivery is handled directly or by third-party operators, it is clear that the mobile space is the future of restaurant ordering and delivery, with the growth of services like Dispatch, which allows guests to order through and pay through restaurant apps and select delivery options at checkout. ChowNow is another company developing online ordering platforms that allow restaurants to seize control of the ordering-to-delivery process through their own apps, according to NRN.