APT Co-Founder and Chairman, Jim Manzi, recently co-authored a Harvard Business Review article with HBS Professor Stefan Thomke about how experimentation can help companies de-risk new ideas and drive innovation. The article details a “checklist” for running business experiments and identifies how Big Data can dramatically improve the experimentation process.

Click here to download a full copy of the article.

Recently a colleague described his experience as a guest at a local hotel, where he often stays for business. Upon his arrival at the hotel, he found that he was given a room with a double bed, rather than the king bed he reserved. Unable to switch the room immediately, the hotel offered him free internet for his stay. At check-out, the hotel also offered him 1,000 loyalty points as compensation.

Like any business, hotels will never meet all expectations for 100% of their customers. However, hotels know the importance of resolving 100% of guest complaints, since this process is especially crucial to guest retention and overall satisfaction. Additionally, the increased influence of review websites like Yelp and TripAdvisor gives individuals greater opportunity to share their experiences, thus amplifying the importance of satisfying each guest.

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Hotel lobbies are no longer simply for checking in. Hotels are encouraging guests to enjoy their morning coffee, midday lunch, or an evening drink through new offerings in the lobby. Increasingly, leading hotels, like Marriott and Sheraton, are transforming their lobbies into multi-functional, revenue-generating spaces. Now commonplace in hotel lobbies, restaurants, bars, coffee shops, and business centers provide a more complete experience for guests and create potential opportunities to increase guest spend during a stay. However, before revamping their lobbies, hotels should consider the possible implications of these expensive changes, such as:

• Which additions (e.g., coffee shop, bar, business center, etc.) should be added to a particular lobby? How does this vary by hotel and by market?  Is it more effective to operate these establishments internally or to franchise national brands? Which brands are most successful?

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Vitamin C infused showers, organic mattresses, and electromagnetic field protection promote the wellness of guests who stay in the recently introduced “Stay Well” rooms at MGM Grand; but are these costly features also promoting the hotel’s financial health? Capitalizing on the growing trend of incorporating more healthy habits into travel, hotels like MGM have added these rooms over the past year in response to consumer demand. While guests pay a premium to stay in these unique rooms, ensuring that patrons receive the complete wellness experience requires significant cost. Beyond the upfront expenditure of transforming the room, additional ongoing costs can include maintaining a heightened level of customer service and an expanded, healthy menu.

The rise in “Wellness Tourism” is potentially beneficial for the hospitality industry and travelers alike. However, hotels should consider a few key issues before rolling out a wellness room concept, such as: (more…)