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Going Mobile

By Jeff Weinstein, Editor In Chief -- Hotels, 10/1/2008

I don’t know about you, but everywhere I go I see young people with their heads down. It is not that they are dejected or upset about their lives, rather it is because they are busy text-messaging their friends. I don’t know what they are talking about, why they have so much to say or why they don’t want to talk on the phone or face-to-face, but I see this becoming a borderline obsession with today’s youth. Even worse, you can’t call these creatures because they don’t want to answer their phones and use up minutes and, on top of that, they don’t like to return voicemail messages. Text them, however, and you will get an immediate response. If you have teenagers or 20-somethings in your household, you know exactly what I mean. The question is, what does this mean for hoteliers?

Actually, it means there is a new opportunity and it revolves around what is known as mobile marketing. If you haven’t heard about it yet, you soon will. Think about all your loyalty club members or frequent guests who have opted in to your communication programs. You probably have their cell phone numbers, and with emerging technology, you can send them a very targeted marketing message based on their geographic location, or as marketers like to call it—right person, right time, right location (for more on this, see this month’s technology feature on page 61).

For example, if you know a frequent guest is in town via global positioning system (GPS) technology, a last-minute promotion can be sent via text message to the person’s mobile phone and, perhaps, allow you to capture an unexpected room night. You could also use the technology to provide upsell opportunities or simply to send arriving conference attendees additional information.

A similar practice already is being used in Las Vegas, where coveted high-spend gamblers can be sent a text message offering a free dinner and more to lure them away and get them to start spending at a rival hotel-casino.

So far, the most I have seen from hotel companies is the very basics of mobile marketing, such as making their Web sites accessible from mobile devices to check room availability and actually book rooms. But consider this: According to the Direct Marketing

Jeff Weinstein

Association in the United States, 24% of mobile phone users surveyed online have responded to mobile marketing. Fully, 70% of those who have responded say they have responded to a text message, compared with 42% who responded to a survey and 30% to e-mail offers. In addition, in the United States alone, total mobile data revenues are expected to grow from US$5.4 billion in 2006 to US$37.5 billion in 2010.

While I can’t get them to discuss their mobile marketing strategies just yet, I am guessing the big brands are working diligently to capture the text generation. The time is now to investigate this technology, as based on how many faces I see buried in their mobile devices each day, the early signs are that this opportunity could be huge.

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