1. Thinking Outside the Hotel Boxengaging the conscious traveller for life Anna Pollock HTNG Members’ Meeting, Berlin October 26th, 2010 1

2. Your Challenge "Strategic resilience is not about responding to a one time crisis…it's about continuously anticipating and adjusting to deep, secular trends that can permanently impair the earning power of a core business. It's about having the capacity to change before the case for change becomes desperately obvious." Prof. Gary Hamel, December 2003 2

3. When travelling, I wish I were a box 3

4. The Promise of Travel 4

5. Today’s Reality 5

6. Today’s Reality 6

7. Your Guests? 7

8. The Room With A View 8

9. The Value is in Relieving Pain The opportunity is finding a cure not relieving symptoms “When pain pushes vision pulls” Michael Beckwith 9

10. My Purpose Today Shift Your Mindsets Focus: deep, radical innovation See the really “big picture” and the “big opportunity” Stimulate some fresh thinking But first, some history 10

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12. Recession as Punctuation PointDon Tapscott 12

13. To Prepare for a Different World..Understand the change drivers 13

14. People 14

15. Age of the Automobile, Mass Everything Technology 15

16. Assembly Plants, Specialization, Hierarchies Organization 16

17. Standardization, Order, Planning Organization 17

18. What Was the Lens Through Which the World was Viewed? Mindsets 18

19. Mindsets 19

20. A Mindset is a Set of Underlying Assumptions The universe is a machine of parts and objects obeying physical laws The planet is a lumberyard The industrial model can be applied to tourism – which means that Places and experiences became products People became resourcesor targets 20

21. Mindsets Use Different Parts of the Brain 21

22. This Mindset Thinks in Boxes & Lines 22

23. See what I mean? 23

24. The industrial model: Productizes Standardizes Homogenizes Commoditizes 24

25. The “Industrial Model” worked for Many Years 25

26. BUST 26

27. IS IT OVER? 27

28. So What’s Really Happening? “We are at that point of time when a four-hundred-year-old era is rattling in its deathbed and another is struggling to be born.”

29. Supposing Every One of the Gears Change? 29

30. 2 billion internet users 825 million in Asia Connectivity Technology 30

31. Connectivity Three screens dominate our lives Technology 31

32. Connectivity 5 billion mobile phones worldwide Average North American user consumes 150+ megabytes of data By 2015 data use could rise to 7 GB a month Technology 32

33. Connectivity Gartner predicting 103 million tablets in circulation by 2013 – up from 19 million today 30,000 Apps for i-pad only 178 days after launch – example of an ecosystem at work Technology 33

34. Connectivity Open Source, interoperable, modular, in the cloud Technology 34

35. Connectivity Immersive Telepresence Technology 35

36. Connectivity Immersive Telepresence Technology 36

37. Connectivity Immersive Telepresence Technology 37

38. People Consumers 38

39. Risk is back Anxious Self-reliant Distrustful 76% don’t trust brands People Consumers 39

40. People Tyranny of Choice Tyranny of Time Tyranny of Abandonment 40 It’s no fun being a consumer

41. Post Recessionary Consumer Wants Value Quality Support Rich Content Relevant Content Before, during, after Real time Geo-located Personal – but how? 41

42. Post Recessionary Consumer Wants YOU to To do that, you can’t change software, procedures Even changing your culture won’t work entirely To show you care you have to change your mindset! 42

43. From Machines and Boxes to Ecosystem Mindsets Appreciating that the universe is not a dead machine It’s alive & there are no straight lines in nature Everything is connected – IT’S A NETWORK! Nature has her cycles & her limits Nature and people are dynamic and fuzzy Not everything can be measured Small actions can lead to big but unforeseen consequences 43

44. This mindset uses the right brain Mindsets 44

45. And is Inspired by the Natural World Organization 45

46. Not Value Chains but Value Networks Organization 46

47. Tourism ecosystem 47

48. And the Customer Sits At The Centre Organization 48

49. Anyone Can become an Intermediary Organization 49 In an ecosystem some species become “keystone species” providing opportunities for other species to survive and thrive Microsoft Apple Facebook Google

50. Challenges & Opportunities staying within the box 50

51. Industrial Push Model Running Out of Steam Forecast, make & sell Transaction oriented Share of wallet the measure of success Economies of scale Value lies with the producer Diminishing returns from trying to add value 51

52. Industrial Push Model Running Out of Steam Micro innovation – tinkering at the edges Lip service paid to customer centricity Reality is about cost cutting Standardization Automation Commoditization 52

53. Industrial Push Model Running Out of Steam Do you wish to follow the airlines? “race to the bottom” Diminishing margins Focus on volume Brand agnosticism Customer acquisition spending greater than retention 53

54. Service Marketing 54

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56. www.nileguide.com 56

57. We at Gourmet Pixel have researched current luxury hotel offerings and feel that there is great potential and opportunity to develop a bespoke application for use within the hotel and travel industry. 57

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59. Challenges & Opportunities Moving out the box 59

60. Business Model Innovation The value lies with the consumer The real question is not how do you add value but how do you attract value? Customers want support for their entire trip Opportunity for trusted infomediaries – those who earn the right to my personal data 60

61. Customers Own Their Own Value Organization 61 Value is in knowing who the customer is & what they want Value is at the edge - the frontline staff who have the conversations

62. Your Guest is not buying products but having a complete experience 62 Value is in taking care of the whole customer while having that complete experience

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64. The Boxes are breaking down 64

65. Starbucks Digital Network Power of Place Starbucks becomes the community hub on and offline Partnerships itunes Foursquare Zagat Weather Local Events 65

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67. Who Will Take Care of Me? 67

68. Who Could be the Keystone Species? The whole trip Solve problems Relevant content Save me time Get me out of trouble Help me enjoy the trip & the destination Help me meet others Be my guide/concierge 68

69. Which Species in the Tourism Ecosystem is best suited to be the keystone species? Who has the greatest interaction with the guest? Who is really in the connecting business? What kind of business innovation will help your company survive? 69

70. Think About it – Could it Be Yours? Thank you! Anna Pollock www.annapollock.net annapollock@me.com 70