The Herman Trend Alert
September 6, 2017
Gamification of Upgrades
One type of creativity is the application of a tactic that works in one industry to another. One of the ways that some airlines, including Air Canada, have found to increase revenues involves the gamification of seat upgrades. (Gamification is the application of game mechanics, game elements, and game design to non-game systems and processes.)
How Air Canada gamifies seat upgrades
Passengers purchasing economy tickets on Air Canada receive emails offering them an opportunity to "enhance [their] travel experiences by enjoying the priority services, added comfort, and the in-flight amenities of a higher cabin class" by competitively bidding for the upgrades with other passengers. This upgrade decision is not a commitment at a fixed price, but rather in participating in an auction process, there is an additional feeling of "playing". Passengers are directed to a landing page for the specific flight, where they may bid on the upgrade. Just like in an online merchandise auction in on eBay, passengers are encouraged to raise their bids after competitive higher bids have been placed.
Hotels have a similar opportunity
Generating incremental revenue by selling room upgrades is important tactic for hotels as well. Hotel websites do a fair job of describing the advantages of better rooms, including increased sizes, better views, larger beds, higher floors, better-quality amenities, or a combination of these elements.
The hospitality difference
However, once travelers purchase a specific room type, other than random emails, most hotels only approach travelers to upgrade, upon check-in, once they are physically at the front desk.
Discounted standby upgrades
Several hotel chains now immediately offer all confirmed reservations a "standby upgrade rate", typically discounted from the full upgrade cost---effective in generating additional revenue from guests. The bottom line for hoteliers is that some incremental revenue is better than no revenue and for guests, the perception of a discounted upgrade is attractive as well.
The opportunity for hoteliers
Since the major incentive of this type of gamification is participation, imagine a bidding system for hotel upgrades like those of the airlines? The level of involvement, engagement, and sense of control add to consumer excitement and interest.
Given the younger generations' love of games and the desire to generate additional revenue, we can foresee offering customers an opportunity to upgrade their rooms to the next level by creating a bidding system introduced. We see definite value in hoteliers' embracing gamification to their critical advantage. In fact, this type of gamification could be a hotel chain's competitive advantage.
Special thanks to Larry Mogelonsky, writing for HotelsMag.com for his insight into this important topic.
© Copyright 1998-
by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or http://www.hermangroup.com. To sign up, visit http://www.HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."
HAPPY 20TH ANNIVERSARY TO US!
On the occasion of our 20th Anniversary, we would like to extend our gratitude to our translators: Mariana Campora (Spanish), Dr. Alberto Perazzo (Portuguese), and Betty Sun (Mandarin). Without your support, we could not continue to serve our thousands of subscribers in 90 countries. We sincerely appreciate your weekly effort! We also want to thank you, our readers, for your encouragement. We will do our best to continue to give you interesting topics to read about for another 20 years.
AI AND BEYOND KEEPS ADDING DISTINGUISHED FACULTY: FEBRUARY 26-MARCH 2
Now four of the top thinkers in the world on Artificial Intelligence will share how the role of human beings will change, as AI is adopted. Dr. Iyad Rahwan from the MIT Media Lab and Dr. Stephen Wolfram creator of Mathematica and the Wolfram Language will join academics from The New England Complex Systems Institute (NECSI) to help you understand how to chart your organization's transition, increasingly critical to success. Complex systems science reveals how the strengths of human and artificial intelligence may be combined to optimize the bottom line. This five-day NECSI event will help you decode the future for less stress and more profit. Register at http://necsi.edu/education/AIandbeyond.html. Mention The Herman Trend Alert for a 20% discount!
LOOKING FOR A VERSATILE TRANSLATOR?
Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at email@example.com or contact her on SKYPE at marianacampora.
To read this Herman Trend Alert on the web: http://www.hermangroup.com/alert/archive_2-14-2018.html.
Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.
New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service. Click here to sign up for the Herman Trend Alert.
Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts