Hotel Industry Beware Disruptors Google and Airbnb (video)

Disrupting the Disruptors

L2inc.com video above published Dec 6, 2018: Hotels should fear Google (google.com) and Airbnb (airbnb.com) the way retailers fear Amazon (amazon.com) says Scott Galloway.

Transcript (auto-generated)
00:00 a loser the hotel industry today we're
00:04  gonna look at one of my favorite
00:06  industries no joke I love hotels I
00:08  traveled to hotels not to cities and
00:11  some would describe me as
00:12  high-maintenance I don't think that's
00:14  true my needs are pretty simple all I
00:15  want is a quiet corner suite on the
00:17  second floor two fire exits triple wash
00:19  hypoallergenic sheets no connecting
00:22  doors with prayer rugs facing the
00:24  nearest Chipotle of course a view of the
00:25  sunset over the Sistine Chapel seven boxes
00:28  of starch saran wrap and a babysitter
00:30  from my therapy monkey here we go loser
00:34  Marriott the world's biggest hotel
00:37  company revealed last week hackers stole
00:39  personal data from over 500 million
00:43  that's right 500 million guests Marriott
00:45  has half a billion guests making it one
00:48  of the largest hacks of a corporation
00:51  following Yahoo's premier hack in 2013
00:54  the news hit Marriott stock heart though
00:57  analysts say it shouldn't impact
00:58  financials for the long-term Marriott
01:01  announced it was their Starwood guest
01:03  reservation database that was hacked and
01:06  that hackers had access since 2014 the
01:10  hotel giant acquired Starwood back in
01:12  2016 one of the key selling points of
01:15  Starwood to Marriott our technology and
01:18  our brands oops this is what's called an
01:21  indemnity reserve account when you
01:23  acquire a company and force them to take
01:25  a certain percentage sometimes between
01:26  10 and 18 percent of the consideration
01:29  put it aside in case goes down
01:32  that's a function of things that weren't
01:34  disclosed before the acquisition there's
01:36  going to be a lot of discussion about
01:37  that indemnity account over the next few
01:40  weeks at Marriott so what else could
01:42  keep hoteliers up at night
01:44  simple Airbnb which in my opinion is the
01:47  most valuable private company in the
01:48  world right now
01:49  we just don't know it yet it's grown
01:51  from being an elephant in the room to a
01:53  clear and present danger
01:55  Airbnb site gets over 40 million monthly
01:57  unique visitors more than hotel Giants
01:59  Marriott and Hilton combined and the app
02:02  is the fourth most popular travel app on
02:04  iTunes trailing only Uber Lyft and Yelp
02:08  leaving hotel apps in the dust this year
02:12  Airbnb has launched two a dish
02:14  channel offensive moves to fortify their
02:15  moat one Airbnb Plus which tags their
02:19  best properties and adds hotel like
02:21  amenities and check-ins putting luxury
02:23  hotels squarely in their crosshairs and
02:26  to Airbnb experiences which has over
02:29  5,000 activities that can be booked on
02:31  the app and the new feature is a good
02:33  move from both a usage and search
02:35  perspective Gartner L2 Research found
02:38  that 50% of Airbnb x' unbranded search
02:41  traffic comes from things to do in New
02:43  York City or things to do in Los Angeles
02:45  or whatever city you're traveling to the
02:48  visibility enables Airbnb to compete for
02:50  traffic usually owned by TripAdvisor and
02:52  news media like CNN Traveler and
02:54  Thrillist don't we love it the disruptor
02:56  is not only disrupting traditional
02:58  industry but disrupting the disruptors
03:00  specifically TripAdvisor Airbnb is
03:02  currently valued at thirty 1 billion
03:04  dollars second only to Uber and is
03:07  expected to pursue an IPO in 2019 look
03:10  for Airbnb to be worth more than uber
03:12  why you and I could start a ride hailing
03:15  app with 30 million dollars creating
03:17  supply and demand in one city however
03:19  Airbnb takes advantage of an
03:21  unbelievable mode and that is they have
03:23  global demand we could not start an
03:25  apartment or an outsourced hotel app
03:28  with local supply because we would need
03:31  to create global demand is the majority
03:33  of the people coming into the city are
03:34  from somewhere else the other threats of
03:36  hotels Google Hotels should fear the
03:39  search engine the way retailers fear
03:41  Amazon their first Advantage search
03:43  ownership after years of serving up text
03:46  ads where Hotel searches Google is now
03:48  leveraging search results to drive
03:49  traffic to their own booking experience
03:52  where they again profit from Google
03:55  hotel ads Gartner L2 Research found
03:57  that the Google hotels tool appears 99%
04:01  of the time for search terms including
04:02  Best Hotel in Chicago and luxury hotel
04:05  in Paris in sum Google and all the
04:07  other tech monopolies have a very simple
04:09  playbook hey we can help you hey we are
04:12  you hey we're here to kill you
04:14  Google's second advantage data Google
04:16  sits on massive amounts of user data
04:18  enabling it to pump out free tools that
04:21  help travelers take advantage of travel
04:23  deals this will continue to draw users
04:24  to their platform over online travel
04:27  agencies
04:28  search platforms and hotel brand sites
04:30  hotels beware Google and Airbnb the
04:34  Genghis Khan of your industry look for
04:36  the hotel industry to shed value to
04:39  search engines and to Airbnb we are on
04:42  the precipice of war against a hotel
04:44  industry ...

feedback & comments via twitter @DomainMondo


Domain Mondo archive