Revenue Management for restaurants…Touristology’s point of view! Part 2

The other day I shared this tweet:

In the video attached to the tweet, they talk about resy a new app for restaurants reservations that charge a premium (to split with the restaurant) to get a table without queues, for a price (usually, $10 or $20 bucks).

Let’s see the video…

Some of my Touristologists reply to me… Why the excitement, Jordi? At the end of the day, this is just basic Revenue Management… Original, not done before in this sector but, basic: You charge a premium in the peak hours. That’s all! A lot of theme parks (portaventura...) practice that; a fast entrance without a queue for a price!!!!

I agree, Touristologists! To mark down the price with weak demand and mark up the price with strong demand is not rocket science (as a matter of fact, I always relate these tactics more with copyologists than with Touristologists!!!) BUT… as you know, I’m a Touristologists builder and my, almost, 25 years dealing with the tourism sector had sharpened my skills of seeing students, start-ups, enterprises, tourism destinations… Not for what they are today BUT for what they can be in 10 years.

I remember went to OUR class and see YOU for first time and knowing, without a doubt, that you would be special. I was thinking of YOU when I wrote… “… on average I have two or three students able to make a difference in the sector, in every class.” I had the same feeling when I saw this video… I, clearly, visualized how this app will allows restaurants to know who is making the reservation and therefore it will open doors to practice the use of the web 2.0 business model.

Recently, I also share this video…. enjoy it, Touristologists!!!

As you see, it introduces the new initiative of Groupon, to help you to fill up your occupancy tables’ calendar. This day at this hour you don’t have customers? Just make an offer in Groupon’s website!

Jordi, what is the difference with Resi? Easy! You don’t know your customer so, forget about YOUR customization, syndication or Pro-amization actions!!!!! Not knowing who is your customer is not a minor issue, we could talk about some jerktech like ReservationHop. Please, read those links and… Be aware!!!

On the other hand, knowing who is your customer open the door to apply the web 2.0 business model. I’m sure that YOU will explain these ideas better than me! I just provide a few humble examples…

Customized: Well, the geo-location is obvious! What about versions of me? Do you think we can offer different content, commerce, community based on… now I’m with my family, now I feel like having a romantic dinner, now I’m with my old friends from when I was doing my military service… What about real-time web and the powerful customization tools that it provides as we saw here?

Syndicated: Don’t worry, dear customer! We also can provide other things that are important in YOUR chain of value… A babysitter for your kids? You got it!  Tickets for the play next to the restaurant? You got it! Willing to repeat the dining experience at home? Do you need the recipe and the ingredients (like the forage enterprise is promoting)? You got it ... Is it, so difficult, to make a win to win deal with these providers and let the customer manage the whole experience in your web, mobile app…??? Just listen carefully to Touristology’s voice…

“Let’s clarify this once and for all… My business is NOT selling rooms or F&B… My business is to satisfy my customer, providing what they need, when they need it, in the way they need it!”

Pro-amized: Are your customers able to bring a group? Are they able to bring this enterprise, this man/woman that you always wanted in your restaurant?

To finish…Can you link these videos with the picture that we saw in Revenue Management for restaurants (part 1)

To me, this link is obvious… as obvious as the fact that you will be the future of the tourism sector! But, as always/usual, the important thing is NOT my vision BUT your willingness to act, the faith that you have in yourself, your motivation to keep fighting even with problems or under pressure… Are you one of the best minds working in the best sector ever? Time to prove it!!!!

PMS’ evolution… Touristology’s point of view! Part 3

In previous posts, we talked about two of the most important drivers changing the PMS’ scenario. If you remember, here we analyzed the evolution from PMS to CVMS. Then here, we analyzed the pros and cons of cloud computing and we saw two examples of brand new cloud based PMS.
Now, it is the perfect time to go deeper and analyze the third driver of PMS evolution. We try to manage the whole chain of value (the one made for and by the customer, remember!) we make the most of cloud computing BUT at the end of the day, the most important thing is to improve customer experience and that means that the CVMS must help us to provide better servuction processes. As the new CVMS are in the cloud… what better way to be sure that they achieve that, than using the web 2.0 business model that Touristology provides?
In the previous post, we saw a video about Zynga. Can you summarize what you have just learned in the three posts about PMS’s evolution and apply it to this new PMS?
Do you remember web 2.0 business model? I’m sure you do!  

Be sure to study the improvements that Real-Time Web provides in Customized. Here and Here you can get more information and (I hope) enlightening ideas!!! Finally, here you can see the movements of SalesForce and Microsoft related with Real-Time Web.
Do you think that Zinga exploits some of these ideas?
Can you propose more potential competitive advantages for this PMS?
If not you, who? If not now, when?
If you are a Touristologist (or you want to become one!!!) you can’t help it and you will answer these questions… if you do so, I will reply to you! I can’t help it either… I’m a Touristologists builder looking for my next Sistine Chapel Ceiling, my next Giaconda..
I love my job! I’m a Touristologist builder! Michelangelo has his Sistine Chapel Ceiling;  Leonardo has his Giaconda. I have my Touristologists!  Maria, Roman, Sabri, Gerard, Violeta, Sara, Mireia, Alba, Roger, Anna, Miquel Angel… and many more!
Can you feel my energy? It’s the most powerful force of the Universe. It’s the force of a dream burning inside… Touristology’s dream!!!

PMS’ evolution… Touristology’s point of view! Part 2

The other day, we talked about the three drivers that are changing what, not so many years ago, some people believed was a static market with clear leaders and winners. Yes, I’m talking about PMS’ market, Touristologists!

If you remember, in the previous post we reviewed the first driver: The slow transformation from a PMS to a CVMS. In a nutshell…If you want to provide services before, during and after a trip, it’s compulsory to make all departments and members of the chain of value work as a single organization. In order to do that you will need software to help you to manage not only your property but also the whole chain of value!

The second driver in PMS’ evolution from Touristology point of view is cloud computing. Here you can review some lingo related to cloud computing: IaaS, PaaS, SaaS, etc

The advantages that cloud computing brings to any company are well known and we can summarized with this sentence: Cloud computing allows small and medium size enterprises to be as productive as big enterprises, because it brings to them...

1) The possibility to pass from strong investment and fix cost to a variable cost. This is true for both the creators of the software and the users of it. In the case of PMS, cloud computing allows the users (the owner of the lodging enterprise) to pay per room on a per month basis. 5$ seems to be the new standard. On the other hand, it also allows the creators of the software to make a deal with cloud service providers (AWS, GAE, Azure, OpenShift….) and pay by use.

2) Elasticity: You get all the power that you need when you need it. Is there a better definition of the word SCALABILITY? Do you foresee a high season ahead? Don’t worry you can increase the number of users your web site can manage (for instance, from 1,000 to 1,000,000) in just minutes not months.

3) Machine Automatization: You can set up your cloud programmatically. I mean that you can, for example, define thresholds based on variables of consumption (CPU consumption) or define a specific period of time (every Monday at 12:00:00). That makes the management of your hardware faster and less error prone!

Here you can see how I am able to set up an increase of the power of my AWS cloud server when I need and for the time that I needed:

When do I add a new instance? In this case, in function of CPU utilization. As you can see if the average it’s up to 80% add a new instance. If the average it’s down 50% rest an instance. As I said, a real programmable data center. Faster and NOT error prone!

BUT there is also the other side of the coin that, (not without reasons), arouse fears, uncertainties and doubts.

Are you sure about the privacy of your data? At the end of the day, it is saved in another company and you have to remember that, clearly, we are talking about very sensitive data. Your customers’ data: Personal data, buying behavior….

You have to think about the pros and cons and make up your mind! At the end of the day, it’s just a matter of trust! Ummm… something valuable that you choose to save NOT at home? Where do you save your money? At home?

Here you can enjoy two videos of new players in the PMS field.

Apart from the heavy use of cloud computing they are also examples of the third driver in PMS’ evolution… But these will be the subject of another post… See you in the cloud Touristologists!!! Keep your privacy at bay and enjoy the benefits of cloud computing!

PMS’ evolution… Touristology’s point of view! Part 1

PMS is one the most famous /well-known software in the lodging industry. If you don’t know about tourism maybe a definition is needed… WAIT! You don’t know about tourism? What the heck are you doing here?  8-) Just joking!!!! If you believe that Tourism is the best sector ever, Touristology is a science and you feel down in your heart that you want to become a Touristologists… for me, it is more than enough. So, welcome a board!!!

PMS stands for Property Management System. It is the equivalent to ERP (enterprise resource planning) in other sectors.

PMS needed to be developed because the standard software (ERP) wasn’t able to cope with the features that lodging services need: Management of an inventory that you don’t send out BUT on the contrary customers come to use. Inventory that the same day is left for one customer, then cleaned and maintained, then occupied by another customer. Inventory of intangible services, which make them unable to deposit and give origin to one of my favorites strategies in Touristology: Yield/Revenue Management! Remember, Touristologists… what you don’t’ sell today is lost forever!

Most of the lodging enterprises have a PMS, from the most famous one OPERA by micros (bought not so long ago for Oracle), to the new ones than appear below the umbrella of cloud computing, making the most of the cloud and web 2.0 business model. Even though, sometimes, they just do the same as usual but with a new name!

Anyway, ready for PMS’ evolution, Touristology’s point of view? To me, there are three drivers changing the PMS scenario, giving opportunities to new entrants and threats to the old players. Definitively, these are interesting times in PMS’ field.

Let’s talk first about the slow transformation from a PMS to a CVMS:

If you want to provide services before, during and after a trip, it’s compulsory to make all departments and members of the chain of value work as a single organization. In order to do that you will need software to help you achieve your mission! Of course, it is important to manage your property, but a company in XXI century, begins and ends with its customers. So, you will need to manage ALL the chain of value… You will need a Chain of Value Management System or CVMS!

It’s worth remembering that we are talking about the chain of value made for and by the customer. It is the customer who decides who is a member and in which way adds value or gain its trust. Don’t make the usual mistake of a copyologist that defines the chain of value based on their preferences, contacts or interest. We don’t send goods through OUR chain of value. We attract, motivate, and seduce customers through it. For that reason, we have to use the chain of value made for and by the customer!!!

Let’s see a drawing of this PMS’ evolution. Blue boxes are features already implemented in modern PMS. Red ones are proposals from Touristology’s point of view!

OK, blue ones. Beginning from the left:
Services suppliers: Software able to sell other services apart from the usual in the lodging industry: Rent a car, Tourist guide… you name it (or even better… YOUR customers name it!) Here you can see an example relating Hyatt and Uber.
BUT Jordi! This is a mobile app NOT a PMS! Right, Touristologists! A mobile app using your PMS, So, Where is the difference? Why are you creating boundaries? Why do you like, so much, define silos after silos?
Travel agencies in the country of origin: From my PMS, we can add a module and manage reservations in the GDS, OTA, etc… Which is known as Channel Manager? Here we analyzed the software solution of an interesting company.
OLR (On-Line Reputation Management) and SnS management. Here we talked a little bit about web scraping and the semantic web.  We also view here a little bit about SnS Management with SalesForce Marketing Cloud
But Jordi! This is a CRM NOT a PMS!... Well… I can repeat again… not boundaries, not silos… But the important thing is… Are you willing to listen?
Time to see the red ones:
Incoming Travel agencies: If you want to create, communicate and commercialize packages, then it is compulsory to become a Travel Agency. Why on earth would I do that, Jordi?
Well….To gain the trust of the customer? To add value and obtain more customers NOT low price orientated? They seem good and powerful reasons to me!
SnS Management is good BUT, as I always say, Paraphrasing Alan Kay: People (Travel companies) who are really serious about social media should make their own communities.  This is not a solution for all the segments. You have to select the ones NOT based on Dr. Frankensteins Segmentation. Here you can review some interesting examples, that will allow you to get a powerful nucleus of people that like, want to be professionals and already are professionals of something (musicians, code developers, architects, hoteliers, runners…). Over this nucleus you can build up layers of profit: E-commerce selling was it is important to them. Marketing Research, meetings…
I repeat, these are interesting times in PMS’s field. Interesting times to be a Touristologist AND fascinating times to be a Touristologists builder!!!
Jordi, don’t you talk about three drivers changing the PMS scenario?
YES! This is number one. Number two (cloud computing) and number three (application of web 2.0 business model into the servuction process) deserve their own post.

Stop making excuses! Complete your transformation!!!

Maybe, you don’t know yet, because you’re still in your cocoon and you are afraid… BUT you are HERE following your guts, feeling down in your heart that you want to become a Touristologists!!!
Some of you, will say - I’m NOT afraid.. I have my reasons
Well, you can call them reasons BUT they seem like excuses to me!
I have a list of those reasons /excuses that I have been collecting during my (near to) 25 years as a Touristologist builder.
1) I don’t give my presentations in English, because I prefer to put that off until I finish my undergraduate, then I will travel and work around the world… OR I don’t give my presentations in English because my teachers’ accent is not perfect!!! Reasons? Excuses? Blaming others? Avoiding Responsibilities?... you name it!
2) I don’t search for internships in “this” tourism enterprise, that I will love to work with,  until I get more free time, or until my University makes a special deal with it, or until I am sure that they want my… what would happen if they reject me? Or if I would annoy them with my phone call??? Reason? Excuses? Blaming others? Avoiding Responsibilities?... you name it!
3) I don’t want to design and create a Data Base, program a portlet, or build a native application or mobile web app... I’m sure that someday I will find a partner or a team willing to do this for me OR I will work for a company that takes care of that! Reasons? Excuses? Blaming others? Avoiding Responsibilities?... you name it!
4) First I will work with local tourism then when I get experience, contacts, attitudes it will be easy to search and attract international tourism.
What do you think… reasons or excuses???
You have to stop making excuses and complete your transformation!
I experience firsthand the same process. It all began when I stopped looking for a web developer and I decided to become one. I had to stop making excuses and believing that it was others people fault. It has been a long process…not ended yet (I guess it won’t ever end!!!).
Do you know when I realized that I was on truck to become a full-stack web developer? It happened, and still happens, every time that I read an article, a post on a blog, a chapter in a book, a speech at a conference, a meeting with others that, like me, felt in love with web-engineering…and somebody (sometimes a genius, sometimes not…) recommend a specific “boilerplate code” and its integration in a specific full-stack (client and server side) environment. A long time ago, I followed carefully all the instructions then, one day, I began to listen to a voice inside me… - Jordi, get other people’s ideas BUT the ““boilerplate code” and its integration in a specific full-stack (client and server side) environment” are, definitely, your call.
Once you experience the power, the confidence, the independence of expressing your own ideas in your own code, there is not return. You know that you will do whatever it takes to have this felling again.
When you experience love… sex becomes secondary.
When you experience spirituality… religion becomes secondary.
When you connect with a human being… her/his culture, religion, gender, political ideas become secondary.
When you began to give your classes, seminars, in-company training sessions or start-up meetings in order to redefine their (OUR?) business model, speaking in a new language… reading, listening, writing it, become secondary.
When you are a thinker of the Business Model for Tourism enterprises or Destinations (from the beginning to the end of the trip, of course!) and the executor (alone or with a team) of the technological scheme… to be the one with just ideas becomes secondary!
I could go on, but I think I've made my point!
My advice, Touristologists?
Stop making excuses! Listen to your heart! If the message is clear and you are giving excuse after excuse, blaming others, in order to avoid taking responsibility…If you are feeling unhappiness because of that… you are protecting your cocoon (the comfort zone, some people call it!). Break the cocoon! Become a Touristologists!
It will be hard (I guarantee this) but worth it (I, also, guarantee this!!!) BUT, above all else… Do you want to know the most important reason? Nothing is worse than dying as a bug when your destiny is to become a beautiful… Touristologists!!!!
You have all the summer ahead! Redeem the time!!!! Make the most of IT!!!

Copyologists versus Touristologists…battling for a science! Part 1

Once upon a time, it was a small country aiming to become a leader in the Tourism field…- We will do things differently around here. We have the opportunity to bring prosperity and wealth creation thanks to the tourism sector - was saying with conviction the man who seemed to be the leader of an impassioned debate.
A Touristologist happens to pass by and hearing the words Tourism and seeing excitement on the faces…  He/She can help and asks to join the conversation.
We want to create a successful resort. The main attraction will be casinos BUT we will offer more than that… shopping experiences, family attractions, big music concerts, congresses.. you name it! At the end of the day, this is working in Macao. So, it is a tested business model. We can’t fail!

Just to put an example, Touristologist -  Said one of the most famous Copyologist around the world -Hard Rock Cafe offered a concert performed by Bruce Springsteen… they get more than 80,000 tourists.
I thought that the days of assessing the success of a Tourism activity based on the number of tourists was dismissed long time ago - say the Touristologist…
Don’t worry, everything will be fine! We get investors, we get companies that bring us the tourists… we will become leaders in Tourism!
What? Others will bring you the tourists? Well, enough is enough -Said the Touristologist…
I don’t doubt that this is a good business model, BUT the problem is that it is THEIR business model. So, as the creators are intelligent and profit orientated people… It doesn’t matter that you get a lot of tourists, neither that you get a lot of revenues… At the end of the day, the creators of the business model will…
1)  keep most of the profit
2) keep the trust of the tourist and the power to decide if they send the tourists here or there
3) have bargaining power to ask for less taxes, special laws, etc
4) and last but, definitely, not least… As you duplicate an existing business model you are buying numbers to become a commodity!
Maybe one day, a first class tourism destination with plenty of people studying Touristology will come up with a better idea!
Better? I mean… original!!! Not just copying business model, but OUR business model, the one which promotes our culture, the one which will create wealth for our small and medium size enterprises (SME), the one which will create quality jobs (not temporary, with real possibilities of promotion, with good salaries…)
The other day, while I was jogging, I was listening to my favorite podcast news related to technology, Tourism, Science… They talked about how nowadays scientists are doing experiments with mice. They apply laser in order to activate stem cells and to grow teeth. They said that it’s a faraway better methodology than just cover the cavity.
Is it related to Touristology, Jordi! Of course it is. As a matter of fact it’s an excellent metaphor (I’m the king of metaphors, remember?) Do you want to be leader in Tourism? Activate your people, your SME, look yourself for the tourist, bring them to here… In other words, activate stem tourism cells!!!
Do you want to become the Copyologists of the year? Copy other people business model, use their tourists, let them bring their tourists here. In other words, just cover the cavity. Not find a real solution BUT a pretend one!
Are we Touristologists or just simple Copyologists?
Are we willing to bring OUR tourists and NOT just waiting for others to bring THEIRS?
Are we the best minds working in the best sector ever? Time to prove it!

Once Upon a Time somebody thought …It is so easy to become a Touristologist!

Once upon a Time, there was a medium-size village dreaming about employment and wealth creation through tourism. They had neighboring villages dealing with generic tourism and they were concerned about threats to their culture and way of life… 

In a restaurant, in the middle of this city, a group of entrepreneurs, established enterprises and public sector were having an impassioned debate about these issues.

“We have to offer sea products, scuba diving activities, sightseeing activities, culture, gastronomy…All this sounds attractive to a tourist, doesn’t it?”

A Touristologist happens to pass by and hearing the words Tourism and seeing excitement on the faces…  He/She can help and asks to join the conversation.

Are you thinking about International and specialized Tourism, of course? - Asked the Touristologist with joy…

Of course, the international tourism that we already have! They are around us, so the only thing that we have to do is to provide something interesting and specialized to them - replied the crew as a single voice.

Ah… sorry - said the Touristologist beginning to yawn- I thought that you really want to be Touristologists.

Wait a moment! What do you mean by that? A tourist is a tourist, right?

No - reply the Touristologists thinking that someday people will take OUR science seriously!

I’m already selling my service to tourist, so I get experience, contacts…

Yes- reply the Touristologist- and you can be very proud of it! But, if you want to create, communicate and commercialize tourism services to international and specialized tourists you will need…

The Touristologist took a napkin and began to write what seem to be timeless rules….

1) To create a meta-enterprise (a kind of travel agency if you want to put a specific name!) able to deal with all the Touristology’s tasks : Finding segments with specific needs around the world, creating customized packages (both with tourism services and motivational ones) for them in order to meet their necessities, building and managing the related chains of value…

Do you think that we can do that? - asked one of them

Are you able to carry out an operation? No, because you are not a surgeon…

Are you able to build a building? No, because you are not an architect…

Are you able to create the next Internet killer-app? No, because you are not a programmer…

Why do you think you can do all the tasks a Touristologists do without the training, the experience, the contacts…?

2) To build the specialized and international chain of value.

Ah… we can use Specialized Touroperators! I have contacts with them - Said one of the attendants with excitement!

A specialized Tour-operator is another good example of oxymoron - replied the Touristologist - As it is a solo entrepreneur or a low price orientated customer that you try to catch using flash sales websites, thinking that after the first visit they will return paying the usual price!

You can still dream about somebody (you can call it tour-operators, the biggest search engine /Social Networking Site or the new group buying and flash sales site….) that brings the tourists to you ... But, the fact of the matter is that they are USUALLY focused on generic tourism and ALWAYS focus on gaining the trust of the customer, willing to transform your product /service into a commodity and keeping  the leadership of the chain of value.

3) To define the technological scheme able to make the previous chains of value work as a single entity, a complex system, indeed… Able to provide support for the tourist from the beginning to the end of the trip!

After write the three rules the Touristologists handed it out  to them, smiled and followed her/his path whistling his/her favorite song…

Touristologist!!! What if we need more advice?

Don’t worry, there are plenty of Touristologists around the world, they’re spreading like a plague into the tourism sector, changing the way we enjoy, manage and define Tourism…

Just find the right one!