Digitizing Southern Hospitality
[MUSIC PLAYING] SPEAKER 1: In a socially distant market, the hotel industry is among the hardest hit. Like many industries, hospitality will see both substantial and subtle shifts in the post-pandemic era. Hi, I'm Wilson Raj, and welcome to this episode of Reimagine Marketing, digitizing Southern hospitality.
In this episode, we'll examine a set of recovery scenarios for the travel industry, especially in the hotel sector. On the consumer side, we'll look at what guests say and will make them feel safe when traveling, including contactless check-ins and checkouts, and an added emphasis on trust. I'm joined by Clark Twiddy, president of Twiddy & Company. Welcome, Clark.
SPEAKER 2: Wilson, it is a pleasure to be here today. Thank you for having me.
SPEAKER 1: Oh, absolutely. This is definitely a topic I've been looking forward to because it has so many ramifications for our listeners. They are the consumers. They are affected by what's happening in the travel and the vacation rental markets, and also I think there's lessons to be gained for other organizations as well.
SPEAKER 2: Absolutely. You and I are going to have a fun conversation today on a host of topics.
SPEAKER 1: All right, so before we start off, just a little bit of context setting. Now, I know that Twiddy & Company is very unique, Outer Banks vacation rental company. I mean, you guys have literally almost all your employees live in the Outer Banks, or in the surrounding areas. And you have over 1,000 years of combined years of experience amongst your employees. So tell us a little bit about your journey from where you started, I believe it was in the military, to where you are now in the sector.
SPEAKER 2: Yes, interesting story. We're very fortunate Twiddy & Company is a highly focused company on the Outer Banks of North Carolina, Eastern North Carolina. The Outer Banks literally is a sandbar between the Atlantic Ocean and the mainland of North Carolina. We are a second generation family business, have been in business now for almost 44 years, are very fortunate to employ almost 200 folks in and around mainly the Outer Banks area. And broadly, our job is to get people to visit the Outer Banks, and then deliver a great experience while they're here, in such a way that they may consider returning.
So going back to answer your question, as a second generation family business, I was very fortunate to have had the opportunity to serve in the military, in the intelligence business to be specific. And what we found there, to no surprise, was a massive amount of data that we were trying to enable people to make actionable and better decisions in real time with.
And as we began to develop and explore systems to process that data, I took that challenge, and when I came back home and was able to come to work here at Twiddy & Company alongside our professionals, bring that challenge, and what we had learned from that challenge, and apply it to a business that had not unsurprisingly, but certainly at a different scale, an awful lot of transactional data.
SPEAKER 1: Absolutely. And it's so perfect because it really, this is the first part of our headline right, digitizing Southern hospitality. So we're definitely going to talk of that digitization part of it. Now tell us a little bit about-- everyone has got this picture about Southern hospitality. Can you just encapsulate what that means to our audience who are listening in from all over the world?
SPEAKER 2: Absolutely. And obviously it's changed. Like everything else, it's changed remarkably in the past 12 months alone. The definition that I would offer today is probably something that anyone in the world would recognize. Imagine walking in a living room of a friend and being made to have a wonderful experience. To answer your question, I think the modern, as in today definition of Southern hospitality, is combining the ease and comfort of a digital interaction with the trust that your individual experience is unique and important. So imagine being a guest at a wonderful home, and the way you would feel in that home, that's Southern hospitality.
SPEAKER 1: I love that definition, Clark. I think to me, if I were to repackage it, I would say that Southern hospitality is really global hospitality.
SPEAKER 2: It's imagine going to a wonderful home, and having a wonderful dinner, and how you feel when you leave, that is Southern hospitality.
SPEAKER 1: Absolutely. So with that, kind of let's get into the macro factors that are really, I guess, impacting your team, and I think the industry at large. Now, the health of hospitality brands, such as vacation rentals, are absolutely linked with the ability to travel, right? So how do you view recovery when travel bookings have really taken a nosedive?
SPEAKER 2: Wonderful question, and something we've all been reading about broadly. And I think two things really happened over the past 18 months particularly. Number one, the arrival of a global pandemic. That was, and I'll quote Churchill, an economic steel curtain for the industry that accelerated a lot of movement within the industry. We often say we innovated more in six months than we would have in 10 years at that time. Couple that pandemic with the arrival of large-scale public equity competition in the form of VRBO, Airbnb.
So you had this collision in the competitive landscape, but then more broadly, a fundamental disruption in access. All of these hospitality companies, to your point, were traditionally rooted in personal interaction. And when that link was severed, hence that evolution. So those two things combined, I think, to create a pretty interesting dynamic within the global travel and tourism industry.
SPEAKER 1: Absolutely. I think that's what-- We'll talk about and be able to unpack that because that notion around rethinking personal interaction is really key. Recently, there's a spot in the Wall Street Journal around this topic, and there was a stat there that was mentioned in the article saying that TV commercials promoting travel websites, and that would include, obviously, hotel, vacation rentals, et cetera, have doubled in the 50 days ending April 12th, compared to the previous 50 days. And this was a stat from iSpot.tv, A media measurement firm.
And so clearly, travel brands are rethinking their efforts, right? They're moving from more transaction oriented, the cheapest deal first, to something that's more value oriented. And it's also being supplemented by digital technologies. For example, in our Experience 2030 Pulse Report that was just done recently, 63% of consumers said that they would visit a remote venue or a location using AR, VR, a mobile in this coming year. So how do you see that shift, and how is it affecting you, and what are your observations there?
SPEAKER 2: Well broadly, I think you nailed it. One of the conclusions that the travel and tourism world came to, over the past six months particularly, is that everyone, existentially, knew that they needed to increase both the reach and the range of their customer relationships so that when we began to think that the pandemic, the worst of the pandemic was behind us and vaccination rates began to increase, there would be a pent up demand to go experience something.
And guessing the timing of when that would be, but more importantly being top-of-mind to those travel decision makers, is what I think is driving a lot of, to your point, this advertising, this reach in range. To me, one of the takeaways has been we've all heard the acronym, for example, CRM customer relationship management software. I think it's gone from a software to a strategy. CRM is a strategy to broaden and deepen customer relationships, to be more relevant to not only their travel decision making, but to their lives through the pandemic. And I think whether you're big or small, fast or slow, the good players have arrived at that conclusion.
SPEAKER 1: I love that statement that you made, that CRM is a strategy, not just viewed as a technology, because I think therein lies that magic for transformation certainly in your industry. But I think any other business, whether we are a small, mid-sized business, or even a large enterprise located in Europe, viewing it as a strategy and then fitting in those pieces is critical thing. So let's then shift a little bit to that strategy, and then we'll talk about the technology as you have laid it out.
When we talk about, certainly in this sector, the key is how you enhance brand agility, adaptability, and resilience. And it's all about that individualisation that you mentioned earlier. So certainly from your perspective, and maybe from a Twiddy perspective, what are brands doing in the space to recreate the physical in digital environments, while satisfying consumer motivations for that in-person type of touch?
SPEAKER 2: I love that question. And you and I literally could talk about this for days.
SPEAKER 1: Absolutely.
SPEAKER 2: In the spirit of brevity, to me, we start with a definition. Socrates always said start with a definition. You and I know that agility is something that every business, probably across the world, is thinking about. For us, not only at Twiddy, but I think more broadly in the travel and tourism world, we define agility as something in between two contrasting poles, if you will, two extremes.
One, you have the pace of change. And in our business, the pace of the change in consumer preference and consumer behaviors around travel. And then as a firm and as an industry, our speed and our ability to respond to that change. And you can imagine the smaller the gap between those two things, the more agile the company. The larger the gap, the less speed there is to react to those changes, the less agile we are.
To answer your question, I think what we're seeing right now is trying to be very fast and digitally relevant with each and every one of our customers, and at the same time, we also do not forget for a moment that this is still a people business. And I love a quote. Paul Volcker, who for many years was the Secretary of the Treasury, wrote a book one time and said that, "The laws of economics cannot be depended upon if we disregard human nature." And I think in turn, apply that quote to our industry, the laws of how we understand digital transactions, and how we seek to broaden the reach and range of those transactions, has to be placed in context with the very human judgments and trust that we place in those interactions.
So in short, we try to do two things to replace our tradition of physical contact. We try to be enormously digitally relevant, ease and comfort, that definition of Southern hospitality we talked about, but we also seek to drive and reinforce trust and credibility as if you could read our body language and we were standing next to you. So we combine those two things.
SPEAKER 1: So Clark, as we think about these recovery efforts, with vaccines taking place globally at varying rates, now how has consumer behavior changed in terms of in-person engagement is being forced all into a digital mode, or maybe even a physically distant delivery model. Now is this going to be temporary, or do you see this phenomena lasting? What's your thought there?
SPEAKER 2: Short answer is I see it lasting. I think we would all agree that humanity, at some point, will flow like a river forward. It cannot be contained for long. I think we'll see travel confidence return fairly rapidly. We've all read several headlines recently that begin to see the lifting of some domestic, in particular, travel restrictions.
So I think we'll see that very much go forward. But at the same time, to use that same analogy, technology does not go backwards. So I think we'll see people return to the pursuit of travel experiences, but with a different expectation around their technology and the ease and comfort of the digital interactions they want within their larger experience.
And I think, to that point, it's important for the travel and tourism industry to understand that we're no longer competing simply within our own industry, that across the pandemic, if you are getting groceries delivered to your home from an app that takes you 30 seconds, if you are using streaming content that is instantaneous, we're now competing in those spaces as well, because consumers are embracing that kind of fast digital experience based on trust and credibility. So I think it will move forward but in a different way.
SPEAKER 1: Wow, that's absolutely salient point there. I really want to hone in on that concept you talked about, travel confidence, on two lenses. One is from a macro scale, Clark, how is the industry building that common trust to reinforce relationships with clients and partners? And the second lens is that your philosophy at Twiddy & Company, because I know that part of your DNA is really that successful relationship that rewards all parties, the clients, the property owners, the suppliers. So let's talk about that macro version, building that common trust. And then what are you doing specifically at Twiddy in that regard?
SPEAKER 2: I think trust is enormously important, even though we are now obviously seeing that trust play out, in many cases, in digital interactions, just like the one you and I are having today. But I think to keep trust, particularly when safety is a question, trust, I would argue, when safety is related, becomes enormously important.
There has to be regular and relevant communications. There has to be transparency in much of what we do, to an extent that we are simply not used to, but we have to embrace that. Now broadly, I think the things we have to understand are that if we aren't talking in our customer's language, we're wasting our breath. So we've got to make sure that as we educate guests, as we inform some of their decision making, as we respond to the smallest requests, we have to do so in a very timely manner. And we have to do so in a language that is accessible to them on a smartphone.
So we do a lot of that in terms of touch points with customers and transparency. We answer proactively, I hope, a lot of what if questions. In an age of volatility and uncertainty, travel risk is more relevant than ever. And I think, transparently, we have to embrace that as well. So obviously, I think we have to be transparent on that digital interaction, but at the same time, we have to be accessible and model trust and credibility so that people can trust that digital experience.
SPEAKER 1: Right, so you're now bringing together strategies, bringing together the technology in terms of-- And I can delve a little deeper into that, the mobile, some of those interactions, what they're doing on digital fronts, but also there's that people aspect, because this is a people business, whether they're virtual or they're in-person. So I just want to shift to those capabilities.
Now I know we started at the beginning of this conversation, your focus, back when you're in the intelligence arena, focus on data and insights there. How has that unfolded here? How are you making use of data to inform those strategies, and to be able to build that travel confidence, if you will?
SPEAKER 2: That's a great question. So I'll use an analogy, and I bet it's one we would all agree on. So within the United States Department of Defense, there is an embrace of data. This goes back decades, even. And yet we would agree that the closer that data becomes to the actual decision maker, the more relevant it is. So imagine if we just confine data to, for example, the Pentagon, the physical space of the Pentagon, when in fact, we know it needs to be right in front of the 21-year-old, or the 19-year-old who's standing on a mountain. That person needs the same data that the person in the Pentagon does.
Now apply that same thinking to Twiddy & Company. One of the things we did was take this fingerprint recognition of our customers, this knowledge going back to our definition of Southern hospitality, that each customer is unique and important, and it's critical that we get that information, at scale, to the very front line of our organization. So within our organization, for example, we removed any even unintentional barrier to the sum of our knowledge.
So we've integrated, for example, Salesforce information, with some of our analytics information, with some of our marketing information. And the newest employee at Twiddy & Company who is fresh from a two-week training pipeline will have the same data on their laptop that I will, as someone who's been here now for more than a decade. And I think one of our insights was deploy analytics and insight to the front line, and give the front line the authority and the drive to use it quickly to make sure that each guest feels unique and important. And I think that's been a big takeaway for us
SPEAKER 1: Wow. I mean the way you have rendered that is something that I think any, even huge enterprises, would love to execute on, which is that transparency, intelligence being sent to all the stakeholders. They're diving into the same set of intelligence for the purpose of customer service and customer satisfaction. And so I think, again, you have that strategy, but you have built this technology backbone with data and analytics to be able to do that.
Now in terms of the analytical side, whenever a small and mid-sized businesses think of analytics, it can be a scary thing. Like wow do you need to have tons of PhDs? Or how do you make analytics accessible, like for example to that new employee who just joined a week ago, so that he or she is just optimizing on it and immediately serving guests?
SPEAKER 2: Two facets, I think, to that. Number one I'll start broadly, and then number two I'll apply that practically in what we do in our day to day lives. Broadly, I think it's very important that if we embrace data analytics, and the use of data insights, we do so within a more broad data culture. And that is to say that as a culture, the sense of belonging we have, and the shared commitment we have to a higher purpose, which we would define as our culture, must include data-driven insights on behalf of our customers and clients. And I say that a little differently to say we have to trust the data we have, and we have to use it in our decisions.
When we talk about trust there, we model trust externally in the organization to our clients and customers. We also model it internally. So going back to that brand new, two week employee, it's a little uncomfortable from a leadership component, but everyone in the company has access to the same data that I do. And that way, our own team, I think, trusts the data more than they would if there was a perception that they didn't have all the information.
More practically, every week, we have a research and development team meeting here at Twiddy, and it includes people here at Twiddy, it includes folks who work remotely in California, for example. And there are about 25 to 28, even 30 people in that meeting, once a week. And at a company that is almost 200 people, that's a big chunk of the company. And we're very candid in the way we do that in terms of how we discuss challenges and how we source insight in that meeting.
Here's the key. Anyone is invited to attend that meeting, as long as you participate and can contribute. Which is to say, everyone is expected and encouraged to use analytics and data science as a part of the customer and client experience. So I love that because when we first started our journey on data analytics, it was a four-person team. It slowly grew and grew, and now that is probably, and I say this candidly, the most vibrant meeting we have across the company on a regular basis is that analytics and research meeting because that's where we see creativity and innovation moving at its most rapid pace.
SPEAKER 1: Wow, Clark, that's absolutely fantastic. Imagine that an analytics meeting becomes the most exciting meeting during the day. I think that should be really a goal for any brand to be able to arch to because of the insights, and the learning, and not only that, the collaboration that comes with that. So I think that is a fantastic best practice. Now let's just pivot a little bit, keeping on the subject. Data sources, are there for yourself, and maybe for the industry at large, are there data sources that you think are still left uncaptured or underutilized, that could drive more valuable insights?
SPEAKER 2: Absolutely. There are always new data sets because we are always learning more about our customers, we're always getting more customer experiences, and as a result, our data, what we're learning, is ever, ever-increasing. So for example, we have, being in business now for 40 years, we have an existing customer base. But through the use of technology, we are always learning more about this customer base, their habits through, for example, an application on your smartphone that has geolocation. We are learning more through booking behaviors in terms of time of bookings, things like that. And we're learning more about the human side of this.
I'm adamant that if we describe ourselves as, for example a luxury destination, luxury is not a price point. It's an experience so we're learning more about those experiences all the time. We're always looking for new data sources to bring about in terms of what are we gaining, travel insights? What are we seeing, large scale, with our competition and the competitive environment? What data do they consider to be important? So yes, lots of additional data out there.
Having said all of that, the most important data we have, bar none, is our vibrant survey relationship with our customers and clients, because if we listen closely enough to our clients and our customers, they will show us the way. And then I go back to that earlier definition of an agility. If we're able to listen to our customers in a meaningful and fast way, and we're able to respond to that, that's the best data of all. So it's very important that we have a robust feedback mechanism at every touch point of our customer experience.
SPEAKER 1: You know that's a super powerful approach, Clark, that the customer or the client sentiment is almost like the weather vane that then puts every other data that you talked about, bookings and so on, amount spent, into perspective. And then you're able to arch on that. I really I think this is really unique in terms of how you've operationalized this through those meetings, I believe.
SPEAKER 2: Going back to that research and development meeting, we have put an emphasis, since the arrival of the pandemic, in that meeting, on survey integration. What are our customers saying about this? Not just what do we think, what are our insights. but what do our customers inform us as well on some of our decision making. And I think that survey component has never been more important to the vibrancy of our organization today, but also 10 years from now. And I hope that becomes part of our data DNA, for lack of a better phrase, is vibrant customer feedback.
SPEAKER 1: That's a great point, Clark. So speaking of 10 years from now, what do you see as some of the interesting trends that are on the horizon, or more specifically, what are the considerations for accelerating not just the recovery, but resiliency in the hospitality industry?
SPEAKER 2: I love that question, and it's something we talk about every day, both across the industry, even more focused in our particular geographic focus, but even, I think, across businesses around the world, everyone is thinking how do we increase resiliency? How do we become less vulnerable in an era of vulnerability? How do we become more certain in a time of almost unfathomable uncertainty? And to answer your question, I think we do two things looking forward to say 2030, 2035. I firmly believe this will still, and forever be, a people business. People will feel the emotions around a vacation.
So for example, a vacation isn't six bedrooms, and a kitchen, and an oceanfront pool, and a beach walkway. It's a family memory of my five-year-old daughter running down that walkway and jumping in the ocean. And we feel that. But at the same time, we will need to hallmark that experience with every facet, like a diamond, with a ease and comfort of that digital engagement. And I think that within all of that, within the recognition that this is still ultimately a human feeling, a human experience, that will have to be structured around a digital transaction.
I'll return to something else I said. There also has to be enormous trust and credibility. And I think that occurs through transparent accessibility and empathy. Across our country, across the world, for example, over the past 12 months, we've seen multiple fault lines, particularly here in the United States, whether it's the pandemic, whether it's financial questions, whether it's questions of diversity and inclusion and equity. All of those things are related to trust, and as a result, even the Harvard Business School has begun to focus on the trust crisis that is going across America in our institutions right now.
The only way our human experience will trust the digital interaction is that it will always have to be based on a credible and trust-based validity and belief in that experience, in that digital interaction. So I think to do any one of those things is necessary, but not sufficient. The only way to make a sufficient experience is to do each of those things consistently and reliably, and then going forward to 2035, creatively.
SPEAKER 1: Thank you, Clark. I think those are powerful statements. I think my big takeaway from this is that the heartbeat of modern customer experience is certainly in data and analytics, but then the soul of modern customer experience is in that human touch that you mentioned. So great spot to wrap up this discussion. Thank you both so much, Clark, for being on the show.
SPEAKER 2: Wilson, my pleasure. I would love to come back any time. Great job.
SPEAKER 1: And you're most welcome. That's it for this week's episode of Reimagine Marketing podcast. If you enjoy today's show, be sure to head on over to SAS.com/experience2030. To join the conversation and discover our fantastic bonus content, you can also subscribe to the series on your favorite pod catchers for show notes and hear previous episodes. Again, I want to thank Clark, and we'll see you on the next episode of Reimagine Marketing. Thank you for listening.
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