Enough of the conversation focusing on "Google"?- do a reset & get it right

Enough of the conversation focusing on "Google"- do a reset & get it right

Over the past ten years or so, I have observed business leaders become obsessed with it. I have listened keenly as both entrepreneurs and C-level executives have explained their methods for beating it. I have weighed in on countless panels and group discussions that have centered on it. I have worked with companies that have assigned entire technical teams to manage it. I have watched organizations allow it to become an obsession that will probably put them out of business.

The "it" I refer to is Google.

It is true that to conduct business successfully; you cannot simply ignore them. The behemoth of a company has indeed managed to develop a monopoly type of status in our world. (which is being challenged more and more by Governments everywhere) However, let me ask this question: What if a company was to instead invest every dollar and every minute of effort (currently invested into Google based strategies) into improving their customer experience, delivering differentiation and quality, and building an organic brand based on quality people, content, and deliverables. Would they be better off financially? Would they have seen better growth? Would they have developed fans and advocates? Would they be seen as though leaders and innovative as opposed to transactional services or commodities?

I know the answer to this question can be very complex, so I am intentionally keeping the conversation strategic and philosophical. A conundrum occurs every time the center of the discussion moves towards algorithms, keywords, search, analytics, and everything else part of the Google periodic table. We fall into the century-old trap of playing the game our competitors want us to play, fighting on their turf under their terms, and we always lose big. There have always been "Googles." In the past, there were giant monopolies that yielded only with government legislation. There have always been bullies. There have always been dominant brands that utilize their power for self-gain. There have been abusive dictators and tyrants. The question is, how do we best manage our destiny, and our success, in this world? surely it does not involve dancing to their music?

The travel and toursism space, which I am part of and a fan of, has been particularly concerned with "working it out" lately. I would argue that a few realities prompt this preoccupation.

1) As an industry, we feel more threatened because we have not always been early adopters of technology.

2) We worry about a company like Google sweeping in and taking control of the business.

3) And this is where I lose many of my travel colleagues - we haven't really figured out the model and built it around the guest's needs as well as we could have.

I have had the opportunity to meet and speak with hundreds of travel companies globally over the years. I have been privy to numbers around performance and research around guest expectations. Here is what I can state with certainty. The companies that have been the most profitable and the most successful are not obsessed with beating the Google plan. They don't even imitate the 100% digital approach to the business (sorry OTA's), and they offer hybrid solutions that cater personally to the needs of the traveling guest - whatever that might involve. The fastest-growing channels globally seem to be independent travel agents, and they spend almost zero time working on the Google playbook.

I fear that the amount of focus we place on the business problem this presents is actually helping Google do what we fear most. We are feeding the beast. We are validating their strategy. All of the work and conversation about what needs to happen and how things need to change will end up becoming nothing more than a business case for them. At the same time, I do not doubt that many OTA's should worry, they have had years to get it right, and for the most part, they have not. As a company like Google thinks about expanding, I would predict it will happen via acquiring one of these brands and then a massive investment and expansion. Perhaps the investment and the momentum combined will finally fix the OTA challenge? Or then again, maybe it won't.

In all of these discussions, one of my biggest frustrations is talking about what Google will do and want and what we will do, and what we need happens in isolation. The advantage that the rest of us have is that Travel Consumers are different. Companies like Trendhunter have identified that Millenials and Gen Y and Z all skew away from the humanless digital purchase path and want personalized service, which isn't the OTA or Google model. None of that matters if we have not tuned into the needs of the traveling guest.?

The data giants do not have all the advantages. Amazon tried travel multiple times and didn't get it right - WHAT? Facebook has tarnished its brand so badly by misusing data about its members that they are now advertising on network Television - WHAT? Tripadvisor, which developed a brand based on "grassroots" and "authentic reviews," has compromised that core value to monetize their customers and their data - can we really trust their reviews anymore? Customers are not only the first consideration; they are also intelligent and provide the best predictive analytics of what is coming in the future. Let's keep talking about Google, but let's get the priorities in order when we do!

Bruce Rosard

Co-founder Arival: The Best Part of Travel / Co-host Experience This!

3 年

Lots of great points Frank and in the comments here. My take is that Google (like Facebook) is simply the digital top of the funnel. When the funnel leads to the OTAs who own the top listings due to their keyword spend, the OTAs may/may not convert. The fact is, OTAs are responsible for less than 10% of all bookings for In-Destination Experiences. If Google and Google TTD leads to the operator directly, then that's a good thing, right? Our data also shows that in 2021 so far, non-digital bookings are holding their own. Arival Path to Purchase: Today's Tour Taker, September 2021 How Travelers Book Tours: US Travelers Online via computer: 39% Online via mobile: 31% Over the phone: 22% Walk up at tour office: 21% Travel agent or vacation package: 18% Hotel front desk/concierge: 17% (Totals exceed 100% because travelers may take multiple tours on one trip) So is Google taking over the world? I don't think so. You could argue they are doing as much to support direct bookings (currently with no fee) as pushing customers to OTAs. As far as your point about brand - sure, for attractions and major companies like Disney, Universal, San Diego Zoo, Statue of Liberty, etc... the brand rules. But for SMEs who don't have the funds to build a brand and who are likely to only see a customer once with little repeat, building a brand is really, really hard. The OTAs certainly don't help operators build brand, but Google does. I guess I just don't get it. Sure, we're all concerned about the power that Google has, their data collection, etc., but is that really such a bad thing for our industry? And if it is, what would be better? And no - I don't see Google acquiring an OTA. Never say never, but... "Never"

?? Peter Syme ??

Strategic Travel & Tourism Advisor | Speaker | Travel Tech Advisor | Podcast Host | Adventure Specialist | Community Building

3 年

Performance marketing with google and other platforms are always going to be critical to travel companies for the simple reason that they work when done right. However, once a travel brand is established and it is still needing to feed the beast at the same rate then questions need to be asked. The well publised Airbnb slashing of $800m marketing spend with no great reduction on performance is a lesson for us all but then no one in travel has a brand like thiers. What you are suggesting I believe is correct but needs to be funded with the long term view and that is a luxury not many in the travel sector have due to cash demands. Nothing lasts forever though and google knows this and that is why it is spend billions throwing darts to find the next big thing as the golden goose of ppc will not last for ever.

Thank you for the shout Frank. I have recently developed a curiosity for HAM RADIO. I came across a photo from the 70s with a group of friends calling on their CB car radios as we today pickup our cell phones to say we are on the way to a meeting point, late or already there. I am still (just) of a generation where Almanacs, Encyclopedias and World Atlas were part of many households and education, and all my research was done through reading articles, references to other articles … and all the management that it required to reserve and read papers at the library. Google delivers a better *search* and “index” experience compared to Encyclopedias and Almanacs, as Google Maps does to the Atlas. When I try to identify why one OTA generates more sales than another, when both with the same photos, description, public rate, etc, there can only be two reasons: - marketing and targetting by the OTA - user experience to reach “book/pay” I have strong doubts if Google will go into travel further than advertising and metesearch and jeapordise its advertising revenue. The focus must be user experience, from dream > book > fulfillment > post experience. Facebook is just a other media distribution with a age group older born before 2002?

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Frank Belzer

MBA Strategic Management | Partnership Builder | Cruise, Tourism, Hospitality | Travel Trade Advocate | Sales & Marketing | Organizational Psychology | International Business | Leadership Science | Consumer Insights |

3 年

Andrew Zino Heiko Dobrikow Jay Salyers would love your perspective on this when you have a minute.

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