Skip to content

Customer Centric Differentiation in Entertainment & Hospitality


Holistic Customer Experience Approach

According to World Travel & Tourism Council (WTTC), the Entertainment and Hospitality Industry is currently an $8 Trillion industry today and will grow to $12 Trillion by 2020.

It is also a very accurate indicator of the global economy – the canary in the coal mine. If global economy is down due to any reason, E&H falls steeper and deeper and almost real time – a true barometer of the global economy. At RCG, we break down Entertainment & Hospitality industry solutions are broken into 3 sub-segments:

  1. In Travel & Leisure – parks and resorts, cruise lines, car rentals, airlines and mediators in between
  2. In Lodging – vacation clubs, hotel chains, etc.
  3. In Media & Entertainment – Content producers, Content aggregators, Digital right management companies, TV distributors, etc.

The RCG Entertainment and Hospitality industry solutions focus on the changing market dynamics of travel & leisure, lodging, and media & entertainment companies where customer-centric differentiation is the key value discipline for most companies. The new consumer is

  • more knowledgeable with internet and mobile accessibility, online consumercreated content and social networks. Price and convenience are essential differentiators for most players.
  • more empowered and demands unique requirements, tailored communications, and self-service and multi-channel options. Speed, volume, and transparency associated with internet travel distribution has put new pressure on most companies to re-calibrate their value chains.
  • more diverse since there is a lot of global and local influence and the consumer is very individualistic and demanding more convenience. Data-driven personalization and destination flexibility is key for companies to compete.

Think about the typical traveler (business or leisure) experience:

  • You look at a poster of Bahamas. Right there is a QR reader for you to see the top 3 hotels, car services and sea excursions.
  • You have an app called TripIt – once your itinerary is up, they will send you emails 1 day before to check-in. If there is a volcanic eruption in Iceland, they will show you 2 hours before flight that it is cancelled. Options for another flight right there. No running to gates with 500 other passengers and trying to use your Elite status to get another seat home.
  • A lot of industry players are offering Travel Diary or “Traviary’ - for before, during and after pictures/comments
  • When you land after a certain flight – your car rental company (Hertz, Avis, National, etc.) sends you a message/ email that your car is in a certain lane.
  • And especially with generation Y - 80% business can be lost in less than 10 seconds response. If your mobile or website waits more than 5 seconds, typically people hit BACK button. After 2 more attempts you have typically lost the business.

So all these customer touch points are dictated by only one word – EXPERIENCE. That is what the process and technology platforms have to deliver and enable the human interacting with the customer. And this EXPERIENCE starts much BEFORE traveler walks into the property.

RCG offers its clients a very customer-centric transformation - incorporating the customer’s perspective into the company’s business and operations strategy, capability development, and execution to improve business performance. We help our clients with relevant, practical, and innovative solutions that include but not limited to:

  • Insight Driven Marketing and Loyalty Management
    • Solutions to drive loyalty program participation and guest satisfaction
    • Execute targeted online marketing campaigns
  • Optimize Inventory and Revenue Management
    • Utilize website analytics to build models to predict demand and availability
    • Optimize inventory and pricing through integration of data-driven predictive forecasts
    • Push automated information and offers through optimal channels
  • Integrated Distribution
    • Develop data-driven single and integrated view of sales and inventory
    • Effectively manage call center operations and productivity
  • Strong Web and Mobile platforms
    • Build-out world-class Web capabilities
    • Build and integrate the Mobile platform (native or hybrid)

Global Trends in the Travel and Lodging Industry

In all the work that RCG does in this space, we have observed the following global trends within the Travel & Leisure industry:

Strong Consumer Pressure

  • Greater demand for personalization, destination, and flexibility
  • Increasing demand in selfassembling holidays - readiness for self-packaging of trips (DIY)
  • Speed, volume and transparency associated with internet travel distribution
  • Amenities and renovations migrate from “differentiators” to “must-have's

Market changes and uncertain economy

  • Rapid growth in emerging markets
  • Timeshare and fractional hyper growth
  • Consolidation (M&A) of the main players

Strong competition

  • Low product differentiation
  • Increased direct to consumer channels (disintermediation of the value chain)
  • Emergence of niche travel and specialist operators

Operating model challenges

  • Price erosion and low profits
  • High Yield Management / Revenue Management - Inventory and Pricing optimization
  • Inefficient and high cost legacy systems
  • Lack of integrated multi-channel capability

Recent Challenges for the Travel and Lodging Industry

RCG looks at key shareholder value drivers for this industry and since Customer Experience is key for revenue growth and Efficient Operations is key for the bottom line, this industry faces the following five challenges

1. Building Powerful Brands

  • Define the unique brand positioning based upon the guest experience
  • Deliver a signature and consistent guest experience
  • Create and leverage scale globally

2. Revenue Management / Yield Management

  • Utilize scientific models to predict demand and availability
  • Optimize pricing and yield through integration of predictive forecasts, guest value, and local market conditions

3. Robust Development

  • Develop and execute compelling value proposition to property owners and franchisees
  • Proactively manage franchisee and property performance

4. Insight Driven Loyalty & Marketing

  • Drive loyalty program participation, insight management, and guest satisfaction
  • Execute targeted and intelligent closed looped marketing campaigns
  • Establish optimal marketing mix across different media to drive sales and brand identity

5. Integrated Distribution through Web / Mobile platforms

  • Develop single, integrated view of system wide inventory and channel demand
  • Build-out world-class direct web / mobile capabilities
  • Effectively manage call center operations and productivity

RCG Solutions Across the Entertainment & Hospitality Value Chain

RCG’s Entertainment & Hospitality practice assists clients in building process and system capabilities to manage the value chain in an efficient and effective manner.

From the supplier (hoteliers, amusement parks, airlines, etc.) to the consumer, there are players like consolidators, tour operators, global distribution systems, and local distributors, etc.

  • Publishers : AAA, Frommers, TUI, Lonely Planet
  • Aggregators/ Portals : Kayak, Yahoo Travel, Trip Advisor
  • Offline Agencies : AmEx, AAA, Thomas Cook
  • Online Agencies : Expedia, Travelocity, Orbitz
  • Packagers : Contiki, Pleasant Holidays

We help break the value chain into its components and build the processes, systems, and organizations behind each piece.

RCG has developed systems, processes, and organizational capabilities across the value chain as depicted below:

RCG solutions help clients improve productivity, optimize processes, increase revenue, control costs, and drive innovation through the effective use of technology integration and data-driven solutions in the following areas:

  • Sales and Agency planning
  • Product Design, bundling, and packaging
  • Distribution Mix Management
  • Contract Management
  • Scientific Pricing and Yield Management
  • Multi-channel Marketing
  • Catalog Management
  • Booking and Fulfillment
  • Real-time Inventory Management
  • Customer Contact Management
  • Workforce Management

RCG Technology Innovation Labs for our Industry Solutions

RCG has invested tremendous resources incutting edge areas that include Big Data andData Science.

These assets are helping Entertainment & Hospitality clients with new areas like Social CRM, Network Analyses, etc. With the advent of Social Media, this is not only about a new channel but rather about a fundamental shift in how to engage and interact with more empowered customers.

  • Completes the seismic “shift of power” to consumers. Customers, with their feedback, can influence all things and become coowner of the brand.
  • The Social CRM wave is not about anonymous mass nor individual customers, but about individuals within a community, with influencers, creators, and final consumers.
  • Lines between Marketing, Sales and Service are further blurred beyond traditional frontiers.
  • Analytics and Technology become critical enablers and need to embed real-time agility, flexibility, security and repeatability.
  • This requires a proactive and agile CRM approach to embracing this highly dynamic environment.

Leaders must take the first critical step of changing their mindsets and revising some longheld beliefs about building and managing customer relationships. The traditional maturity model by Jerome McCarthy of 4Ps (Product, Price, Promotion, Place) has another dimension of 5th P, People.

RCG in Media & Communication-Enabling the Digital Lifestyle

The third component of our service offering is in the area of Communications, Media, and entertainment. This comprises of the following players:

Communications Service Providers

  • Mobile Network Operators
  • Internet Service Providers
  • Virtual Network Operators & Enablers


  • Audio/Video/Print media creators and distributers via Radio, Television, Cable, Internet, etc.
  • Publishing of printed and electronic media including books, maps, charts, newspapers, magazines, periodicals, etc.
  • Writing, editing, and translation Services


  • Entertainment Services including casinos and gambling, lotteries, etc.

The global trend in this industry is that there is a major blending of devices, content, and networks and all the players are using blended economics to grab multiple potential revenue streams. There is key focus on areas around Digital Rights Management as lines blur between content aggregators and distributors. With migration to IP-based networks and more user generated content, “Nonlinear” models will win since consumers demand more time shifted streamed content/ VOD. Originally characterized by a strict separation of roles, this industry is currently evolving into a complex ecosystem.

Sample RCG Entertainment & Hospitality Projects

cdn2.hubspot.nethubfs5230018Social Post Imagescheerful-colleagues-digital-device-1432942-1
Learn more about how RCG has helped different entertainment and hospitality businesses

Ad Sales Data Strategy

Increased Ad Sales across 14 television networks via enterprise data management strategy and subsequent EDW implementation.

Property Management

New architecture for inventory and product supply management to enhance block management and budgeting capabilities.

Vacation Property Shopping Experience

Improved member satisfaction with enhanced online shopping and member booking web environment. Back-of-house Restaurant Helped a Quick Service Restaurant to split the POS front counter from the back-of-house RMS. Data integration solution that to enhance labor and inventory management capabilities.

Television Programming Scheduler

Designed workflow and built automated programming scheduler for large cable TV network

Download a PDF version of this white paper by filling out this form