NEW ORLEANS— If there’s any doubt lodging is entering a brave new world, Hilton Hotels EVP Tom Keltners’ drill down of what it takes to have effective customer service during a general session at Hilton’s focused-service brands conference is a telling bellwether. Having run through some of the impact of economic and market changes, and some operating results for Hampton Inn, Hampton Inns & Suites, Hilton Garden Inn and Homewood Suites, Keltner turned to relationships, terming them the next frontier to building market share. He sent heads tilting, however, when referencing his walk-on music (“Fantastic Voyage”) and began to explain how the term “funk” has changed, going from a definition meaning depressed to now signifying being edgy and hip. He noted in today’s market, problems arise because “many managers are in an old-fashinoned funk because they don’t understand how to develop relationships in today’s funky times. Times are funky because consumers are funky. They’re not at all like they were 15 years ago: they’re quirky, demanding and balkanized. Hooking up with them takes skill.” Citing some vignettes from the book “Funky Business,” which illustrated what can happen to a person or business by failing to keep up with changing business paradigms or remaining observant of industry players (they often tank), Keltner said brand owners and managers need to heed signs of today’s funky times. “The competitive landscape never stays the same. Funky business is what we have today, and it’s been created by changes in technology, institutions and lifestyles. Gone are all the formulas we’ve counted on,” he said. He noted four areas that impact the current dynamic: * Speed— “Forward momentum isn’t good enough. Fast is critical…Customers want what they want when they want if. Funky times require quick delivery and quick perception of value.”; * Information— “We’re drowning in it…Most business information analyzes the past…Funky times require information to provide clues to the future.”; * Abundance— “There’s more choice than we know what to do with…each day the average American consumer gets exposed to over 247 ads. It’s hard to get noticed. To attract and keep customers we have to provide them with experiences that are immediate, intense and instant— and in accordance with their expectations.”; * Blur— “The neat categories we’ve developed to organize people, things and events don’t apply anymore…the line between work and leisure has disappeared…tribalism has arrived…we derive our identities from being part of groups. Funky times put a demand on understanding how to hook up with people who define themselves by who they are, not what they do.” Keltner wrapped up his innovative take by advising attendees that even though consumer needs have changed dramatically, “in the midst of the land of Funk, we still have to deliver the right things to the right people for the right reasons at the right time. In the context of that reality, one thing never changes: the importance of values. We just need to adapt our enduring values to today’s funky times.”
