In an era where customer experience reigns supreme, the hospitality sector is continually seeking innovative ways to engage guests, drive loyalty, and stay competitive. Amidst this landscape, Composable Digital Experience Platforms (DXPs) have emerged as a powerful solution, offering unprecedented flexibility, scalability, and agility. In this article, we delve into the business case for implementing Composable DXPs like Sitecore and Optimizely within the hospitality sector, exploring the unique opportunities they present for hotels and resorts.
The Definition of Composable DXPs
For those unfamiliar, a Composable DXP is a modular and flexible framework for building and managing digital experiences across various channels, such as websites, mobile apps, and other digital touchpoints, and which goes beyond just a traditional Content Management System. Unlike traditional monolithic DXPs, which offer a one-size-fits-all solution through a bundled suite of features and functionalities, a Composable DXP follows a modular architecture, allowing organisations to assemble bespoke solutions by integrating best-of-breed components from either a single or multiple vendors.
At the core of a Composable DXP is the principle of decoupling individual components, such as content management, personalisation, analytics, and commerce, into standalone services or microservices. These components can then (theoretically) be integrated seamlessly using APIs (Application Programming Interfaces), enabling organisations to create tailored digital experiences that meet their specific requirements. We say theoretically because we’ll also talk about some of the challenges involved in combining Packaged Business Capabilities from multiple vendors in a moment. But essentially what we are talking about is exposing functionality through APIs, leveraging the full capabilities of the cloud in a headless manner, and where the frontend experience is decoupled from the backend logic.
What’s Driving the Hospitality Requirement for Composable DXPs
Today, many hoteliers recognise that the key to direct bookings lies in creating a digitally tailored website and professional experience commeasurable to the experience the visitor would expect to receive on property. The concept of personalisation now extends beyond the website into targeted advertising, tailored offers, chatbots, and loyalty programs, and is also now of primary focus on property for some hotel chains. In fact, today's travellers expect seamless, personalised experiences across every touchpoint, from booking and check-in to on-site amenities and post-stay interactions.
Additionally, conventional wisdom acknowledges that it costs a minimum of five times more to attract new customers than to keep existing ones, yet repeat customers are generally the most profitable. With Gen Zero supposedly less brand loyal compared to other generations, especially based on negative brand interactions, and Generation Alphas being more technically savvy and wanting to see consistency across both digital and physical experiences, it is hard to see that number reducing in the future. To meet these evolving demands, hospitality operators must, therefore, embrace digital innovation and leverage technology to enhance guest experiences, streamline operations, work to retain repeat customers, and drive revenue growth.
Luckily, advances in the modern data stack allow for the provision of these seamless individual website experiences as storage and compute services, such as those from Microsoft (Azure), Amazon (AWS), Vercel, and Netlify cloud-based offerings respectively, are now independent and relatively cheap. As such, businesses can cherry-pick the most suitable components and seamlessly integrate them into their existing infrastructure. Whether it's leveraging Sitecore's robust content management capabilities or Optimizely's advanced experimentation tools, organisations have the freedom to create tailored solutions that resonate with their target audience.
Pros and Cons
In today's dynamic business environment, where customer expectations are constantly evolving, the ability of hotels and marketing teams to adapt quickly to changing market conditions, guest preferences, and technological advancements is paramount. Flexibility, agility, and innovation, therefore, are at the heart of Composable DXPs and are driving their appeal.
Agility and Time-to-Market are increased as businesses can now rapidly deploy new digital experiences by leveraging pre-built components and APIs. This agility reduces time-to-market for new initiatives, allowing companies to stay ahead of competitors and respond quickly to market demands.
Composable DXPs also offer scalability, both horizontally and vertically, allowing businesses to handle increasing traffic and data volumes efficiently i.e. dynamic scalability through techniques like Static Site Generation (with incremental options for a better editing experience). If you have ever sent out a marketing campaign, only for your website to fall over under the weight of page requests, you will understand the benefit of scalability.
By adopting a composable approach, businesses can, therefore, drive cost efficiencies by only paying for the components and services they need. Additionally, composable architectures often offer subscription-based pricing models, which can be more cost-effective than traditional licensing agreements, especially for smaller businesses or those with fluctuating demand.
Composable DXPs essentially foster innovation by enabling businesses to only pay for required products within a single vendor ecosystem whilst also being flexible enough to leverage the latest technologies and integrations from a diverse ecosystem of vendors to reduce vendor lock-in if you so choose.This flexibility allows companies to stay at the forefront of digital trends and leverage emerging technologies such as AI (both Optimizely and Sitecore, for example, include content intelligence already where text and imagery can be created through prompts directly within their platforms), machine learning, and IoT to enhance customer experiences.
Ironically, the same flexibility can also cause problems through integration complexities and potential compatibility issues when looking to create a totally bespoke tech and marketing stack using products from multiple vendors. Combining components from different vendors may require additional resources and time to integrate or could require additional governance and monitoring to ensure the seamless integration required. Having said that, products from Optimizely and Sitecore can normally be integrated with as little as one line of JavaScript code, although server-side integration can be utilised for more complex implementations.
Of course, multiple vendors will mean increased management overheads in terms of procurement and contract management, as well as ongoing maintenance and support. This might not be so much of an issue, but when integrating multiple third-party components, you will want to make sure that you are not introducing potential security vulnerabilities and compliance risks, which ideally should be addressed through proper security measures and compliance frameworks.
Lastly, with multiple vendors, you may become dependent on the stability and longevity of those vendors. As Google proved in September 2023 with the sunsetting of its personalisation product, Google Optimize, nothing is a given. However, unlike Google, personalisation is the bedrock of Composable DXPs like Sitecore and Optimizely, and with them both also being stable, multi-billion dollar companies, you are highly unlikely in this regard to make a bad choice in selecting either one of them.
And So The Business Case...
- Personalised Guest Experiences
In the hospitality sector, personalised experiences are paramount to guest satisfaction and loyalty. Composable DXPs enable hotels and resorts to leverage data-driven insights to deliver personalised experiences that cater to individual preferences and behaviours. By integrating customer data from various sources, such as booking history, loyalty programs, and onsite interactions, hospitality marketers can create tailored experiences that anticipate guests' needs and exceed their expectations. Whether it's recommending personalised amenities, curating custom packages, or delivering targeted promotions, Composable DXPs empower hotels to foster deeper connections with guests and drive repeat bookings.
- Seamless Multichannel Engagement
A similarly related theme to personalised guest experiences, guests interact with hospitality brands across a multitude of channels, including websites, mobile apps, social media, in-room TV information systems, and email. Composable DXPs enable hotels and resorts to deliver seamless, consistent experiences across every touchpoint, regardless of the device or platform used by guests.
By centralising content management and orchestration capabilities, Composable DXPs ensure that guests receive relevant, up-to-date information at every stage of their journey. Whether it's browsing room options, making reservations, or accessing concierge services, guests can enjoy a frictionless experience that enhances their overall satisfaction and loyalty to the brand.
- Operational Efficiency and Cost Savings
Streamlining processes, automating routine tasks, and optimising resource allocation can achieve tangible benefits in terms of operational efficiency and cost savings. Simple-to-use tools can speed up page creation and aid in time to market, or can streamline the creation of marketing campaigns through simplified collaboration with partners.
- Data Driven Insights and Analytics
Data is the lifeblood of modern hospitality operations, providing valuable insights into guest behaviour, preferences, and trends. Composable DXPs, therefore, generally offer robust analytics and reporting capabilities that enable hotels and resorts to harness the power of data to make informed decisions and drive business growth. By leveraging these advanced analytics tools and machine learning algorithms, marketing teams can gain actionable insights into guest demographics, booking patterns, revenue drivers, and more. This enables you to refine marketing strategies, optimise pricing and packaging, and identify opportunities for upselling and cross-selling, ultimately driving revenue growth and profitability.
- Future-proofing and Innovation
For hospitality establishments, future-proofing technological investments is a must. Composable DXPs, with their adaptable nature, provide a flexible foundation that allows hotels and resorts to quickly respond to emerging trends, technologies, and guest preferences, ensuring they stay ahead of the curve.
By embracing a modular architecture, hospitality establishments can seamlessly integrate new features, services, and innovations into their digital experiences without disrupting existing operations. Whether it's incorporating AI-powered chatbots, implementing contactless check-in solutions, or experimenting with immersive virtual experiences, Composable DXPs empower hotels and resorts to innovate and differentiate their offerings in a competitive market.
Conclusions
In summary, the business case for implementing Composable DXPs like Sitecore and Optimizely in the hospitality sector is compelling on multiple fronts. Optimizely and Sitecore’s ability to offer flexibility, scalability, innovation, and cost efficiency underpins the hotelier’s ability to deliver exceptional guest experiences, drive revenue growth, and stay competitive in a dynamic market landscape. Whether you're a boutique hotel, a luxury resort, or a global hospitality chain, Composable DXPs offer the tools and capabilities needed to transform your digital presence and elevate your brand in the eyes of today's discerning travellers.
Of course, we don’t preclude the ability to mix packaged business capabilities from different vendors. Instead, if you are looking to adopt that approach, our advice would be to embed one capability at a time rather than go for a “big bang” adoption strategy.
Include Agency is a widely respected Optimizely, Sitecore, and Uniform implementation partner with a wealth of experience in delivering bespoke solutions for leading hospitality brands. If you would like to discuss anything in this article or if we can help you with your own Composable DXP projects, please reach out to us.
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