Michele Fitzpatrick, CEO
Since 2012, Michele Fitzpatrick has
been CEO of U.K.-based Eviivo, which provides a cloud-based booking and property
management platform.
Eviivo is used by more than 20,000 independent
properties, from vacation rentals and boutique hotels to cabins, apartments,
villas and luxury B&Bs. The company has five global headquarters.
You’ve
been with Eviivo for a decade. What would you say is the biggest change that
you've witnessed - both at the company and the industry that you serve – in the
past 10 years?
First,
digitalization. Ten years ago, two thirds of accommodation providers we spoke
to were using pen and paper! Today, well over two-thirds now have a
website, and they’re also using an essential channel manager and sometimes
other technologies, too.
Also,
10 years ago, travel agency APIs were in their infancy and barely handled
photos, content, policies, extras and payments. Eviivo has been a leader in its
modernization. In fact, we were the first company to introduce full content
APIs as early as 2016 at Expedia’s Las Vegas show and the first to introduce
card decline APIs with Booking.com a year or so later and now fully automated
opt-ins with Airbnb.
As
our industry continues to evolve, we believe the main challenge for several
accommodation providers is having to manage the many disparate apps they have
purchased over time. That’s all very well if you are the only user, but if you
are managing teams or multiple properties, it is often too much to
handle. The lack of integration drives high levels of manual work,
reconciliation issues and limits the speed at which accommodation providers are
able to benefit from advances in technology. When an online booking
platform evolves, it is one thing to have your channel manager keep up to date
with these changes, and another to see them supported and carried through to
your PMS, your accounting system and CRM of comms systems. Accommodation
providers simply do not have the time and resources necessary to write
software, manage all these APIs, or spend endless cycles rolling out, learning
and updating different technologies, apps, payment systems and extranets.
A
multi-property, multi-channel platform –including booking channels, advertising
channels, communications channels and payment channels – where APIs are
literally invisible and fully built-in, are the standard. Native integration
allows accommodation providers to automate key repetitive workflows and ensure
their guests and staff well-being. The less technology there is to learn and
manage, the quicker they’ll reap its benefits. Ultimately, a unified all-in-one
platform that seamlessly brings together all the tools that are most vital to your
business is unarguably the future.
Another
more recent change is the rising popularity of hybrid business models. Five or
six years ago, B&Bs and boutique hotels would see Airbnbs as a “threat” and
“competition” rather than an opportunity. COVID changed this structure: privacy
and isolation have now become a desirable commodity, and domestic travel has
been deemed a safer option. We have seen more and more guest houses, B&Bs
and hotels convert their accommodation into vacation rentals, or deploy
additional self-contained units on their estate, farm or ranch. We see
more and more online booking platforms diversify to better service all
accommodation segments.
And
the vacation rental space has changed too. Some property management
companies have started to balance their portfolio between short-term and
long-term tenancy in order to minimize risk, and vice-versa. At the same time,
traditional realtors and letting agencies are developing online short-term
rental activities, and some of the most successful individual Airbnb hosts have
now started to offer their property management expertise to other hosts as a
new full-time business.
What
is the biggest challenge or frustration you hear from your clients?
Many
of our clients are small independent accommodation providers and boutique
hotels. I believe they have felt ignored or disheartened during COVID. While
large online booking platforms primarily focused on the consumer, governments
were focused on saving jobs or saving bigger businesses. Mainstream media
tended to give more airtime to retail, pubs and restaurants, and payment providers
often blocked payments or required impossible deposits as the number of
cancellations rose to proportions never seen before.
As a
result, small independent accommodation providers have been vocal about
falling in the gap. Of course, everyone wanted guests to be safe and happy… but
many accommodation providers felt that the pendulum had unfortunately swayed
away. While COVID seems to be more under control, global uncertainty,
especially in Europe, still weighs heavily on everyone’s mind. The challenge
now is to learn to cater for domestic audiences, since business and
international travel are likely to take a little longer to recover.
Another challenge is the
introduction of 3DS2. 3DS2 is disrupting the flow of card payments among guests,
agencies and the accommodation provider. Unfortunately, the financial industry
has not fully thought through the impact of 3DS2 on hospitality. The great
majority of bookings originate online on websites that are not necessarily the
accommodation provider’s own website, such as travel agencies, tourism boards,
local associations or airlines. 3DS2 requires real-time authentication,
and a much larger number of payment transactions are now likely to fail when a
card is authenticated via another site, and then transferred to and
processed by the accommodation provider when the guest is no longer present to
enter their passcode. Eviivo provides a comprehensive solution to this
problem, but I believe more effort could be made across the payment industry generally.
The tokenization of a guest’s authentication data provides an answer, though it
will take some time before every merchant bank, PSP or travel participant is
able to share and transfer such tokens safely.
What
questions do you get and what answers do you give with regards to distribution
through third parties?
The
supremacy of online travel agencies and the commissions they charge has always
been a controversial topic. No one likes to pay commission — but paying a
commission on a booking is better than not getting the booking in the first
place, and many accommodation providers are actually OK with that.
For
many, a commission can often prove to be the most cost-effective form of
advertising, and the route to increasing revenues. It will often be cheaper
than attempting to manage your own online presence, at least at the beginning,
until you build your own reputation with regular guests.
The
real elephant in the room, when it comes to distribution, is the question of
control. How does an accommodation provider keep control of their brand and
their policies? Travel agencies can impose their own policies at the outset, or
ignore or override the accommodation provider’s policies, payment terms or
prices.
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Also,
there have been many instances where online platforms have redirected traffic
from small accounts toward larger, more profitable accounts, or toward
businesses that convert better. This impacts both players: the properties
whose booking was redirected, and the successful property who sees more of its
direct business being cannibalized. Some travel agencies are listening and
taking steps to ensure they cater better for the needs of the hosts, and
fortunately, platforms like Eviivo provide a multitude of tools and advice to
help you mitigate and keep in control.
Ultimately,
education remains the biggest challenge, and to help accommodation providers,
we offer comprehensive advice and guidance in our resource section, Trade Secrets. Many hosts have a love-hate
relationship with the tier 1 channel partners, yet they do not spend enough
time to best learn how to leverage these tools into becoming steady providers
of first-time guests because all they see are the front-end costs. An easy
solution is utilizing best practices in communications, creating memorable
guest experience, and then inviting these guests to return via less expensive
channels. This can literally be automated to the point that it is as simple as
lather, rinse and repeat while freeing up the host’s time to provide the warm
and inviting environment that seals the deal!
Where
do you see the biggest opportunities for independent properties to drive more
revenue?
To
grow your business, ensure that guests are delighted with their stay, and
encourage word of mouth. It’s an eternal truth. Accommodation
providers need to think about the “human” element; they need to have “a
story to tell.”
I
recently spoke to a provider who had just taken over an inn in the U.K. – the
White Horse. There are some 30 or so White Horse B&Bs who work with Eviivo
alone, and probably a lot more across the U.K. But when you realize that this
particular White Horse Inn is managed by the film studio director who hosted
scenes of The Matrix, when you are invited to combine your stay
with a tour of the studio, all of a sudden, that White Horse becomes a little
more interesting - and everyone likes a good story. If you can get your guests
to tell their story to others — whether online, on social media and to friends
and family — everything will start to take care of itself. An
accommodation provider’s first asset is its location. The second: their story.
The more guests leave with a good story to tell, the better.
The
second lever is to adopt a flexible hybrid business model and give potential
guests the ability to “self-service” and engage with you directly, as often as
possible.
Every
accommodation provider’s website should provide a “build-your-own stay”
feature, just as you would choose toppings for a pizza. And small accommodation
providers in particular should work with their local business community and
find ways of packaging other services in addition to their own. This has
always happened in the offline world: How often have taxi drivers recommended
places to tourists? This is still relatively new online. Think of it as a
virtual concierge service for various communities. Eviivo has launched a
lot of functionality in the past two years to assist with this, including the
ability to merchandise all sorts of extras and packages, or the ability to join
forces with other local providers at no extra cost.
Lastly, due to COVID,
we’re seeing a lot more customers utilizing outdoor space now since there’s a
demand from travelers.
Do
you sense that other forms of third-party and direct distribution will emerge
in the near-future, or is the ecosystem fairly set in place for the moment?
Yes, the industry is vast and there will always be new entrants. The
question is: Will there be new dominant players? Or will we see more
fragmentation? It is hard to say.
I
think the winners will be those who learn how to “go local” and harness the knowledge
and expertise of these local communities to underpin their offer. I
mentioned earlier that more and more traditional brick & mortar realtors
are starting short-term rental activities. They are local, they know the
area and they know where and how to find the right local manpower. They
are ideally placed to combine rental activity with other services such as meet
and greets, cleaning, maintenance and repairs.
A large
number of local associations, visitor bureaus and other communities are also
starting to convert to a full online business model. They were slow to do so in
the past, and many upgraded their website, but often, they did not manage any
transactional flows effectively. These associations are now coming to
market in greater numbers, or acquiring better suited destination management or
booking solutions. Once a community is able to get properly organized through
their local association, once they are able to secure a significant online
presence for a given area, things start to improve, and we typically see an
increase in direct bookings, usually for domestic audiences, especially since COVID.
This type of initiative can also be encouraged by states or local governments.
During COVID, the EU provided a large number of digitalization grants during
the lockdown or helped sponsor local marketplaces. Given the usual
conflicts between private and public sourcing, this may take some time — but
the signs are here.
What
more can hospitality technology do to facilitate and simplify customer needs
such as longer stays, combining work and leisure, etc?
In the near-term, I believe it is about being flexible and offering options –
what I described earlier as “build your own stay.” It is also about being able
to service your service your guests anywhere, at any time, and this means being
able to mobilize your teams instantly! For vendors like ourselves, this means
delivering a high-performance mobile app that is multi-user, multi-property and
multi-channel to all our accommodation providers. We recently launched a new
version of Eviivo Mobile as the first step in
a continuous program of works that will deliver even more exciting capabilities
moving forward.
Where
do you turn for inspiration outside travel?
History
and epistemology! I’m fascinated by what mankind has accomplished. I’m
fascinated by past, present and future inventions.
What
emerging technology has the most potential to impact the hospitality industry?
Today:
mobile and payment technologies. Tomorrow: voice and VR bots.
Mobility and
automation really are the two technologies that are allowing our hosts to do
more with less. Responding to a booking inquiry, followed by communicating with
a staff member question and completing a month-end report, all while being on
vacation yourself will continue to become more and more of a reality.
Prior
to joining Eviivo, you held executive positions with a variety of companies
that include Oracle, McAfee, IBM, Lotus and others. What have you learned from
those experiences that have helped you in leading Eviivo?
Making
sure that Eviivo operates first and foremost as a software company, leading the
way, inventing and resolving all the time. The largest part of our budget is
spent on research and development.
Software
is about automating and solving everyday problems, without sacrificing
optionality for the user. It is sometimes hard to do both and keep things
simple at the same time. The simpler the software, the harder the work
that went behind it — and this is exactly what keeps us all going.
It’s also
personally important for me to have Eviivo connect with the independent
accommodation sector on a “human” level. We may be a software company, but we
truly and deeply care about our industry and the faces behind it. We
continually make great effort to support and recognize property owners, hosts
and hoteliers in hospitality, such as our upcoming Eviivo Awards and
International Week of the Host, because we love to see accommodation providers
thrive in doing what they love — which is providing unforgettable guest
experiences.
During
your career, you’ve held executive and board positions as well as served as an
advisor to private equity groups. What advice do you have for women in travel –
and what will it take for there to be more diversity in the C-suite of travel
companies?
If we
are talking C-suite, women need to think about the hospitality sector as “travel
tech” really, and they should arm themselves with a strong technical or
financial background. But above all, the travel industry needs to provide
greater incentives and more pay equality — and also make room for women in more
senior positions.
If we
are talking about small independent accommodation providers, many of the
owners, if not the majority, are wonderful, self-made women who are very agile
at running these businesses.
What
are your priorities for Eviivo in the next decade?
Our
objective is to deliver a platform that will completely transform the
work-life balance of the accommodation providers who use it.
What
we know about our customers is that their work is relentless, they tend to be
on their feet most of the time, and they’re running the floors or moving from
one rental to the next. Part of our mission is to ease this burden by
ensuring that our platform automates the tasks they love to hate — such as tax
management, reconciliations and invoicing and so on — and accelerate the tasks
they love, such as the packaging of extras to make a stay more memorable,
managing their brand, or engaging in conversations with their guests or with
the owners of the properties they manage.
One
of our customers recently told us that he considered Eviivo as an
invisible staff member. He loved that he did not need to spend much time at all
behind a computer! Indeed, being stuck behind a computer is not the place
to be if you are in the hospitality business.
Last
December, Eviivo released a new version of Eviivo Mobile that includes
multi-property, multi-channel features and the ability to mobilize
housekeeping, cleaning or maintenance teams. We will continue to build more and
more functionality for mobile and find more ways to integrate voice and
virtual reality bots in what we do. Our goal is to free our customers from
their computers, and make it really easy for them and their teams to perform
and share, wherever they are.
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