L2inc.com video above published Dec 6, 2018: Hotels should fear Google (google.com) and Airbnb (airbnb.com) the way retailers fear Amazon (amazon.com) says Scott Galloway.
Transcript (auto-generated)
00:00 a loser the hotel industry today we're
00:04 gonna look at one of my favorite
00:06 industries no joke I love hotels I
00:08 traveled to hotels not to cities and
00:11 some would describe me as
00:12 high-maintenance I don't think that's
00:14 true my needs are pretty simple all I
00:15 want is a quiet corner suite on the
00:17 second floor two fire exits triple wash
00:19 hypoallergenic sheets no connecting
00:22 doors with prayer rugs facing the
00:24 nearest Chipotle of course a view of the
00:25 sunset over the Sistine Chapel seven boxes
00:28 of starch saran wrap and a babysitter
00:30 from my therapy monkey here we go loser
00:34 Marriott the world's biggest hotel
00:37 company revealed last week hackers stole
00:39 personal data from over 500 million
00:43 that's right 500 million guests Marriott
00:45 has half a billion guests making it one
00:48 of the largest hacks of a corporation
00:51 following Yahoo's premier hack in 2013
00:54 the news hit Marriott stock heart though
00:57 analysts say it shouldn't impact
00:58 financials for the long-term Marriott
01:01 announced it was their Starwood guest
01:03 reservation database that was hacked and
01:06 that hackers had access since 2014 the
01:10 hotel giant acquired Starwood back in
01:12 2016 one of the key selling points of
01:15 Starwood to Marriott our technology and
01:18 our brands oops this is what's called an
01:21 indemnity reserve account when you
01:23 acquire a company and force them to take
01:25 a certain percentage sometimes between
01:26 10 and 18 percent of the consideration
01:29 put it aside in case goes down
01:32 that's a function of things that weren't
01:34 disclosed before the acquisition there's
01:36 going to be a lot of discussion about
01:37 that indemnity account over the next few
01:40 weeks at Marriott so what else could
01:42 keep hoteliers up at night
01:44 simple Airbnb which in my opinion is the
01:47 most valuable private company in the
01:48 world right now
01:49 we just don't know it yet it's grown
01:51 from being an elephant in the room to a
01:53 clear and present danger
01:55 Airbnb site gets over 40 million monthly
01:57 unique visitors more than hotel Giants
01:59 Marriott and Hilton combined and the app
02:02 is the fourth most popular travel app on
02:04 iTunes trailing only Uber Lyft and Yelp
02:08 leaving hotel apps in the dust this year
02:12 Airbnb has launched two a dish
02:14 channel offensive moves to fortify their
02:15 moat one Airbnb Plus which tags their
02:19 best properties and adds hotel like
02:21 amenities and check-ins putting luxury
02:23 hotels squarely in their crosshairs and
02:26 to Airbnb experiences which has over
02:29 5,000 activities that can be booked on
02:31 the app and the new feature is a good
02:33 move from both a usage and search
02:35 perspective Gartner L2 Research found
02:38 that 50% of Airbnb x' unbranded search
02:41 traffic comes from things to do in New
02:43 York City or things to do in Los Angeles
02:45 or whatever city you're traveling to the
02:48 visibility enables Airbnb to compete for
02:50 traffic usually owned by TripAdvisor and
02:52 news media like CNN Traveler and
02:54 Thrillist don't we love it the disruptor
02:56 is not only disrupting traditional
02:58 industry but disrupting the disruptors
03:00 specifically TripAdvisor Airbnb is
03:02 currently valued at thirty 1 billion
03:04 dollars second only to Uber and is
03:07 expected to pursue an IPO in 2019 look
03:10 for Airbnb to be worth more than uber
03:12 why you and I could start a ride hailing
03:15 app with 30 million dollars creating
03:17 supply and demand in one city however
03:19 Airbnb takes advantage of an
03:21 unbelievable mode and that is they have
03:23 global demand we could not start an
03:25 apartment or an outsourced hotel app
03:28 with local supply because we would need
03:31 to create global demand is the majority
03:33 of the people coming into the city are
03:34 from somewhere else the other threats of
03:36 hotels Google Hotels should fear the
03:39 search engine the way retailers fear
03:41 Amazon their first Advantage search
03:43 ownership after years of serving up text
03:46 ads where Hotel searches Google is now
03:48 leveraging search results to drive
03:49 traffic to their own booking experience
03:52 where they again profit from Google
03:55 hotel ads Gartner L2 Research found
03:57 that the Google hotels tool appears 99%
04:01 of the time for search terms including
04:02 Best Hotel in Chicago and luxury hotel
04:05 in Paris in sum Google and all the
04:07 other tech monopolies have a very simple
04:09 playbook hey we can help you hey we are
04:12 you hey we're here to kill you
04:14 Google's second advantage data Google
04:16 sits on massive amounts of user data
04:18 enabling it to pump out free tools that
04:21 help travelers take advantage of travel
04:23 deals this will continue to draw users
04:24 to their platform over online travel
04:27 agencies
04:28 search platforms and hotel brand sites
04:30 hotels beware Google and Airbnb the
04:34 Genghis Khan of your industry look for
04:36 the hotel industry to shed value to
04:39 search engines and to Airbnb we are on
04:42 the precipice of war against a hotel
04:44 industry ...
