GLOBAL REPORT—Previously dismissed as a relic of the early computer age, virtual reality has found new life as advances in technology continue to bridge the gap between crude digital experiences and the infinite complexities of the real world.
The hospitality industry has taken notice, as most recently evidenced by the Marriott Hotels brand’s launch of its “VRoom Service” in select properties. Announced in September, the service allows guests “to order inspiring virtual reality experiences to their rooms,” according to a news release.
With the help of a VR headset and accompanying headphones, Marriott guests follow real travelers to unique destinations to hear stories about why the immersive locale is so important. The first three of these so-called “VR Postcards” include the Andes Mountains in Chile, an ice cream
shop in Rwanda and the streets of Beijing.
In addition to generating media buzz, Marriott’s move was an early business application of the technology—although it is by no means the first.
Tour operators and destination marketing organizations have been using the technology for months. The result has created more than just a media splash, but also revenue ripples that are driving other aspects of their businesses.
Sources said the hotel industry is ripe to follow suit, particularly as advances have made VR technology more affordable and accessible than ever.
Visit St. Petersburg/Clearwater
Visit St. Petersburg/Clearwater in Florida debuted its VR goggles at the IPW trade show in Orlando, Florida, in May.
“The response was sensational,” Executive Director David Downing said. “We had 500 people come to our booth to experience the destination through the goggles. And it wasn’t just anybody; these were major companies in the tourism space.”
Downing said it’s difficult to quantify the exposure gleaned as a result, but he said it “more than paid for the amount we have invested in it.”
Executives at the DMO hired an outside firm to create the first videos. After seeing advancements in technology, however, they felt comfortable tasking their own in-house marketing team with production.
All it took was an approximate investment of $5,000 to buy the necessary camera and software needed to capture immersive, 360-degree video footage.
It didn’t take long to start cranking out content once the equipment arrived, Downing said. “By later that afternoon, we had created our own 360-degree video experience. Granted, it was of the office lobby.”
Subsequent videos serve far more practical purposes, such as highlighting the region’s top five meetings spaces. “If you’re a meeting planner, you can go and experience those,” Downing said.
Do meeting planners—or any potential guests and travelers, for that matter—need specialized equipment to view the footage?
Decades ago, the answer was yes. But today the only things required are a smartphone and cardboard headset to hold it, Downing explained.
“At the heart of this technology is really just a cellphone,” he added.
Marketers can brand cardboard versions of VR headsets and then send them via mail.
“It’s the technology of how the video is put together that makes it special. It’s not the piece of hardware. It’s the software. … You can download this file, download it to your own personal phone, drop it into these cardboard goggles and view it that way,” Downing explained.
Does he see potential in the hotel space?
“For hoteliers, it’s the perfect marriage of technology and price point. It’s finally come together where the technology and price point is very reasonable. If you want to have someone tour your golf course suite, there’s no more immersive way than through this technology,” Downing said.
But a word of caution: “This won’t make any destination more beautiful,” he said. “In fact, quite the opposite. The level of details in these videos is surprising. Unless you’re prepared to share that level of detail, you’d better be careful to apply this technology.”
Destination British Columbia
The Canadian DMO does not have hard data to measure the impact of its “Wild Within” VR promotional video series, “but the feedback we are receiving from all clients after experiencing the video is extremely positive,” said Maria Greene, director of overseas marketing. “They are amazed at the remarkable tourism experiences.”
The DMO recently loaded its content onto YouTube to increase its exposure even further, she said.
“This increases the availability of the videos to not only tour operators and media but consumers,” she added.
Greene has seen some successful uses of VR technology in the hotel space. Destination British Columbia is actively exploring opportunities for further promotions with hotel partners, she said.
Thomas Cook Group
London-based travel company Thomas Cook Group started using VR in 10 of its brick-and-mortar retail stores in the United Kingdom, Belgium and Germany in January 2015.
“We use VR to promote our primary holiday destinations including Greece and Cyprus as well as city breaks to destinations such as New York and Singapore. This gives our customers the chance to see their hotel facilities as well as local activities and excursions, helping bring holidays to life,” said Kudzai Manungo, VR project manager, via email.
They, too, are using cardboard headsets to make the content more accessible to would-be travelers.
“Visitors to five of our Thomas Cook retail stores in the U.K. can now pick up copies of the new Red Sea Riviera brochure as well as an accompanying (cardboard) headset. The content pages of the Red Sea Riviera brochure provide details of how customers can download the ‘Holiday 360’ app from App Store and Play stores.
“Once downloaded, customers can use their mobile phones and … headset to get a fantastic insight into the destinations and holiday experiences Egypt has to offer. This bespoke content features videos of six specially selected Thomas Cook hotels and resorts in Egypt, offering customers the chance to see what they will experience while on holiday, as they discover the layout of their hotel, resort and beach,” he said.
The group has seen an increase in destination excursion booking as a result. For New York City in particular, sales were up 180% in one U.K. store “within the first few months of our VR launch,” Manungo said.
Thomas Cook could roll it out to other retail locations if the VR trials continue to prove viable.
Manungo said the costs are not prohibitive and vary depending on the type of experience you want to create.
“From our experience, there is definitely value in companies investing in VR,” he said. “Taking an experiential, light touch approach to start with helps to understand how customers feel about the technology, identifies where the value might lie and gives the technology a chance to develop and evolve as it is an area of rapid progress and advancement.”
He thinks hoteliers could play a big role in that advancement.
“Hoteliers could, for example, provide guests with content to create immersive point-of-interest experiences, perhaps done in partnership with local restaurants and excursion providers,” Manungo said.