Transcript Product Presentation

will book online in 2012
Most of them will check
deciding
before
searches were completed
in
in 2011
has become local
for word of
mouth
Online Channels have grown by
in the last four years
is the norm
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This is how the
looks
…which is giving
sleepless nights……..
www.ratetiger.com
They are worried about…
 Increase RevPAR
 Control costs of distribution/
e-business
 Increase exposure
RevPAR
Distribution
Direct sales
Occupancy
Economy
Others
Competition
31%
19%
15%
8%
11%
8%
8%
Challenges
Price is the focus now
while Value has taken
the back seat
“Its all about occupancy, early sales….last thing you
want is to be sitting there with an empty hotel with
three weeks before check-in, and the only option you
have are the OTAs.”
3 star hotel, San Francisco
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Strategy has changed to…..
Focus on direct sales
Reducing commission
More importance to GDS
and working out with more Travel
Booking by Channel
CRS/
Voice
16%
Agents & consortia contracts
“OTAs are competing against
each other and they need to
market themselves better”
NYC, 3 Star
OTA
35%
GDS
18%
Brand.co
m
31%
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The marketing focus is now on…
 Optimise Google (Adwords &
PPC) & SEO to bring more direct
sales
Digital Marketing
 Competing with OTAs
 Yet to take serious note of social
media
None
32%
Social
Media
12%
TravelZoo
20%
Google
36%
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However this has created…
 Continuous struggle with emerging
channels, e.g. flash sites, bidding
sites, social media
Increase
in
Revenue
 Uncoordinated sales strategy
 Under-utilisation of the “Billboard
Effect”
Cost of
OTAs
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Technology is a saviour....
 Channel management has
become the norm
 Revenue management =
Right distribution mix of
Channel
Manager
exposure & cost
 Simplicity, accuracy,
effectiveness and speedy
delivery are the buzz words
RMS
“We definitely added channels because we
wanted to gain more exposure
UK, 4 Star
PMS
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Vision for future…




Direct sales,
More contracts,
Decreased distribution costs, and
Better revenue.
Internet
Mobile
Can't Predict
Social Media
Direct
31%
27%
14%
“We strive for the same
prices everywhere so that
everyone can sell it as they
can”
3 Star, Madrid
13%
15%
Future of Distribution
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To hit the Bull’s eye hotels must…





Understand where the value of Direct
Bookings derive
Have better and more flexible
contracts with OTAs
Learn how to use and exploit the
GDS’s
Install integrated and streamlined
technology to better manage channels
and productivity
Learn about Mobile and Social Media
We are trying to create new budget for
PPC. Different affiliations with websites,
[… we are] meeting lots of partners, like
blogs”
France 4 star
www.ratetiger.com
So where do we look to the near future
for OTAs?
 Keep fresh Content
 Regular updates will ensure changes are
apparent
 You are an active hotel
 The hotel comes up in searches
 Maintain
Availability and Rate Parity
 Travellers can see a transparent pricing
structure
 You commit to all OTAs making them work for
you
 Ranking improves – always on approach
 Take advantage of package offers on websites
 Assess
Distressed Inventory
 Use sites specialising in last minute sales
 Set up
Targeted Ads
 Target ads with OTAs
 Nurture relationship with
Your Market
Managers
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Re-look at your digital marketing campaign

Alternative
PPC strategies
 Approach PPC with a hyper-local perspective
 Channel Selection & Focus – who’s in
your market?
 Gain the most profitable guest, add £5 if it means
better quality

Knowing the value of
Traffic
Brand Reputation
 Understand your guest, your packages, your
competitors, your market position
Promotion
Amber Virani, Sales & Marketing Manager, 4C Hotels.
“We quickly and easily analyse guest feedback from
online reviews so we can understand where there’s a
room to improve. We are now offering more promotions,
special offers and implementing more marketing
initiatives that seems to be of greater interest to our
guests.”
Channels
Volume
Booking
Productivity
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What does the market say about
Northern Ireland?
 Tourism Ireland is targeting average annual
visitor growth of between +2.4% and +5.7%
 Room sales in Northern Ireland's hotels were
11% higher this June compared to last year*
 Overall occupancy levels reached
78% - up
from 70% last year.
 Average hotel room occupancy for 2011 was
greatest in 4/5 star hotels, 61% and lowest in
2 star hotels, 41%
 Occupancy in Belfast remained flat in 2011 but
could see around 6% growth in 2012 taking
occupancy to almost
68%
 ADR - anticipate further declines of
7.6% and
6.5% in 2011 and 2012
 Hoteliers could see four years of declines in
RevPAR from 2009 to 2012
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
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The real scenario
 What challenges are you facing?
 What challenges are you overcoming?
 What opportunities are you seeing for your
hotel?
 What is the region doing to promote itself?
 What markets have you identified for
business?
 What is your group and corporate strategy?
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
www.ratetiger.com
Gaining rate control - Pricing today (07/09/12)
Belfast hotel 1
 Expedia £69
 Own website £69
 Both non-refundable, nothing to encourage
me to book on own website, non-inclusive
breakfast, or cancellation. Prefer to book by
expedia for points
Belfast hotel 4
 Expedia – nonrefundable £135 and £155 (with
breakfast), cancellation £145
 On Hotels – 125.16 (inc breakfast)
 Website - £120 advanced purchase, w breakfast
£140, flexible with breakfast £150
Belfast hotel 2
 Hotels.com £100 room only
 On Hotels £79.03 inc breakfast
 Own website: £120 – flexible booking, room
only
Belfast hotel 3
 Expedia - £125
 eBookers - £110
 Own website – No availability
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
www.ratetiger.com
Channels that work – A suitable mix
Expedia
Travelocity
Orbitz
Priceline
Hotwire
Bestday.com
Atrapalo
Booking.com
Lastminute.com
Octopus
Hotel.de
HRS
Venere
Laterooms
Wholesaler
GTA
Miki
Superbreak
Transhotel
Hotelbeds
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
Agoda
Makemytrip.com
Ctrip
Rakuten
Ikyu
TL Lincoln
Jalan
Tour Operator
TUI
Kuoni
BA Holidays
Thomas Cook
Tauck
DERTours
Virgin Holidays
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Getting to market – The Billboard effect for
Direct Sales
OTAs
Corporate
bookings
Wholesalers
Sales
Channels
to work
with
Tour
Operators
Travel
Agents
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
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Getting to market – The Billboard effect for Direct Sales
Google SEO
eMarketing/
Database building
Google PPC
Marketing Efforts
Relevant
Flash/Limited
Sale sites
Own website
Social media
Membership
groups (travel
websites/
publications)
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)
European cities hotel forecast PwC
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Top 9 Tips for Effective online distribution
1.
2.
3.
Manage Rates Carefully
Do not ignore historical data
Invest in technology
Benchmarking
Channel Partner
Rates &
Inventory
4.
5.
6.
7.
8.
9.
Use effective channel partners
Think like a marketer
Automate allocation process
Experiment with different channels and segments
Measure and scale your online activities
Always focus on a mutual win, build trust and loyalty
GDS
www.ratetiger.com
Gain full control over pricing, position & visibility
Rate Shopping, Channel Management, Revenue Optimisation and
Reputation Management solutions for hotels of all sizes
Hoteliers analyse market
positioning by comparing
competitor rate
information from
websites & hotel sites.
Quick & efficient
management of online
distribution channels
through one easy to use
interface.
Assess market competition
and position, propose rates
and allows for the automatic
update and monitoring of
online distribution channels.
Consolidate customer
reviews from connected
review websites. Analyse,
review and respond to
customer feedback from a
single application.
Options
Allocation Alert
 For low & sold out
allocations
Allocation
Management / Split
 Control of allocation
across all chosen
websites
Distribution / Shopping
 GDS shopping and distribution
 Online advertising
 Facebook booking engine
Reports
 Shopping Reports – Daily &
Weekly
 Extranet Reports – Arrival
reports for selected websites
 Booking Reports – Created
bookings from selected websites
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Thank you
[email protected]
+44 (0) 7825 661575
Twitter/ RyanCHaynes
Pinterest/ RyanCHaynes
Blog/ ryanchaynes.blogspot.com
Facebook/ RyanCHaynes
LinkedIn/ Ryan Haynes
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