they are worried about… revpar increase revpar distribution/ control costs of distribution/...
TRANSCRIPT
www.ratetiger.com
Most of them will check 13 – 28 travel sites before deciding
94 million Americans will book online in 2012
174.6 million searches were completed
in Hotwire in 2011
All these have made a your job even more challenging……
Search has become local
Social search for word of mouth
Online Channels have grown by
25% in the last four years
Multi-channel marketing is the norm
www.ratetiger.com
This is how the Distribution Mix looks
…which is giving
Revenue Managers sleepless
nights……..
www.ratetiger.com
They are worried about…
Increase RevPARControl costs of distribution/ e-business Increase exposure
Challenges
31%
19%15%
8%11%
8% 8%
RevPAR Distribution Direct salesCompetition Occupancy Economy
“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
www.ratetiger.com
Strategy has changed to…..
OTA35%
Brand.com31%
GDS18%
CRS/ Voice 16%
Booking by ChannelFocus on direct salesReducing commissionMore importance to GDSand working out with more Travel Agents & consortia contracts
…in short hotels are going back to basics……
“OTAs are competing against each other and
they need to market themselves better”
NYC, 3 Star
www.ratetiger.com
The marketing focus is now on…
Optimise Google (Adwords & PPC) & SEO to bring more direct sales
Competing with OTAs Yet to take serious note of social
media TravelZoo
20%
Google36%
Social Media12%
None32%
Digital Marketing
www.ratetiger.com
However this has created…
Continuous struggle with emerging channels, e.g. flash sites, bidding sites, social media
Uncoordinated sales strategy Under-utilisation of the
“Billboard Effect”
…in other words confusion.
www.ratetiger.com
Technology is a saviour....
Channel management has become the norm
Revenue management = Right distribution mix of exposure & cost
Simplicity, accuracy, effectiveness and speedy delivery are the buzz words
“We definitely added channels because we wanted to gain more exposure
UK, 4 Star
www.ratetiger.com
Vision for future…
Direct sales, More contracts, Decreased distribution costs,
and Better revenue.
Future of Distribution
27%
31%
14% 13%15%
Internet Social MediaMobile DirectCan't Predict
“We strive for the same prices everywhere so that
everyone can sell it as they can”
3 Star, Madrid
www.ratetiger.com
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
= More exposure on OTA
www.ratetiger.com
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 Brand Reputation Understand your guest, your packages, your
competitors, your market position
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.”
www.ratetiger.com
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
Tides are finally turning…
www.ratetiger.com
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 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
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
www.ratetiger.com
Channels that work – A suitable mix
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)European cities hotel forecast PwC
Booking.comLastminute.com
OctopusHotel.de
HRSVenere
Laterooms
ExpediaTravelocity
OrbitzPricelineHotwire
Bestday.comAtrapalo
AgodaMakemytrip.com
CtripRakuten
IkyuTL Lincoln
Jalan
Wholesaler
GTAMiki
SuperbreakTranshotelHotelbeds
Tour Operator
TUIKuoni
BA HolidaysThomas Cook
Tauck DERTours
Virgin Holidays
www.ratetiger.com
Getting to market – The Billboard effect for Direct Sales
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)European cities hotel forecast PwC
www.ratetiger.com
Getting to market – The Billboard effect for Direct Sales
Source: Annual Report 2011 Department of Enterprise, Trade and Investment (DETI)European cities hotel forecast PwC
Marketing Efforts
www.ratetiger.com
Top 9 Tips for Effective online distribution
1. Manage Rates Carefully2. Do not ignore historical data3. Invest in technology
4. Use effective channel partners5. Think like a marketer6. Automate allocation process7. Experiment with different channels and segments8. Measure and scale your online activities9. Always focus on a mutual win, build trust and loyalty
GDS
Rates & Inventory
Benchmarking
Channel Partner
www.ratetiger.com
Gain full control over pricing, position & visibility
Allocation Management / Split
Allocation Alert Distribution / Shopping Reports
For low & sold out allocations
Control of allocation across all chosen websites
Shopping Reports – Daily & Weekly
Extranet Reports – Arrival reports for selected websites
Booking Reports – Created bookings from selected websites
Options
Quick & efficient management of online distribution channels through one easy to use interface.
Consolidate customer reviews from connected review websites. Analyse, review and respond to customer feedback from a single application.
Hoteliers analyse market positioning by comparing competitor rate information from websites & hotel sites.
Assess market competition and position, propose rates and allows for the automatic update and monitoring of online distribution channels.
Rate Shopping, Channel Management, Revenue Optimisation and Reputation Management solutions for hotels of all sizes
GDS shopping and distribution Online advertising Facebook booking engine
www.ratetiger.com
Thank you
+44 (0) 7825 661575
Twitter/ RyanCHaynesPinterest/ RyanCHaynes
Blog/ ryanchaynes.blogspot.comFacebook/ RyanCHaynesLinkedIn/ Ryan Haynes