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Information about JohnBurns_Kristie28Nov

Published on January 13, 2009

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Adept Hotel Distribution - A Holistic Approach : Adept Hotel Distribution - A Holistic Approach John D. Burns, Hospitality Technology Consulting Kristie Goshow, Jumeirah Introduction : Introduction What is required for successful hotel distribution: Today? Tomorrow? Globally? Locally? Reminder: Continuing Sources : Reminder: Continuing Sources GDS Amadeus Galileo Sabre Worldspan Still delivering 50+ million res annually 90% of all travel agencies still use GDSs (TW) Highest ADR - US$30 more than hotel direct (Travel CLICK) GDS : GDS Change is in the wind for the GDSs... New business propositions from Sabre, Galileo and Amadeus New business style: Merchandising Prompted by deregulation & need for revenue Paid placement: First Galileo ‘Featured Property’, now Sabre Majority of agent bookings are made for hotels on top 1/3 of availability display GDS : GDS Answers: Ensure participation Is the property loaded in all GDSs? Are rates and availability constantly maintained? How appealing is the property description? HOD and DRS Evaluate value of Merchandising opportunities to the property Participate where warranted GDS : GDS Dubai Perspective Huge potential Spurred by commercial growth of destination Increasing need to control and report on corporate spend Infrastructure that is already in place Galileo / Amadeus – Dubai Sabre – Bahrain Agency knowledge GDS : GDS Challenges: Low visibility of GDS partners Voice and manual bias (look at your marketing….) Lack of confidence in hotel sales team Rate parity Rate loading Large number of ‘represented’ hotels Reminder: Continuing Sources : Reminder: Continuing Sources Voice Guests continue to call CRO and property-direct volumes are flat to falling slowly, BUT… Conversion is higher (40%+) Callers know what they want (due to Web research) They call because they can’t find information on the Web or they want reassurance An under-recognized sales function! Voice : Voice Answers: Monitor call handling performance Average hold time Abandons Talk time Conversions Practice Salesmanship See features AND benefits Have a rate presentation strategy incl. fallbacks Monitor calls and sales; incentivize Voice : Voice Dubai Perspective Call volumes increasing Lack of availability drives ‘shopping’ Lack of integrity Rate parity Head count and labour costs increasing ‘Cost of sale’ not top of the agenda Luxury is about ‘service’ People buy from people Customer is more demanding Trading culture Slide 11: Today’s Opportunities Merchant Model OTAs : Merchant Model OTAs Globals: Regionals: Merchant Model Facts : Merchant Model Facts Dependent on hotels for steadily diminishing inventory Receiving lower “discounts” on rates Moving toward: Variable discounts for high demand/low demand seasons Reduced discounts to gain inventory; preferred availability access, & LRA Seeking rate parity Launching Loyalty programs Merchant Model : Merchant Model Answers: Seek sites that provide incremental (rather than site shift) business Evaluate each site’s: Value – revenue after costs Long term production potential Ease of maintenance Requirements for inventory commitment Merchant Model : Merchant Model Dubai Perspective Slow start but picking up momentum. Mytravelchannel (E-Ventures Group) Expedia office in Dubai Travelocity key account management Travelarabia Struggle to understand demand levels - need to adjust business model Starting from a partnership basis Specialty Sites : Specialty Sites Distressed Inventory Priceline, Hotwire Package Sales Site 59 Adventure travel, Educational travel, Cultural Immersion, Eco travel Specialty Sites : Specialty Sites Answers: Identify property differentiators Seek and use specialty sites that emphasize those differentiators Specialty Sites : Specialty Sites Dubai Perspective Not many today but very likely..... Destination: Dubai Accommodation Exchange (DAEX) Spa Golf Adventure Timeshare / fractional ownership Sail and stay Need we say… : Need we say… Search Engines : Search Engines 69% of business travelers use Web to plan some aspect of their trip, 63% of leisure travelers (Yesawich) 70% of hotel searches begin at a search engine Search Engines : Search Engines Google, Yahoo, MSN, etc., etc. Our responses: Search Engine Optimization - SEO Pay-per-Click Marketing - PPC Search Engines : Search Engines Search: “Dubai Hotels” Google 3,640,000 results Brands in first 10: Hyatt, Jumeirah, Fairmont Yahoo 6,850,000 results Brands in first 10: Inter-Continental Search Engines : Search Engines Search: “Dubai Hotels” -- PPC Google PPC Brands: Inter-Continental, Crowne Plaza, Accor Yahoo PPC Brands: Holiday Inn, Four Points Search Engines : Search Engines Answers: Use the most proficient SEO service that you can find and afford Expect/demand constant management and adjustments from them Participate selectively in PPC Not all keywords have the same cost! Search Engines : Search Engines Dubai Perspective Lack of expertise in the region Limited understanding within hotel companies Abuse of intellectual property Poor relative in the marketing mix STRAW POLL: Between 5% - 10% Between 10% - 20% More than 20% New Travel Buying Patterns : New Travel Buying Patterns All Travel: What are travelers looking for? Location, comfort, style, security, value Leisure Travel: Who is doing the shopping? Wife Who influences the selection? Children New Travel Buying Patterns : New Travel Buying Patterns Travelers increasingly seek “Experiences”, “Memories” Experiences: Adventure, Romance Niche Services: Spa, Sports, Learning, Health Clinics New Travel Buying Patterns : New Travel Buying Patterns Answers: Create “experience-oriented” (and revenue-intensive) products Make them easily bookable on-line! (Note: people up-sell themselves, given the opportunity) New Travel Buying Patterns : New Travel Buying Patterns Dubai Perspective Luxury demands more: Interactivity, functionality and booking experience Content rich “Closing the Sale” : “Closing the Sale” What sells them?: Detail Honesty Proof How do we communicate these? Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Effective Web (and GDS) presentation is vital, decisive Addressing: Location Comfort Style Security Value Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Does the site/HOD say all there is to say? Answers to the questions that Reservations, Front Desk, Bell and Concierge staff receive? Informative, evocative phrasing? Appealing photography? Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Does the site/HOD promote every sales opportunity? Spa? Dining? Recreation? Transfers Retail? Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Is the site/HOD Persuasive? Compelling? Or do travelers buy despite the site? The Test: Could the Web site (or the HOD!) serve as the ONLY promotion piece? Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Is it World Class? Hotel Web Sites (& GDS) : Hotel Web Sites (& GDS) Dubai Perspective Content falling short on the facts Not designed with SEO in mind Form over function? The debate continues…… Not integrated into overall marketing efforts Missing opportunity to merchandise Revenue Management : Revenue Management Revenue Management has been accepted Cannot be fully accomplished without technology RM technology is now accessible via Web; now affordable Extending beyond “transient rooms” to group rooms, to additional spending to profit Revenue Management : Revenue Management What is Required for RM Success? Commitment From the GM (and corporate office) down throughout the property Trust in the technology – Technology + Skilled User = Revenue Improvement Revenue Management : Revenue Management Dubai Perspective Best market to apply RM systems but…. Tendency to confuse reservations and revenue management Promotion of reservation manager rather than recruitment of correct skill sets Regional training and education in RM is limited (region is unique) Huge opportunity to develop new models Struggle to Manage Rates in the Electronic Channels : Struggle to Manage Rates in the Electronic Channels To maintain rate accuracy & consistency Goal: Accuracy, Integrity, Parity! A proliferation of Extranets Some slow progress toward connectivity The average hotel attempts to maintain inventory in 7 electronic “outlets” Res managers say they can effectively manage 5! Struggle to Manage Rates in the Electronic Channels : Struggle to Manage Rates in the Electronic Channels To distribute updates in a timely manner CRS functions are being expanded Robotics options are available EzYield, HBSi, RateTiger, TravelClick Channel Manager, etc. Slide 45: Tomorrow’s Challenges New Tools : New Tools Customer Relationship Management Customization Personalization Recognition Sales tools PodCasts, Videocasts RSS New Tools : New Tools Dubai Perspective E-government and biometrics RFID and proximity marketing New build of hotels with latest I.T. infrastructure New Influencers : New Influencers Net 2.0 become Travel 2.0 PhoCusWright “User Generated Content” Traveler Feedback Sites Tripadvisor, HotelChatter, FlyerTalk Blogs Countless New Influencers : New Influencers Answers: Are they a threat: No, not to good operators! Monitor Learn Respond: On the site In the operation SMO : Social Media Optimization New Influencers - More : New Influencers - More Metasearch Kayak, Sidestep, Mobissimo, etc. Low Cost Carriers EasyJet, RyanAir JetStar Asia, Valuair, Adam Air, Cebu Pacific, Lion Air SouthWest, JetBlue Aer Lingus (A long haul LCC) New Influencers : New Influencers Dubai Perspective Mobile-empowerment e.g. O2 (UK) have 25m browsing content The consumer “Get close to the customer to make it easier for the consumer” Transparency “help me find it, make everything available” (Yahoo) New Channels : New Channels Possibly: “GoogleTravel”? Amazon? eBay? “Zuji Forms Strategic Partnership with eBay Singapore” Craigslist? MySpace? FaceBook? YouTube? New Channels : New Channels Maybe even….. New Competitors : New Competitors T/VO Not the machine … Timeshare/Vacation Ownership A viable alternative to hotels, esp. for families Motor Homes/Recreational Vehicles Destinations Macau Eastern Europe Las Vegas, Orlando CHINA New Competitors : New Competitors Cruise 11.1 million cruisers in 2005 68 new vessels will have debuted between 2000 and 2005 sailing at 104% occupancy! 95% customer satisfaction level Factors Beyond Our Control : Factors Beyond Our Control Overbuilding Terrorism Political turmoil Economic cycle Inevitable rises … and falls How can we “future proof” our hotel operations? Slide 70: World Economic Outlook, IMF, Sept. 2006 An Exciting Future : An Exciting Future Challenges Opportunities Rewards Slide 72: Questions & Discussion Adept Hotel Distribution - Today & Tomorrow : Adept Hotel Distribution - Today & Tomorrow Kristie Goshow, Jumeirah John D. Burns, Hospitality Technology Consulting

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