OTAs & Meta-search - A Travel Studio System? VFM Leonardo Webinar Benefits of Marketing on OTAs September 25. 2013 Image Credit: Twentieth Century Fox (All Rights Reserved)
Sep 08, 2014
OTAs & Meta-search - A Travel Studio System?
VFM Leonardo Webinar Benefits of Marketing on OTAs September 25. 2013
Image Credit: Twentieth Century Fox (All Rights Reserved)
Major OTA/Meta-search Travel Studios
• Powerful Machines – Production – Distribution – Promotion
• Create Stars – Develop Talent – Showcase Leaders – Create Opportunities
• Sell The Product – Right Script – Right Casting – Right Direction
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 1 Image Credit: Paramount Pictures (All Rights Reserved)
Major Forces in Travel
• Priceline | $51.3B Mkt Cap | 36.4M US UV’s
– Booking.com | Agoda | Kayak | RentalCars.com
• Expedia | $7.3B Mkt Cap | 40.6M US UV’s
– Hotels.com | Hotwire | Venere | eLong | Trivago
• TripAdvisor | $10.6B Mkt Cap | 43.8M US UV’s
– JetSetter | CruiseCritic | SeatGuru | GateGuru
• Google | $300.8B Mkt Cap | 192M US UV’s
– ITA Software | Zagat | Frommer’s | Waze
• Apple | $425.0 B Mkt Cap | 600M Credit Card #’s
– See iTravel Patents | Starwood & Hipmunk iOS7 Apps
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 2 Statistics:Yahoo! Finance & C Image Credit: RKO Radio Pictures (All Rights Reserved)
Intermediaries Love Media
• Expedia Brands – $870 Million Total Advertising Spend 2012
– Average $22.28 Core Ad Spend per Room Night
• Priceline – $1.27 Billion Online Spend 2012 (38.6 % Increase)
– 2.6% of Google Search Advertising Revenue
– Priceline Offline Ads $35 Million in (US Television)
– Average $11.50 Core Ad Spend per Room Night
• TripAdvisor – Considering $50 Million Television Campaign
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 3 Data: Susquehanna International Group, Priceline/Expedia & Bloomberg | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
OTAs & Meta-search Rule Mobile Rank Travel App Type Downloads Satisfaction Rating
1 TripAdvisor Meta-search 23.3 Million 8.5 / 10
2 Hotels.com Online Travel Agency 13.0 Million 7.5 / 10
3 Kayak Meta-search 12.1 Million 8.0 / 10
4 Booking.com Online Travel Agency 10.9 Million 8.0 / 10
5 Hotwire Online Travel Agency 8.4 Million 6.2 / 10
6 Expedia Online Travel Agency 7.0 Million 6.5 / 10
7 Priceline Online Travel Agency 5.4 Million 6.0 / 10
8 Travelocity Online Travel Agency 2.9 Million 3.7 / 10
9 Hotel Tonight Online Travel Agency 2.8 Million 8.2 / 10
10 Orbitz Online Travel Agency 2.3 Million 7.0 / 10
11 Agoda Online Travel Agency 2.1 Million 8.1 / 10
12 HRS (iHotel) Online Travel Agency 2.0 Million 5.3 / 10
13 Airbnb Online Travel Agency 2.0 Million 7.3 / 10
14 Trivago Meta-search 1.6 Million 4.9 / 10
15 Hipmunk Meta-search 1.3 Million 8.0 / 10
16 IHG Hotel 1.1 Million 7.5 / 10
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 4 Data: Xyo.com, PhoCusWright & RockCheetah | Image Credit: Dimension Films (All Rights Reserved)
Purchase Path Is Not Short or Straight
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 5 Data: Millward Brown Digital/ Expedia Media Solutions | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
What Sites Do Travelers Choose?
When Comparison Shopping Leisure Business
Expedia.com (E) 42% 44%
Hotels.com (E) 39% 36%
Travelocity.com (E) 37% 34%
Google 35% 25%
Priceline.com (P) 32% 27%
Orbitz.com (O) 29% 31%
Hotwire.com (E) 25% 26%
Specific Hotel Brand Website 23% 25%
Kayak.com (P) 17% 24%
AAA.com 15% 15%
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 6 Data: Google Travel Study. May 2012. Ipsos MediaCT | Image Credit: Warner Bros. (All Rights Reserved)
Celebrate What Makes You Unique
• Compelling Descriptions that Explain How You: – Make the Guest Feel Special
– Simplify the Traveler’s Life
– Satisfy Guest Needs Better than Competition
• Engaging Images Showing Your Hotel in Action – Is a Building Exterior the Most Important Sales Benefit?
– Why is the Property Empty?
– Are Interior Design Shots more for Hoteliers or Guests?
• Relevant, Guest Oriented Video Content – InterContinental’s Concierge Video Guides Offer Local Tips
– Four Seasons Buenos Aires – Films Gala Events
– Best Western Plus Sedona – Destination, Hotel & Guests
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 7 Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
Effectively Communicate Message
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 8
• What Story Are You Telling? – Different Channels May Require Different Messages
– Tailor Message to YOUR Audience Through THEIR Platform
– Not an Update & Forget Environment -
• Use All Available Tools & Across Major OTAs – OTA Resources Often Used by Meta-search Sites
– TripAdvisor Support Hotelier Video Posts
– Google Business Photos - StreetView Virtual Tours
• Google Knowledge Graph is a Game Changer – Hotel Images Prioritized at Top of Search Results
– Photo | Rating | # Reviews | Street Address
– At Present, More Relevant List than Hotel Price Ads
Image Credit: Gracie Films (All Rights Reserved)
Looking Good Will Attract Attention
• Important Segments Deserve Targeted Images – LGBT
– Families
– Honeymoons
• Engaging Images Showing Your Hotel in Action – Proper Orientation – Understand Cropping Methods
– Appropriate Sizing – Different Resolutions Are Important
– Descriptive Titles, Captions & Tagging
• People Stay in Hotels – Guests Enjoying Key Points of Differentiation
– Guests Naturally Interacting with Staff
– Guests Interacting with Other Guests
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 9 Image Credit: Twentieth Century-Fox (All Rights Reserved)
Difficult Decisions
• Total Revenue Management – Need to Transition from RevPAR to GOPPAR as Basis
– ADR Higher Under Agency Model, But High Commission
– Need to Incorporate Pay Per Click Costs for Meta-Bookings
• Rate Parity Under Attack in UK & EU – UK Office of Fair Trade Rate Parity Ruling
– Resolution: Rate Parity Does Not Apply to Frequent Guests
– Result? New Battles for the Returning & Repeat Guest
• Customer Lifetime Value – All Want 1st Time / International / Brand-Agnostic
– Challenge is Returning & Repeat Guests…
– Try to Convert Hotel Direct or Their Preferred Channel?
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 10 Image Credit: Lucasfilm (All Rights Reserved)
True Love or Marriage of Convenience?
• OTAs/Meta-search Drive Volume – Strong Traffic & Advertising
– Dominate Mobile Platforms
– Tactical Promotion Capability to Shift Share
• Quality Presentation Across Guest’s Preferred Channels – Try to Convert to Hotel Direct or Guest Preferred Channel?
– Want Best Opportunity for Conversion – Across Channels
– Does Not Mean OTA/Meta Should Take Priority Over Direct
• The Studio Never Overshadows the Star or Project – Ignoring OTAs & Meta-search Shifts Share to Competitors
– Need to Leverage Channel to Your Benefit, Not Just OTA’s
– Must Focus on Setting Common Goals & Mutual Benefits
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 11 Image Credit: Buttercup Films (All Rights Reserved)
OTAs & Meta-search - A Travel Studio System?
Robert Cole
twitter: @robertkcole
phone: +1.262.309.9560
email: [email protected]
VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 12 Image Credit: Warner Bros. (All Rights Reserved)