Revenue Generating Integrated Solutions, the future for Hoteliers - TravelClick - WHR Destination Rome 20/11/2013

11/22/2013

Alejandro Lista Director of E-commerce

Southern Europe

Revenue Generating Integrated Solutions, the future for Hoteliers

Rome

TravelClick provides expert

solutions to hotels to optimize

performance, grow revenue,

and create a stronger brand.

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Our team delivers global expertise and local

knowledge to grow Hotels revenue.

Our dedicated field sales, account management, and service teams have deep knowledge of the

communities where your hotels operate, and they draw from proven industry experience.

33,000+ hotel customers 176 countries 800+ employees

Atlanta Barcelona Chicago Dubai Hong Kong Houston London Melbourne

New York Orlando Philadelphia Shanghai Singapore Tokyo

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We’ve been a leader for more than 12 years,

guiding 33,000+ hotels of all types and sizes.

Independent &

Small size Groups Mid-Sized Brands

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We have five lines of

business that will work

together to improve

Hotels performance.

•iHotelier® Central Reservation System™

•iHotelier® Web 3.0™

•iHotelier® Mobile™

•iHotelier® GDS & Pegasus UltraDirect™

•EZYield Channel Management™

•iHotelier® VoicePro™

•iHotelier® Demand™

•iHotelier® PMS Integrations™

• Rate360®

• Agency360®

• Demand360®

• Enterprise Solutions™

• Travel Agent (GDS) Media™

• Display Marketing™

• Pay-Per-Click Advertising

• Custom Websites

• Search Engine Optimization

• Social Media Optimization

MARKET TRENDS

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The Brand Website revenue contributed 20.7% of the

$10 billion total revenue booked and 63 million room nights

Highlights | Second Quarter 2013

Revenue by Channel 2013 Q2

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CRO 14,8%

Direct 38,0% GDS

16,3%

OTA 10,2%

Web 20,7%

Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD.

Direct = Reservations taken directly on property such as walk-ins, meetings/groups, direct call in

CRO = Central reservations office for contact center reservations via voice, chat or email

Web = Hotel proprietary Web site or brand Web site

OTA = Online travel agency such as Expedia, Orbitz, Priceline

GDS = Global distribution systems Sabre, Galileo, Worldspan, Amadeus

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CRO 9,8%

Direct 48,7%

GDS 14,9%

OTA 11,3%

Web 15,3%

CRO 15,6%

Direct 36,1% GDS

16,5%

OTA 10,1%

Web 21,6%

International

Source: TravelClick Demand360. Top 50 markets worldwide from participating brands.

United States

Highlights | Second Quarter 2013 Revenue

10,2%

-22,7%

-3,0%

-3,7%

3,3%

1,3%

7,1%

1,8%

8,6%

-4,2%

4,2%

11,4%

3,1%

4,1%

-26,8%

0,2%

-2,5%

2,1%

0,8%

6,9%

0,8%

4,2%

-1,3%

0,3%

7,5%

8,9%

5,6%

5,4%

-3,1%

-1,2%

1,2%

0,4%

0,2%

1,0%

4,1%

-3,1%

3,9%

3,3%

-5,7%

-30% -25% -20% -15% -10% -5% 0% 5% 10% 15%

Zurich

Warsaw

Vienna

Tel Aviv

Rome

Prague

Paris

Moscow

Milan

Madrid

London

Lisbon

Istanbul

Percent Change

OCC

ADR

RevPAR

At-A-Glance | Global Trends: Europe

ADR are in Local Currency. Source: Smith Travel Research. Q2 2013.

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All International destinations (excl. Americas) Third Party Internet Revenue

$27

$61

$2

$16

$11

$5

$2

$4

$22

$25

$2

$18

$8

$4

$2

$4

$22

$12

$3

$18

$7

$4

$1

$5

Expedia

Booking

Priceline

OTA Other

Hotels.com

Orbitz

Hotwire

Travelocity

(In Millions USD)

2013 Q2

2012 Q2

2011 Q2

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Source: TravelClick Demand360. Top 25 International markets from participating brands. Transient reservations.

Global interest for accommodation

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1 Source Google research data,

Italian market interest for accommodation

74%

26%

International Domestic

Global interest for European accommodation

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1 Source Google research data,

ITALY represents the 10%

GDS figures for all Hotels linked to ROM for the last 24 months

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Rome’s Performance YTD-2013 vs YTD-2012

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Occupancy +0.2%

67.6% in 2013 vs 67.4% in 2012

ADR +7%

124.71€ in 2013 vs 116.52 in 2012

RevPar +7.2%

84.18€ in 2013 vs 78.51€ in 2012

Source STR Global

Hotel searches on Mobile are growing very

fast globally

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One in Seven searches originate from a mobile device¹

42% of travelers research or book accommodations on a mobile device platform2

5-10% of web bookings come from a mobile device3

65 percent of mobile bookings are same day4

By 2015, 81% of cell phone users will have smart phones5

More people will access the internet via mobile devices than desktops6

1 Google research data, 2012 4 Orbitz data, Dec 2011 2 Smarter Travel 5 Goldman Sachs. June 2011 3 TravelClick Data – sampling of 1600 iHotelier clients with MobiBook. 6 IDC New Media market Model, Sep 2011

Where do people go when they leave your

site?

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68% The percent of

consumers who

consult online

reviews before

booking

22 The number of

sites the average

travel researcher

visits before

booking

9.5 The average

number of online

research sessions

a consumer

conducts before

booking

Google Think Insights: 5 Stages of Travel

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Major Market Trends in Hospitality

Trend 1: Social media is the cornerstone of marketing strategy

Trend 2: Business Intelligence (BI) at every level. The new face of successful travel

companies:

Competitor Analysis - Market Penetration - Distribution costs by channel.

Trend 3: Meeting the expectations of the modern consumer:

Improve customer experience - deliver relevant data - engage the customer - embrace

new channels - Integrate online, offline and social - retain customer loyalty.

Trend 4: Semantic technology (finally) becomes relevant in the travel value chain

Evaluate opportunities – Experiment to see what works

Trend 5: Mobile provides a unique platform for more direct distribution

The new mobile devices facilitate continuous engagement - mobile marketing becomes

more personalized and relevant

*Source: PhoCusWright Inc.

HOW TO SUCCED IN A FAST

CHANGING MARKET

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Hoteliers need to face this complex and changing market.

Branding

Service

Guests

Corporate

Sales

Distribution

Channel

Revenue

Management Marketing

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Your website needs to reflect an unique property or

brand style and features, but always combined with

the Best Practices to convert.

Robust content management system (CMS) that

allows Hotels easily maintain the website fresh

and updated.

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Social media optimization drives direct bookings:

−845m monthly active users

−2.7b likes/comments a day

−250m photos uploaded/day

−250m monthly active users

−500m users signed up

−340m tweets sent/day

−1 trillion views in 2011

−1 hour uploaded/second

−3 billion hrs watched/month

Engage your customers with Social integration into your

Booking Process

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Your Hotel needs to be where the customers

are and engage them:

Social media optimization drives direct bookings, example of Hotel BLOOM!

Increased fan base by 300% in

less than two months

Sold 10 extra room nights directly

from hotel’s Facebook party tab

Gained 450 new email subscribers

Was awarded the IAC

Best Hotel and Lodging

Social Media Campaign

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Your Hotel needs to be where customers are

and drive more DIRECT Business

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Your Hotel needs to be where customers

search to drive more DIRECT Business

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Business Intelligence solutions provide you

with actionable insights to increase hotel

revenue.

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Price rooms…

Promote products…

Target customers…

Allocate inventory…

…with precision,

to win the right

customers and

maximize Hotel

revenue

Demand See your market’s future

production across all

channels

Agency See your competitors’

production by

travel agent

Rate See your competitors’

rates

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Business Intelligence is Key for taking the

right decisions and increase Hotels’ revenue.

How should I price to

maximize ADR and

occupancy?

RATE360

To what agencies

should I target my

sales activities?

AGENCY360

What should I do now

to impact my future

bookings?

DEMAND360

& DESTINATION INSIGHTS

Mobile statistics*

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The ADR for a typical Mobile booking versus web booking is 15 USD higher

Close to 50% of all Mobile bookings are made with 0 to 1 day lead time

The average mobile reservation is 25% higher in total revenue value versus web

bookings

Hotels receive a minimum of at least 2 direct voice bookings via the iHotelier

mobile click to call

* TravelClick Data – sampling of 1700 iHotelier clients with MobiBook.

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A mobile-friendly website is a “must” for

every hotel:

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5-10% of web bookings come from a mobile device3

65 percent of mobile bookings are same day4

By 2015, 81% of cell phone users will have smart phones5

More people will access the internet via mobile devices than desktops6

One in Seven searches originate from a mobile device¹

42% of travelers research or book accommodations on a mobile device platform2

1 Google research data, May 2011 4 Orbitz data, Dec 2011 2 Smarter Travel 5 Goldman Sachs. June 2011 3 TravelClick Data – sampling of 1600 iHotelier clients with MobiBook. 6 IDC New Media market Model, Sep 2011

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Your hotel needs an integrated solution for

real-time distribution management across all

channels.

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Electronic Distribution Map

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Your web booking engine should help you to:

Build your brand

With a cutting-edge technology

Increase RevPAR

With intelligent upsell of stay length, rooms and add-on services

Drive more bookings

In fewer clicks with optimized navigation and clear calls to action

Have full control of the booking experience

Allowing you to sell the way you want

Up-sell and cross-sell

functionality

Turn lookers into bookers with engaging visual

cues and clear calls to action

Optimized navigation precipitates conversion in ~20% fewer clicks

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How to drive more direct bookings and

increase RevPAR with your Booking Engine.

Select Dates Select Rooms Add Enhancements Confirm Reservation

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Increase Occupancy and Revenue for each stay:

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Add a day before or after dates

selected to increase occupancy.

Up sell Room categories and ancillary

products/services to increase Revenue

for each stay.

Flexible date calendars to

allow guests to see when best

rates are available to stay. But

most important help you to

increase occupancy the days

your hotel need it.

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Hotel needs to control content also on their

booking engine and not only on the website.

Flexible

configuration for

all design aspects

Create multiple

themes for

promotional offer

merchandising

Easy photo and

media content

administration

Preview real-time,

prior to publishing

to live site

Enhanced

customizations for

button styles,

header gradients

and colors

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Customize the online booking experience to engage

customers and get more direct bookings.

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Hotel will capture more on-the-go bookings

with a mobile booking engine:

Increase

direct

Bookings to

your hotel…

42% of travelers research or book accommodations on a mobile device1

40% book within 1 day of arrival2

25% book on the same day of arrival2

1 SmarterTravel 2 Based on iHotelier Mobile customer data

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Hotels need to have a Next Generation Seamless

connectivity to all 4 GDS.

+19% growth in GDS revenue and bookings for TravelClick European hotels in 2012.

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Growing GDS awareness of your Hotel on

the outside of “Just Connecting”...

GDS Media

It reaches decision makers (Travel Agent) at the point of sale for

a specific booking date.

GDS Preferred Placement

Over 98% of qualified GDS transactions are generated directly

from Page One results

Consortia Participation

Consortia hotels received 5 times more reservations than

non Consortia hotels

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Demand Drivers is key to get incremental

bookings and reduce Hotel distribution

costs…

Metasearch

Partnerships

• Increased demand driven directly

to your web booking engine

• Competitively position hotels to

drive direct bookings

• Preferred commercial terms

resulting in reduced customer

acquisition costs

OTA

Partnerships

• Increased distribution resulting

in more bookings

• Preferred placement on the

shelf

• Preferred commercial terms,

including reduced margins

Consortia/

Mega Agency

Partnerships

• Increased business travel

demand and bookings

• Favorable subscription pricing

• Preferred placement in GDS

• Access to travel agent offices

globally

• Centralized management of

RFP content, submission and

rate audits

…and work with dozens of partners to drive

demand to Hotels and mainly to their direct

channels.

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Consortia

Metasearch

Online Travel Agent

Corporate

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Preferential placement in point of sale tools

Coordinated Global agency visits

Exclusive marketing opportunities to over 60 thousand

agents worldwide.

Global partnership opportunity offering worldwide exposure

Only large hotel groups can gain this status on their own

www.g-h-s.com

Key Benefits in Consortias for Hotels

worldwide with Fully Preferred Partnerships

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iHotelier PMS Connect

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Seamlessly synchronize reservations directly into your

Property Management System, allowing for true last room

availability, with PMS Connect.

Your Hotel’s

Property

Management

System

Rates / Availability

Reservations

Real time reporting to take the right decisions

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Integrated, simple and flexible manager level reports with rate codes, credit cards,

LOS, pace information create the base for strategic decisions

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• Paid Search

• SEO

• Social Media

• Display Advertising

• Affiliated Marketing

Attract

• Best Practices Design

• Best Rate Guarantee

• Dynamic Rate Display

• Integrated Booking Engine

Convert

• Email Acquisition Strategy

• Email Marketing

• Pre / Post Stay Email Marketing

• Social Media

Retain

• Website Analytics

• Online Marketing Performance Review

• Data Driven optimization

Analyze

Hotels need to have an E-Commerce Strategy

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The media landscape is complex, and hotels

need help getting in front of potential guests

with a holistic Media approach .

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Hotel

Guest

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Online research activities Online marketing

strategy:

Google: “best things to see in Milan”

Travel Content Sites: guide to Milan

TripAdvisor: things to do in Milan

Airline Sites: Complete flight reservation

Google: “Boutique hotels near DUOMO”

TripAdvisor: Reviews

Your website: In-depth property research

Google: “Hotel Amore”

OTA: Shop/book travel

Travel Agent: Shop/book travel

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Growing high quality traffic to Hotel website is

key to maximizing online revenues.

It needs to be focused on the right channels

Research

Shop

Buy

Acquire new

customers

Make it easy to

book direct

Convert Travel

Agent shoppers

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Behavior How to target

this behavior

Search your market on Google PPC (Paid Search) geo/generic terms

Read travel content sites Travel Intent Display (Contextual Marketing)

Booked a flight to your market Travel Intent Display (Behavioral Marketing)

Behavior How to target

this behavior

Search for your property on Google PPC (Paid Search) brand terms

Visit your site but don’t book Display Remarketing

View your TripAdvisor page TA Business Listings & Check Rates

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An effective online marketing strategy for

Hotel targets two groups of qualified leads:

Shoppers: People coming to, or researching the market

Converters: People who show interest in your property

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It is time for looking at an integrated media

solution

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• ONE integrated media strategy

• ONE contract

• ONE point of contact

• ONE performance package

PPC DRM

Travel Intent

Display

Trip

Advisor

To holistic media planning

and management From products

managed in isolation…

• SEPARATE products and objectives

• SEPARATE contracts

• SEPARATE points of contact

• SEPARATE performance reports

Travel Agent Media

Pay-Per-Click

DRM

Trip Advisor

Travel Agent Media

Travel Intent

Display

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GRAZIE!

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