The power shift in travel: How hotels can get back on top with their online distribution strategy David Chestler, SiteMinder
Apr 13, 2017
The power shift in travel: How hotels can get back on top with their online distribution strategy
David Chestler, SiteMinder
26 years in the travel technology industryHeld strategic roles with BirchStreet Systems, Pegasus Solutions, Utell International, RateGain, Visual Data Corp and Sceptre Hospitality ResourcesFirst co-chair of HTNG’s Software Resource Team
David Chestler
Executive Vice President, Global Enterprise Sales & Business Development
Exponential growth in online distributionThe great power shift in travelWhat drives the reservation: inspiration to reflectionHow the hotelier can keep paceWhat is next? Search and researchOwn your customers!
What we will cover today
Exponential growth in online distribution
“There are an estimated 480 online hotel bookings per minute.”AHLA
Online distribution is growing at a faster pace than theentire travel market.
More people are travelling than ever before
Source: UN World Tourism Organization
The great power shift in travel
The changing balance of power
Travellers have more information than ever
9 in 10 holidaymakers carried out researchbefore booking their last trip
Source: “Engaging the empowered holidaymaker”, Deloitte UK
Online travel
agencies
Online review
sites
Meta search
sites
Hotel websites
Social media
Traditional travel agents
Source: “Engaging the empowered holidaymaker”, Deloitte UK
Let’s go back to the beginning Distribution before the cloud disruption…
Distribution in 2015
Source: DPFOC, 2015
Understand cross-platform consumer behaviour
We live in a multi-screen world. Consumers move between multiple devices to accomplish their goals…
Source: Google/Ipsos/Sterling, 2012
One sizedoes notfit all…
Source: Booz Allen Hamilton, 2007
What is the property business mix?
Source: “TravelClick North American Distribution Review”, 2015
CHANNEL Q1 2015 Q2 2015
Brand 28.5% 29.1%
CRO 13.1% 13.3%
Direct to hotel 23.1% 22.0%
GDS 20.6% 19.3%
OTA 14.8% 16.4%
Understand today’s traveller
Source: “5 Min Guide: What’s happening to bookings?”, Spring Metrics
Where they’re booking What they’re searching for
Home sharing: The latest challenge for hotels
Source: Atmosphere Research Group, LLC, 2015
Hotels cost more than home share rentals
Source: Atmosphere Research Group, LLC, 2015
What drives the reservation:
Inspiration to reflection
What inspires you?
Source: “5 Min Guide: What’s happening to bookings?”, Spring Metrics
What willkeep
bookingson site
Direct booking source comparison, 2011-2014
Know how travellers are searching for you
Source: “Today’s traveler: The shift to online bookings”, Spring Metrics, 2015
What is next?
Search and research
The evolution of direct to property…Metasearch: New OTA or hotel’s direct partner?
The GDS still holds power
Source: “Booking trends: Don’t ignore impact of GDSes”, Hotel News Now, 2015
“A pessimist sees the difficulty in every opportunity; an optimistsees the opportunity in every difficulty.”
Winston Churchill
See the opportunity.
How the hotelier can keep pace
Spend wisely
Marketing technology is growing. But do you have the tools to convert on the traffic?
At what cost?
Source: “Survey Report: A look at the content and technology driving today’s demand generation”, Spear Marketing Group, 2015
Marketing technologies July 2015(% of respondents)
In 12-18 months(% of respondents)
Content marketing 85% 60%
SEO 70% 41%
CRM 68% 29%
Marketing automation 62% 56%
Social media management 59% 32%
Lead lifecycle/attribution reporting 42% 45%
Testing & optimisation 41% 37%
Peronalisation 33% 34%
Big data/analytics 25% 32%
Database health & optimisation 25% 17%
Predictive analytics 16% 37%
Programmatic advertising 13% 17%
Click-to-call 8% 7%
Most important marketing technologies according to US B2B marketers
“A 100-room hotel with 1.4 guests per room running between 55% and 60% occupancy gathers data from roughly 30,000 guests every year.”
Tim Peter, Hotel News Now
Leverage your data to drive conversions
Source: “The future of personalized marketing In travel”, Skift/Boxever, 2014
How can you get your share?
Do your homework:Assess the impact and effectiveness of your individual streams of revenueDetermine which online channels provide the best ROI for your hotelAnalyse your business mixEstablish your hotel’s true level of supply – to maximise inventory onlineAnalyse your competitor set and your performance as a benchmarkKnow Google and TripAdvisor support direct to property transactions!
Look at connectivityUse automation for better yieldLook at what the biggest drivers of business are in your destinationLearn with HSMAI, HEDNA, associations, schools and consultantsKnow what your competitors are doing
Define a new strategy for managingyour distribution
It’s still about supply and demand
Analyse where you can make the biggest impact in the consumer decision-making cycleImplement an online distribution platform with true two-way XML integrationsUse images and content to improve bookings and deliver value to partnersRemember that merchandising is a strategyEnsure fail-safe delivery of bookings
Build a strategy that values connections
Have single-image inventory
How you benefit:
Easily manage your rates and availability from one platformDistribute to multiple sales channelsReceive correct data directly to yourPMS/CRSEnable automation to drive better business.
How online channels benefit:
Able to reserve rooms from a single sourceCan trust that inventory listed as ‘available’ can be soldCan work on building productive relationships with hoteliers.
120+ integrations with the world’s leading connectivity partners
SiteMinder enables seamless, two-way XML integrations with simple APIs
API for PMS/CRS/RMS integrations API for channel integrations
Concentrate your efforts
Concentration will allow you to multiply your success rate.
Find a solution that:
Allows you to concentrate all your available inventory online, via multiple channelsEnables flexibility and mobility – to keep up with rapid the changes to online bookingsEnsures parity for your partners.
Better merchandised hotels get more bookings
Why?They stand out from their competitorsThey successfully market themselves as ‘attractive’ options to the consumerThey carefully manage their data, rates and displayThey ensure their inventory is “on the shelf”
Engineering seamless online distribution
SiteMinder’s Channel Manager is at the centre of the travel ecosystem
250+ connections to the world’s top booking channels
Trusted by more than 20,000 hotels in 160 countries on six continentsCloud platform provides hoteliers with more control over the online success of their business, and connects them to travellers across the globePowered US$10.8 billion+ booking revenue and 27 million+ reservations for hotels fromJuly 2014 to June 2015Extensive network of 350+ travel and technology suppliersProvides real-time solutions that respond and react instantaneously – when you need them!
Market leader in online distribution
SiteMinder
Own your customers!
How can your hotel gain back the power?
“The momentum for change becomes unstoppable.”Gladwell
Tipping point: Let your success online generate itself.
[email protected]@dchestlerlinkedin.com/in/davidchestler
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