Hotel Distribution - Channels, Complexity and Chaos at Rainmaker Gaming & Hospitality Customer...
-
Upload
robert-cole -
Category
Travel
-
view
6.771 -
download
1
description
Transcript of Hotel Distribution - Channels, Complexity and Chaos at Rainmaker Gaming & Hospitality Customer...
Hotel DistributionChannels, Complexity & Chaos
Rainmaker Customer ConferenceMarch 26, 2014 | Santa Barbara, CA
Image Credit: koi. | flickr (cc)
Hotel Distribution Challenges
• Channels– OTA– Meta-Search– Brand/Property Direct
• Complexity– Personalization– Adaptive Content– Advanced Analytics
• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 1Image Credit: will ockenden | flickr (cc)
Hotel Distribution – Channels
• Online Travel Agencies
• Meta-Search Websites
• Brand/Property Direct
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 2Image Credit: Olaf | flickr (cc)
7-Step Travel Process
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 3
PLANNING(How)
VALIDATION(Who)
BOOKING(When)
TRAVEL(What)
SHARING(Wow)
RESEARCH(Where)
INSPIRATION(Why)
Image Credit: paul bica, Greything, | flickr (cc)
Channels – OTA Unfair Advantage?
• Content Dominance– Broad Destination Coverage | Cross-brand Shopping
– High Traffic | Relevant Content | Massive Ad Spend
– Models – Meta / Merchant / Agency / Opaque / Package
• Actionable Demand & Market Intelligence– Strong Meta-search Bidding/Conversion Experience
– Deep Supplier Opaque Discounts Absorbed as Margin
– Shaving of Merchant Room Occupancy Taxes
• Agency Model Rising?– Lower Margin / Better Payment Terms
– Ease of Cancellation / Free Option for Hedge Strategy
– Increased Poaching Potential by Competition or {Gasp} Self
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 4Image Credit: Olaf | flickr (cc)
Channels - Meta-Search Transformation
• Not All Platforms Created Equal– OTA Top Meta-search Position from 66% to 78%– Kayak: 57x Referrals to OTA v. Brand.com | TRIP: 11x– Google Knowledge Carousel Beating Hotel Finder
• TripAdvisor– 2 Billion Annual Unique Visitors in 2013– 1/3 of 150 Million Reviews Entered in 2013– Just Wait – “TripConnect” & “Just For You”
• Wallet Integration– Eliminate Keystrokes on Mobile Device– Frequency Program Integration– Pass Booking Request/Response via API v. Deep Link
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 5Image Credit: x | flickr (cc)
Channels – Is Direct Enough?
• Fluid Website Architecture – Multiple Devices– Google: 89% Have Started One Device / Finished on Other
– Responsive Web Design Dynamic - Screen Dimensions
– Adaptive Web Design – Preset for Specific Dimensions
• Mobile Apps– Intermediary Apps Dominating Hotel Brands
– Utility Focus – Download is Useless if Never Used
– Next Generation – Mobile Check-in | Contextual Offers
• Call Center– Often Forgotten - Smartphones are Still Phones
– Call Tracking Integration Technology
– Ties Online Website Sessions to Call Center Screen Pops
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 6Image Credit: x | flickr (cc)
Hotel Distribution – Complexity
• Personalization
• Adaptive Content
• Advanced Analytics
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 7Image Credit: joncandy | flickr (cc)
The Multiple Persona Traveler
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 8Image Credit: Greything | flickr (cc)
Weather Delay
WeddingAnniversary
College Trip
Family Visit
Industry Conference
Getaway with Friends
Client Visit
RomanticWeekend
Family Vacation
Complexity – Personalization
• Behavioral Segmentation– Multiple/Cross-Device Usage
– Website Navigation
– Remarketing Across Future Website Activities
• Traveler Engagement– Personas Dictate Channel | Destination | Components
– Preferences Largely Situational & Itinerary-specific
– Common Goals? | One Night Stand v. Lifetime Relationship
• Contextually Relevant Offers– Right Product|Message|Guest|Time|Channel|Price
– Unparalleled Social Targeting Capability – Facebook
– Who Draws The Creepy Line? The Buyer | Not The Seller
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 9Image Credit: joncandy | flickr (cc)
Complexity - Adaptive Content Puzzles
• Programmatic Advertising– Anonymous Traveler Purchase History– Bid-based, Real-time, Advertising Exchanges– Rules Based RMS Integration Creates Real-time Offer
• Website Design Considerations– Responsive Website versus Adaptive Website Design– Landing Page Design/Optimization to Convert Sale– Navigation Path to Support Persona’s Narrative
• Multivariate Conversion Testing– Booking Engine Integration – Can Be a Sore Point– Not Just Best Option – Best Combination of Options– Track All Data Points – Seek Conversion Correlation
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 10Image Credit: joncandy | flickr (cc)
Complexity – Advanced Analytics
• Integrated Analytics– Shared Social Attribution
– Billboard Effect or Coincidental Visit?
– Review Scores – Correlation and/or Causation?
• Big Data– Too Big, Fast or Weird to Fit in Traditional Database
– NOT Just Data You Control
– Predictive Analytics
• Death Of The 3rd Party Cookie– Apple / Microsoft / Facebook / Google Alternatives
– Universal Analytics – Persistent Across Sessions & Devices
– UserID – Signed In Account from Authenticated Platform
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 11Image Credit: joncandy | flickr (cc)
Hotel Distribution – Chaos
• Hotel Product Transformation
• Rate Parity Under Assault
• Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 12Image Credit: scragz | flickr (cc)
Chaos – Hotel Product Transformation
• Room Inventory Gets Personal– Airbnb / HomeAway Training Guests to Select Unit– Managing Unit-based Inventory Like Playing Tetris – Push or Pull Synchronization Challenges
• Rate Plan Permutations & Combinations– Multiple Personas = Multiple Options / Eligibility– Rules-based Variable Pricing & Combinability Rules– Validation Based on Offer / Affiliation / Channel
• Bundled Offers– Demand Generator and/or Value Added Pairings– Protects Retail Pricing Structure– Avoids Rate Parity Entanglements
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 13Image Credit: x | flickr (cc)
Chaos – Rate Parity Under Assault
• United Kingdom / European Union Rulings– Illegal in Europe / OK in US– Open Game for Returning Guests with Profiles– Distribution is Virtual & Global
• Returning Guests are Open Game– Redefines the Frequent Guest– Best Available Rate Guarantee Undermined– Merchant & Agency Models Equally at Risk
• The Battle to Induce Trial– Lifetime Value Basis for New Customer Acquisition– Special Offers Independent of Room Rate– Meta-search Visibility Into Frequency Programs
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 14Image Credit: scragz | flickr (cc)
Chaos – Total Revenue Management
• Acquisition Costs– Channel Advertising Spend
– Staff Allocation – Important for Social Media
– Cost Allocation Frequently Conversion Dependent
• Distribution Costs– Channel Distribution Expenses
– Are You Paying for Marketing, Technology or Both?
– Fully Allocated Brand Related Expenses
• GOPPAR Is End Game– Understand True Channel Profitability
– Requires Integrated Spend / Traffic / Conversion Analytics
– Enterprise & Highly Interoperable Solutions Win
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 15Image Credit: scragz | flickr (cc)
Review of Hotel Distribution Challenges
• Channels– OTA– Meta-Search– Brand/Property Direct
• Complexity– Personalization– Adaptive Content– Advanced Analytics
• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 16Image Credit: 3[3] | flickr (cc)
How Do Revenue Managers Survive Thrive?
• Embrace Complete Hospitality Vision – Old School– A New “Location, Location, Location” Paradigm
– “Life is Service” & “Guest is Always Right”
– When Herd is Culled – Old / Weak / Those Unable to Adapt
• Total GOPPAR Management– Break Through Marketing / Web / Advertising / CRM Silos
– Segment Granularity Down to Persona/Itinerary Basis
– More Signals from More Sources – Big Data Gets Real
• Surviving in the Intersection During Rush Hour– Guest Segment: Traveler Persona & Itinerary Goals
– Product Offer: Destination Experience & Breaking Rules
– Business Success: GOP Capture v. Lifetime Guest Value
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 17Image Credit: HJ Media Studios | flickr (cc)
Hotel DistributionChannels, Complexity & Chaos
Hang On, It’s Going to Be a Bumpy Ride!
Thank You
Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: [email protected]
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 18Image Credit: ::hap / flickr (cc)