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: robert@rockcheetah.com

VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 12 Image Credit: Warner Bros. (All Rights Reserved)