Navigating the changing distribution landscape
Using smarter data insights to optimise pricing and revenue strategies across online channels
At OTA Insight
“We’re about delivering solutions that empower our partners to make better pricing and distribution decisions"
Innovative, easy-to-use, cloud-based revenue management solutions to Hotels, Resorts, Apartments, Hostels and Accommodation businesses
Built on the latest business intelligence and data technologies and integrates with industry tools including: PMS, RMS and data benchmarking
Highly intuitive and customizable dashboard with live updates and support from an expert customer success team
A team of international experts based in the UK, US, France, Germany, Belgium, Spain, Italy, Australia and India supporting over 16,500 clients in over 134 countries
What current market trends are affecting hotel revenues?
Changing face of the online travel The share of online travel continues to change with APAC growth
PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017
Leaders in leisure travel are changing China and India are key growth markets
WTTC,2016
The changing dynamic of the market A fast evolving sector with major shifts
Trivago is one of the fastest growing metasearch platforms. After going public last year, in Q1 2017, Trivago registered a 62% Y-o-Y growth
“Nordic Choice Hotels tests Blockchain Distribution for Stockholm Property”
“Hotelbeds are a relevant size now to be able to challenge Expedia and Priceline in terms of our
size, service and technology, which gives hoteliers an alternative route to market, globally, ”
‘’Risk free reservations’’. Booking.com clients will see non-refundable bookings as bookings with free cancellation.
“Airbnb strikes deal to make a bigger hotel push”
”HotelTonight faces off with Expedia, Priceline with advanced bookings”
Alternative accom is evolving stay behaviour
Customers are looking for extended stays and to ‘live like locals’
PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017
OTAs continue to lead bookings What’s happening? What’s changing?
PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017
OTAs and metasearch key to shop behaviour OTAs and Metasearch are core part of hotel room shopping journey
ChannelOptimizationinHospitality:SecretsofData-DrivenHoteliers,Phocuswright2017
Keepscrolling!!
OTAsandMetaportalsdominatesearchengines
Closedusergroupratespublishedonmetasearchengines
Onlinebookingmarketcontinuestochange
H It’s no longer just about activating the different online channels to fill rooms
Its about using better data insights to help drive revenue
Not all channels work the same way Different channels have different profiles
LOS(APPROX)
BOOKINGWINDOW(APPROX)
TRAVELERTYPE
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Not all channels work the same way Different channels have different profiles
LOS(APPROX)
BOOKINGWINDOW(APPROX)
TRAVELERTYPE
1 Short Business/Leisure
1.5 Medium/Long Leisure
2 Long Leisure
2 Long Leisure
3 Short/Medium Leisure
Understand your channel levers Compare your performance across different channels
How many room nights does each channel normally generate?
LOS Which day of week are your channels driving business in?
Day of Week What rooms are activated most often in each channel?
Room Types What sort of lead time are your channels driving for your room bookings?
Country
MyHotel
How effectively are you managing metasearch?
Metasearch continues to grow and evolve
Fastbooking2017
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Lowest rate first, best bid second
Short LOS
Low conversion rate, low CPC
?
Lowest rate first
Moderate LOS
Low conversion rate, lower volume
?
Bidding based
Higher LOS
Higher conversion rate, higher CPC
Evolution of metasearch performance Metasearch channels continue to develop and evolve
Fastbooking2017
European Travelers
Lowest rate first, best bid second
Short LOS
Low conversion rate, low CPC
Asian Travelers
Lowest rate first
Moderate LOS
Low conversion rate, lower volume
International Travelers (US highest)
Bidding based
Higher LOS
Higher conversion rate, higher CPC
Evolution of metasearch performance Metasearch channels continue to develop and evolve
Latest Update TripAdvisor Sponsored Placements Program
• Recent roll-out of their Sponsored Placements program. • Now, and for the first time, any hotel can bid to
be at the top of the listings for any given destination.
Metasearch Management Choose the right metasearch strategy for your property
-Target market and strategy
What kind of business you want to attract?
Define
-CPC/CPA
-Avg. ad pos.
-Conversion
-Amount of direct bookings
Choose the right channel(s) -ROI
-Channel Evaluation
-CPC/CPA
Evaluation
Metasearch pricing performance ’ Common performance problems
Discrepancies across Metasearch ’ Tracking from source metasite to sales channel
Who is selling your rate? ’ Determine the Wholesaler undercutting you
As online channels
evolve, smarter distribution
analytics and management is
crucial
Thanks Contact us for more information on rate optimisation [email protected] Or visit www.otainsight.com