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, Built on the latest business Highly intuitive and A team of international experts cloud-based revenue intelligence and data customizable dashboard with based in the UK, US, France, management solutions technologies and integrates live updates and support from Germany, Belgium, Spain, to Hotels, Resorts, with industry tools including: an expert customer success Italy, Australia and India Apartments, Hostels and PMS, RMS and data t eam supporting over 16,500 clients Accommodation businesses benchmarking 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 Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
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 ‘’Risk free reservations’’. Booking.com clients will see non-refundable bookings as bookings Trivago is one of the fastest growing with free cancellation. metasearch platforms . After going public last year, in Q1 2017, Trivago registered a 62% Y-o- Y growth ” HotelTonight faces off with Expedia, Priceline with advanced bookings ” “ Hotelbeds are a relevant size now to be able to challenge Expedia and Priceline in terms of our “Nordic Choice Hotels tests Blockchain Distribution size, service and technology, which gives hoteliers for Stockholm Property” an alternative route to market, globally, ” “Airbnb strikes deal to make a bigger hotel push”
Alternative accom is evolving stay behaviour Customers are looking for extended stays and to ‘live like locals’ Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
OTAs continue to lead bookings What’s happening? What’s changing? Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
OTAs and metasearch key to shop behaviour OTAs and Metasearch are core part of hotel room shopping journey Channel Optimization in Hospitality: Secrets of Data-Driven Hoteliers, Phocuswright 2017
OTAs and Meta portals dominate search engines Keep scrolling!!
Closed user group rates published on metasearch engines
Online booking market continues to change 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 BOOKING WINDOW TRAVELER TYPE (APPROX) (APPROX) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Not all channels work the same way Different channels have different profiles LOS BOOKING WINDOW TRAVELER TYPE (APPROX) (APPROX) 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 Country Room Types LOS Day of Week Which day of week are What sort of lead time What rooms are activated How many room nights does your channels driving are your channels driving most often in each each channel normally business in? for your room bookings? channel? generate?
Metasearch continues to grow and evolve How effectively are you My managing Hotel metasearch?
Evolution of metasearch performance Metasearch channels continue to develop and evolve ? ? ? Bidding based Lowest rate first Lowest rate first, best bid second Higher LOS Moderate LOS Short LOS Higher conversion rate, higher CPC Low conversion rate, lower volume Low conversion rate, low CPC Fastbooking 2017
Evolution of metasearch performance Metasearch channels continue to develop and evolve European Travelers Asian Travelers International Travelers (US highest) Bidding based Lowest rate first Lowest rate first, best bid second Higher LOS Moderate LOS Short LOS Higher conversion rate, higher CPC Low conversion rate, lower volume Low conversion rate, low CPC Fastbooking 2017
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 Choose the right Evaluation Define channel(s) -ROI -Target market and strategy -CPC/CPA -Channel Evaluation What kind of business you -Avg. ad pos. want to attract? -CPC/CPA -Conversion -Amount of direct bookings
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 tijl@otainsight.com Or visit www.otainsight.com
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