Post on 23-Dec-2015
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eDistribution Hotel Strategies
Improve Occupancy
Improve ADR
Lower Distribution Costs
GDS
Internet
Help hotels and other travel suppliers improve revenue from electronic
distribution channels.
Meeting Hotel’s Needs
Competitive Data
• Hotelligence,• Internet
Hotelligence, RateView Enabling
Capabilities
• Web Booking Engine• GDS Connectivity• Call Center Reservations• Channel Management• Electronic Marketing Centre
E-Marketing
Sabre, Galileo, Worldspan, Amadeus,
Orbitz, Hotwire, USAToday
Services
• Website Design• Call Handling• Search Engine
Optimization• Search
Marketing• Local Advice
Putting it all Together
To Improve
Performance in
Electronic Channels
Competitive Data
E-Marketing
EnablingCapabilities
Services
Why the Focus on Electronic Channels?
2005 Hotel Revenue Forecast($Billions)
Travel Agent GDS
$12.4 B
Web Direct to Property/Chain Sites
$7.8 B
Retail/Net Rate/Opaque Third Party Web Sites
$5.9 B
Expected to deliver over $26 billion in room revenue in 2005
Hotel e-commerce is becoming increasingly important for the hospitality industry
CRO distribution continued to shift in 2004 toward the more cost-efficient electronic channels
Based on TravelCLICK’s eTRAK Industry Report for 2004
Global Distribution Systems began in the early 1980’s
Over $250 billion of travel sold through these systems
Largest e-commerce marketplace, far surpassing total business transacted on the Internet
Originate about 700 million inbound travelers a year worldwide
The World’s Largest e-Commerce Marketplace
Source: TravelCLICK’s Proprietary Database
$12.1 USD Billion GDS Marketplace
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E
GDS Hotel Bookings
GDS Hotel Booking Revenue Increased by 14.3% in 2004
Internet channels are still growingly rapidly, and have become relevant
1.502.50
3.50
6.00
7.50
10.30
$0
$6
$12
1999 2000 2001 2002 2003 2004E
Hotel Revenue From the Internet
($Billions)
Consumer Online Spending - Hotels
TravelCLICK estimates that six out of ten households now consult the Web for travel
Internet Use on the Rise
Consumer utilization of the Internet to plan some aspect of a trip continues to rise
55%
69%
53%
63%
0%
10%
20%
30%
40%
50%
60%
70%
Business Leisure
2002
2003
YPB&R/Yankelovich Partners 2004 National Leisure Travel Monitor
Lookers to Bookers
The rate at which consumers are using the Internet to book travel services is growing even faster
33%
51%
32%
45%
0%
10%
20%
30%
40%
50%
60%
Business Leisure
2002
2003
YPB&R/Yankelovich Partners 2004 National Leisure Travel Monitor
Importance of e-Commerce Bookings % of Contribution to Rooms Revenue
Downtown Property
20-30%
4-10%
10-15%
47-65%
Property Direct
CRO Voice
GDS
Internet
Suburban Property
47-63%
9-12%
5-10%
25-35%
Property Direct
CRO Voice
GDS
Internet
Source: Business mix derived from samples of TravelCLICK”s database and other market information
Typical North American Hotels
Internet revenue consist of revenue contributed by chain website, as well as internet retail sites.
Property direct channel is comprised primarily by group business, but also includes revenue from calls made directly to the property, the property’s own web site and walk-ins.
Airport Property
40-50%
32-48%
5-12%
6-10%
Property Direct
CRO Voice
GDS
Inte
rnet
Resort Property
51-75%5-15%
7-14%
12-20%
Property Direct
CRO Voice
GDS
Internet
Typical North American Hotels
Importance of e-Commerce Bookings % of Contribution to Rooms Revenue
Internet revenue consist of revenue contributed by chain website, as well as internet retail sites.
Property direct channel is comprised primarily by group business, but also includes revenue from calls made directly to the property, the property’s own web site and walk-ins.
Source: Business mix derived from samples of TravelCLICK”s database and other market information
Data Solutions
For managing performance and competitive benchmarking in electronic channels
GM VIEW: Summarizes Pricing, Rate Parity, Best Rate GTD
Isolate dates where pricing is out-of-sync with the competition
Isolate dates where pricing is out-of-sync with the competition
Identify dates with increasing demand in advance
Identify dates with increasing demand in advance
Monitor best rate guarantee program and rate parity
Monitor best rate guarantee program and rate parity
Quick VIEW - Simple One-Page View of Competitive Market
Displays the lowest overall rate across all channels, enabling users to quickly gauge cross-channel competitive positioning
Shows a complete picture of pricing by channel for auditing purposes.
Easily identifies both rate parity problems as well as failures to meet best rate guarantee programs
Daily VIEW: A complete daily picture for all channels and competitors
Users define Price Watch criteria that will generate visual indicators when pricing for a competitor is higher or lower than an acceptable variance.
Users define Price Watch criteria that will generate visual indicators when pricing for a competitor is higher or lower than an acceptable variance.
Multiple Length of Stay VIEW: One page view of multiple LOS
Channel VIEW: A more detailed view of pricing by channel
If a price has changed from the previous week, the amount of the variance is printed in blue or yellow font below the current price.
If a price has changed from the previous week, the amount of the variance is printed in blue or yellow font below the current price.
Supporting Detail: Provides rate descriptions from each site
Identifies Merchant and Retail Rates
Identifies Merchant and Retail Rates
Corporate RateVIEW
Group properties together by area, region or brand
Group properties together by area, region or brand
Diagnostic “alerts” help manage rate parity across each property
Diagnostic “alerts” help manage rate parity across each property
Competitive Benchmarking
GM Summary
An overview of Market Penetration PerformanceKnow your hotels rank and market penetration for the current period vs. prior year in a glance.
Know your hotels rank and market penetration for the current period vs. prior year in a glance.
Identify top performing agencies in your market for future sales opportunities.
Identify top performing agencies in your market for future sales opportunities.
Performance Summary: Key Measures by GDS
Monitor market share and penetration by GDS compared to prior year
Choose monthly or year-to-date data
Choose monthly or year-to-date data
Visual alerts indicate when your market penetration is less than 100%.
Visual alerts indicate when your market penetration is less than 100%.
Performance Summary: Key Measures of Electronic Distribution
Understand 12-month market penetration and average rate trends
Compare ADR trends vs. competitive set and identify opportunities for growth.
Compare ADR trends vs. competitive set and identify opportunities for growth.
Evaluate trend of market penetration for room nights and revenue.
Evaluate trend of market penetration for room nights and revenue.
Distribution Summary: Account Performance in Your Market
Subscribers may request up to 150 total agencies
View monthly and year-to-date informationView monthly and year-to-date information Defined Criteria
Identify which travel agencies book your hotel and your competition, identify target accounts to solicit for business opportunities.
Identify which travel agencies book your hotel and your competition, identify target accounts to solicit for business opportunities.
Totals appear at top for easy viewingTotals appear at top for easy viewing
Distribution Summary: Top Producing Cities and Countries
View monthly and year-to-date informationView monthly and year-to-date information
Select competitors top cities and countriesSelect competitors top cities and countries
Revenue Management Summary
Lead Time Statistics identify booking patterns at your hotel and the competitive set.
Lead Time Statistics identify booking patterns at your hotel and the competitive set.
Revenue Management Summary
Lead Time Statistics identify booking patterns at your hotel and the competitive set.
Lead Time Statistics identify booking patterns at your hotel and the competitive set.
Revenue Management Summary
Understand customer stay patterns in your market
Understand customer stay patterns in your market
A platform from where hoteliers can manage inventory and rates across multiple retail and merchant sites
Channel Manager Coverage
The top sites (and their affiliates) capture ¾ of the total on-line visits
Travelocity.com, WorldRes and iHotelier to be added by June 2004
Lodging.comLodging.com ExpediaExpedia OrbitzOrbitz
The Way It Works Today
Hotel Property
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
Net Rates & InventoryNet Rates & Inventory Net Rates & InventoryNet Rates & InventoryNet Rates & InventoryNet Rates & Inventory
Manual inputManual inputManual inputManual inputManual inputManual input
The Way It Will Work with Channel Manager
Manual Input into ONE LocationNew Rates & Inventory
Manual Input into ONE LocationNew Rates & Inventory
Reservation Count
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
ProprietaryExtranet
EmulationEmulationEmulationEmulationEmulationEmulation
Merchant.comMerchant.com
Retail.comRetail.com
Reservation Count
Destination.comDestination.com
Hotel Property
Channel Management Platform
ChannelManager’s Economic Value
$50k salary x 20% of the RM’s time= $833
250 room hotel @ 70% occupancy @$175 ADR
generates $918,759 in revenue a 2% increase due to better
Revenue Management would yield incremental revenues of= $18,375
4 Suites per month (incremental) @ $200 (2 night stays)= $1,600
3 new sites to the distribution portfolio
4 reservations from each site @ $150 (2 night stays)= $3,600
1
3
4
2
$24,408 * per month
$292,896* incremental revenues
per year
What’s the value of CHM to this hotel?
Electronic Marketing
For increasing business in electronic channels
ConsumerMedia Network
Travel Agent Media Network
Travel Agency Media Network
C O N S U M E R SC O N S U M E R S
An Increasingly Complex Maze
Reta
ilD
istr
ibu
tion
Th
rou
gh
Tra
vel A
gen
ts
TravelAgent
Pegasus
Chain
GDS
EST. CHANNEL15-40%
Local Hotel
Wh
ole
sale
r D
istr
ibu
tion
NEW CHANNEL1-20%
Dir
ect
Dis
trib
uti
on
Chain/Rep Co.
Ch
ain
/Rep
Co.
Dis
trib
uti
on
ExpediaHotels.com
Chain
InternetTravel Site
Pegasusor GDS
Reta
ilD
istr
ibu
tion
Th
rou
gh
Inte
rnet
NEW CHANNEL2-25%
NEW CHANNEL0-10%
Priceline
Chain
Au
cti
on
Dis
trib
uti
on
NEW CHANNEL0-8%
NEW CHANNEL1-3%
Local Hotel Local Hotel Local Hotel Local Hotel Local Hotel
We Focus on the Two Most Profitable Channels
$111.45
$130.00
TravelAgent
Pegasus
Chain
GDS
Local Hotel
GDS
55.00106.00 79.50
115.00
Chain/Rep Co.
Local Hotel
70.00
Priceline
Chain
Local Hotel
105.00
ExpediaHotels.com
Local Hotel
BrandWebsite
Merchant
Opaque
$109.00
$115.00
Local Hotel
PropertyWebsite
Booking
Engine
Provider
Reaches 87% of all Travel Agents worldwide – Over 640,000 Terminals
Statistics provided by each GDS
Our Travel Agency Media Network
Number of terminals worldwide
Sabre/Abacus 218,094
Galileo 158,917
Worldspan 52,297
Amadeus 211,809
1%5%
23%
30%
41%
0%5%
10%15%
20%25%30%
35%40%
45%
5=Highimpact
4=Someimpact
3=Mediumimpact
2=Littleimpact
1=No impact
Hilton Survey - 59% of Agents say GDS Ads Impact Decision-making
53%
47%
44%
46%
48%
50%
52%
54%
Made booking due to ads No response to ads
PLOG Study - 53% of Agents Have Booked a Hotel Due to GDS Ads
Traditional media response rates
Direct mail 3.0%
Print ads 0.2%
59%
Source: NFO Plog Agent Survey 6/03Source: Hilton Agent Survey 8/03.
Independent Research Shows GDS Media Significantly Outperforms Other Media Options
Ad Serving – How Does it Work?
Ad serving is the process of dynamically delivering targeted electronic advertisements (i.e. “serving ads”) into a variety of electronic mediums.
An ad server houses an advertisement and delivers it when the parameters for that particular ad are met.
Travel Agent
GDSAmadeus
GalileoSabre
Worldspan
Travel Agent enters search criteria into GDS
GDS sends request to Ad Server for an ad that meets criteria
Ad Server locates ad and serves it back to the GDS
GDS delivers ad to Travel Agent
GDS MarketingOne to One Real Time Targeting
Travel AgentTraveler
Targets• Ad Period• Promo Period• Point-of-sale Option
• Agent Sign-In Messaging• Agent Broadcast Messaging• Destination Air Shopping• Destination Air Booking• Destination Hotel Shopping• Destination Weather
Messaging
TravelCLICK’sGDS Advertising
Products
Hotel Advertises on GDS
Hotel Booking
First Screen Exposure- Hotel Availability
Detail Screen Display
Targeting Capabilities
Consumer Media Network
Our Consumer Network
Results Page
2 Skyscraper ads are available on the
Results Page
2 Skyscraper ads are available on the
Results Page
Banners & Badge ads are available on the
Results Page
Banners & Badge ads are available on the
Results Page
Landing Page
Hotel Detail / Show All Rates Page
Hotel Detail / Show All Rates Page
Skyscraper ads are available on the Hotel Detail Page and Show All Rates Page
Skyscraper ads are available on the Hotel Detail Page and Show All Rates Page
Destination Page Advertising
Page Sponsorship
Destination-specific banners are available on
hotel, air, car and package research result
screens
Destination-specific banners are available on
hotel, air, car and package research result
screens
Banner & Badge ads are available on Deals & Destination pages
Banner & Badge ads are available on Deals & Destination pages
Customer Reach
5-10
1,000-2,000
Daily Newspaper
Travel Trade Print
TravelCLICK Media
Potential Customers Reached Through $20K Expenditure
175,000-400,000
Direct Mail 1,000-8,000