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ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online Strategy for
Rentals and Resales
ModeratorJohn Locher, Locher and Associates
SpeakersErik Hovanec, President & CEO LeisureLink, Inc.
Hansen Hunt, Online Market Manager ResorTime.com
Kristin Intress, CEO InnLink
Jason Tremblay, CEO Sell My Timeshare Now, LLC
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Choosing Resales and Rental Solutions
• Consider every option-use many
• Exposure and results
• Ease of vendor relationship
• Attention & service
• Commissions
• Transparency
• Reputation
• Respect and involvement in your industry
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online trends
• International travelers
• Youth movement
• Social booking
• Service UVP
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Faster
•Search
•“Specials”
display
Higher
•Loyalty
•Conversions
Stronger
•Lifecycle
marketing
•Use of data
(analytics)
Altius FortiusCitius
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Thank You!
•Please fill out the evaluation form and return it
in the back of the room.
•Download presentations on the mobile app at
http://m.myiwf.com/arda or on our website at
www.arda.org/conv12/handouts
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online Strategy for Rentals & Resales Perception vs. Reality
Erik Hovanec, LeisureLink
Hansen Hunt, ResorTime.com
Kristin Intress, InnLink
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Agenda
• Some facts about online lodging markets
• Some facts about rental guests
• A decision framework
• Tricks of the Trade
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Overview of Online Lodging Markets• Why rent in the open
market?
• Fragmented… and getting more so
• Brutally competitive / Overcapacity most of the time
• If you don’t know what you are doing, it can be very frustrating
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Agenda
• Some facts about online lodging markets
• Some facts about rental guests
• A decision framework
• Tricks of the Trade
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Who Are These Rental Guests?• Normal people looking for
“lodging” (i.e. a hotel…)
• Opportunity to introduce them to your property
• Generally new to Timeshare…. but “Timeshare” has negative connotations to them
• Your opportunity to wow them!
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Agenda
• Some facts about online lodging markets
• Some facts about rental guests
• A decision framework
• Tricks of the Trade
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
A Decision Framework, Part 1
• How committed are you?
• Single biggest determiner
of success or failure
– Commitment can fill your
rooms
– Dabbling will result in
failure
• Must decide if you really
want to jump in… or don’t
waste your time
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
A Decision Framework, Part 2
If you commit, you will
need:
•Dedicated, professional
team!
•Real levels of inventory
•“Play the game!”
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Agenda
• Some facts about online lodging markets
• Some facts about rental guests
• A decision framework
• Tricks of the Trade
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Tactical: Tricks of the Trade• Great merchandising is a must. [Duh…]
• Sell the inventory the way consumers want to buy it (“nights”, not the way the industry wants to sell it (“weeks”)
• Market sets the rate…. Not you
• Promotions, Promotions, Promotions! -- who pays retail anymore?
• Focus on placement!...
• Placement = money
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Thank You!
•Please fill out the evaluation form and return it
in the back of the room.
•Download presentations on the mobile app at
http://m.myiwf.com/arda or on our website at
www.arda.org/conv12/handouts
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online Strategy for Rentals & Resales Perception vs. Reality
Erik Hovanec, LeisureLink
Kristin Intress, InnLink
Hansen Hunt, ResorTime.com
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Marketing Timeshare Rentals OnlineMarketing Timeshare Rentals Online
Hansen Hunt,
Online Marketing Manager
ResorTime.com
Hansen Hunt,
Online Marketing Manager
ResorTime.com
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Marketing Timeshare Rentals Online
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Why do you need to be online?Why do you need to be online?
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Where do you need to be online?
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Most Important Web Presence… Search Engine
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
How do you do all of this?
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Thank You!
•Please fill out the evaluation form and return it
in the back of the room.
•Download presentations on the mobile app at
http://m.myiwf.com/arda or on our website at
www.arda.org/conv12/handouts
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online Strategy for Rentals & Resales Perception vs. Reality
Erik Hovanec, LeisureLink
Kristin Intress, InnLink
Hansen Hunt, ResorTime.com
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Committed but Confused
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
•• Are you Here?Are you Here?
• You are Here!
• Where do I go next??
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Are you Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Are you searchable?
– Must be found to be booked (SEO/PPC)
– How are you being found?
• OTA’s1-6 book at OTA
• GDS400,000 travel agents World Wide
• Portals/Aggregators1000’s
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Are you Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Are you bookable?– Must be useable to be booked (Website,
Facebook, Mobile)
• Easy to Use Book Now Book Now button
• Personalizedpreferences, add-ons
• Measurabletrack your ROI, conversion rates, know where you lost them in the process to capture new opportunities
You have 4You have 4--7 seconds 7 seconds
to provide to provide
the solution the solution
your guest your guest
is looking foris looking for
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Are you Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Are you available?– Must be able to talk with your future guest
to sell (front desk)
– Who are they calling?
• Do you always pick up the phone2AM?
• Do you have time to sell owners checking in, asking questions
• Do you up-sell11% higher ADR in the call center
You never get a second You never get a second
chance to sell tonightchance to sell tonight’’s s
inventory. People still want inventory. People still want
to talk to people.to talk to people.
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
ECO System
PMS
System
CRS
Provider
Wholesaler
Extranet
Direct
Connects
Pegasus Sabre
Travelport
Amadeus
IBE
Voice
Channel
Manager
Revenue Management and
all property level interfaces
eMarketing
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ODDODD
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Committed but Confused
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Are you Here?
•• You are Here!You are Here!
• Where do I go next??
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
You are Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Channel Mix (Cindy Estes)
– How much should you expect from each
channel?
• Each channel has it’s purpose
• Don’t compare yourself to your
neighbor, they may be wrong
• Maximize your mix
Unless you are running at Unless you are running at
100% occupancy at the right 100% occupancy at the right
rate, yourate, you’’ve left money on ve left money on
the tablethe table
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
You are Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Each Channel has it’s purpose
– What is growing?
• Mobile, Facebook, Branded booking engine
– What is shrinking?
• OTA’s, GDS
– What is staying the same
• Voice, transient
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
You are Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Don’t compare yourself to your neighbor, they may be wrong
– Every segment is different• Timeshare, Condo, Rentals
– Every destination is different• Fly to, drive to, Rural, Urban
– Every product is different• Amenities, near by attractions
Metrics are tools to guide Metrics are tools to guide
you in the Darkyou in the Dark……
••Is your metric accurateIs your metric accurate
••Is your metric consistentIs your metric consistent
••Is your metric measurableIs your metric measurable
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Channels reviewed in StudyBrand.com Marriott.com, Starwood.com, hotel’s own web site
CRS/Voice 1-800-hiltons, 1-800hotels, 3rd parties
GDS Travel agents (Sabre, Galilieo, Amadeus, Worldspan)
OTA Online travel agents
Property
Direct/OtherWalk-in, group/rooming list, employee/discount, contract, Passkey
Copyright 2011 Smith Travel Research
DISTRIBUTION STRATEGY ISSUESDISTRIBUTION STRATEGY ISSUES
•Online Consumer Behavior
•Cost Evaluation by Channel
•Market Resource Allocation
•Optimal Channel Mix
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Copyright 2011 Smith Travel Research
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Copyright 2011 Smith Travel Research
Hotel Profile: Small
Chain/Independent
Major Urban
Location
Room Count 400
Occupancy 68%
ADR $135
Total Room Revenue $13.5M
Business
Type
Room
Demand
ADR Revenue Share of
Demand
OTA 25,000 $110 $2.75M 25%
Corporate 20,000 $135 $2.7M 20%
Group/ meetings 30,000 $135 $4M 30%
Brand.com 20,000 $165 $3.3M 20%
Citywide/ Other 5,000 $140 $700K 5%
Costs of Distribution-Case Study
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Copyright 2011 Smith Travel Research
Optimal Channel Mix Optimal Channel Mix Requires analysis of demand and competitive market situation:
more than a simplistic exercise to remove the lowest profit channels
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Demand Share by Channel for Total USYTD June 2009, 2010 and 2011 (Percent of Total Room Nights)
YTD numbers available
OTA, Brand.com, and GDS up, Prop Direct down, GDS flat
Copyright 2011 Smith Travel Research
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Similar to Annual 2010 numbers, with some exceptions
Voice & GDS high at top, OTA & Direct at bottom, Brand in up/mid
Channel Demand Share by Scale for USJune YTD 2011 (Percent of Total Room Nights)
Copyright 2011 Smith Travel Research
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ADR by Channel for Upper UpscaleAnnual 2009 & 2010
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ADR by Channel for UpscaleAnnual 2009 & 2010
Copyright 2011 Smith Travel Research
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
Channel ADR by Location for USAnnual 2010 (Percent of Total Room Nights)
Copyright 2011 Smith Travel Research
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
You are Here?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Maximize your mix– Understand how to sell to your guest
• What are they looking for and is your process easy, efficient, safe, bookable?
– Are you managing your inventory effectively?• Channel management, Rate Setting, Packages
– Are you managing in fear?• I don’t understand so I’ll close out channels
• I think OTA’s are too expensive so I’m not going to sign up
• I think the guest can send me an email because it’s more personal and I could sell them on a timeshare
• I think call center’s are too expensive so I’ll answer the phone myself
Every channel has itEvery channel has it’’s place s place
and value. Use them, donand value. Use them, don’’t t
let them use youlet them use you
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Committed but Confused
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Are you Here?
• You are Here!
•• Where do I go next??Where do I go next??
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Where do I go next?
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
• Be committed
• Be open to new approaches out of
your comfort zone
• Find a partner that will guide you
and provide recommendations
• Don’t wait till tomorrow to do what
you should do today.
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Thank You!
•Please fill out the evaluation form and return it
in the back of the room.
•Download presentations on the mobile app at
http://m.myiwf.com/arda or on our website at
www.arda.org/conv12/handouts
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Online Strategy for Rentals & Resales Perception vs. Reality
Erik Hovanec, LeisureLink
Kristin Intress, InnLink
Hansen Hunt, ResorTime.com
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates
ARDA World 2012, Annual ConventionARDA World 2012, Annual Convention
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
The “Long Tail” describes the strategy of selling a large number
of unique items with relatively small quantities sold of each.
This concept can also be applied
in online marketing.
Long-tail Online Resale Strategy
Examples of long tail marketers: Amazon, Netflix, Travelocity, Ebay
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
HOA/Mgmt. Co/Sold-out Resort Resale
(no active sales – no perceived conflict)
• Marketing Driven Resale
– Onsite sales teams can “work” existing owner
base, drive tours and move more volume at a
higher price
• Market Driven Resale
– External brokers and online resellers
– Price is determined by supply and demand
dynamics
– Most resale buyers are “shopping” online
HOA vs. Developer Resales
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Developer (in active sales) Resales
– Can create internal listing team
• Can resell front-line or make listings available to
external reseller(s)
– Recommend several timeshare resellers
• Can provide list of ARDA resale companies
– Vett and recommend one “Authorized Reseller”
• Allows you to consolidate resale inventory
• Gives greater visibility into results and owner service
• 3rd party relationship mitigates internal conflict with
Sales and marketing
HOA vs. Developer Resales
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Quotes I’ve heard from Industry CEO’s
“No one wakes up and decides to buy a
timeshare”
“Timeshare will never be a sought good”
“The internet will never become a
timeshare vending machine”
“We need to outlaw resales”
Let’s First Dispel Some Old-school Thinking
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
This
Thinking
Drives Me
Crazy!!!
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
There is staggering demand and traffic
online for “timeshare”
People ARE
Actually
Waking up and
Deciding to
buy timeshare!
Here’s the Good News for Resales:
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Source: Google
HOW? A Lesson in Keywords
823,000 people Googled “timeshare” last month alone
“Fat-head” Keywords
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe Keyword Search Demand Curve
Highest Competition
Lowest Conversion Rate
Lowest Competition
Highest Conversion Rate
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe “Long-tail”
Example: “st john timeshare”
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual ConventionThe “Tail” Just gets Longer and Longer
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Understanding of keywords
1) Fat-head: Most generic keywords with the most
traffic in your niche. Each niche may be very
different in terms of quantity. We view the “fat-
head” as any keyword that brings us 500 or
more visits per month.
2) Chunky-middle: Any keyword that brings 25
visitors or more
3) Long-tail: Keywords that deliver less than 25
visitors per month.
Fat-head, Chunky-middle, Long-tail…WHAT??
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Analytics data from January 2012
SellMyTimeshareNOW.com
A Resale Success Story Case Study
292,406 people came from an
organic “keyword search”
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
1 thru 10 of 117,072 keywords that drove 292,406
organic visitors
“Fat-head” Keywords (500 monthly vists +)
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
The top 21 of 117,072 keywords delivered
38,162 visits or 13% of January traffic
“Fat-head” Continued…
It’s the 80/20 rule upside down
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Only the top 628 of 117,072 keywords queried in
January delivered over 25 visitors for the month(.05%)
…and the Long-tail begins
Long-tail
99.5% of keywords queried
in January delivered less
than 25 visitors per
keyword but 87% of the
total organic search traffic
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention117k Keywords drove 339k Unique Visitors
Which drove 20k conversions
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Average cost of buyer lead:
$3.00
– Web savvy – the “next generation timeshare
buyer”
– Inbound and unsolicited
– Strong behavioral intent to purchase or rent
Long-tail Online Marketing Efficiency
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
– There is strong online interest in timeshare (rental and resale)
– Prospective timeshare buyers and renters are using the internet to do their shopping
– Those prospects know what they are interested in as reflected by their keyword searches
– The secondary market is growing and will continue to grow
– Most of that growth is occurring online
– A robust resale program must include an online component
– You don’t have to do it yourself
In Summary
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
We are now successfully partnering with numerous
developers and HOA’s on resale
– Can provide dedicated team trained on your
resort/product to field resale inquiries
– Offering owners choice of for-sale-by-owner
advertising (“FSBO”) or full service commission
based listing service (No “up-front” fee)
– Resale and Rental solutions for HOA’s and
delinquent/foreclosed inventory
– Listings are non-exclusive
Owner Services
It
Works!
ARDA ARDA World 2012, Annual ConventionWorld 2012, Annual Convention
Its time to give them one
Don’t be this guy
Your Owners NEED a Resale Solution