The OTA Perspective
Casey Davy,
Vice President Sales
• Online travel bookings will make up nearly a third of worldwide
transaction by the end of 2012 (according to yStats.com)
• In 2011 global hotel revenue rose 18%, with nights stayed up 16%*
• 74% of leisure and 86% of business travellers use the Internet to
gather information before they book travel
• Online Channels have grown by 25% in the last four years
Social search for word of mouth, Multi-channel marketing is the norm…
*hotelmarketing.com
Evolution of online distribution in travel
This is the new
…which is giving
sleepless nights……..
Facing a customer
Who will visit 22 websites during 9.5 sessions prior to booking
Will check an OTA site 12 times, visit
7.5 pages each time, and spend almost
5 minutes before clicking the BOOK button
68% of them will rely on internet
especially when planning a leisure trip
80% travellers research the venue
before booking
…in other words, YOU are
always under scanner
Greater targeting understanding of OTA sales
• More websites
• Different packages
• Direct sales
• Longer lead-times
• Further advanced pricing
• Sales/Channel optimisation
Booking.com
spent $40.4m on
Advertising
Source: Google, 2011
• Where is your business coming from?
• Who are your competitors and how do you compare?
• Which channels are driving business our way?
• What should be your pricing strategy?
• How often should you update your distribution channels?
• How do you monitor results?
Question Time
Where do I start?
Image Courtesy: SXC
Who can bring business
INCREASING CONVERSION
• HOTEL DESCRIPTION
• PHOTO GALLERY
• HOTEL FACILITIES
• ROOM DESCRIPTIONS
• RATES & PACKAGES
• SEARCH LISTINGS
• ALGORITYM
• GUEST REVIEWS
• SPECIAL OFFERS
• HOTELS AD’S
Hotel Description
• 120 word description was far more effective than a long
wordy one – 4.07% conversion increase potential if you
get it right!
• Focus on unique features and points of difference – not
your T’s and C’s
• Spell Check – typos are easily picked up on and can turn
a prospect off instantly.
• Be honest about your target parties – are you stag/hen
or family friendly?
Imagery
• User Testing constantly highlights the need for good
quality, meaningful images and video
• Include shots of the bathrooms and bedrooms – these
matter to our customers
• Tag your photos – customers want to know what they’re
going to get
• Bigger, better, more of them recommend 10 – 15
pictures
ALGORITYM
• Images
• Total Rooms Available
• Online Bookable
• % Occupancy Given
• Accounting
• Customer Review Score
• Automated Referral Sign Up
• Average Discount
• Room Facilities
• Star Rating
Removes that ‘think twice’ element.
• Offer a flexible rate.
• Be honest about your star rating ratings
• Room Notes
• Upgraded rooms with a supplement?
• Hotel Facilities
How can OTAs help?
• Search Boost
• Special Offers
• E-blast
• Social Media integration
Strategy has changed to….
Focus on direct sales
Reducing commission
More importance to GDS and working out with more
Travel Agents & consortia contracts
What will bring business?
Your REPUTATION
Power of guest reviews
• Hotel reputation
• Visibility and ranking
• Bookings generation
• Product value
• Revenue
81% Of travellers find
User Reviews
important on
decision
To hit the Bull’s eye You must…
• Understand where the value of Direct
Bookings derive
• Know your market
• Have better and more flexible contracts
with OTAs
• Experiment with new and diverse
channels
• Install integrated and streamlined
technology to better manage your
online distribution
• Keep an eye on Mobile and Social
Media
• Manage Online Reputation to build
brand value and loyalty
9 Tips for Effective online distribution
1. Manage Rates Carefully
2. Do not ignore historical data
3. Invest in technology
1. Use effective channel partners
2. Think like a marketer
3. Automate allocation process
4. Experiment with different channels and segments
5. Measure and scale your online activities
6. Always focus on a mutual win, build trust and loyalty
GDS
Rates &
Inventory
Benchmarking
Channel Partner
Online Distribution is an investment
• If your Average Room Rate is 100€ per night..……
• If you update a further 10 websites ……….
• If through greater exposure, you received just ONE extra
room night per month from each site……..
• 100€ x 10 x 12 = 12,000€ per year
• Increase occupancy and make money !
…the answer is, yes..
Thank You!
is the best channel manager