Rate Tiger Final

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Casey Davy from Rate Tiger discusses the importance of distributing your hotels rates through third party websites at the Hotel Website Marketing Conference www.hotelwebsitemarketing.com

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  • How many of you are on facebook, linked in, You Tube, My Space, Zingo, Match.com? More than One, Two, Three? We socialize online (social media), Virtual offices (connect to PC), We date online (match.com), We shop online (ebay), what don’t we do online The newest term to arise out human evolution is screenager. Do you have a choice? Last year 77.8% of bookings for the top 30 hotel brands were made online!
  • 1994 – Pegasus launched their online booking engine, Hotelbook. (notes only) 1996 – Travelocity and Expedia. 1997 – Priceline.com. 1998 – Google. (notes only) 2005 – meta searches are launched, such as Kayak.com. (notes only) - Priceline buy Bookings.com. Amadeus buys Opodo. (notes only)
  • If you recall I mentioned in 1999 Yield Management was the BUZZ.... The basic definition of YM used to be a balance of occupancy and rates to maximize revenue. But now with sophisticated systems and more data readily available……. Evolution
  • 10 years ago mainly sales to/through travel agents, tour operators, local corporate and alike. Over the last couple of years the role of a revenue manager has become more commonplace. All as before but also the web RM – full time / qualified or not qualified - uses tools RMS / channelmanager
  • Use slide 16 as notes to back-up this slide and delete 16. How does online distribution (OD) help improve Revenue Management strategies ? OD gives you the opportunity for more exposure through more websites. With the right tools like RT can control that OD – different rates and availability to different websites, over various date ranges. You can close the gap on your competitors, by proactively monitoring rates on multiple websites and on your competitors own site. Knowledge is power and OD can provide up-to-date information for critical decisions on rates and occupancy. RT will never replace a RM it will increase their efficiency
  • 54.2% of overall CRS bookings for the top 30 hotel brands come from the online channel, which is an increase of 6.6% vs. 2008 (eTRAK). 60% of leisure and 40% of business travel will be booked online this year (PhoCusWright). 45% of hotel bookings in 2010 will be via the Internet (direct + indirect online channels) (HeBS). _____________________________ In 2009, 70.9% of online bookings came from the direct online channel (i.e. the major hotel brands’ own websites), while 29.1% came from the indirect online channel (the Online Travel Agencies—OTAs) (eTRAK). This constitutes a significant increase of the contribution from the OTAs compared to 2008, when 75.2% of online bookings came from the direct online channel, while 24.8% came from the OTAs. Compare this to 2007, when the direct channel contributed 76% of CRS Internet bookings.
  • Use the questions from slide 8 to explain the products on this slide and delete slide 8. By asking………. Where is my business coming from? Who are my competitors and how do I compare? Which channels do I need to work with? What should be my pricing strategy? How or how often should I update my distribution channels? How do I monitor results?
  • we have over 500 sites to offer, hotels can study the source of their business and then we can help them decide which sites they want to work with according to their market mix.   eg.. They get a lot of business from Germany, we can offer the most popular sites in Germany. Or they get a lot people staying to play golf, they can distribute to golf operator sites.
  • We are specialists, totally focused on our own wholly-owned products and developing them. Never blocked by any sites -we do not overstretch their resources, by making lots of large hits on the sites. The sites are so comfortable with us, that they also use our RT Web product to compare themselves with other sites and their hotel lists, which is an endorsement in itself. With CHANNEL MANAGER PLUS, we are the only company to offer shopping and managing of inventory on the same page/screen. Our ‘live’ online client training and after-sales is FREE and unlimited, to prove that we really are far more customer focused. Technical Support – 24 hour + multi-lingual product support during office hours. RateTiger is the most sophisticated Channel Management system RateTiger uses Real Time technology for accurate data RateTiger works with 500+ travel websites and has been awarded the prestigious ‘Expedia Rate & Inventory Management Certificate’ RateTiger offers a broad range of products which can be tailored to suit every need & budget RateTiger provides free, unlimited product training, multi-lingual customer support & 24/7 technical support RateTiger, the leader in channel management innovation, was recently awarded the European Seal of e-Excellence, 2010’ RateTiger takes data protection seriously and is ISO27001:2005 certified RateTiger – Save Time Make Money!
  • Finish with this one and leave this showing as you take questions and leave other slides if you need them to answer questions.
  • Also create a slide to show the return on investment and another slide to explain corporate products – Corp, Web and Connect.
  • BIGGER PICTURE: RTConnect acting as an OTA switch
  • BIGGER PICTURE: RTConnect acting as a central distribution switch
  • Rate Tiger Final

    1. 1. <ul><li>Is being online an addiction? </li></ul>
    2. 2. &quot;Making the most of IDSs to deliver your Revenue Management Strategy&quot; March 2010 Casey Davy
    3. 3. Brief History of E-Commerce <ul><ul><li>In the 1980’s, travel agents started using Global Distribution Systems to make airline bookings. In 1985 more than 10,000 travel agents were using Sabre. </li></ul></ul><ul><ul><li>1991 – the worldwide web was created by a British computer scientist, Tim Berners-Lee. </li></ul></ul><ul><ul><li>1993 – Galileo, the last of the 4 GDS was founded by 11 airlines. </li></ul></ul><ul><ul><li>1995 – Internet Explorer was launched and the introduction of booking engines such as WorldRes. </li></ul></ul><ul><ul><li>1999 – 39% of hotels are taking online reservations. Yield Management was a ‘hot’ topic ! </li></ul></ul><ul><ul><li>2001 - eRevMax was formed, but the market was not yet ready for a full blown RMS and so at first only the online Real Time rate shopping tool was created (with 3 staff). </li></ul></ul><ul><ul><li>2001 – 64% of hotels are taking online reservations. A dramatic rise in the number of third party websites. Orbitz.com is launched. </li></ul></ul><ul><ul><li>2006 – Internet surpasses GDS in reservations (lookers become bookers). </li></ul></ul><ul><ul><li>2007 – Sabre’s Travelocity and Lastminute.com become Europe’s largest online travel retailer. </li></ul></ul><ul><ul><li>2009 – eRevMax launches a new product range, RTSuite to include RT Strategy. </li></ul></ul><ul><ul><li>2010 – eRevMax offers iphone application and online multiple channel marketing. </li></ul></ul>
    4. 4. <ul><li>Price: PERCEPTION: cheaper on the Web </li></ul><ul><li>24/7: Much easier - you can book when it’s convenient </li></ul><ul><li>Benchmarking: Compare different hotels </li></ul><ul><li>Wide choice: A wide range of shops and products </li></ul><ul><li>Quick: Can book within a few minutes </li></ul>Why do you book online?
    5. 5. <ul><li>What do we know? </li></ul><ul><li>We know the internet is becoming more and more powerful and more of a necessity, rather than a luxury in our everyday lives. </li></ul><ul><li>We know that hoteliers are learning to use more Revenue Management (Yield Management) strategies. </li></ul><ul><li>What is Revenue Management </li></ul><ul><li>“ … Revenue Management is the process of understanding, anticipating and reacting to consumer behavior in order to maximize revenue or profits… “ (Wikipedia, April 2008) </li></ul><ul><ul><li>Not simply the art of being the cheapest! </li></ul></ul>The evolution of the Internet has enormous impact on Revenue Management Strategy
    6. 6. Hotels now need to look at Internet Distribution Systems to maximize revenue…..
    7. 7. <ul><li>Segmentation of client mix (corporate / leisure / weekday / weekend / etc.) </li></ul><ul><li>Balance between current occupancy and rates </li></ul><ul><li>Competitiveness of rates and ranking </li></ul><ul><li>Consider consumer benchmarking abilities </li></ul><ul><li>Market conditions (trade shows, events) </li></ul><ul><li>Forecast of future occupancy </li></ul><ul><li>Consumer trends & behaviour </li></ul><ul><li>Competition </li></ul>What the Revenue Manager must consider :
    8. 8. Why work with IDSs? <ul><li>Greater exposure </li></ul><ul><li>Segregation of inventory </li></ul><ul><li>Lower cost per acquisition compared traditional (GDS and Voice) </li></ul><ul><li>You want their loyal customers </li></ul>
    9. 9. Return on your investment... <ul><li>If your Average Room Rate is 100 euros per night..…… </li></ul><ul><li>If you decided to update 10 websites ………. </li></ul><ul><li>If through greater exposure, you received just ONE extra room night per month from each site you work with…….. </li></ul><ul><li>100 x 10 x 12 = 12,000 euros per year would be generated. </li></ul><ul><li>It’s an easy decision to make ! </li></ul>
    10. 10. Top 8 Tips for Effective Revenue Maximization <ul><li>Drop Rates Carefully </li></ul><ul><li>Do not ignore historical data </li></ul><ul><li>Invest in technology </li></ul><ul><li>Treat IDSs as your partners </li></ul><ul><li>Use effective channel partners </li></ul><ul><li>Automate allocation process </li></ul><ul><li>Experiment with different IDSs </li></ul><ul><li>Always focus on a mutual win, and this in turn will build trust and loyalty </li></ul>Expedia Orbitz hrs City.com Country.com Rates & Inventory Benchmarking Channel Partner
    11. 11. RateTiger Product Suite / PREMIUM PRODUCTS ! Helping hoteliers maximize revenue... RT Strategy
    12. 12. Products <ul><li>Benchmarking for Hotels / Groups / Travel sites </li></ul><ul><ul><li>Competitor rate information on travel and hotel sites </li></ul></ul><ul><ul><li>Weekly report or online real time (both accessible at any time) </li></ul></ul><ul><ul><li>300 websites connected / 3,000 hotel sites configured </li></ul></ul><ul><ul><li>Integrated with IDEAs </li></ul></ul><ul><ul><li>Several packages available </li></ul></ul>RT Strategy
    13. 13. Products <ul><li>Rate & Inventory Allocation </li></ul><ul><ul><li>Manage multiple travel websites in one screen </li></ul></ul><ul><ul><li>Optional status quo (Pro version) </li></ul></ul><ul><ul><li>Currently over 500 sites (inc. expedia, booking, orbitz, etc…) </li></ul></ul><ul><ul><li>Several packages available </li></ul></ul>RT Strategy
    14. 14. Products <ul><li>Combination of RTShopper and RTAllocator </li></ul><ul><ul><li>From competitor analysis to rate update </li></ul></ul><ul><ul><li>Additional functions </li></ul></ul><ul><ul><li>Available in two versions </li></ul></ul>RT Strategy
    15. 15. Products <ul><li>Low cost revenue maximizing system </li></ul><ul><ul><li>Based on how hotels determine rates </li></ul></ul><ul><ul><li>Strategies, based on positioning, occupancy and/or Rate Parity </li></ul></ul><ul><ul><li>Lowest rate guarantee available for all strategies </li></ul></ul><ul><ul><li>Additional features </li></ul></ul>RT Strategy RT Strategy
    16. 16. … OR very simple … Without RateTiger With RateTiger Time consuming process? You can’t add more sites? Confused? With RateTiger you will Manage More by Managing Less
    17. 17. Why RateTiger? <ul><li>We use Real Time, not database technology and work with more sites than any others ! </li></ul><ul><li>The number of channels managed can easily increase without any major increase in the time required, generating more exposure and ultimately more revenue. </li></ul><ul><li>The time saved by staff on a daily basis ranges between 2-5 hours. Time is Money ! </li></ul><ul><li>The most user-friendly – so clean and easy to read and to understand on screen. </li></ul>
    18. 18. <ul><li>SPECIAL OFFER : </li></ul><ul><li>Buy any RateTiger Professional product within 2 weeks of this presentation and we will give you an extra 15% off the published prices. </li></ul><ul><li>What are you waiting for ? </li></ul>
    19. 19. “ To position or not to position……” - Parity versus maximizing opportunities at producing IDSs Parity No Parity Uniformity at all websites Different rates @ Different sites No confused clients Clients could be confused Can’t optimise rates Can optimise rates; different channels sell differently - Different countries/incomes - Different selling power of channels No conflicts with travel websites Hotels have more control over Revenue Management / Strategy METASEARCH: doesn’t matter for hotels using rate parity METASEARCH: Transparency to consumers
    20. 20. CRS Amadeus Sabre Gallileo Worldspan Expedia Orbitz hrs City.com Country.com Hotelpage.com Rates & Inventory <ul><li>RTConnect acting as an OTA switch: </li></ul><ul><li>Benchmarking information is forwarded to the decision point (e.g. CRS) </li></ul><ul><li>Based on benchmarking information, rates and availabilities are changed within the decision point </li></ul><ul><li>OTA are being updated with altered information </li></ul><ul><li>Generated bookings are being delivered back to the decision point (NOTE: This can be important for representation companies and CRS providers as their business models are often based on transaction fees ) </li></ul>RTConnect as a central distribution / OTA switch
    21. 21. RTConnect as a central distribution / OTA switch <ul><li>RTConnect acting as a central distribution switch: </li></ul><ul><li>Benchmarking information is forwarded to the decision point (e.g. PMS) </li></ul><ul><li>Benchmarking information is used for rate determination </li></ul><ul><li>Rates and inventory are changed by Hotelier or by Rate Strategy </li></ul><ul><li>Information is sent back to the channels (Rate and Inventory) </li></ul><ul><li>Reservations / Bookings generated by channels are delivered back </li></ul>CRS Amadeus Sabre Gallileo Worldspan Expedia Orbitz hrs City.com Country.com PMS/CRS/ RMS Rates & Inventory
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