USA – AHLA 2010 At-a-Glance Statistical Figures 51,015 properties* 4,801,890 guestrooms $127.7 billion in sales $56.47 revenue per available room (RevPAR) 57.6% average occupancy rate In 2010, the lodging industry generated $18.0 billion in pre-tax profits. Total industry revenue increased slightly to $127.7 billion in 2010, up from $127.2 billion in 2009. One Third of World's Travel Sales to be Booked Online by 2012
And not only it’s big, it’s increasingSo we’got a massive business to tap into but what about online sales
Phocuswright2011: Online Travel Market sizeLATAM: $11BEurope:$129BAPAC:$62B2012:Online market size and Online GrowthLATAM: $14B, YoY 29% growthEurope:$126B, 8%APAC:$71B, 14%So how do we tackle the hotel business to make it succesfull
PartnershipThroughout the day we will be talking to you about how we can work together to create mutually beneficial relationships. Relationships that are strong enough to grow and expand well into the future. I am going to talk about Partnerships. Relationships built on our assets, brands & people
In PSG we have 1,600 people dedicated to supply. That is 20% of the company, the majority of which are focused on the hotel business. Industry experts with travel experience. We negotiate the best deals with out partner hotels because we understand the business.We manage content in 33 different languages,
We are located in 25 countries and 45 offices. We are local experts that know the markets that we negotiate rates and inventory with, and in many cases have even worked in these hotelsLocal market presenceLocal market managersGlobal best practice/experienceLocal expertiseDeep travel and online experienceThe hotels give us inventory because we provide the bestHigh personal serviceRevenue management adviceBusiness intelligenceInsightful reportingNeeds matching
TALKING POINTS:# OF HOTELS EXPEDIA 144,000# OF HOTELS (OUR COMP INSIGHTS TEAM HAS 625K REGISTERED, PROBABLY ~20% ADDITIONAL NOT SO BEST APPROX. IS 750K)Average Hotel Size EXPEDIA : 80 ROOMS/HOTELExpedia stats:SPLIT BY # HOTELS: INDY 62%/ CHAIN 38%SPLIT BY ROOM CAPACITY: INDY 45%/ CHAIN 55%People (everywhere)From the Q3 Key Disclosures:Global. 100 localized sites in +60 countriesDiverse. 8,900 full and part-time employees worldwide, including eLong in ChinaTalking story:We have also invested in building a team of what we believe are some of the best people in the industry. Ourpeople are around the world are a diverse and unique group of people located in many cities around the world. From our largest offices of in Bellevue, Paris, Las Vegas and Dallas to 160 employees in virtual locations. We have people in Geneva, Sao Paulo, Istanbul and Tokyo Our brands are unique and operated by an equally diverse and unique group of people located in many cities around the world. From our largest offices of people in Bellevue, Paris, Las Vegas and Dallas to 160 employees in virtual locations. We have people in Geneva, Sao Paulo, Istanbul and TokyoExpedia:USCanadaAustraliaAustriaBelgiumDenmarkFranceGermanyUKIndiaIrelandItalyJapanMexicoNetherlandsNew ZealandNorwaySingaporeSpainSwedenBrazil *NEWPhilippines *NEWArgentina *NEW Venere: USACanadaMexicoIrelandUKPortugalSpainFranceGermanyItaly Hotwire: USACanadaUKIrelandQ3 added: Australia, Denmark, New Zealand, Norway and SwedenHotels.com:UKCanadaSwitzerlandSwedenSpainNorwayNetherlandsItalyIrelandGermanyFranceFinlandDenmarkBelgiumAustriaAustraliaTaiwanSouth AfricaSingaporePortugalPhillipinesNew ZealandMexicoKoreaJapanHong KongColombiaChinaBrazilVenezuelaIsraelChileArgentinaRussiaPloandTurkeyIcelandHungaryGreeceCzech RepublicUkraineSlovakiaLithuaniaLatviaEstoniaCroatiaThailandMalaysiaUruguaySurinamePeruParaguayPanamaNicaraguaIndiaHondurasGuyanaFrench GuyaneGuatemalaEl SalvadorEcuadorCosta RicaCanadaBoliviaBelize
+15,000 hotels YTD 2011
11.1 Million rooms/day = 4 Billion annuallyNow with such a capacity, how much do we sell
Feels good. Howeverr....
Image source: wiki commons (freely licensed)c) Destination management with POS Coordinated one-destination-at-a-time approach SEM & SEO set upSupply acquisitionHotel/Market launchMarket optimizationConsolidate POSaProduct>hotels>get it rightSurfacingLocalizingAdvertisingDiscoverableKeywordsSEMLocal marketing
The right hotels?The right content?The right rate plans?The right geography?The right localization?The right key words?The right landing pages?
Boring. To make it a bit more lively let’s find a perfect : HawaiEarly 2011, global average # of hotels was 9… now it’s at 17Photos<From EPC> Hotels with at least 15 photos convert up to 3 times more room nights than hotels with fewer than 5 photosNext: amenities
% of Properties with amenities indicated on the live siteGlobal March:Parking 9%Breakfast 60%Internet 50%Global November:Parking 17%Breakfast 67%Internet 73%These Amenities are only part of the content
36 translated, 22 spoken (call center)Localized ContentFor a consumer in BrazilLocalized content is key to conversation on INTL POS Room namesRoom level contentSpecial check-in instructionsHotel level promotional contentImage descriptionsHotel name and addressSource content in native languageNext: Quality
YTD to Nov 25 2011GLOBALLY = 39%LATAM = 62%APAC =55%NORAM=39%EMEA=31%
London: ExpensiveIt is key to have promotionsSo we have: deep content with tons of pixAmenitiesRight languagePromotionsNext: how do we keep improving
Next: once you have picked up your hotel
YTD 2011 INVENTORY BML%’sNext: Price
Going to Chicago after the holidays
YTD 2011 INVENTORY BML%’s75% + 15% = 90%LOSS = 10%Next: how do we keep track
Mr Einstein is back: so have you found the right Hotel Formula* Hire the Best People * Secure great inventory * Ensure competitive prices ** Work with great Affiliates **
Transcript of "EAN Partner Summit 2011: The Right Hotel Formula"