Leading Hotels of the World - Deconstructing Distribution
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Leading Hotels of the World - Deconstructing Distribution

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Deconstructing Distribution - It's all About the Customer.Presented at The Leading Hotels Hotels of the World Sales, Marketing & Distribution Conference in Bonn, Germany May 13-15, 2011.

Deconstructing Distribution - It's all About the Customer.Presented at The Leading Hotels Hotels of the World Sales, Marketing & Distribution Conference in Bonn, Germany May 13-15, 2011.

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  • Outstanding StrategyHolistic View of Target GuestLeaders ClubHometown BenefitsFriends & FamilyUnique Stories
  • Let’s start with a Few Pitfalls
  • Like any Relationship, Customer Relationships can Be ComplicatedPepe Le Pew (The Hotel) is Wealthy, Sophisticated, Enthusiastic, Emotionally Committed, and Interested in a Long Term RelationshipPepe cannot figure out what the problem is because he is so self absorbed. He doesn’t realize Penelope (The Customer) is a Cat.
  • You know the story – That first newsletter opt in was so full of affection and promise, then, 3 months later, while attending a sales conference, you learned they were not only sleeping in someone else’s bed, but with that superficial new boutique property that recently moved into the neighborhood.
  • One fact scarier than this explosion of channels – Missing: Social (Facebook/Flickr)Local (Foursquare / Yelp)Mobile Apps (OpenTable / TripIt)
  • Who is Isis? AT&T / T-Mobile & Verizon
  • One size does not fit all

Transcript

  • 1. Leading Hotels of the WorldSales, Marketing & Distribution ConferenceDeconstructing DistributionIt’s All About the Customer
    Robert Cole | RockCheetah
    Kameha Grand Bonn | May 15, 2011
    Image: Brave Heart (Flickr)
  • 2. Deconstructing Distribution
    The Customer
    Affluent Travelers
    Personalization & Customization
    Multiple Stages & Touchpoints
    The Channels
    The Splinternet
    SoLoMo
    Discounts
    The Future
    New User Experiences
    One Size Does Not Fit All
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 2
    Image Credit:
  • 3. Pitfall: SOS (Shiny Object Syndrome)
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 3
    Image Credit:
    Every New Idea is Not a Good Idea
  • 4. Pitfall: Egocentric Customer Relationship
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 4
    Image: i-love-cartoons.com
  • 5. Pitfall: Customer Engagement ≠ Marriage
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 5
    Image: Defence Images (Flickr)
  • 6. The Customer: Affluent Travelers
    6.44 million US Affluent Online Travelers
    89% Take At Least 1 Leisure Trip per Year
    62% Have Investible Assets of $1-$2.5 Million
    95%+ College Graduates | 45% Post-Grads
    Average Age 58 | 14 Years Above US Avg.
    73% Manage Finances Online
    45% Make Own Investment Decisions
    30% Worse Off than One Year Ago
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 6
    Image: Curtis Gregory Perry (Flickr) | Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
  • 7. Affluent Travelers: Value is King
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 7
    Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
  • 8. Personalization & Customization
    Guests Are Not Frequent Guest Numbers
    Interactive Conversations Can Get Complicated
    True Customer Engagement Doesn’t Scale Well
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 8
    Image: kagey_b (Flickr)
  • 9. Guests Have Multiple Personas
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 9
  • 10. Multiple Travel Phases (Seven)
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 10
  • 11. Multiple Hotel Touch Points (Six)
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 11
  • 12. Channels: A Small Sampling
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 12
    Image: Michael Coghlan (Flickr) | Source: VFM Leonardo
  • 13. SoLoMo – Distribution Gets Tricky
    Social
    Personal Likes / Group Likes / Similar Likes
    Cannot Fully Control Message in the Wild
    Local
    Proximity Based Offers
    Context-Sensitive Offers
    Mobile
    Variations – Form Factor / OS / Carrier
    Mobile Web (HTL5) v. Native Application (App)
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 13
    Image: Jason Mcdermott(Flickr)
  • 14. SoLoMo Travel Factoids
    Leisure Travel Search
    Average is 22 Sites Over 10 Sessions
    Mobile
    19% Hotel Queries From Mobile Devices
    IHG Europe – Adding Click to Call +91% Revenue
    Local
    70% Mobile - 1 Person, 1 Night, Same Day
    Social
    80% of Travelers Participate in Social Media
    49% Book Based on Others Experiences/Reviews
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 14
    Sources: Forrester Research | Google | Ipsos/OTX 2010/2011
  • 15. Social Media: Cynical Perspective
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 15
  • 16. Social Media – It’s All About Trust
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 16
    Source: The Nielsen Company – April 2009
  • 17. Splinternet– Walled Gardens
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 17
    Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
  • 18. Splinternet – Advertising Impact
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 18
    Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
  • 19. Discounting Considerations
    Do Discounts Translate to Consumer Value?
    Does Channel Absorb Discount as Profit?
    Group Buying
    “Have never seen a profitable Groupon deal for a travel site” – H. Harteveldt, Forrester Research
    Flash Sales
    How Exclusive is the Club? Qualified User Base?
    New Models - Micro Auctions
    Off & Away – Is it a Game, a Con or New Model?
    Packaging
    Protects Retail Pricing; Requires Strong Rules Control
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 19
    Image: Christopher Sessums(Flickr)
  • 20. The Future – New User Experiences
    Voice Commands
    Google Android Voice Actions
    Near Field Communications
    Interaction / Authorization / Payment
    Integrated Travel Experience
    Apple iTravel
    Traditional Channels
    Travel Agencies / GDS / Telephone
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 20
    Image: Iris Shreve Garrott(Flickr)
  • 21. Future – Voice Commands
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 21
  • 22. Future – Near Field Communications
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 22
    Integrates Distribution / Engagement / Access
    Unique Sound Pattern
    Mobile Phone Key
    Openways (Example)
    Pre-Arrival Contact
    Engagement for Stay
    Supports All Cell Phones
    Uses Existing Locks
    Cards Keys Still Work
    More Secure than Cards
    Code Change – 12 Secs
    Future Support for NFC
  • 23. Apple iTravel – End to End Control
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 23
  • 24. Apple iTravel – Traveler Identity
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 24
  • 25. Apple iTravel – Airport Experience
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 25
  • 26. Apple iTravel – Hotel Experience
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 26
  • 27. Apple iTravel – Cruise Experience
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 27
  • 28. Apple iTravel – Conference Experience
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 28
  • 29. Apple iTravel – Event Experience
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 29
  • 30. Apple iTravel - Payment
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 30
  • 31. Apple iTravel - Merchandising
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 31
  • 32. Apple iTravel – Passive App Delivery
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 32
  • 33. Future - Traditional Channels
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 33
    Traditional Travel Agents - Specialization
    Origin (Local) v. Destination (Experience)
    Type of Travel – Luxury / Destination Weddings
    Online Travel Agencies
    Rate Parity / Last Room Availability / Max. Discount
    Order Takers or Order Makers?
    Global Distribution Systems
    Critical Role for Air Vertical & Corporate Segment
    Air Model Change – Cost Shift to Intermediary
    Telephone
    High Touch / Customer Care
    Mobile Click to Call
  • 34. The New Customer
    Seeks Value
    Is More Sophisticated & Empowered
    Desires Unique Experiences
    Demands the Lowest Available Price
    Has Questionable Brand Loyalty
    Has Situational, Itinerary-centric Needs
    Defines the Degree of Engagement
    Demands Seamless Cross-Channel Access
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 34
    Image: Sergey Galyonkin (Flickr)
  • 35. New Distribution Challenges
    Must Have Presence in Favored Channels
    Consistent Cross-Channel Brand Message
    Consistent Online & Offline Experience
    Value is a Highly Personal Assessment
    Time, Convenience, Simplicity, Quality, Cost
    Efficiently Managing App & Channel Silos
    Competition May Behave Irrationally
    Distribution Costs May Shift to Subscribers
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 35
    Image: Toni Blay (Flickr)
  • 36. Navigating Distribution Obstacles
    Three Core Distribution Goals
    Easier
    Faster
    Cheaper
    To Be Successful, Luxury Hoteliers Must Control
    Retail Pricing Structure
    Access to Visual & Descriptive Content
    Distribution Rules – Access to Rates & Inventory
    Only Point of Focus - The Guest
    Why is Guest Using that Channel/Site/Tool?
    Is Guest Able to Accomplish that Goal?
    Why Not?
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 36
    Image: The U.S. Army (Flickr)
  • 37. It’s All About The Customer
    Questions?
    Copies of the Presentation?
    Comments?
    Robert Cole
    mail: robert@rockcheetah.com
    phone: +1.262.309.9560
    skype: robertkcole
    twitter: @robertkcole
    web: rockcheetah.com/blog/
    May 15, 2011 – Bonn, Germany
    Leading Hotels of the World ● Distribution
    Robert Cole | RockCheetah - Page 37