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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