Michelle Rosinsky - Hotwire

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Michelle Rosinsky - Hotwire

  1. 1. Strategic Revenue Management . . . Leveraging the Online Channels Michelle Best Rosinsky Senior Manager, Hotwire Expedia® Partner Services Group© Expedia Inc. Confidential and proprietary. All rights reserved.
  2. 2. Why Revenue Management is more important than everOnline Distribution Strategy MatrixTips to Build Your Online Strategy AGENDA© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 2
  3. 3. IRELAND HOTEL HEADWINDS 1. Weakening external and domestic demand 2. Unfavourable foreign exchange movements 3. Overcapacity© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 3
  4. 4. STRATEGIC OPPORTUNITY TO GROW REVPARIreland ADR and Occupancy 2004-2011 YTD through August Source: Horwath Bastow Charleton© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 4
  5. 5. STRATEGY MATRIX Price Booking Window© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 5
  6. 6. TIPS TO BUILD YOUR STRATEGY 1. Build an international strategy 2. Play the booking curve 3. Plan to fill your gaps 4. Leverage opaque channels© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 6
  7. 7. Build an international STRATEGY TIP 1© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 7
  8. 8. ONLINE CHANNELS PROVIDE INTERNATIONAL REACH… New A Presence Local Demand Around the Multiple Language Currency to Your World Translation Hotel Support© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 8
  9. 9. 9.0% China … AND OPPPORTUNITY 8.3% India 2.6% 2.8% Canada 1.8% 1.8% US 1.6% Germany UK 1.4% France 0.9% Italy Japan World economies are rebounding at different ratesSource: European Tourism 2010, Trends and Prospects, Q3/2010, European Travel Commission © Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 9
  10. 10. SAME HOTEL,DIFFERENT SITES Expedia.com You can optimize your RevPAR through a targeted international strategy Expedia.co.jp© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 10
  11. 11. Develop an international strategy that meets your needs TIP 1© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 11
  12. 12. Play the booking TIP 2© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 12
  13. 13. AN UNMANAGED BOOKING CURVE FORCES ADR DOWN Day of ArrivalADR €€€ €€ €LOS 3.0 2 1.5Share ofRooms 26% 31% 43% > 1 month 1 week - 1 month < 1 week© Expedia Inc. Confidential and proprietary. All rights reserved.
  14. 14. 3. YIELD RATES UP 2 .OPTIMIZE RATES/OCCUPANCY 1. BUILD YOUR BASE Day of Arrival > 1 month 1 week - 1 month < 1 week© Expedia Inc. Confidential and proprietary. All rights reserved.
  15. 15. 3. YIELD RATES UP 2 .OPTIMIZE RATES/OCCUPANCY 1. BUILD YOUR BASE Day of Arrival RevPARADRLOSShareofRooms 26% 31% 43% > 1 month 1 week - 1 month < 1 week© Expedia Inc. Confidential and proprietary. All rights reserved.
  16. 16. Develop your own high yield strategy based to maximize the booking curve TIP 2© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 16
  17. 17. Fill the GAPS TIP 3© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 17
  18. 18. Sundays Christmas Cancellations Month End Push Group Wash Short Lengths of Stays© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 18
  19. 19. BE SURGICAL AND TARGET NEEDS Weekend Promotion Christmas Value Adds Packages Base Business Opaque Last Minute© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 19
  20. 20. Have a 365 day strategy and target your need periods to maximize revenue TIP 3© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 20
  21. 21. Leverage OPAQUE TIP 4© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 21
  22. 22. BUNDLED BOOKINGS ARE VALUABLE© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 22
  23. 23. 2x longer staysLength of Stay 23 days further outBooking window $23 ADR premiumHigher ADR 40% less likely to cancelCancel less© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 23
  24. 24. TRUE OPAQUE CHANNELS DRIVE LAST MINUTE DEMAND© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 24
  25. 25. OPAQUE STRATEGIES Replace last-minute group wash and cancellations Build a non- Fill holes in weekly refundable base stay patterns months out Secure low season Generate business sales without after a re-flag, advertising low renovation or new rates opening Build incremental visitors to the hotel
  26. 26. Use packages to build your base Use opaque to sell your last rooms Day of Arrival Package Opaque Booking Window© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 26
  27. 27. Include bundled and pure opaque channels in your strategy TIP 4© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 27
  28. 28. 1. Build an international strategy2. Play the booking curve3. Plan to fill your gaps4. Leverage opaque channels Expedia ® Partner Services Gro
  29. 29. . . . THANK YOU Go raibh maith agat Michelle Best Rosinsky MRosinsky@Hotwire.com© Expedia Inc. Confidential and proprietary. All rights reserved.

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