• Like

Ota webinar 9 25-13 all slides

  • 420 views
Uploaded on

Turn OTA Lookers into Bookers …

Turn OTA Lookers into Bookers
How Improving Your Look on OTAs Can Drive Direct Bookings

More in: Travel , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
420
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
34
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • What’s your biggest challenge on OTAs? How to balance my marketing strategy on OTAs Knowing how much to engage with OTAs Keeping a consistent message across all channels
  • Looking at the US Market According to PhoCusWright, in 2011: Hotel Revenue: 57% Central Reservations / Property Direct 17% Hotel Website 14% OTA’s 12% Travel Agencies Forecast for 2014 is for Hotel Website to grow to 20% but share shifts from Central Res / Property Direct – OTA stays consistent Difficult to determine impact of Meta-search sourced bookings – Could flow to Hotel Website or via OTA Channel
  • Point of comparison Publicly Held Hotel Chain Market Caps Marriott – $13.3 Billion | 12 Million UV’s/month (10 million mobile) Starwood – $13.6 Billion Hyatt – $7.2 Billion
  • The bottom line is that intermediaries selling hotel rooms dedicate substantial financial resources to creating awareness and acquiring traffic. How can they afford to spend so much? A key structural advantage over the hotel chains is an ability to sell across multiple hotel brands – That substantially enhances the opportunity for sales conversion One note – the Priceline figures don’t include the US Booking.com advertising campaign. According to Susquehanna International Group, Kayak sends 57x more traffic to OTAS than Hotel Brands; TripAdvisor sends 11x more. 11x is still a large ratio, but is is 1/5 of the ratio compared to Kayak.
  • Some Disturbing Statistics for Hotel Companies No hotel group penetrated the top 15 sites for aggregated downloads according to satisfaction rating statistics aggregated by Xyo.com Looking closer at the stats - TripAdvisor has over 20x the downloads of the IHG App – with the top level of satisfaction. In terms of satisfaction, Six OTA/Meta-search groups had Satisfaction ratings exceeding 8 on a 10-point scale, with the highest hotel group coming in at 7.5. Where it gets ugly is what falls below this chart – According to Xyo.com, InterContinental has 63% and 78% more downloads than the next two highest ranking hotel brands. Major hotel groups also suffer in terms of satisfaction – With other top 10 global hotel brands scoring ratings of 5.2, 3.3, 5.4, 5.9, 3.6, 3.7, 4.2, 4.2, and 3.8. One major hotel group’s frequent guest app scored a 3.0 – the low for any of the 40 Apps studied. Plus the competition is heating up – Both Starwood & Hipmunk were highlighted by Mashable for releasing new great looking versions of their Apps for iOS 7.
  • The above example, provided by Expedia, illustrates the actual shopping path of a user across 33 retail, travel, DMO & weather websites before booking package on CheapTickets.com This aligns well with Google’s stats – indicating the typical North American traveler visits 22 websites over 10 sessions when shopping for travel travel booking. It is also important to point out that Meta-search changes the dynamic and all meta-search sites are not created equal.
  • Note that Specific Hotel Brand Websites are chosen less than ¼ of the time – and that figure is split across a large number of hotel supplier sites Interesting to note – Booking.com is not included – but just wait… they will be on the list if the same study is run next year. More importantly, the recent MMGY “Portrait of American Travelers” study indicated 53% of the highly desirable “Digital Elite Traveler” segment (those with multiple mobile devices) preferred to book through OTAs. And it’s not just travelers that like the OTAs - Marriott Brazil, in a partnership with Booking.com now allows guests to make their reservations in local currency online & on mobile devices. Marriott is a large, sophisticated travel company with lots of experience in eCommerce, but they obviously feel Booking.com is better sited to handle the job at this point.
  • The bottom line is that OTAs and meta-search are significantly important distribution channels that must be properly managed But that is no excuse for not providing them with the best available tools to market your property effectively. Providing OTAs with inferior descriptive, image or video content won’t drive more visitors to your website or App…
  • Best Luxury Boutique Hotel in New York City: Google Knowledge Graph Carousel The Chatwal Grammery Park Hotel W New York The Surrey Plaza Athenee The Iroquois The Greenwich The Plaza Google Hotel Price Ads Days Inn Bronx-Yankee Stadium 2-star hotel Candlewood Suites New York City- Times Square 3-star hotel Crowne Plaza Times Square Manhattan 4-star hotel InterContinental New York Times Square 5-star hotel
  • Lesson Learned from Four Seasons Hotels Advertising: Amirati & Puris – BMW/Ultimate Driving Machine | Club Med /Antidote for Civilization | Absolut Vodka Hotel is the Frame – Traveler Paints the Canvas OTAs are Still Not Good at Everything – LGBT Path Major OTA site – 3,000 Room, 5-star Las Vegas, Gay Friendly Hotel –- 51 photos – 3 with People – All Staff
  • Tough when guest loves your hotel, but prefers to book through an OTA – because they shop lots of other hotels in other cities. Will you be able to win their loyalty? Get them to download your App?
  • In short, the OTA model works. Even if you are a large Las Vegas Casino group with a huge supply footprint, top of mind awareness, a robust players club, solid advertising budget and strong group sales department, to fill need periods, you will still need to work with OTAs and meta-search sites to maximize occupancy & profitability.
  • Online travel shoppers want to see visual content that makes them feel welcome at a hotel, before booking. The VNetwork Online Visual Content Distribution Network satisfies that want by getting hotels’ visual content out to thousands of channels and websites and in front of millions of online travel shoppers, making them more likely to book.
  • Between Expedia, Priceline and Orbitz they own and operate most of the OTAs globally
  • Travel shoppers are doing the majority of their research online, on OTAs, metasearch sites, corporate booking channels and brand.com. Tell your story with multi-media to stand out online and catch the eye of travel shoppers.
  • How informative did you find this webinar? 1 - Not informative 2 – Moderately informative 3 - Very informative
  • Best Western 09/23/13 01:51 PM

Transcript

  • 1. Technical difficulties? Contact Citrix GoToWebinar 1-800-263-6317 support@citrixonline.com Technical difficulties? Contact Citrix GoToWebinar 1-800-263-6317 support@citrixonline.com Turn OTA Lookers into Bookers How Improving Your Look on OTAs Can Drive Direct Bookings vfmleonardo.com facebook.com/vfmleonardo @vfmleonardo September 25, 2013
  • 2. Vice-President, Best Practices, Online Merchandising VFM Leonardo Inc. @darlenerondeau
  • 3. Follow: @vfmleonardo Tweets & Questions: #vfmlwebinar
  • 4. Founder, RockCheetah
  • 5. Managing Director, Marketing Programs, Best Western International
  • 6. Founder, RockCheetah
  • 7. Major OTA/Meta-search Travel StudiosMajor OTA/Meta-search Travel Studios • Powerful MachinesPowerful Machines – ProductionProduction – DistributionDistribution – PromotionPromotion • Create StarsCreate Stars – Develop TalentDevelop Talent – Showcase LeadersShowcase Leaders – Create OpportunitiesCreate Opportunities • Sell The ProductSell The Product – Right ScriptRight Script – Right CastingRight Casting – Right DirectionRight Direction VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 88 Image Credit: Paramount Pictures (All Rights Reserved)Image Credit: Paramount Pictures (All Rights Reserved)
  • 8. Major Forces in TravelMajor Forces in Travel • Priceline | $51.3B Mkt Cap | 36.4M US UV’sPriceline | $51.3B Mkt Cap | 36.4M US UV’s – Booking.com | Agoda | Kayak | RentalCars.comBooking.com | Agoda | Kayak | RentalCars.com • Expedia | $7.3B Mkt Cap | 40.6M US UV’sExpedia | $7.3B Mkt Cap | 40.6M US UV’s – Hotels.com | Hotwire | Venere | eLong | TrivagoHotels.com | Hotwire | Venere | eLong | Trivago • TripAdvisor | $10.6B Mkt Cap | 43.8M US UV’sTripAdvisor | $10.6B Mkt Cap | 43.8M US UV’s – JetSetter | CruiseCritic | SeatGuru | GateGuruJetSetter | CruiseCritic | SeatGuru | GateGuru • Google | $300.8B Mkt Cap | 192M US UV’sGoogle | $300.8B Mkt Cap | 192M US UV’s – ITA Software | Zagat | Frommer’s | WazeITA Software | Zagat | Frommer’s | Waze • Apple | $425.0 B Mkt Cap | 600M Credit Card #’sApple | $425.0 B Mkt Cap | 600M Credit Card #’s – See iTravel Patents | Starwood & Hipmunk iOS7 AppsSee iTravel Patents | Starwood & Hipmunk iOS7 Apps VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 99 Statistics:Yahoo! Finance & C Image Credit: RKO Radio Pictures (All Rights Reserved)Statistics:Yahoo! Finance & C Image Credit: RKO Radio Pictures (All Rights Reserved)
  • 9. Intermediaries Love MediaIntermediaries Love Media • Expedia BrandsExpedia Brands – $870 Million Total Advertising Spend 2012$870 Million Total Advertising Spend 2012 – Average $22.28 Core Ad Spend per Room NightAverage $22.28 Core Ad Spend per Room Night • PricelinePriceline – $1.27 Billion Online Spend 2012 (38.6 % Increase)$1.27 Billion Online Spend 2012 (38.6 % Increase) – 2.6% of Google Search Advertising Revenue2.6% of Google Search Advertising Revenue – Priceline Offline Ads $35 Million in (US Television)Priceline Offline Ads $35 Million in (US Television) – Average $11.50 Core Ad Spend per Room NightAverage $11.50 Core Ad Spend per Room Night • TripAdvisorTripAdvisor – Considering $50 Million Television CampaignConsidering $50 Million Television Campaign VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1010 Data: Susquehanna International Group, Priceline/Expedia & Bloomberg | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)Data: Susquehanna International Group, Priceline/Expedia & Bloomberg | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
  • 10. OTAs & Meta-search Rule MobileOTAs & Meta-search Rule Mobile Rank Travel App Type Downloads Satisfaction Rating 1 TripAdvisor Meta-search 23.3 Million 8.5 / 10 2 Hotels.com Online Travel Agency 13.0 Million 7.5 / 10 3 Kayak Meta-search 12.1 Million 8.0 / 10 4 Booking.com Online Travel Agency 10.9 Million 8.0 / 10 5 Hotwire Online Travel Agency 8.4 Million 6.2 / 10 6 Expedia Online Travel Agency 7.0 Million 6.5 / 10 7 Priceline Online Travel Agency 5.4 Million 6.0 / 10 8 Travelocity Online Travel Agency 2.9 Million 3.7 / 10 9 Hotel Tonight Online Travel Agency 2.8 Million 8.2 / 10 10 Orbitz Online Travel Agency 2.3 Million 7.0 / 10 11 Agoda Online Travel Agency 2.1 Million 8.1 / 10 12 HRS (iHotel) Online Travel Agency 2.0 Million 5.3 / 10 13 Airbnb Online Travel Agency 2.0 Million 7.3 / 10 14 Trivago Meta-search 1.6 Million 4.9 / 10 15 Hipmunk Meta-search 1.3 Million 8.0 / 10 16 IHG Hotel 1.1 Million 7.5 / 10 VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1111 Data: Xyo.com, PhoCusWright & RockCheetah | Image Credit: Dimension Films (All Rights Reserved)Data: Xyo.com, PhoCusWright & RockCheetah | Image Credit: Dimension Films (All Rights Reserved)
  • 11. Purchase Path Is Not Short or StraightPurchase Path Is Not Short or Straight VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1212 Data: Millward Brown Digital/ Expedia Media Solutions | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)Data: Millward Brown Digital/ Expedia Media Solutions | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
  • 12. What Sites Do Travelers Choose?What Sites Do Travelers Choose? When Comparison Shopping Leisure Business Expedia.com (E) 42% 44% Hotels.com (E) 39% 36% Travelocity.com (E) 37% 34% Google 35% 25% Priceline.com (P) 32% 27% Orbitz.com (O) 29% 31% Hotwire.com (E) 25% 26% Specific Hotel Brand Website 23% 25% Kayak.com (P) 17% 24% AAA.com 15% 15% VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1313 Data: Google Travel Study. May 2012. Ipsos MediaCT | Image Credit: Warner Bros. (All Rights Reserved)Data: Google Travel Study. May 2012. Ipsos MediaCT | Image Credit: Warner Bros. (All Rights Reserved)
  • 13. Celebrate What Makes You Unique • Compelling Descriptions that Explain How You:Compelling Descriptions that Explain How You: – Make the Guest Feel SpecialMake the Guest Feel Special – Simplify the Traveler’s LifeSimplify the Traveler’s Life – Satisfy Guest Needs Better than CompetitionSatisfy Guest Needs Better than Competition • Engaging Images Showing Your Hotel in ActionEngaging Images Showing Your Hotel in Action – Is a Building Exterior the Most Important Sales Benefit?Is a Building Exterior the Most Important Sales Benefit? – Why is the Property Empty?Why is the Property Empty? – Are Interior Design Shots more for Hoteliers or Guests?Are Interior Design Shots more for Hoteliers or Guests? • Relevant, Guest Oriented Video ContentRelevant, Guest Oriented Video Content – InterContinental’s Concierge Video Guides Offer Local TipsInterContinental’s Concierge Video Guides Offer Local Tips – Four Seasons Buenos Aires – Films Gala EventsFour Seasons Buenos Aires – Films Gala Events – Best Western Plus Sedona – Destination, Hotel & GuestsBest Western Plus Sedona – Destination, Hotel & Guests VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1414 Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
  • 14. Effectively Communicate MessageEffectively Communicate Message VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1515 • What Story Are You Telling?What Story Are You Telling? – Different Channels May Require Different MessagesDifferent Channels May Require Different Messages – Tailor Message to YOUR Audience Through THEIR PlatformTailor Message to YOUR Audience Through THEIR Platform – Not an Update & Forget Environment -Not an Update & Forget Environment - • Use All Available Tools & Across Major OTAsUse All Available Tools & Across Major OTAs – OTA Resources Often Used by Meta-search SitesOTA Resources Often Used by Meta-search Sites – TripAdvisor Support Hotelier Video PostsTripAdvisor Support Hotelier Video Posts – Google Business Photos - StreetView Virtual ToursGoogle Business Photos - StreetView Virtual Tours • Google Knowledge Graph is a Game ChangerGoogle Knowledge Graph is a Game Changer – Hotel Images Prioritized at Top of Search ResultsHotel Images Prioritized at Top of Search Results – Photo | Rating | # Reviews | Street AddressPhoto | Rating | # Reviews | Street Address – At Present, More Relevant List than Hotel Price AdsAt Present, More Relevant List than Hotel Price Ads Image Credit: Gracie Films (All Rights Reserved)Image Credit: Gracie Films (All Rights Reserved)
  • 15. Looking Good Will Attract AttentionLooking Good Will Attract Attention • Important Segments Deserve Targeted ImagesImportant Segments Deserve Targeted Images – LGBTLGBT – FamiliesFamilies – HoneymoonsHoneymoons • Engaging Images Showing Your Hotel in ActionEngaging Images Showing Your Hotel in Action – Proper Orientation – Understand Cropping MethodsProper Orientation – Understand Cropping Methods – Appropriate Sizing – Different Resolutions Are ImportantAppropriate Sizing – Different Resolutions Are Important – Descriptive Titles, Captions & TaggingDescriptive Titles, Captions & Tagging • People Stay in HotelsPeople Stay in Hotels – Guests Enjoying Key Points of DifferentiationGuests Enjoying Key Points of Differentiation – Guests Naturally Interacting with StaffGuests Naturally Interacting with Staff – Guests Interacting with Other GuestsGuests Interacting with Other Guests VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1616 Image Credit: Twentieth Century-Fox (All Rights Reserved)Image Credit: Twentieth Century-Fox (All Rights Reserved)
  • 16. Difficult DecisionsDifficult Decisions • Total Revenue ManagementTotal Revenue Management – Need to Transition from RevPAR to GOPPAR as BasisNeed to Transition from RevPAR to GOPPAR as Basis – ADR Higher Under Agency Model, But High CommissionADR Higher Under Agency Model, But High Commission – Need to Incorporate Pay Per Click Costs for Meta-BookingsNeed to Incorporate Pay Per Click Costs for Meta-Bookings • Rate Parity Under Attack in UK & EURate Parity Under Attack in UK & EU – UK Office of Fair Trade Rate Parity RulingUK Office of Fair Trade Rate Parity Ruling – Resolution: Rate Parity Does Not Apply to Frequent GuestsResolution: Rate Parity Does Not Apply to Frequent Guests – Result? New Battles for the Returning & Repeat GuestResult? New Battles for the Returning & Repeat Guest • Customer Lifetime ValueCustomer Lifetime Value – All Want 1All Want 1stst Time / International / Brand-AgnosticTime / International / Brand-Agnostic – Challenge is Returning & Repeat Guests…Challenge is Returning & Repeat Guests… – Try to Convert Hotel Direct or Their Preferred Channel?Try to Convert Hotel Direct or Their Preferred Channel? VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1717 Image Credit: Lucasfilm (All Rights Reserved)Image Credit: Lucasfilm (All Rights Reserved)
  • 17. True Love or Marriage of Convenience?True Love or Marriage of Convenience? • OTAs/Meta-search Drive VolumeOTAs/Meta-search Drive Volume – Strong Traffic & AdvertisingStrong Traffic & Advertising – Dominate Mobile PlatformsDominate Mobile Platforms – Tactical Promotion Capability to Shift ShareTactical Promotion Capability to Shift Share • Quality Presentation Across Guest’s PreferredQuality Presentation Across Guest’s Preferred ChannelsChannels – Try to Convert to Hotel Direct or Guest Preferred Channel?Try to Convert to Hotel Direct or Guest Preferred Channel? – Want Best Opportunity for Conversion – Across ChannelsWant Best Opportunity for Conversion – Across Channels – Does Not Mean OTA/Meta Should Take Priority OverDoes Not Mean OTA/Meta Should Take Priority Over DirectDirect • The Studio Never Overshadows the Star or ProjectThe Studio Never Overshadows the Star or Project – Ignoring OTAs & Meta-search Shifts Share to CompetitorsIgnoring OTAs & Meta-search Shifts Share to Competitors – Need to Leverage Channel to Your Benefit, Not Just OTA’sNeed to Leverage Channel to Your Benefit, Not Just OTA’s – Must Focus on Setting Common Goals & Mutual BenefitsMust Focus on Setting Common Goals & Mutual Benefits VFM Leonardo Webinar | SepVFM Leonardo Webinar | Sep 20132013 OTAs & Meta-search - A Travel Studio System?OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah |Robert Cole ● RockCheetah | 1818 Image Credit: Buttercup Films (All Rights Reserved)Image Credit: Buttercup Films (All Rights Reserved)
  • 18.  Point 1  Point 2  Point 3
  • 19. Syndicate your story on the industry’s largest network of travel sites. Reach millions with visual stories across the travel industry’s leading syndication network.
  • 20. Managing Director, Marketing Programs, Best Western International
  • 21. *Numbers are approximate and can fluctuate
  • 22.  Tell Your Story, Your Way  Consistent messaging across platforms  Fish where the fish are
  • 23. Be present where consumers are shopping Share your story In a consistent, engaging way across third party websites with Vbrochure. Amplify your message on Vnetwork, which consists of the 4 GDSs and the most popular OTAs.
  • 24.  Point 1  Point 2  Point 3
  • 25.  About VFM Leonardo It’s a Wrap…  Recording of this webinar ◦ Share it with your colleagues  Invitations to upcoming webinars ◦ Topics include maximizing your web presence on stepping it up on social media, planning for 2014 and more!
  • 26. www.vfmleonardo.com vbrochure@vfmleonardo.com 1.877.593.6634 @vfmleonardo facebook.com/vfmleonardo 36 Connect with us! Glen MacDonell www.website.com Robert Cole robert@rockcheetah.com 1.262.309.9560 @robertkcole email
  • 27. Questions and Best Practices