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Online booking for tourism businesses
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Online booking for tourism businesses Presentation Transcript

  • 1. Martyn Collins OBE WINNING TOURISM BUSINESS
  • 2. Martyn Collins O nline B ooking E vangelist WINNING TOURISM BUSINESS
  • 3. Agenda
    • Consumers
      • How consumers search for and buy travel products
    • Online Distribution
      • Demonstrate how new customers will find your website and be more likely to buy your product
    • Profitability
      • Explain how using the Internet to market your unsold inventory will increase your profitability
  • 4. Consumers
    • 85% plan to research or book online in the next 12 months
    • 20 million people were searching the web for a travel product in the first quarter of 2007 – in the UK!
    • Consumers take nearly a month to go from first search to purchase of a travel product
    • Customers made 12 searches, visiting 23 websites
    • The average user will have visited the site 3.9 times before making a booking
    • Desire to book directly with product provider
    • … BUT less than 5% of small and medium-sized tourism businesses are bookable online
    Source: Forrester Research – Feb 2006, Travel Click - Jun 2007, Logan Tod & Co - Apr 2007, Visit Britain, Eviivo, Google, ComScore
  • 5. Online search
  • 6. Search return
  • 7. Online Distribution
  • 8. Online Distribution internet
  • 9. Online Distribution internet
  • 10. c 10,000 online enquiries for accommodation per hour! This distribution generates…
  • 11. Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night) Mortgage, rates, services, staff etc. Variable cost of £10 per room per night when occupied Breakfast, cleaning etc. Hotel open 46 weeks per year Current average occupancy of 60%
  • 12. Profitability At 60% occupancy Revenue = £50 x 6 rooms x 7 nights x 46 weeks = £96,600 Fixed cost = £3000 x 12 months = £36,000 Variable costs = £10 x 6 guests x 7 nights x 46 weeks = £19,320 Profit / income generated = £96,600 - £36,000 - £19,320 = £41,280 10 8 7 6 5 4 3 2 1 9
  • 13. Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night) Mortgage, rates, services, staff etc. Variable cost of £10 per room per night when occupied Breakfast, cleaning etc. Hotel open 46 weeks per year Current average occupancy of 80% Now selling unsold stock through commission based partners Commission rate of 20%
  • 14. Profitability At 80% occupancy Revenue = £50 x 8 rooms x 7 nights x 46 weeks = £128,800 [+ 34%] Fixed cost = £3000 x 12 months = £36,000 Variable costs = £10 x 8 guests x 7 nights x 46 weeks = £25,760 Profit = £128,800 - £36,000 - £25,760 - £6,440 = £60,600 An increase of £19,320 Commission = 2 rooms x £50 x 7 nights x 46 weeks x 20% = £6,440 10 8 7 6 5 4 3 2 1 9 + 236% + 60% + 0%
  • 15. Most Important Marketing Tool?
    • Your own website!
      • ESSENTIALS
    • Get Online Booking setup!
    • Online distribution
    • BOOK NOW!
    • Best Rates Guaranteed!
  • 16. ANY QUESTIONS?
    • Thank You