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Martyn Collins OBE WINNING TOURISM BUSINESS
Martyn Collins O nline  B ooking  E vangelist WINNING TOURISM BUSINESS
Agenda <ul><li>Consumers </li></ul><ul><ul><li>How consumers search for and buy travel products </li></ul></ul><ul><li>Onl...
Consumers <ul><li>85% plan to research or book online in the next 12 months </li></ul><ul><li>20 million people were searc...
Online search
Search return
Online Distribution
Online Distribution internet
Online Distribution internet
c 10,000  online enquiries for accommodation per hour! This distribution generates…
Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night...
Profitability At 60% occupancy Revenue = £50 x 6 rooms x 7 nights x 46 weeks = £96,600 Fixed cost = £3000 x 12 months = £3...
Profitability Assuming : 10 room hotel £50 per room / night average charge Fixed costs of £3,000 per month (£100 per night...
Profitability At 80% occupancy Revenue = £50 x 8 rooms x 7 nights x 46 weeks = £128,800 [+ 34%] Fixed cost = £3000 x 12 mo...
Most Important Marketing Tool? <ul><li>Your own website! </li></ul><ul><ul><li>ESSENTIALS </li></ul></ul><ul><li>Get Onlin...
ANY QUESTIONS? <ul><li>Thank You </li></ul>
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Online booking for tourism businesses

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Transcript of "Online booking for tourism businesses"

  1. 1. Martyn Collins OBE WINNING TOURISM BUSINESS
  2. 2. Martyn Collins O nline B ooking E vangelist WINNING TOURISM BUSINESS
  3. 3. Agenda <ul><li>Consumers </li></ul><ul><ul><li>How consumers search for and buy travel products </li></ul></ul><ul><li>Online Distribution </li></ul><ul><ul><li>Demonstrate how new customers will find your website and be more likely to buy your product </li></ul></ul><ul><li>Profitability </li></ul><ul><ul><li>Explain how using the Internet to market your unsold inventory will increase your profitability </li></ul></ul>
  4. 4. Consumers <ul><li>85% plan to research or book online in the next 12 months </li></ul><ul><li>20 million people were searching the web for a travel product in the first quarter of 2007 – in the UK! </li></ul><ul><li>Consumers take nearly a month to go from first search to purchase of a travel product </li></ul><ul><li>Customers made 12 searches, visiting 23 websites </li></ul><ul><li>The average user will have visited the site 3.9 times before making a booking </li></ul><ul><li>Desire to book directly with product provider </li></ul><ul><li>… BUT less than 5% of small and medium-sized tourism businesses are bookable online </li></ul>Source: Forrester Research – Feb 2006, Travel Click - Jun 2007, Logan Tod & Co - Apr 2007, Visit Britain, Eviivo, Google, ComScore
  5. 5. Online search
  6. 6. Search return
  7. 7. Online Distribution
  8. 8. Online Distribution internet
  9. 9. Online Distribution internet
  10. 10. c 10,000 online enquiries for accommodation per hour! This distribution generates…
  11. 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. 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. 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. 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. 15. Most Important Marketing Tool? <ul><li>Your own website! </li></ul><ul><ul><li>ESSENTIALS </li></ul></ul><ul><li>Get Online Booking setup! </li></ul><ul><li>Online distribution </li></ul><ul><li>BOOK NOW! </li></ul><ul><li>Best Rates Guaranteed! </li></ul>
  16. 16. ANY QUESTIONS? <ul><li>Thank You </li></ul>

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