Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Web 2.0 and the Online Marketplace
1. Web 2.0
&
The Online Marketplace
Joe Nguyen, Director - Global eCommerce
BLOG - http://ecommerceforhotels.blogspot.com
1
2. Why Is The Online Marketplace
Important For Hotels?
In the US, 22%, 25%, 28% of all hotel bookings will be
made online in the years 2005, 2006 and 2007. Another
1/4 of hotel bookings will be influenced by the Internet,
but done offline (call Centre, walk-ins, group bookings,
etc). This figure includes Online Travel Agencies (OTA)
as well as direct-to-brand business.
- Source: PhoCusWright US Online Travel Overview Dec 2006.
By the end of 2010, over 45% of all hotel bookings will
be completed online - Source: Merrill Lynch
2
3. BUT - Where is it coming from?
Meta-
Corporate search
Website Blogs Sites
OTAs
Search
Hotel Engines Social
Website
Networks
3
4. How Do We Currently View The
Online Consumer’s Buying Cycle?
SHOP
PURCHASE
4
5. What Is The Online Consumer’s
Buying Cycle NOW?
With the web, research is
now easy, quick, and
immensely insightful
RESEARCH
Previously, this research
was offline or at best
SHOP going to the hotels’
websites or OTAs sites.
Web 2.0/Travel 2.0
PURCHASE provides a lot more
information than before
5
6. WEB 2.0 - What is it?
1) Social Networking?
Friendster.com
Tripadvisor.com
Myspace.com
Youtube.com
Flickr.com
Blogspot.com
FaceBook
2) Technology?
Really Simple Syndication (RSS
Feeds)
Blogs, Vlogs
In 2004, Tim OʼReilly of OʼReilly Media Asynchronous Javascript and
coined the term Web 2.0 for a XML (AJAX)
conference, to describe the new age of “Mash Ups”
the Internet. Widgets
Google Earth/Maps
6
7. WEB 2.0 - What does it mean?
Firstly, WEB 1.0 - what did IT mean?….. TRANSPARENCY
Consumers are going direct to suppliers, and businesses are going direct to each
other
Traditional intermediaries (like travel agents) got sidelined by airlines and hotels.
Information is at the hand of the consumers and end users giving rise to ebay,
amazon, and expedia
Consumers have more information and more choices; they can SHOP much
easier
WEB 2.0 means INCREASED TRANSPARENCY
Not only will end-users see a company’s product, but they will also have a better
idea of how it performs BEFORE they purchase
They can compare and contrast a hotel’s rates offered across online channels
(online direct vs expedia vs cheaphotels.com vs telephone booking)
They will know which rooms has a nice view and which room is “haunted”
Consumers can RESEARCH much easier and better
7
8. CGM Changes Minds of Online
Travel Buyers
51 percent of respondents used CGM (Consumer
Generated Media) to help narrow a choice
23 percent employed consumer-created information to
confirm a decision
15 percent used it to pick their top choice.
21.2 percent of travel purchaser surveyed said consumer
review sites influenced their choices, while 11.3 percent
noted online advice from consumers did so.
Advice from family and friends and corporate Web sites,
however, had more impact. Friends and relatives
influenced 38.3 percent of participants, and around one-
third said company sites had an effect.
Source: The ClickZ Network, Dec 14, 2006
8
9. WEB 2.0 - What does it mean to a
hotel/ hotel group?
Whose Role Is It?
Rate Parity, Rate Parity, Rate Parity!!! Revenue Management/
Sales
Reputation Management online is key
• Look for and listen to the feedback Sales & Marketing/
• Be Honest and upfront to the customer
MarCom
• Respond professionally as if they were in front of you
Transparency works both ways
• It’s free market research. Your customers are telling Sales & Marketing
you what they want
• Understand the data
• Target the campaigns and sales effort
At the hotel, deliver the Brand Promise Operations/
• Service, Service, Service Front Desk
• Be customer focussed
• Mind the “little things”
9
11. Research Then SHOP
How do consumers shop
once they have done their
Research?
RESEARCH
What tools do they use?
Where do they go?
SHOP
PURCHASE
11
12. How Do Consumers SHOP?
Direct to Websites
Direct Internet
Booking Engine
90% Via
Corp Site
Search Engines
Inventory
CRS/PMS
Hotel Site
CRS/GDS/
Extranets
OTAs
Users
12
14. In Summary…
The consumer’s online buying
cycle has been expanded to
include detailed RESEARCH -
RESEARCH using both search engines and
Web 2.0.
Consumers still rely heavily on
SHOP search engines to do their
SHOPPING and hence so are
OTAs, Web 2.0 travel portals,
and hotel companies.
PURCHASE
For hotels, each part of the
organization must do their
respective roles to match the
new increasingly transparent
marketplace
14
15. Web 2.0
&
The Online Marketplace
Joe Nguyen, Director - Global eCommerce
BLOG - http://ecommerceforhotels.blogspot.com
15