Tourism 2.0 - Modernizing hotel e-commerce


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These slides were presented in Funchal, Portugal on 21st October 2010 for the Tourism 2.0 conference. 200 hoteliers attended! ;-)

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  • “My profits dropped by 50% or more”
    Room rates back to 1999
    I cut every staff member possible
    I already saved on every expense possible
    “How can I compete? There’s 10,000 rooms too many, just in my market…”
    “I hear the Internet is promising but…”
    Aren’t online travel agents, i.e. Expedia, Booking expensive?
    “Experts” promise solutions, but I don’t have money to spend…
    “I don’t have time to explore new Internet options”
    Because I am stuck in firefighting mode
    Always a surprise that throws the day for a loop
    Very long hours , from before breakfast to after dinner
  • Learn
    from the big guys
    from your users
    Fight back, innovate
    You know your guest
    Create differentiated products
    Look where you can save
  • spend $300M in online marketing
    They advertise on 400,000 keywords
    Hence, your hotel will never be #1 on Hotels New York, Hotels Paris, etc.
    But… You can get many eyeballs looking for your property
    Leverage expense by online travel agents - sign up
    Leverage Google tools and SEO techniques to rank high for property name ✔
    Most of it is setup not ongoing “service”
  • Provide real-time rates and availability and easy online booking ✔
    Minimize chance to abandon or continue shopping
    Highlight your best rate for price shoppers ✔
    Simplify competitive shopping
    Ensure rate parity with all online travel agents
    No one will buy direct if Expedia is cheaper…
    Innovate with promotions, restrictions ✔
    Don’t be cheap: create packages, e.g. with local activities
  • Listen in and monitor as many outlets as possible ✔
    Embrace established social media like Tripadvisor, YouTube ✔
    Capitalize Facebook fan pages and twitter ✔
    Offer social media exclusives ✔
    Reward Facebook, twitter followers
  • Tourism 2.0 - Modernizing hotel e-commerce

    1. 1. 1 What is modern hotel e-commerce? By Pedro Colaco
    2. 2. 2 Agenda The weather Charting the course New solutions for new world At the destination
    3. 3. 3 Most hotel managers in 2010 My profits dropped 50% Too many rooms in my market… The Internet is promising but… I just don’t have the time.
    4. 4. 4 Travel outlook: Cloudy Leisure: Cheap – Shorter, closer, downgrade MICE: Cut – Many events cancelled Corporate: Flat – But… sentiment improving
    5. 5. 5 Online growing in Europe Double-digit growth Chain sites growing faster Success story
    6. 6. 6 The Independent Gap 400,000 independent properties 60,000 4*, 5* chain hotels
    7. 7. 7 Charting the course Learn from big guys Look for cost without return Compete through innovation
    8. 8. 8 New guests = New opportunity Search specific products/experiences Trust social word-of-mouth Want direct interaction with hotel 82% prefer to book direct*
    9. 9. 9 Old solutions not fit for new reality Hard-selling distribution channels Greedy marketing agencies Closed, custom-built software
    10. 10. 10 Google sees the opportunity Estimates users visit 13-28 travel sites before deciding Recently spent $800M on ITA to boost travel search Google Places visibility for owner sites Social Search for word of mouth
    11. 11. 11 Independents must be realistic Expedia + spend $300M online Will not be #1 for Hotels New York or Paris But… many visitors can turn to guests Promote experiences instead of regions
    12. 12. 12 Golf trip – $4.00 PPC Highly competitive PPC market
    13. 13. 13 Whale watching trip – $1.75 PPC Little advertising!
    14. 14. 14 Wine tasting trip No advertising!
    15. 15. 15 hotel adventure – $2.00 PPC Some advertising
    16. 16. 16 hotel wine – $1.50 PPC Some advertising
    17. 17. 17 hotel gourmet No advertising!
    18. 18. 18 You can attack the niches Sum of niches better than mass Low competition, little advertising New structure required to attack
    19. 19. 19 Look Search for Options, investigate New structure: Guest interaction cycles Interact User reviews, requests Book Select dates, rooms, packages 1 2 3
    20. 20. 20 Look: Ensure Sales Focus Match web to property experience Perform usability tests Pictures, pictures, pictures Highlight special offers 1
    21. 21. 21 Book: Offer incentives on your website Easy, real-time booking Highlight best rate Ensure rate parity Innovate: promotions, special room types 2
    22. 22. 22 Interact: Listen and Engage Monitor and listen Integrate user content Offer social exclusives Be useful and fun 3
    23. 23. 23 Modern = Easy to use Quick projects (weeks not months!) Elastic, accommodates growth Great user experience Web mash-ups Analytics in hotelier terms
    24. 24. 24 The destination Boost direct bookings 3x to 10x Fuel viral business Prepare future by competing today
    25. 25. 25 Current status Our brand is huge: we have staff and spend loads of money on marketing Our hotel is so much better but how can we compete???
    26. 26. 26 The vision This internet thing is really great!!! Level the playing field for 400,000 independent hoteliers