Changing world of channel management Aldona K, Sales Manager
Evolution of online distribution in travel Online travel bookings will make up nearly a third of worldwide transaction by the end of 2012 (according to yStats.com) In 2011 global hotel revenue rose 18%, with nights stayed up 16%* 74% of leisure and86% of business travellers use the Internet to gather information before they book travel Online Channels have grown by 25% in the last four years Social search for word of mouth, Multi-channel marketing is the norm… *hotelmarketing.com
Are YOU in control of your revenue – or are you too busy indulging the market?
Question Time Where is your business coming from? Who are your competitors and how do you compare? Which channels are driving business our way? What should be your pricing strategy? How often should you update your distribution channels? How do you monitor results?
Online distribution landscape Social Search Mobile Sales e-Commerce Sales S-Commerce
This is the new …which is giving sleepless nights……..
Facing a customer Who will visit22 websites during 9.5 sessions prior to booking Will check an OTA site 12 times, visit 7.5 pages each time, and spend almost 5 minutes before clicking the BOOK button 68% of them will rely on internet especially when planning a leisure trip 80% travellers research the venue before booking …in other words, YOU are always under scanner
Strategy has changed to…..Focus on direct salesReducing commissionMore importance to GDSand working out with moreTravel Agents & consortia contracts
To hit the Bull’s eye You must… Understand where the value of Direct Bookings derive Know your market Have better and more flexible contracts with OTAs Experiment with new and diverse channels Install integrated and streamlined technology to better manage your online distribution Keep an eye on Mobile and Social Media Manage Online Reputation to build brand value and loyalty
What does about the Prague market? In 2011, Prague attracted 4.7 million visitors and was named as the sixth most popular city in Europe. The main international source markets in 2011/2012 are Germany ( 15%), Russia ( 9%) and UK ( 6%) . Other important : Italy , the USA, France and SpainPrague 4 and 5-Star Hotel Performance Indicators: 2011 2010 Variance Rooms 68.4% 65.8% 2.6 pts Occupancy (%) Average Room 79.21 78.96 0.3% Rate (€) Rooms RevPAR 54.16 51.96 4.2% (€) Source : source: HVS ,Market Snapshot Czech Rep. May 2012 and HOTStats 2012
9 Tips for Effective online distribution1. Manage Rates Carefully2. Do not ignore historical data3. Invest in technology Benchmarking Channel Partner Rates & Inventory4. Use effective channel partners5. Think like a marketer6. Automate allocation process7. Experiment with different channels and segments GDS8. Measure and scale your online activities9. Always focus on a mutual win, build trust and loyalty
Gain full control over pricing, position & visibility Rate Shopping, Channel Management, Revenue Optimisation and Reputation Management solutions for hotels of all sizes Hoteliers analyse market Quick & efficient Assess market competition Consolidate customer positioning by comparing management of online and position, propose rates reviews from connected competitor rate distribution channels and allows for the automatic review websites. Analyse, information from through one easy to use update and monitoring of review and respond to websites & hotel sites. interface. online distribution channels. customer feedback from a single application. Options Allocation Allocation Alert Distribution / Shopping Reports Management / Split GDS shopping and distribution Shopping Reports – Daily & Online advertising Weekly For low & sold out Control of allocation Extranet Reports – Arrival across all chosen Facebook booking engine allocations reports for selected websites websites Booking Reports – Created bookings from selected websites
Thank You Aldona Kaczmarczyk US Sales Office: UK Sales Office: eRevMax Inc. eRevMax Ltd.37 North Orange Avenue, Suite 500 Monmouth House, 3rd Floor, 40 Artillery Lane Orlando, Florida 32801, U.S.A London E1 7LS, United Kingdom Tel: +1 (321) 251 6559 Tel: +44 (0) 20 7422 7528 Fax: +1 (321) 206 8630 Fax: +44 (0) 20 7657 4245 E-mail: email@example.com E-mail: firstname.lastname@example.org Visit us at www.ratetiger.com