Hotel customers assess value from three pieces while making their purchase decision and attempt to answer 2 questions. This talk look at the two questions and the three components of most service businesses value proposition.

1. The Transparent Web
Telling Your Story On the Internet

35. Sites Visited - All E-commerce
30
22.5
15
7.5
0
2010 2011

36. Poll question #1

37. Sites Visited - All E-commerce Sites Visited - Travel
30
22.5
15
7.5
0
2010 2011

41. Two questions

42. Am I
going to
enjoy my
stay?

43. Why
should I
buy from
you?

44. Dominant Impulsive
Fast
& Ambitious & Enthusiastic
Analytical Reliable
Slow
& Organized & Predictable
Head Heart

45. Poll question #2

46. Top search term
prior to booking? 18
“Price”

47. 19
Price
Proximity Quality

48. Price
Price
Proximity
Quality Quality
Proximity
Dominant Impulsive
Fast & Ambitious & Enthusiastic
Price Price
Proximity Quality Proximity Quality
Analytical Reliable
Slow & Predictable
& Organized
Head Heart

71. Poll question #3

76. Poll question #4

77. Smartphone Mobile phone
7,000
6,000
5,000
4,000 6.1 Billion
3,000
2,000
1,000
953 Million
0
Total Subscriptions - Q4 2011
Source: Mary Meeker & Liang Wu http://www.scribd.com/doc/95259089/KPCB-Internet-Trends-2012

80. The solution?

81. A cure worse
than the
disease?

82. Your choice
Attempt to “win” Promote
the race to zero transparent value

86. Only
$62

87. So#$Business$Results$
Compe6tors$Respond$
Customer$Expecta6ons$Shi#$
Reduce$Prices$
Customer$Experience$
Deteriorates$
Reduce$Service$and$Marke6ng$
Short;term$Sales$Improve$
to$Pay$for$Price$Reduc6ons$

88. Price must show value

89. Is this what you
think when you
hear “best rate”?

90. Am I
going to
enjoy my
stay?

91. Why
should I
buy from
you?

94. X

97. Thank you 47
Web: timpeter.com
Phone: +1-201-305-0055
Email: tim@timpeter.com
Twitter: twitter.com/tcpeter