Keynote D OMahony

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  • 1. Using technology to gain hotels serve travel, they donʼt create it strategic advantage hotels can only react to situations hotels are not in control of their market Des OʼMahony PhD CEO & Founder, Bookassist 1 2 the industry needs to be able to what are the factors influencing react decisively and with agility the industryʼs future? 3 4
  • 2. technology driven society global economy & society 5 6 economic realities we canʼt control political realities we canʼt control 7 8
  • 3. Average Price for a Double Room Online data 2009 city 01/2009 01/2010 change Dublin 167.2 97.44 -42% London 145.60 142.16 -2% Milan 142.68 121.80 -15% environmental realities we canʼt control Barcelona 115.64 93.96 -20% Vienna 116.06 103.35 -11% Budapest 78.56 64.96 -15% Berlin 126.44 100.92 -22% 9 10 European Data - Primary City Destinations % change - seasonally adjusted 23% peak 15% 8% decline 0% economic cycle recovery -8% -15% Mar-03 -23% Mar-04 Mar-05 Mar-06 revPAR Mar-07 Mar-08 -30% trough Average room rate Mar-09 Occupancy STR Global / Bookassist 11 12
  • 4. 1 Distribution continues to move Hotels cannot assume they will follow rapidly to the internet the same path to recovery as before Hospitality must work now to seize 2 the new opportunities available Distribution on the internet is moving from indirect to direct 13 14 “ Online Hotel Reservations as a percentage of Total Hotel Reservations 2005-2009 Asia Pacific Europe N. America 70% 60% in 2010 it is expected 50% that 50% of all LEISURE 40% 30% bookings worldwide will 20% be made via fixed and 2005 10% mobile internet 2006 0% 2007 2008 Hospitality eBusiness Strategies 2009 Hospitality e-Business Strategies HeBS PhocusWright, Merrill Lynch, HeBS 15 16
  • 5. Internet Booking Source 2009 - Top 30 Hotel Brands 80% 100% 40% 60% 0% 20% own brand website 75.1% indirect sale direct sale 3rd party commissionable 5.3% “Retail” -HRS, Bookings,Venere 3rd party net rate 10.6% “Merchant” - Expedia, Hotels.com,Travelocity change in guest behaviour... 3rd party opaque 9% “Opaque” - Priceline, shoppers top travel sites are now discussion sites increasingly value-conscious guest increasingly detail-conscious guest Hospitality e-Business Strategies HeBS 17 18 “ These findings reinforce the belief that the hotel website is its most important branding tool and revenue generator 3things hotels need to focus on Fonte: Hospitality e-Business Strategies HeBS September, 2009 19 20
  • 6. 1 3things Internet strategy needs to be core strategy, not peripheral Traffic 21 22 Traffic Conversion brand web site strategy domain strategy communicate Conversion segmentation competitive analysis call to action remove barriers compelling offer target service level look book spend rate parity analyse exclusivity refine. last available room. 23 24
  • 7. (Analysis) 25 26 1 2 3things Websites, booking capability and mobile access need to be up to speed and ready to serve 27 28
  • 8. Hotel Websites Unoptimized Website 29 30 Optimized Website versus 62.8% versus 18% “ I am struck by the explosion of mobile computing - mobile is clearly going to win the battle with traditional computers. Eric Schmidt, CEO Google Abu Dhabi, March 10, 2010 31 32
  • 9. iOS web access presents ~67% of all mobile web access, or twice everything else combined (June 2010) 67% iPhone iPod iPad Mobile web access is growing at three iOS times the pace of computer web access Mobile Web Android Windows Mobile Symbian Blackberry OS 33% Taptu Mobile Touch Web Report Jan2010 Survey of 110M websites monthly % Apple WWDC June 2010, Bookassist Analytics Q1 2010 80 -85 33 34 Dublin Hotel Q1-Q2 Ecommerce is the fastest growing 4% area of mobile web access +49.9 +52.75 Taptu Mobile Touch Web Report Jan2010 Survey of 110M websites monthly % 35 36
  • 10. Webapps (mobile enabled web services - cross-platform) are growing at three times the rate of downloadable apps automatic redirect 350000 300000 Webapps 250000 200000 150000 100000 50000 0 iPhone apps 2008 Q1 Android apps 2008 Q3 easy return 2009 Q1 2009 Q3 37 38 Location Services will be critical - interactivity Route Location Services will be critical - advertising 39 40
  • 11. “ Apple is likely to add a location component to its mobile ads so, for example, coupons from local stores could show up on a person’s phone 41 42 1 2 3 3things The end of broadcast internet Align offline and online strategy to target indirect guests and build lifetime value 43 44
  • 12. “ Itʼs about conversation Audiences expect more and they want to be involved more - This change [social networking] is the answer to our economic problems. Rupert Murdoch NAPTE, Jan 27 2010 45 46 with the world watching how you interact with your customers 47 48
  • 13. “ Concurrent Advantage in Search Website/Mobile Social Media allows Blog you to project your Facebook YouTube customer service outside Twitter your establishment in an unprecedented way Competitors 49 50 Internet strategy needs to be core strategy, 1 not peripheral Websites, booking capability and mobile access need 2 to be up to speed and be ready to serve Align offline and online strategy to target indirect 3 guests and build lifetime value Thank you! 51 52