3. PAGE3
Andy KhenHotel E-Commerce101
AIM
Room and Non-Room Revenue
Offline and online
Expanding the Online Revenue
Find the most cost-effective channels to
distribute the room inventory
Decrease the Distribution Costs
“Always aim for achievement. Forget about success.” (Helen Heyes, n.d.)
&
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Andy KhenHotel E-Commerce101
The Focus
Focusing on the Basics
“Concentration – Important to our success.” (Ingvar Kamprad, 1976)
ACCOUNT
MANAGEMENT CONVERSIONVISIBILITY
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Andy KhenHotel E-Commerce101
Partner
Partner with banks, airlines, Railway, etc by providing their clients and employees
with special rates when booking online
Each partner is provided with specific booking code
Shared marketing efforts such as LED, Billboard, e-blast, etc
Increasing bookings from brand.com via 3rd parties
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Andy KhenHotel E-Commerce101
Prospect Theory
Professor Kahneman (Nobel Prize winner) & Amos Tversky in 1979
It is easier to get customers who have already committed to purchase to spend an
additional amount (the amount of an upgrade, for example) than it is to get them
to make the more expensive purchase at the initial decision point.
Upsell & Upgrade
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Andy KhenHotel E-Commerce101
Group Priority List of OTA’s Local OTA’s Note
A High A
B
C
Available at all
times
B Medium D
E
F
G
H
I
Medium – low
periods
C Low J
K
L
M
N
Low periods
OTA’s Grouping
Improving inventory management
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Andy KhenHotel E-Commerce101
• In 2012, online bookings in APAC were still dominated by online suppliers
accounted more than 60% from the total online production
• List of online wholesalers: Hotelbeds, GTA, Jactravel, Transhotel, DOTW
• Local online wholesalers (Indonesian): Mandira Abadi, MG Holiday
• Autralian wholesalers: Flight Center, The Travel Corporation (Creative Holidays &
New Horizons), GOH holidays, Qantas Holidays & Asia Escape Holidays
Wholesaler Account Management
Expanding the wholesaler accounts
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Andy KhenHotel E-Commerce101
Chris Anderson (Cornell, 2009): Billboard Effect
JHM Hotels in the US , 4 of 35 properties taken as study
objects
Listed on Expedia on and off in a circle of 7 – 11 days for 3
months
Findings: reservation on non-OTA channels (eg. Brand.com)
increased by 7.5 – 26% when being listed on Expedia
OTA’s and their indirect impact to direct channels
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Andy KhenHotel E-Commerce101
UPC or
Prepayment
Connected
to channel
manager
Cost-
effective
commission
Rules for New OTA Account
Every contract is a cost; hence we have to ensure production
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Andy KhenHotel E-Commerce101
”If a hotel increases its review scores by 1
point on a 5-point scale (e.g., from 3.3 to
4.3), the hotel can increase price by 11.2
percent and still maintain the same
occupancy or market share”.
Professor Chris Anderson, Cornell University,,2012
Relation between Reviews & ARR
Study from Cornell University
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Andy KhenHotel E-Commerce101
Reputation Management
“More than 70% guests read reviews before booking a hotel…” (Michael Menis, IHG)
o Monitor and response reviews in timely manners;
o Use Reputation Management software when possible;
o Adopt pro-active approach (as opposed to passive approach) to get reviews from guests;
o Measure and monitor NPS (Net Promoting Scores) of each property and or brand.
Online Reviews Word of MouthIn-hotel Reviews NPS