Tackling the hotel shopping            dilemmaConsumer, agency and distribution perspectives               November 29, 2011
Kevin May,Tnooz editor / moderator
Poll no. 1
Nina WilldorfEditor-at-Large, Budget Travel
Consumer Booking Behavior: An Overview         Stage 1: Ideas and Inspiration  Where does the original    idea come from? ...
Consumer Booking Behavior: An Overview                  Stage 2: Advice and Insight                            Once the se...
Consumer Booking Behavior: An Overview        Stage 3: Pricing and Comparing                                 Now that it’s...
Consumer Booking Behavior: An Overview                             Stage 4: Purchasing                               Who g...
CONSUMER PAIN POINT #1       “There are far too many choices when it        comes time to look for information.”• The Rise...
CONSUMER PAIN POINT #2          “I don’t always trust the information I                       find online.” Reduced Shopp...
CONSUMER PAIN POINT #3 “It takes hours to find good information and              recommendations.”• Time Spend Is Ballooni...
CONSUMER PAIN POINT #4“I can’t effectively comparison shop because  there’s no transparency when it comes to            fe...
HAPPY HOTEL HUNTINGHopes and DreamsWhat can companies/agents do to help consumers?Follow the following two steps:#1: Facil...
Poll no. 2
Challenges Facing Travel Agency           and TMC      Don Buynack      President, OptionsTravel
Challenges Facing Travel Agency                and TMCRate Loading Process …1) Analyzing client needs2) Negotiating corpor...
Challenges Facing Travel Agency                 and TMCIssues …1)   Corporate clients that need direct bill2)   Hotels are...
Challenges Facing Travel Agency           and TMC         Donald J. Buynack            President          Options Travel  ...
Poll no. 3
The Hotel Shopping Dilemma- a “distribution” perspective               Niklas Andréen               Group Vice President G...
Hotel Distribution                               Leisure Agency       GDS                                                 ...
The hotel industry                  Source: Euromonitor, May 2011. Refers to 52 selected countries22   Tnooz 29 November 2...
Hotel booking channels - by Agent type            100%               4%                      8%               9%     Other...
Challenge 1 – Fragmentation24   Tnooz 29 November 2011
Challenge 2 – How do customers search?                              What is important?                              •   Sp...
Challenge 3 – What are customers really wanting to buy?                                           Room only?              ...
Challenge 4 – How do we TRUST? •   More than just privacy and security •   “Look and feel” affects trust •   Process affec...
The GDS role in solving the Hotel Shopping Dilemma                                 Brings travel agents content from      ...
The GDS role in solving the Hotel Shopping Dilemma29   Tnooz 29 November 2011
The GDS role in solving the Hotel Shopping Dilemma                                                   Multi-channel Booking...
In summary our joint challenge With such complexity and fragmentation of suppliers and                         their rates...
CopyrightCopyright©2011 Travelport Inc. All rights reserved. All Travelport logos and marks as well as all other Travelpor...
Q&A
Thank You!Webinar replay will be available on www.tnooz.comPlease send questions and comments to Kevin May,               ...
Tnooz-Travelport Webinar: The hotel shopping dilemma
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Tnooz-Travelport Webinar: The hotel shopping dilemma

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This 60-minute webinar, produced by Tnooz and Travelport, tackles issues around searching and booking accommodation, especially as new channels emerge and existing ones evolve, all from three unique perspectives:

* the needs of the consumer.
* the challenges facing the intermediary.
* the view of the technology provider.

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Tnooz-Travelport Webinar: The hotel shopping dilemma

  1. 1. Tackling the hotel shopping dilemmaConsumer, agency and distribution perspectives November 29, 2011
  2. 2. Kevin May,Tnooz editor / moderator
  3. 3. Poll no. 1
  4. 4. Nina WilldorfEditor-at-Large, Budget Travel
  5. 5. Consumer Booking Behavior: An Overview Stage 1: Ideas and Inspiration Where does the original idea come from? Categories of Traditional Media 49% 48% 48% 52% 46% Family & Friends Traditional Media 43%SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  6. 6. Consumer Booking Behavior: An Overview Stage 2: Advice and Insight Once the seed is planted, where do consumers turn next? 54% 44% 38% 38% 37%SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  7. 7. Consumer Booking Behavior: An Overview Stage 3: Pricing and Comparing Now that it’s time to compare pricing, where to? 56% 51% OTAs Supplier WebsitesSOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  8. 8. Consumer Booking Behavior: An Overview Stage 4: Purchasing Who gets those coveted booking dollars? 41% 38% 18% 17% OTAs Supplier Multi-brand Destination Websites Websites WebsitesSOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  9. 9. CONSUMER PAIN POINT #1 “There are far too many choices when it comes time to look for information.”• The Rise of the Smart Shopper• Over 77% attribute a new sense of travel savvy to the currenteconomic situation. But still, the number of choices overwhelms.SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  10. 10. CONSUMER PAIN POINT #2 “I don’t always trust the information I find online.” Reduced Shopping Time Increased Online Complexity 2008: 23% agreed with statement “if I could find a good offline travel agent to work with I would. 2010: 28% agreed with statement.SOURCE: Forrester Research: Technographics Travel Online Study
  11. 11. CONSUMER PAIN POINT #3 “It takes hours to find good information and recommendations.”• Time Spend Is Ballooning—thanks to more content No. of Published Reviews and Opinions on TripAdvisor, the #1 source for user-generated reviews 50,000,000 25,000,000 1,000,000 10,000,000 June 05 June 07 July 09 July 11SOURCE: Hotelmarketing.com, July 2011
  12. 12. CONSUMER PAIN POINT #4“I can’t effectively comparison shop because there’s no transparency when it comes to fees/pricing structure.”• Explosion of Fees. Hotels are likely to pocket a record US$1.8 billion—up 80% from 2001.• Increased Need for Comparison Shopping.SOURCES: Bjorn Hansen, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University; Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
  13. 13. HAPPY HOTEL HUNTINGHopes and DreamsWhat can companies/agents do to help consumers?Follow the following two steps:#1: Facilitate Easy Comparison Shopping: Create the ability to comparehotels on a number of levels from a single site#2: Add Lifestyle Issues Into Search: Create the ability to search bybudget, best times to travel, purpose of travel
  14. 14. Poll no. 2
  15. 15. Challenges Facing Travel Agency and TMC Don Buynack President, OptionsTravel
  16. 16. Challenges Facing Travel Agency and TMCRate Loading Process …1) Analyzing client needs2) Negotiating corporate rates with specific hotels3) Hotels load agreed upon corporate rate4) Travel Agency validates the rate is loaded and correct5) Rate is then loaded in GDS BAR, online booking tools and master hotel database6) Rate is now available to travelers
  17. 17. Challenges Facing Travel Agency and TMCIssues …1) Corporate clients that need direct bill2) Hotels are unfamiliar with loading rates in GDS3) Benchmarking/Analytics for savings4) Time dilemma5) Lack of hotel communication6) Renewing/Renegotiating annual hotel rates7) Hotels wanting to deal directly with client
  18. 18. Challenges Facing Travel Agency and TMC Donald J. Buynack President Options Travel 800-544-8785 dbuynack@optionstravel.com
  19. 19. Poll no. 3
  20. 20. The Hotel Shopping Dilemma- a “distribution” perspective Niklas Andréen Group Vice President Global Hospitality and Partner Marketing Produced by Market Strategy and Pricing, CMO
  21. 21. Hotel Distribution Leisure Agency GDS Switch Mobile Corporate Agency Search / OTA Aggregators PMS Metasearch Consumer Supplier Social Tour Operator Networks (Phone, Retail, Wholesalers IBE) CRS Revenue & Affiliate / Channel Brand / Repco Review Sites Management Sales & (Call Centre, Repco Conference IBE) Hotel Direct (IBE, Phone, Fax) Rich Media / Content21 Tnooz 29 November 2011
  22. 22. The hotel industry Source: Euromonitor, May 2011. Refers to 52 selected countries22 Tnooz 29 November 2011
  23. 23. Hotel booking channels - by Agent type 100% 4% 8% 9% Other 18% 19% 19% 18% 3% 12% Direct with Hotel 6% 5% 18% 5% (phone, fax, email, web) 32% Consumer OTA 32% (e.g. Expedia) 52% Hotel Wholesaler 57% (e.g. GTA) 36% 36% GDS 13% 0% Corporate Mixed Leisure Total Source: Travelport Hotel Subscriber Survey23 Tnooz 29 November 2011
  24. 24. Challenge 1 – Fragmentation24 Tnooz 29 November 2011
  25. 25. Challenge 2 – How do customers search? What is important? • Speed • Accuracy • Availability • Choice • Lowest Fare • Relevance (fuzzy search) • Simplicity (semantic search) • Inspiration25 Tnooz 29 November 2011
  26. 26. Challenge 3 – What are customers really wanting to buy? Room only? Breakfast ? Wifi? Transfer? Spa? Printing? Lounge? Sightseeing? Preferred check-in? Gym access? Customers want comparability Suppliers want differentiation Source: Travelport Industry Analysis 26 Tnooz 29 November 2011
  27. 27. Challenge 4 – How do we TRUST? • More than just privacy and security • “Look and feel” affects trust • Process affects trust • Trust is a process • Individuals and products differ in trust • Different parts of the booking chain defines trust differently27 Tnooz 29 November 2011
  28. 28. The GDS role in solving the Hotel Shopping Dilemma Brings travel agents content from multiple sources through a powerful, one-stop, shopping and booking portal • Single log-in/participation • Multi Source content • Comparison shopping • One purchase process • Guaranteed commission28 Tnooz 29 November 2011
  29. 29. The GDS role in solving the Hotel Shopping Dilemma29 Tnooz 29 November 2011
  30. 30. The GDS role in solving the Hotel Shopping Dilemma Multi-channel Booking Search/ Metaseach Guides Suppliers keep control of the transaction Meta Booking Social Customer have one trusted partner Suppliers Networks No Back Office Reviews ROI Tracking Comparability and trust Payments No payment/security related issues Reliability All transactions visible Control Tnooz 29 November 2011 Metabook30
  31. 31. In summary our joint challenge With such complexity and fragmentation of suppliers and their rates... To provide our respective customers with the mostappropriate prices based on their search criteria, taking into account their preferences. And all from what they perceive as a trustworthy source. 31 Tnooz 29 November 2011
  32. 32. CopyrightCopyright©2011 Travelport Inc. All rights reserved. All Travelport logos and marks as well as all other Travelport proprietarymaterials depicted herein are the property of Travelport Inc. and/or its affiliates.Notes About ExamplesAll screen examples and other inserts associated with system output are provided for illustration purposes only. They areprovided as illustrative examples of system functionality and are not meant to represent actual screen responses, rates,etc.32 Tnooz 29 November 2011
  33. 33. Q&A
  34. 34. Thank You!Webinar replay will be available on www.tnooz.comPlease send questions and comments to Kevin May, kevin@tnooz.com

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