Tourism 2.0 - Modernizing hotel e-commerce
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These slides were presented in Funchal, Portugal on 21st October 2010 for the Tourism 2.0 conference. 200 hoteliers attended! ;-)
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Tourism 2.0 - Modernizing hotel e-commerce
- 1. 1 What is modern hotel e-commerce? By Pedro Colaco
- 2. 2 Agenda The weather Charting the course New solutions for new world At the destination
- 3. 3 Most hotel managers in 2010 My profits dropped 50% Too many rooms in my market… The Internet is promising but… I just don’t have the time.
- 4. 4 Travel outlook: Cloudy Leisure: Cheap – Shorter, closer, downgrade MICE: Cut – Many events cancelled Corporate: Flat – But… sentiment improving
- 5. 5 Online growing in Europe Double-digit growth Chain sites growing faster Success story Booking.com
- 6. 6 The Independent Gap 400,000 independent properties 60,000 4*, 5* chain hotels
- 7. 7 Charting the course Learn from big guys Look for cost without return Compete through innovation
- 8. 8 New guests = New opportunity Search specific products/experiences Trust social word-of-mouth Want direct interaction with hotel 82% prefer to book direct*
- 9. 9 Old solutions not fit for new reality Hard-selling distribution channels Greedy marketing agencies Closed, custom-built software
- 10. 10 Google sees the opportunity Estimates users visit 13-28 travel sites before deciding Recently spent $800M on ITA to boost travel search Google Places visibility for owner sites Social Search for word of mouth
- 11. 11 Independents must be realistic Expedia + Booking.com spend $300M online Will not be #1 for Hotels New York or Paris But… many visitors can turn to guests Promote experiences instead of regions
- 12. 12 Golf trip – $4.00 PPC Highly competitive PPC market
- 13. 13 Whale watching trip – $1.75 PPC Little advertising!
- 14. 14 Wine tasting trip No advertising!
- 15. 15 hotel adventure – $2.00 PPC Some advertising
- 16. 16 hotel wine – $1.50 PPC Some advertising
- 18. 18 You can attack the niches Sum of niches better than mass Low competition, little advertising New structure required to attack
- 19. 19 Look Search for Options, investigate New structure: Guest interaction cycles Interact User reviews, requests Book Select dates, rooms, packages 1 2 3
- 20. 20 Look: Ensure Sales Focus Match web to property experience Perform usability tests Pictures, pictures, pictures Highlight special offers 1
- 21. 21 Book: Offer incentives on your website Easy, real-time booking Highlight best rate Ensure rate parity Innovate: promotions, special room types 2
- 22. 22 Interact: Listen and Engage Monitor and listen Integrate user content Offer social exclusives Be useful and fun 3
- 23. 23 Modern = Easy to use Quick projects (weeks not months!) Elastic, accommodates growth Great user experience Web mash-ups Analytics in hotelier terms
- 24. 24 The destination Boost direct bookings 3x to 10x Fuel viral business Prepare future by competing today
- 25. 25 Current status Our brand is huge: we have staff and spend loads of money on marketing Our hotel is so much better but how can we compete???
- 26. 26 The vision This internet thing is really great!!! Level the playing field for 400,000 independent hoteliers
Editor's Notes
- “My profits dropped by 50% or more” Room rates back to 1999 I cut every staff member possible I already saved on every expense possible “How can I compete? There’s 10,000 rooms too many, just in my market…” “I hear the Internet is promising but…” Aren’t online travel agents, i.e. Expedia, Booking expensive? “Experts” promise solutions, but I don’t have money to spend… “I don’t have time to explore new Internet options” Because I am stuck in firefighting mode Always a surprise that throws the day for a loop Very long hours , from before breakfast to after dinner
- Learn from the big guys from your users Fight back, innovate You know your guest Create differentiated products Look where you can save Time Money
- Expedia+Booking.com spend $300M in online marketing They advertise on 400,000 keywords Hence, your hotel will never be #1 on Hotels New York, Hotels Paris, etc. But… You can get many eyeballs looking for your property Leverage expense by online travel agents - sign up Leverage Google tools and SEO techniques to rank high for property name ✔ Most of it is setup not ongoing “service”
- Provide real-time rates and availability and easy online booking ✔ Minimize chance to abandon or continue shopping Highlight your best rate for price shoppers ✔ Simplify competitive shopping Ensure rate parity with all online travel agents No one will buy direct if Expedia is cheaper… Innovate with promotions, restrictions ✔ Don’t be cheap: create packages, e.g. with local activities
- Listen in and monitor as many outlets as possible ✔ Embrace established social media like Tripadvisor, YouTube ✔ Capitalize Facebook fan pages and twitter ✔ Offer social media exclusives ✔ Reward Facebook, twitter followers