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. 1 What is modern hotel e-commerce? By Pedro Colaco
  2. 2. 2 Agenda The weather Charting the course New solutions for new world At the destination
  3. 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. 4 Travel outlook: Cloudy Leisure: Cheap – Shorter, closer, downgrade MICE: Cut – Many events cancelled Corporate: Flat – But… sentiment improving
  5. 5. 5 Online growing in Europe Double-digit growth Chain sites growing faster Success story Booking.com
  6. 6. 6 The Independent Gap 400,000 independent properties 60,000 4*, 5* chain hotels
  7. 7. 7 Charting the course Learn from big guys Look for cost without return Compete through innovation
  8. 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. 9 Old solutions not fit for new reality Hard-selling distribution channels Greedy marketing agencies Closed, custom-built software
  10. 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. 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. 12 Golf trip – $4.00 PPC Highly competitive PPC market
  13. 13. 13 Whale watching trip – $1.75 PPC Little advertising!
  14. 14. 14 Wine tasting trip No advertising!
  15. 15. 15 hotel adventure – $2.00 PPC Some advertising
  16. 16. 16 hotel wine – $1.50 PPC Some advertising
  17. 17. 17 hotel gourmet No advertising!
  18. 18. 18 You can attack the niches Sum of niches better than mass Low competition, little advertising New structure required to attack
  19. 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. 20 Look: Ensure Sales Focus Match web to property experience Perform usability tests Pictures, pictures, pictures Highlight special offers 1
  21. 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. 22 Interact: Listen and Engage Monitor and listen Integrate user content Offer social exclusives Be useful and fun 3
  23. 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. 24 The destination Boost direct bookings 3x to 10x Fuel viral business Prepare future by competing today
  25. 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. 26 The vision This internet thing is really great!!! Level the playing field for 400,000 independent hoteliers

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