The document discusses changes in the hotel industry from 1999 to 2015. It notes that hotel organizational structures have largely consolidated similar roles and that the job of revenue managers has expanded significantly to incorporate digital marketing, external data sources, and analytics. It also highlights increasing data usage and the growing importance of interfaces and integration between technology providers and hotels. Major trends driving these changes are discussed like the consumerization of IT, demand for data and analytics, and the rise of new industry players.

1. a ‘state of the union’
february 2015

2. with you
today:
David turnbull
Snapshot.travel
@snapshot_demand
Lennert de jong
citizenm hotels
@citizenlennert

3. on the
menu
hotel marketing
rate parity
friction in data

4. NOT on the
menu
reputation
social
mobile

5. a hotel in 1999

6. Hotel 15 years ago

7. Hotel 15 years ago

8. Hotel 15 years ago

9. Hotel 15 years ago

10. Hotel 15 years ago
general
manager
director of
sales
MICE sales
manager
corporate
sales
manager
banquet
sales
manager
rooms
division
manager
reservations
manager
revenue
manager
front office
manager
f&b
manager
loads of other people

11. 1999: revenue management
market segments, pace, price, historical, rms, overbooking

12. Hotel nowadays

13. a hotel in 2015

14. Hotel nowadays

15. Hotel nowadays

16. Hotel nowadays

17. Hotel nowadays

18. Hotel nowadays
general
manager
director of
sales
MICE sales
manager
corporate
sales
manager
banquet
sales
manager
rooms
division
manager
reservations
manager
revenue
manager
front office
manager
f&b
manager
loads of other people

19. but something changed

20. costs
online
check in
SEO
social
media
dynamic
packaging
SEA
dynamic
corporate
rates
dynamic
rates
facebook
advertising
agent model
distribution
costs
google
adwords
closed user
groups
callcenter
yelp
star ratings
opaque model
web 2.0
internal data
touroperators
retargeting
banners
digital
advertising
external
data
plus
airBNB
housetrip
.com
labour

21. 1999-2010

22. 2015 - mostly consolidated into three giants

23. why?

24. were
were we ever good in understanding customer needs?

25. were
where is the guest going?
source: Skift 2014

26. who has used one of these?

27. what do they have in common with:
?

28. categorie killers
are purely digital
are not in the business
enough scale and target audience

29. this came in last week
average ride price: down 16%
average rides per hour: up 55%
average earnings per hour: up 30%
Uber doing revenue
management for taxi’s
and sharing this with
users!

30. our industry is fragmented (500.000+ properties)
mass consolidation is awaiting (and needs) to happen

31. rate parity...
hotel focus
OTA focus

32. the job of the RM is getting quite extended
2015: shift to demand management
market segments, pace, price, rms, overbooking, historical,
costs, channel, conversion attribution, digital marketing,
external data sources, booking.com-expedia-tripadvisor
data, GRI, a/b/c testing, sales funnel

33. in 2014/2015
buys
buys
buys
where will this go, and what is your
plan?

34. enough of this
marketing,
back to the
numbers

36. ANALYTIC CAPABILITY PROBLEM SOLVING ABILITY
X X GESTALT INTERFACE
HUMAN & COMPUTER
FRICTION

37. FRICTION

38. DATA IS THE NEW SOIL
David McCandless,
TEDGlobal 2010

40. THE FULL
PRODUCT ?
+ required data /
Interfaces
FULL PRODUCT
Hotel Cost
Subscription fees
+ 1.000 / year
Hotel Cost
Subscription fees
+ 1.000 / year
Hotel Cost
New Interface Build: 25.000
Existing Interface: 6.000
Hotel Cost
Setup and implementation
20.000
Hotel Cost
….
Hotel Cost
Interfaces costs
+ 3.000 / year
Rate
Shopping
Pricing:
Competitor Set Rates /
Avail
Positioning
OTA
Analytics
Reservations Data
Summary or Transaction
Level
PMS
Rates, overbooking &
restrictions
Distr.
Systems
Integration in the organisation
a Revenue
Management
System

42. (Hotel Technology) Buyers identify
‘high costs of ENTRY or high INVESTMENT’
&
‘INTEGRATION with existing systems’
leading barriers for implementing new technology
(timetric , Global Hotel Industry Survey 2013: Technology Initiatives and Investment Decisions)

43. PMS Dependent
80%
PMS Semi- Dependent
HOTEL TECHNOLOGY PLAYERS
(LARGEST BY TYPE)

47. CONSUMERIZATION
Consumer Expectations
Enterprise IT
…will force more
IT change over
the next 10 years
than
any other trend
Citrix

49. DATA IS THE NEW SOIL
David McCandless,
TEDGlobal 2010

50. HOTEL TECHNOLOGY PLAYERS
(OUR SOIL)

51. 25 PRODUCT PREFERENCES
✓ Buying a bigger purse
✓ Increased soap / sanitizer
✓ Change to unscented
✓ Dietary supplements
25 /
100.000

52. TELL ME WHAT YOU LIKE …
…AND I WILL TELL YOU HOW INTELLIGENT YOU ARE…

53. LESS THE RIGHT DATA = BETTER DECISIONS
Significantly Better Diagnostic Performance
LESS THE RIGHT DATA = BETTER DECISIONS
:
• ECG
• Blood Pressure
• Fluid in Lungs
• Stable / Unstable
Significantly Better Diagnostic Performance

54. SKIN CANCER STORY

55. TELL ME WHAT YOU EAT…
… AND I WILL TELL YOU HOW
LIKELY YOU ARE TO TAKE THAT
FLIGHT

57. HOSPITALITY INDUSTRY

58. key takeaways for 2015
the hotel industry is marketing and data confused
take control of your data
be open for the unexpected
be strong by understanding our weaknesses