E-Commerce Strategic Plan - 101 Hotel E-Commerce

Andy KhenHotel E-Commerce101
E-Commerce Strategic Plan
Hotel E-Commerce 101
Andy Khen

Goals
Short-term
Revenue
Generator
Online
Exposure
Long-term
Sustainability Loyalty
Goals
Short and Long Term

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.)
&

The Focus
Focusing on the Basics
“Concentration – Important to our success.” (Ingvar Kamprad, 1976)
ACCOUNT
MANAGEMENT CONVERSIONVISIBILITY

Account Management
Revenue Sources

Online
Channels
Description
(RTB & USP)
Photos
Reviews
Content Management
Improving online presentation

Brand.com
Higher
ARR
Increasing
Loyalty
Better
Presentation
Direct Distribution
Focus on high yield channel

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

Best Rate Guarantee
Focus on high yield channel

Rates
BAR
Premium
Published
Discounted
Rate Fences
Providing wider options as to grab wider market segments

Rate War
Anticipating rate ware in over-supply situation

Dynamic & Multi-Pricing Approach
Leverage Rate and Time
Maximise Occupancy Maximise ARR Maximise RevPAR Maximise Revenue
Room Guest Time Location

Andy KhenHotel E-Commerce101www.swiss-belhotel.com
BAR:
dynamic based on
occupancy
Discounted Rates:
advanced purchased, etc -
discounted based on BAR
Premium Rates:
packages, added-value
offers
Published Rates:
static
Rates
Multiple & Dynamic Pricing
Maximising RevPAR

Demand & Supply
Occupancy versus ARR

Multiple Pricing Approach
Maximising Revenue
Revenue 1
€250 x 150
€37,500
Revenue 2
€350 x 100
€250 x 50
€200 x 50
---------------
€57,500

Upselling
Increasing average booking amount

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

Cost
Effective
Protect Rate
Integrity
Generate
More
Bookings
OTA’s Management
The 80/20 Rule

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

Fixed
contracted
rates
Minimum
online selling
rates
Fully
controlled
allotments
Online Wholesalers
Leveraging the networks of wholesalers

• 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

Marketing
exposure
Segmented
market
Excess
rooms, low
period
Coupons,
no
allotments
Flash Sale Sites
Using group buying sites during low periods

Billboard Effect
OTA’s and social media channel as online marketing tools

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

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

Sky
Scanner
Trivago
Wego
Meta Search Sites
Leverage the meta search sites to increase visibility

Affiliate Marketing
Paying for result only

Social Media
Sales, marketing & guest interaction tool

• Customer
Contact
Management
• Multiple
Online
Payments
• Competitor
Monitoring
• Review
Scores
Competitive
Rates
Constant
Availability
Informative
Hotel
Description
Sufficient
Photos
Conversion

How It Works
Cost-effective marketing and sales tool

Affiliate Marketing
Regular campaigns on Brand.com

Guest Interaction:
Quizzes
Complain handling
Inquiry
Marketing
Sales
Social Media
Freebies, quizzes, etc

TripAdvisor
Online
Banners
Google
Map
SEM
As a supplement to SEO

Online Reputation Management
Leverage online reviews to increase brand competitiveness

Main Factors People Book A Hotel
Most people choose a hotel because of the reviews

”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

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

Guest Reviews
Maintaining all reviews both offline and online

 Weekly
 Monthly
 Quarterly
Monitoring, Reporting & Reviewing

Thank You
4ndykh3n@gmail.com

E-Commerce Strategic Plan - 101 Hotel E-Commerce

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