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Google and Hotel Distribution (2020)
The document highlights the detrimental impact of Google on digital marketing and distribution for hotels and OTAs, indicating that Google accounts for over 40% of traffic. It emphasizes the importance of content in driving engagement and the need for companies to adapt their strategies to foster better guest relationships. Additionally, it points out the significant role of millennials as a demographic in the travel industry.
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Google and Hotel Distribution (2020)
- 1. THE BIGGEST THREATTO DIGITAL MARKETING AND DISTRIBUTION Tim Peter President, Tim Peter & Associates © 2020 Tim Peter & Associates - Proprietary and Confidential 1
- 2. INCREASING TOLLS ONTHE ROAD TO REVENUE 2
- 3. GOOGLE: YOUR MOSTIMPORTANT DISTRIBUTION CHANNEL Accounts for >40% of all traffic to OTAs and hotels alike Captures greater than 57% of all metasearch spend But ads are taking over 3
- 4.
- 5. DEEP POCKETS: COMMISSIONPER STAY PROGRAM 5
- 6. “Google is ourbiggest competitor. The internet has been littered with the bodies of companies put out of business by Google.” - Mark Okerstrom, Expedia CEO
- 7. “Google is ourbiggest competitor. The internet has been littered with the bodies of companies put out of business by Google.” - Mark Okerstrom, FIRED Expedia CEO
- 8. SAME STORY INSOCIAL...
- 9. • It’s afeature • Not a product • Contribute roughly 7% of traffic to OTA’s • Compare with ~1% to hotels THE MYTH OF META 9
- 10. WHAT DO YOUDO ABOUT IT? 10
- 11. CONTENT IS, WAS,AND ALWAYS WILL BE KING
- 12. NO CONTENT? NOSEARCH
- 13. NO CONTENT? NOSOCIAL
- 14. NO CONTENT? NOEMAIL
- 15. LEARN SOME NEWMETRICS Dwell Engagement
- 16.
- 17. GIVE GUESTS AGREAT STORY TO TELL
- 18. DATA IS THECROWN JEWELS
- 19. SECRET SALES FORCE Keymeasures Rooms 100 Occupancy 60% Guests/room 1.4 Total guests served/year 31,000 Average Facebook friends/guest 200 Total potential reach 6,200,000
- 20. WHAT IF YOUONLY HIT 10%? Key measures Rooms 100 Occupancy 60% Guests/room 1.4 Total guests served/year 31,000 Average Facebook friends/guest 200 Total potential reach 6,200,000 Represents over 600,000 people you can reach each year
- 21. DRIVEN BY “ADULTSUNDER 40” ● Millennials – digital natives – play a key role among your customers ● The are the largest single demographic category ○ ~73m vs. 72m Boomers vs. 66m Gen X ● Largest share of employees at most companies ● Largest share of business and leisure travelers — but they have different needs
- 22. AMAZON REMOVING INFORMATIONFROM EMAILS 22 Amazon appears concerned about Google scraping details in GMail Amazon doesn’t want Google to know what people bought, average order value, etc.
- 23. REDUCE TOLLS: CHANGETHE GUEST RELATIONSHIP
- 24. HOW ABOUT AFAIRYTALE ROMANCE?
- 25.
- 26. THANK YOU 26 Web: timpeter.com Phone:201-305-0055 Email: tim@timpeter.com Twitter: twitter.com/tcpeter © 2020 Tim Peter & Associates - Proprietary and Confidential