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Tourism 2.0 - Modernizing hotel e-commerce
The document discusses the evolution of hotel e-commerce and the challenges faced by hotel managers due to market saturation and changing consumer preferences. It emphasizes the importance of innovation, direct booking, and leveraging online platforms like Google and social media to better connect with potential guests. The text highlights the competitive landscape for independent hotels and suggests strategies for improving guest interaction and driving direct bookings.
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Tourism 2.0 - Modernizing hotel e-commerce
- 1. 1 What is modernhotel e-commerce? By Pedro Colaco
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- 3. 3 Most hotel managersin 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 inEurope Double-digit growth Chain sites growing faster Success story Booking.com
- 6. 6 The Independent Gap 400,000 independent properties 60,0004*, 5* chain hotels
- 7. 7 Charting the course Learnfrom 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 notfit for new reality Hard-selling distribution channels Greedy marketing agencies Closed, custom-built software
- 10. 10 Google sees theopportunity 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 berealistic 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 Noadvertising!
- 15. 15 hotel adventure –$2.00 PPC Some advertising
- 16. 16 hotel wine –$1.50 PPC Some advertising
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- 18. 18 You can attackthe 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 SalesFocus Match web to property experience Perform usability tests Pictures, pictures, pictures Highlight special offers 1
- 21. 21 Book: Offer incentiveson your website Easy, real-time booking Highlight best rate Ensure rate parity Innovate: promotions, special room types 2
- 22. 22 Interact: Listen andEngage Monitor and listen Integrate user content Offer social exclusives Be useful and fun 3
- 23. 23 Modern = Easyto use Quick projects (weeks not months!) Elastic, accommodates growth Great user experience Web mash-ups Analytics in hotelier terms
- 24. 24 The destination Boost directbookings 3x to 10x Fuel viral business Prepare future by competing today
- 25. 25 Current status Our brandis 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 Thisinternet thing is really great!!! Level the playing field for 400,000 independent hoteliers
Editor's Notes
- #4 “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
- #8 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
- #12 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”
- #22 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
- #23 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