SlideShare a Scribd company logo
FROM RATE PARITY
TO RATE PERSONALIZATION
how to stay competitive in big data market
#WIHPACADEMY
« rate parity agreements
between hoteliers and OTAs
represent rational business interests
rather than anti-competitive behaviour »
US District Judge Jane Boyle
rate parity could still be legal…
« standard retail rate model,
which is the way we’ve done business
for the last 10 years, is going to become a
smaller part of the way we do business »
Expedia President and CEO Dara Khosrowshahi
…but it’s definitely a thing of the past
on december the 15th, 2014
booking.com drops the rateparity contract clause
to end french, swedish and italian antitrust probes
and some big players are dropping it
#WIHPACADEMY
THE 4 LEVERS OF R.M.
WIHPHOTELS.COM
Rate Strategy
Inventory
Control
Marketing
Actions
Distribution Mix
#WIHPACADEMY
THE 4 LEVERS OF R.M.
WIHPHOTELS.COM
Rate Strategy
THE END OF ONE-SIZE-FIT-ALL-RATE
OPAQUE RATES, SOCIAL MEDIA RATES
SPECIAL OFFERS, PROMOCODE AND COUPONS
THE FUTURE OF RATE PARITY
« lawsuits didn’t kill hotel rate parity.
it is big data, analytics, retargeting and
personalization that are making enforcement of
rateparity provisions untenable »
Dennis Schaal, Skift Editor
SAME ROOM, SAME DAY, DOZEN OF RATES
• € 99,00 - OTA
• € 95,00 - FACEBOOK:
• € 90,00 - WALK-IN (morning)
• € 89,00 – TRIPADVISOR
• € 75,00 – RETURNING GUEST
• € 65,00 - GROUPON
• € 49,00 - WALK-IN (late evening)
102% PRICE DIFFERENCE!
METASEARCH: FROM POP-UNDER…
… TO CORE PAGE RESULTS
#WIHPACADEMYWIHPHOTELS.COM
hotel
guest
wholesaler
tour operator
agent
119€
reseller reseller
115€ 99 € 99 €
OTA website
85 € 89 €
RATE PARITY
#WIHPACADEMYWIHPHOTELS.COM
hotel
guest 119€ 115€ 99 € 99 € 85 € 89 €
RATE PARITY
website
THE IMPORTANCE OF ANALYTIC TOOLS
in a data-driven world
rate parity is anachronistic.
STAY IN THE MARKET!
offering the best rate on your site does not mean
increasing rates on the other channels.
set a starting price and discount it on direct channels,
not the other way around!
BILLBOARD EFFECT STILL COUNTS!
THE 1 USD THEORY
1 USD difference means a lot
when you’re shopping on eBay or Amazon
why should it be
different for hotels?
1 USD DIFFERENCE IS VERY VISIBLE NOW
BILLBOARD EFFECT IS HERE TO STAY
a clear price point in the market
is essential to get the best visibility
on big distribution channels
if you’re invisible there,
you should be prepared to
triple your advertising budget
OTAs AND OPAQUE RATES
In 2012 Priceline.com launched Express Deals
Hotwire.com is also engaged in similar services
Travelocity has Top Secret Hotels
Qunar (Baidu) offers users a opaque booking program
Expedia and Hotels.com regurarly use A/B tests
to steer certain users towards more expensive hotels.
OTAs AND OPAQUE RATES
"as a user, it’s almost impossible to know
whether the prices you are being shown
have been altered, or if cheaper products
have been hidden from search results »
Christo Wilson, assistant professor at northeastern university
#WIHPACADEMY
STUDY BOOKING WINDOW PER CHANNEL
WIHPHOTELS.COM
120
Days
90
Days
60
Days
Less 30
days
Arrival
Groups M.I.C.E Tour Operators OTAs and Direct
#WIHPACADEMYWIHPHOTELS.COM
90
Days
60
Days
Less 30
days
Arrival
USA China Italy & Europe
STUDY BOOKING WINDOW PER COUNTRY
#WIHPACADEMY
Booking.com
Tripadvisor
Expedia
OTAs
WIHPHOTELS.COM
H
Booking.com
Tripadvisor
Expedia
OTAs
H
H
H
H
#WIHPACADEMYWIHPHOTELS.COM
H
#WIHPACADEMY
THE 4 LEVERS
WIHPHOTELS.COM
Rate Strategy
Inventory
Control
Marketing
Actions
Distribution Mix
#WIHPACADEMY
THE 4 LEVERS
WIHPHOTELS.COM
Marketing
Actions
USE RETARGETING OPAQUE RATES
#WIHPACADEMYWIHPHOTELS.COM
Vertical Search: The new booking path
#WIHPACADEMYWIHPHOTELS.COM
Metasearch Ads to increase revenue
#WIHPACADEMYWIHPHOTELS.COM
Targeted Metasearch ads to maximise ROI
9
#WIHPACADEMYWIHPHOTELS.COM
IT’S EASY TO OVERCOMPLICATE
9
#WIHPACADEMYWIHPHOTELS.COM
IT’S EASY TO OVERCOMPLICATE
#WIHPACADEMYWIHPHOTELS.COM
GREAT USER FRIENDLY DESIGN
#WIHPACADEMYWIHPHOTELS.COM
CLEAR CALL TO ACTION
OTAS OR DIRECT, FINDING THE RIGHT BALANCE
KEY TAKEAWAYS
WIHPHOTELS.COM #WIHPACADEMY
Use OTAs and MetaSearch for billboard fx
Break Parity Rate but stay in the market
Use opaque rates and advertise on meta
Provide a great user-experience on your
website
1
2
3
4
FROM RATE PARITY
TO RATE PERSONALIZATION
how to stay competitive in big data market
#WIHPACADEMY

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WIHP: From "Rate Parity" to "Rate Personalization"

Editor's Notes

  1. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  2. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  3. BRIEFING : Qu’est ce que font les internautes en premier, ils cherchent à trouver plus d’information sur sa futur destination Il est impossible de se battre contre les OTAs, Guide, Review Site etc, vous êtes trop petit pour prétendre à un combat. Abandonnez l’idée que les internautes doivent vous trouver en direct
  4. BRIEFING : Qu’est ce que font les internautes en premier, ils cherchent à trouver plus d’information sur sa futur destination Il est impossible de se battre contre les OTAs, Guide, Review Site etc, vous êtes trop petit pour prétendre à un combat. Abandonnez l’idée que les internautes doivent vous trouver en direct
  5. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  6. However, it is possible to use them so that people discover you. This way, you become more visible on the internet than before.
  7. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  8. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  9. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  10. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  11. BRIEF: Internet users firstly search for more information on their future destination. It is impossible to fight against OTAs, guides and review sites, etc. You are too small to fight back. You must abandon the idea that internet users should find you directly.
  12. 37 messages sur le site affiché à l’écran. Imaginez vous entrain d’acheter une veste et l’on vous propose 37 options pour la veste (couleurs, taille, couture, tissu, intérieur, extérieur, cousure etc. etc.)
  13. 6 secondes
  14. 10 messages sur le site affiché à l’écran, 3 fois moins de messages
  15. Un hôtel ayant au moins 50% de sa clientèle revenant dans l’hôtel fera entre 10 et 15% de bénefice de plus qu’un autre