How to stay competitive in a Big Data Market
How you should rethink your strategies in a post-rate parity world.
Rate Strategy
Inventory Control
Distribution Mix
Marketing Actions
WIHP: From "Rate Parity" to "Rate Personalization"
1. FROM RATE PARITY
TO RATE PERSONALIZATION
how to stay competitive in big data market
#WIHPACADEMY
2. « 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…
3. « 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
4. 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
5. #WIHPACADEMY
THE 4 LEVERS OF R.M.
WIHPHOTELS.COM
Rate Strategy
Inventory
Control
Marketing
Actions
Distribution Mix
10. 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
16. THE IMPORTANCE OF ANALYTIC TOOLS
in a data-driven world
rate parity is anachronistic.
17. 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!
21. 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
22. 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.
23. 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
24. #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
38. 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
39. FROM RATE PARITY
TO RATE PERSONALIZATION
how to stay competitive in big data market
#WIHPACADEMY
Editor's Notes
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.
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.
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
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
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.
However, it is possible to use them so that people discover you. This way, you become more visible on the internet than before.
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.
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.
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.
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.
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.
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.)
6 secondes
10 messages sur le site affiché à l’écran, 3 fois moins de messages
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