Navigating the changing distribution landscape. Using smarter data insights to optimise pricing and revenue strategies across online channels
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- Ginger Flynn
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1 Navigating the changing distribution landscape Using smarter data insights to optimise pricing and revenue strategies across online channels
2 At OTA Insight We re about delivering solutions that empower our partners to make better pricing and distribution decisions" Innovative, easy-to-use, cloud-based revenue management solutions to Hotels, Resorts, Apartments, Hostels and Accommodation businesses Built on the latest business intelligence and data technologies and integrates with industry tools including: PMS, RMS and data benchmarking Highly intuitive and customizable dashboard with live updates and support from an expert customer success team A team of international experts based in the UK, US, France, Germany, Belgium, Spain, Italy, Australia and India supporting over 16,000 clients in over 134 countries
3 What current market trends are affecting hotel revenues?
4 Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017 Online travel continues to grow Online travel market continues to grow
5 Changing face of the online travel The share of online travel continues to change with APAC growth Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
6 Leaders in leisure travel are changing China and India are key growth markets WTTC, 2016
7 Overnight Int. Tourist Arrivals Growth (YoY) Nordics region continues to grow in popularity DENMARK 4.9% FINLAND 15.5% ICELAND 34.9% NORWAY 0.9% SWEDEN 8.4% EUROPE 7.7% (June) WTTC, 2017
8 The changing dynamic of the market A fast evolving sector with major shifts Trivago is one of the fastest growing metasearch platforms. After going public last year, in Q1 2017, Trivago registered a 62% Y-o- Y growth Okerstrom.wants to make Expedia a household name for European and Asian travelers looking for hotels in their own regions. HotelTonight faces off with Expedia, Priceline with advanced bookings Hotelbeds are a relevant size now to be able to challenge Expedia and Priceline in terms of our size, service and technology, which gives hoteliers an alternative route to market, globally, Nordic Choice Hotels tests Blockchain Distribution for Stockholm Property
9 Alternative accom is evolving stay behaviour Customers are looking for extended stays and to live like locals Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
10 Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017 OTAs continue to lead bookings What s happening? What s changing?
11 Channel Optimization in Hospitality: Secrets of Data-Driven Hoteliers, Phocuswright 2017 OTAs and metasearch key to shop behaviour OTAs and Metasearch are core part of hotel room shopping journey
12 OTAs and Meta portals dominate search engines Keep scrolling!!
13 Closed user group rates published on metasearch engines
14 Online booking market continues to change H It s no longer just about activating the different online channels to fill rooms
15 Its about using better data insights to help drive revenue
16 Not all channels work the same way Different channels have different profiles LOS (APPROX) BOOKING WINDOW (APPROX) TRAVELER TYPE???????????????
17 Not all channels work the same way Different channels have different profiles LOS (APPROX) BOOKING WINDOW (APPROX) TRAVELER TYPE 1 Short Business/Leisure 1.5 Medium/Long Leisure 2 Long Leisure 2 Long Leisure 3 Short/Medium Leisure
18 Understand your channel levers Compare your performance across different channels LOS Day of Week Country Room Types How many room nights does each channel normally generate? Which day of week are your channels driving business in? What sort of lead time are your channels driving for your room bookings? What rooms are activated most often in each channel?
19 Effectively activate your channels to maximise your revenue opportunities
20 Metasearch continues to grow and evolve How effectively are you managing metasearch? My Hotel
21 Evolution of metasearch performance Metasearch channels continue to develop and evolve??? Lowest rate first, best bid second Short LOS Low conversion rate, low CPC Lowest rate first Moderate LOS Low conversion rate, lower volume Bidding based Higher LOS Higher conversion rate, higher CPC Fastbooking 2017
22 Evolution of metasearch performance Metasearch channels continue to develop and evolve European Travelers Lowest rate first, best bid second Short LOS Low conversion rate, low CPC Asian Travelers Lowest rate first Moderate LOS Low conversion rate, lower volume International Travelers (US highest) Bidding based Higher LOS Higher conversion rate, higher CPC Fastbooking 2017
23 Metasearch Management Choose the right metasearch strategy for your property Define -Target market and strategy What kind of business you want to attract? Choose the right channel(s) -CPC/CPA -Avg. ad pos. -Conversion -Amount of direct bookings Evaluation -ROI -Channel Evaluation -CPC/CPA
24 Metasearch pricing performance Common performance problems
25 Discrepancies across Metasearch Tracking from source metasite to sales channel
26 Who is selling your rate? Determine the Wholesaler undercutting you
27 As online channels evolve, smarter distribution analytics and management is crucial
28 Thanks Contact us for more information on rate optimisation Or visit
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