Navigating the changing distribution landscape - Using smarter data insights to optimise pricing and revenue strategies across online channels
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Navigating the changing distribution landscape Using smarter data insights to optimise pricing and revenue strategies across online channels
At OTA Insight “We’re about delivering solutions that empower our partners to make better pricing and distribution decisions" Innovative, easy-to-use, Built on the latest business Highly intuitive and A team of international experts cloud-based revenue intelligence and data customizable dashboard with based in the UK, US, France, management solutions technologies and integrates live updates and support from Germany, Belgium, Spain, to Hotels, Resorts, with industry tools an expert customer success Italy, Australia and India Apartments, Hostels and including: PMS, RMS and team supporting over 16,000 clients Accommodation businesses data benchmarking in over 134 countries
What current market trends are affecting hotel revenues?
Online travel continues to grow
Online travel market continues to grow
Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017
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
Leaders in leisure travel are changing
China and India are key growth markets
WTTC, 2016
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
The changing dynamic of the market
A fast evolving sector with major shifts
“Okerstrom….wants to make Expedia a household
Trivago is one of the fastest growing name for European and Asian travelers looking for
metasearch platforms. After going public last hotels in their own regions. ”
year, in Q1 2017, Trivago registered a 62% Y-o-
Y growth
”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”
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
OTAs continue to lead bookings
What’s happening? What’s changing?
Phocus Forward The Year Ahead in Digital Travel, Phocuswright 2017OTAs and metasearch key to shop behaviour
OTAs and Metasearch are core part of hotel room shopping journey
Channel Optimization in Hospitality: Secrets of Data-Driven Hoteliers, Phocuswright 2017OTAs and Meta portals dominate search engines
Keep scrolling!!Closed user group rates published on metasearch engines
Online booking market continues to change
H It’s no longer just about
activating the different
online channels to fill roomsIts about using better data insights to help drive revenue
Not all channels work the same way
Different channels have different profiles
LOS BOOKING WINDOW TRAVELER TYPE
(APPROX) (APPROX)
? ? ?
? ? ?
? ? ?
? ? ?
? ? ?Not all channels work the same way
Different channels have different profiles
LOS BOOKING WINDOW TRAVELER TYPE
(APPROX) (APPROX)
1 Short Business/Leisure
1.5 Medium/Long Leisure
2 Long Leisure
2 Long Leisure
3 Short/Medium LeisureUnderstand your channel levers
Compare your performance across different channels
LOS Day of Week Country Room Types
How many room nights does Which day of week are your What sort of lead time are What rooms are activated
each channel normally channels driving business in? your channels driving for most often in each channel?
generate? your room bookings?Effectively activate your channels to maximise your revenue opportunities
Metasearch continues to grow and evolve
How effectively
are you
My
managing Hotel
metasearch?Evolution of metasearch performance
Metasearch channels continue to develop and evolve
? ? ?
Lowest rate first Bidding based
Lowest rate first, best bid second
Moderate LOS Higher LOS
Short LOS
Low conversion rate, lower volume Higher conversion rate, higher CPC
Low conversion rate, low CPC
Fastbooking 2017Evolution of metasearch performance
Metasearch channels continue to develop and evolve
European Travelers Asian Travelers International Travelers (US highest)
Lowest rate first Bidding based
Lowest rate first, best bid second
Moderate LOS Higher LOS
Short LOS
Low conversion rate, lower volume Higher conversion rate, higher CPC
Low conversion rate, low CPC
Fastbooking 2017Metasearch Management
Choose the right metasearch strategy for your property
Define Choose the right Evaluation
-Target market and strategy channel(s) -ROI
-CPC/CPA
What kind of business you -Channel Evaluation
want to attract? -Avg. ad pos.
-CPC/CPA
-Conversion
-Amount of direct bookingsMetasearch pricing performance
’
Common performance problemsDiscrepancies across Metasearch
’ to sales channel
Tracking from source metasiteWho is selling your rate? Determine the Wholesaler’ undercutting you
As online
channels
evolve, smarter
distribution
analytics and
management is
crucialThanks Contact us for more information on rate optimisation tijl@otainsight.com Or visit www.otainsight.com
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