hotel distribution - channels, complexity and chaos at rainmaker gaming & hospitality customer...
DESCRIPTION
An discussion of the challenges facing hotel revenue managers as hotel distribution channels become more complex and chaotic. Presentation by Robert Cole of RockCheetah to the Raimmaker Revenue Management 2014 Gaming and Hospitality Customer Conference held Wednesday, March 26, 2014 at the Bacara Resort and Spa in Santa Barbara, California.TRANSCRIPT
Hotel DistributionChannels, Complexity & Chaos
Rainmaker Customer ConferenceMarch 26, 2014 | Santa Barbara, CA
Image Credit: koi. | flickr (cc)
Hotel Distribution Challenges
• Channels– OTA– Meta-Search– Brand/Property Direct
• Complexity– Personalization– Adaptive Content– Advanced Analytics
• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 1Image Credit: will ockenden | flickr (cc)
Hotel Distribution – Channels
• Online Travel Agencies
• Meta-Search Websites
• Brand/Property Direct
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 2Image Credit: Olaf | flickr (cc)
7-Step Travel Process
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 3
PLANNING(How)
VALIDATION(Who)
BOOKING(When)
TRAVEL(What)
SHARING(Wow)
RESEARCH(Where)
INSPIRATION(Why)
Image Credit: paul bica, Greything, | flickr (cc)
Channels – OTA Unfair Advantage?
• Content Dominance– Broad Destination Coverage | Cross-brand Shopping
– High Traffic | Relevant Content | Massive Ad Spend
– Models – Meta / Merchant / Agency / Opaque / Package
• Actionable Demand & Market Intelligence– Strong Meta-search Bidding/Conversion Experience
– Deep Supplier Opaque Discounts Absorbed as Margin
– Shaving of Merchant Room Occupancy Taxes
• Agency Model Rising?– Lower Margin / Better Payment Terms
– Ease of Cancellation / Free Option for Hedge Strategy
– Increased Poaching Potential by Competition or {Gasp} Self
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 4Image Credit: Olaf | flickr (cc)
Channels - Meta-Search Transformation
• Not All Platforms Created Equal– OTA Top Meta-search Position from 66% to 78%– Kayak: 57x Referrals to OTA v. Brand.com | TRIP: 11x– Google Knowledge Carousel Beating Hotel Finder
• TripAdvisor– 2 Billion Annual Unique Visitors in 2013– 1/3 of 150 Million Reviews Entered in 2013– Just Wait – “TripConnect” & “Just For You”
• Wallet Integration– Eliminate Keystrokes on Mobile Device– Frequency Program Integration– Pass Booking Request/Response via API v. Deep Link
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 5Image Credit: x | flickr (cc)
Channels – Is Direct Enough?
• Fluid Website Architecture – Multiple Devices– Google: 89% Have Started One Device / Finished on Other
– Responsive Web Design Dynamic - Screen Dimensions
– Adaptive Web Design – Preset for Specific Dimensions
• Mobile Apps– Intermediary Apps Dominating Hotel Brands
– Utility Focus – Download is Useless if Never Used
– Next Generation – Mobile Check-in | Contextual Offers
• Call Center– Often Forgotten - Smartphones are Still Phones
– Call Tracking Integration Technology
– Ties Online Website Sessions to Call Center Screen Pops
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 6Image Credit: x | flickr (cc)
Hotel Distribution – Complexity
• Personalization
• Adaptive Content
• Advanced Analytics
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 7Image Credit: joncandy | flickr (cc)
The Multiple Persona Traveler
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 8Image Credit: Greything | flickr (cc)
Weather Delay
WeddingAnniversary
College Trip
Family Visit
Industry Conference
Getaway with Friends
Client Visit
RomanticWeekend
Family Vacation
Complexity – Personalization
• Behavioral Segmentation– Multiple/Cross-Device Usage
– Website Navigation
– Remarketing Across Future Website Activities
• Traveler Engagement– Personas Dictate Channel | Destination | Components
– Preferences Largely Situational & Itinerary-specific
– Common Goals? | One Night Stand v. Lifetime Relationship
• Contextually Relevant Offers– Right Product|Message|Guest|Time|Channel|Price
– Unparalleled Social Targeting Capability – Facebook
– Who Draws The Creepy Line? The Buyer | Not The Seller
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 9Image Credit: joncandy | flickr (cc)
Complexity - Adaptive Content Puzzles
• Programmatic Advertising– Anonymous Traveler Purchase History– Bid-based, Real-time, Advertising Exchanges– Rules Based RMS Integration Creates Real-time Offer
• Website Design Considerations– Responsive Website versus Adaptive Website Design– Landing Page Design/Optimization to Convert Sale– Navigation Path to Support Persona’s Narrative
• Multivariate Conversion Testing– Booking Engine Integration – Can Be a Sore Point– Not Just Best Option – Best Combination of Options– Track All Data Points – Seek Conversion Correlation
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 10Image Credit: joncandy | flickr (cc)
Complexity – Advanced Analytics
• Integrated Analytics– Shared Social Attribution
– Billboard Effect or Coincidental Visit?
– Review Scores – Correlation and/or Causation?
• Big Data– Too Big, Fast or Weird to Fit in Traditional Database
– NOT Just Data You Control
– Predictive Analytics
• Death Of The 3rd Party Cookie– Apple / Microsoft / Facebook / Google Alternatives
– Universal Analytics – Persistent Across Sessions & Devices
– UserID – Signed In Account from Authenticated Platform
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 11Image Credit: joncandy | flickr (cc)
Hotel Distribution – Chaos
• Hotel Product Transformation
• Rate Parity Under Assault
• Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 12Image Credit: scragz | flickr (cc)
Chaos – Hotel Product Transformation
• Room Inventory Gets Personal– Airbnb / HomeAway Training Guests to Select Unit– Managing Unit-based Inventory Like Playing Tetris – Push or Pull Synchronization Challenges
• Rate Plan Permutations & Combinations– Multiple Personas = Multiple Options / Eligibility– Rules-based Variable Pricing & Combinability Rules– Validation Based on Offer / Affiliation / Channel
• Bundled Offers– Demand Generator and/or Value Added Pairings– Protects Retail Pricing Structure– Avoids Rate Parity Entanglements
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 13Image Credit: x | flickr (cc)
Chaos – Rate Parity Under Assault
• United Kingdom / European Union Rulings– Illegal in Europe / OK in US– Open Game for Returning Guests with Profiles– Distribution is Virtual & Global
• Returning Guests are Open Game– Redefines the Frequent Guest– Best Available Rate Guarantee Undermined– Merchant & Agency Models Equally at Risk
• The Battle to Induce Trial– Lifetime Value Basis for New Customer Acquisition– Special Offers Independent of Room Rate– Meta-search Visibility Into Frequency Programs
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 14Image Credit: scragz | flickr (cc)
Chaos – Total Revenue Management
• Acquisition Costs– Channel Advertising Spend
– Staff Allocation – Important for Social Media
– Cost Allocation Frequently Conversion Dependent
• Distribution Costs– Channel Distribution Expenses
– Are You Paying for Marketing, Technology or Both?
– Fully Allocated Brand Related Expenses
• GOPPAR Is End Game– Understand True Channel Profitability
– Requires Integrated Spend / Traffic / Conversion Analytics
– Enterprise & Highly Interoperable Solutions Win
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 15Image Credit: scragz | flickr (cc)
Review of Hotel Distribution Challenges
• Channels– OTA– Meta-Search– Brand/Property Direct
• Complexity– Personalization– Adaptive Content– Advanced Analytics
• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 16Image Credit: 3[3] | flickr (cc)
How Do Revenue Managers Survive Thrive?
• Embrace Complete Hospitality Vision – Old School– A New “Location, Location, Location” Paradigm
– “Life is Service” & “Guest is Always Right”
– When Herd is Culled – Old / Weak / Those Unable to Adapt
• Total GOPPAR Management– Break Through Marketing / Web / Advertising / CRM Silos
– Segment Granularity Down to Persona/Itinerary Basis
– More Signals from More Sources – Big Data Gets Real
• Surviving in the Intersection During Rush Hour– Guest Segment: Traveler Persona & Itinerary Goals
– Product Offer: Destination Experience & Breaking Rules
– Business Success: GOP Capture v. Lifetime Guest Value
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 17Image Credit: HJ Media Studios | flickr (cc)
Hotel DistributionChannels, Complexity & Chaos
Hang On, It’s Going to Be a Bumpy Ride!
Thank You
Robert Cole
phone: +1.262.309.9560
social media: @robertkcole
email: [email protected]
Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 18Image Credit: ::hap / flickr (cc)