Drive Direct Bookings
The Hard Facts on the evolution of the hotel distribution landscape. Yahya Fetchati
COO, Bookassist
Distribution in 1960 - 1990
Mobile Traveler Then.
Mobile Traveler Now.
of y t i r jo h a t i m w e s Th it rest prof ibutors distr
1
The speed of technological change
2
The birth of e-commerce
2
3
The fight for marketshare
4
The silent consumer & visibility challenge
1
The speed of technological change
2
The birth of e-commerce
2 The Birth of E-Commerce The Early Innovators The Aggregators The Disruptors
Early Innovators
2014 Google indexed 30 thousand billion web pages
2014
Mobile Internet Users Pass Desktop Internet Usage
Q^^ZPbbXbc
Á
ÌiV }ÞÊEÊ iÊÃÌÀ>Ìi}ÞÊv ÀÊ Ìi Ã
The Aggregators
hotel finder
The Disruptors
airbnb market cap is bigger than any hotel company airbnb has more available rooms than any hotel company In any given night airbnb has in excess of 250.000 room nights 10% of airbnb guests are business travellers 90% are existing leisure travellers Security and guest satisfaction is higher then in most hotels brands.
?
Engaging Social Media Content Multi-Platform Presence Engagement Design Appeal Brand-Build Strategy Rate Strategy
Get Visible
Reputation
Deep Linking Dynamic PPC Remarketing Meta Search Direct o T e t u ib r t Redis
t c e r i D d Goo = y g e t a Str LOTS ! O D O T
l o r t n o C n o i t u b i Distr
Maximise Conversion Booking Technology Security
Differentiate Product Customer Ownership
CRM Segmentation Email Marketing Limit Brand Use (C) (R) TM
3
The fight for market share
In their battle for online supremacy, Expedia and Priceline have opened their wallets and spent collectively more than $7.6 billion over the last two years. Expedia has spent more than $3.2 billion on acquisitions since 2013, while Priceline has spent over $4.4 billion. Skift, April 2015
Priceline 2013: Kayak $1.8B
2014: Open Table $2.6B
Expedia 2013/14: Trivago $1B 2014: Wotif $658M 2014: Auto Escape $85M 2015: Orbitz $1.6B 2015: Travelocity $280M
TripAdvisor In 2014 TripAdvisor spent $400 million on acquisitions
$192M
TripAdvisor Market Cap $11.5B
Expedia Market Cap $14.41B
Priceline Market Cap $62.6B
Booking.com
4 The silent consumer & visibility challenge
Act differently Think differently Buy differently Early adopters of technology
Webapp
+
Social
Meta Search
Hotel Website
s t in o p h c u o t
Display Ad
Display Ad
OTA
TripAdvisor
Display Ad
Display Ad
Display Ad
Display Ad
s t in o p h c u o t
touch points
33
New consumers want all and they want it now‌
How will people find you as a business? Why should they book on your website?
New skill sets needed!
Yield & Revenue Management Electronic Distribution Search Engine Placement Online Merchandising & Online Selling.
Y o u ! Competitive
New Environment
no longer just about losing a sale to another hotel anyone selling rooms in your hotel is a competitor to your hotel’s direct business
CPA easy!
CPC difficult!
No risk - pay for guaranteed sale ‌ S D G , s A T Expensive O Less control Commissions rising faster than revenue.
are you ndent? over-depe
More risk - must optimise conversion Can be less expensive More control Cost per booking less obvious.
h g u o n e t en d i f n o c u are yo ? s i h t o d to
What do OTAs charge you?
18% ?
g n i k o o b r pe FIXED
50,000 € ? 150,000 € ?
per year!
Assess everything on cost per booking basis ! ! s A T O e h t like
Example: Website Costs , s r a e y o w t €5000 for per year? say €2500
€5? 2%? 1 or Total Website Costs in 1 Year Cost = Website Per Booking No. Direct Bookings in 1 Year 500? n o s u c o f > ! ! ! n o i s r e v con
d e x i f A T O Unlike is h t , n o i s s i comm ith w S E C U D RE ! ! s g n i k o o more b
Assigning the Cost of Acquisition Website build, hosting etc
To Direct
high
To OTAs
ro! e z t o but n
low
Revenue Management
medium
medium
Reputation management
medium
medium
Distribution management
medium
medium lownot zero! low
PPC/metasearch costs Social Media costs
high high
Booking engine costs
all
-
minority
majority
?
?
OTA commission
TOTAL cost per booking: +
s:
 s o L a t a D r e m Custo less!) e ic r (p ? t s o c Long-term
+
You need to invest more to reduce your cost per booking!
e l i h w g n i t s e v n i p e ! e d k o d o n g a s i n r u t e r r u yo
https://www.google.at/ webhp?hl=de
Drive Direct Bookings
u o y k n a Th