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, 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 16,500 clients in over 134 countries

What current market trends are affecting hotel revenues?

Changing face of the online travel The share of online travel continues to change with APAC growth

PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017

Leaders in leisure travel are changing China and India are key growth markets

WTTC,2016

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

“Nordic Choice Hotels tests Blockchain Distribution for Stockholm Property”

“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, ”

‘’Risk free reservations’’. Booking.com clients will see non-refundable bookings as bookings with free cancellation.

“Airbnb strikes deal to make a bigger hotel push”

”HotelTonight faces off with Expedia, Priceline with advanced bookings”

Alternative accom is evolving stay behaviour

Customers are looking for extended stays and to ‘live like locals’

PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017

OTAs continue to lead bookings What’s happening? What’s changing?

PhocusForwardTheYearAheadinDigitalTravel,Phocuswright2017

OTAs and metasearch key to shop behaviour OTAs and Metasearch are core part of hotel room shopping journey

ChannelOptimizationinHospitality:SecretsofData-DrivenHoteliers,Phocuswright2017

Keepscrolling!!

OTAsandMetaportalsdominatesearchengines

Closedusergroupratespublishedonmetasearchengines

Onlinebookingmarketcontinuestochange

H It’s no longer just about activating the different online channels to fill rooms

Its about using better data insights to help drive revenue

Not all channels work the same way Different channels have different profiles

LOS(APPROX)

BOOKINGWINDOW(APPROX)

TRAVELERTYPE

? ? ?

? ? ?

? ? ?

? ? ?

? ? ?

Not all channels work the same way Different channels have different profiles

LOS(APPROX)

BOOKINGWINDOW(APPROX)

TRAVELERTYPE

1 Short Business/Leisure

1.5 Medium/Long Leisure

2 Long Leisure

2 Long Leisure

3 Short/Medium Leisure

Understand your channel levers Compare your performance across different channels

How many room nights does each channel normally generate?

LOS Which day of week are your channels driving business in?

Day of Week What rooms are activated most often in each channel?

Room Types What sort of lead time are your channels driving for your room bookings?

Country

MyHotel

How effectively are you managing metasearch?

Metasearch continues to grow and evolve

Fastbooking2017

?

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

Evolution of metasearch performance Metasearch channels continue to develop and evolve

Fastbooking2017

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

Evolution of metasearch performance Metasearch channels continue to develop and evolve

Latest Update TripAdvisor Sponsored Placements Program

•  Recent roll-out of their Sponsored Placements program. •  Now, and for the first time, any hotel can bid to

be at the top of the listings for any given destination.

Metasearch Management Choose the right metasearch strategy for your property

-Target market and strategy

What kind of business you want to attract?

Define

-CPC/CPA

-Avg. ad pos.

-Conversion

-Amount of direct bookings

Choose the right channel(s) -ROI

-Channel Evaluation

-CPC/CPA

Evaluation

Metasearch pricing performance ’ Common performance problems

Discrepancies across Metasearch ’ Tracking from source metasite to sales channel

Who is selling your rate? ’ Determine the Wholesaler undercutting you

As online channels

evolve, smarter distribution

analytics and management is

crucial

Thanks Contact us for more information on rate optimisation tijl@otainsight.com Or visit www.otainsight.com