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Scott Pusillo Matt Guillot Adam Anderson Bernard Ellis Moderator

HSMAI Revenue Management

Advisory Board

VP, Market Strategy

Viceroy Hotel Group

Speaker

Manager of Data Analytics

Viceroy Hotel Group

Speaker

Managing Director of

Industry Relations

Expedia

Speaker

VP, Industry Strategy

Infor Hospitality

Matt Guillot Viceroy Hotel Group

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satisfaction

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US Hotel Industry Supply/Demand Growth (%)

STR Analytics | 2015 Host Almanac

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STR Analytics| 2015 Host Almanac

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#manbun #nomnom #beyoncé #wanderlust

181K

5.35M 5.69M

6.47M

wanderlust

noun [won-der-luhst]

a strong, innate desire to rove or travel about.

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Boston Consulting Group 2013

Reported Spending on Business Flights (%)

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Free shipping on returns

Amazon Prime – Same Day Delivery

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Adam Anderson Expedia

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Low Cancellation Channels

Low Cancel Channels Higher Cancel Channels Setting Strategy

Non-Refundable

bookings Packages

Opaque Merchant

Vacation Packages

~30% growth in global package demand in 2014

Branded Deals

Air Cross Sell Mobile 1

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Low Cancel Channels Higher Cancel Channels Setting Strategy

Opaque Channels

Expedia

unpublished rate

Travelocity

top secret deals

Wotif

mystery hotels

Low Cancel Channels Higher Cancel Channels Setting Strategy

Higher Cancellation Channel

Agency

Low Cancel Channels Higher Cancel Channels Setting Strategy

Pay

Now

Pay

Later

CUSTOMER

CHOICE

Low Cancel Channels Higher Cancel Channels Setting Strategy

Low Cancel Channels Higher Cancel Channels Setting Strategy

Pay in full now $119 nightly price

We’ll process your payment in your local currency

Cancel for free right up until the hotel’s cancellation

window

Collect and redeem Welcome Rewards™ nights

You can pay with your Hotels.com gift card

Pay in full now

Pay at hotel later

$119

Pay the hotel in their currency

Cancel for free right up until the hotel’s cancellation

window

You can collect Welcome Rewards™ nights

Pay only the deposit

Deposit per night now +$0 per night at the hotel BRAZIL 78% HUNGARY 72%

S. KOREA 70% VENEZUELA 71%

USA 61% GREECE 66%

Expedia Traveler Preference

Strategies to Mitigate

Cancellations

Set channel mix to lower

cancellation channels

Opaque

Non-Refundable

Package Bundle

Low Cancel Channels Higher Cancel Channels Setting Strategy

Stay competitive to reduce risk

Create a Custom

Competitive Set Track Your

Performance

Low Cancel Channels Higher Cancel Channels Setting Strategy

Had some last minute

cancellations? Go to mobile.

1 in 4 room nights booked on a

mobile device are for same

day stays

Low Cancel Channels Higher Cancel Channels Setting Strategy

Key Takeaways

Thank You

Bernard Ellis Infor Hospitality

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Five Cancellation & Rebooking

Survival Tips

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Be Glad If you have an automated RMS

• RMS’ that dynamically balance pickup models

with historical models will pick up on any new

cxl-rebook trend—though it will be working much

harder

• The final demand forecast shouldn’t be affected

• Prices should get higher closer to the arrival

date, as usual

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Stay the Course

• Have a clear pricing strategy

• Shortened booking curves no longer allow

enough time for course correction in pricing

• Last minute discounting will likely be too late to

help move the needle

• Don’t undercut your own brand.com

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Don’t Make It So Easy

• Experiment with tougher

cancellation and deposit policies

• Disallow self-service

cancellations from mobile

devices – instead enable click to

call and have a live agent

request reason for cancellation

• Let guilt prevail!

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• Sell enhanced experiences that

must be associated with the

original booking

• Provide certain guarantees to

advance bookers only, e.g. early

or remote check-in, late check-

out, room type preference

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Weigh Down The Booking

Don’t Over-Stigmatize

• Any optimal demand mix will include

some last-minute demand

• 25% of mobile reservations are made

same day, often just prior to arrival – Less likely to be rebooks

– Should be embraced as

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*The New Walk In*

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