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WHY! SELLING ANCILLARY DIRECT WILL BE THE FUTURE Ecaterina Paun protel hotelsoftware G.m.b.H.

BTO 2016 | Ecaterina Paun | WHY! Selling ancillary direct will be the future

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WHY!SELLING ANCILLARY DIRECT WILL BE THE FUTUREEcaterina Paun

protel hotelsoftware G.m.b.H.

Letterfrom my loved one

Author Petar MiloševićFotograf: H. HoffmeisterAuthor: Jean-Christophe BENOIST

ACTIVITIES&TOURS

CURRENTSTATUS

HOTELS

TECHNOLOGY

#1HOTELS ARE DIFFERENT

ANDTHEYALLWANT

MORE REVENUE

MORE DATA

GUEST LOYALTY

#2DESTINATIONS ARE DIFFERENT

ANDTHEYALLWANT

MORE REVENUE

MORE DATA

TOURISTS’ LOYALTY

#3TRAVELERS ARE DIFFERENT

ANDTHEYALLWANT

?

WHY!ANCILLARIES NOW

IN-DESTINATIONTOURSANDACTIVITIESNOW

OTAs: Booking.com & Expedia

AirB&B

Marketplaces: Tripadvisor, Viator, GetYourGuide, Musemen, Trip4Real

Google: Local, Assistant, Tour Builder, Field Trip app

Mobile apps: Fortsquare

Traditional tour operators: TUI, Thomas Cook

Fragmented market, dominated by small local providers.

HOTELSNOW

“We have to move away from the room-centric approach …

It’s not all about rooms. ”

Bonnie Buckhiester, president and CEO of Buckhiester Management

Focused on rooms and its own ancillaries

Not fully using the strong personal relation the concierge is building with

the guest

“The industry is moving from a focus on RevPAR to profitability

metrics.”Sanjay Nagalia, co-founder IDeaS

TOURISTSNOW

“… but most of the time I prefer my travel experience the way I like my

morning coffee: consistent, effortless, and predictable ”.

Steve Peterson, IBM Institute for Business Value

83% of millennials value personalization

For 85% of travelers a customized itinerary is far more appealing than a

pre-packaged one

10% - 20% of travelers are not at all interested in purchasing ancillary

products

DETOUR:AIRLINEANCILLARYREVENUE

Ancillary revenue : 34.9% of total revenue

Ancillary revenue / passenger USD33.41

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014

Annual Financial Disclosures of Ancillary revenue/Airline (mill. USD)

“I have this vision that in the next five to 10 years that the air fares on Ryanair will be free, in which case the flights will be full, and we will be making our money out of sharing the airport revenues; of all the people who will be running through airports, and getting a share of theshopping and the retail revenues at airports.”

Michael O’Leary , Ryanair CEO

TECHNOLOGYNOW

“95% of guests believe hotels will look to new tech to really

personalize customer experience”

#IHTF2015,JeremyWard,ChiefOperatingOfficer,iRiS SoftwareSystemsLtd

Booking is getting considerably more complex.

And more expensive

Data in the travel industry is exploding.

The way that users are engaging with the Internet changed

TECHNOLOGYNOW

WHY!TECHNOLOGY TOMORROW

CEO, protel hotelsoftware GmbH

INGO DIGNAS

Most important is the combination with “big data” –

collecting data about guests and inserting a

recommendation engine which generates dynamic

packages or personalized cross-sale offers, not only in

a web-booking engine, but also at any other point of

contact in the hotel.

Later, this will be improved by machine learning

techniques which will find results from situations that

are usually invisible to humans.

TECHNOLOGY|BIGDATA

TECHNOLOGY|BIGDATA

INROOMOUTTHERE

Letterto my loved one

La Giostra Restaurant

Author: Marius FiskumAuthor: Matthias Kabel

CONTACTS

CALL:+49 231 915 930

EMAIL:[email protected]@protel.net

VISIT:Europaplatz 8

44269 DortmundGermany

1st

protel. MOBILE. TOGETHER.