Leading Hotels of the World - Deconstructing Distribution

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Deconstructing Distribution - It's all About the Customer.Presented at The Leading Hotels Hotels of the World Sales, Marketing & Distribution Conference in Bonn, Germany May 13-15, 2011.

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<ul><li> 1. Leading Hotels of the WorldSales, Marketing &amp; Distribution ConferenceDeconstructing DistributionIts All About the Customer<br />Robert Cole | RockCheetah<br />Kameha Grand Bonn | May 15, 2011<br />Image: Brave Heart (Flickr)<br /></li></ul> <p> 2. Deconstructing Distribution<br />The Customer<br />Affluent Travelers<br />Personalization &amp; Customization<br />Multiple Stages &amp; Touchpoints<br />The Channels<br />The Splinternet<br />SoLoMo<br />Discounts<br />The Future<br />New User Experiences<br />One Size Does Not Fit All<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 2<br />Image Credit:<br /> 3. Pitfall: SOS (Shiny Object Syndrome)<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 3<br />Image Credit:<br />Every New Idea is Not a Good Idea<br /> 4. Pitfall: Egocentric Customer Relationship<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 4<br />Image: i-love-cartoons.com<br /> 5. Pitfall: Customer Engagement Marriage<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 5<br />Image: Defence Images (Flickr)<br /> 6. The Customer: Affluent Travelers<br />6.44 million US Affluent Online Travelers<br />89% Take At Least 1 Leisure Trip per Year<br />62% Have Investible Assets of $1-$2.5 Million<br />95%+ College Graduates | 45% Post-Grads<br />Average Age 58 | 14 Years Above US Avg.<br />73% Manage Finances Online<br />45% Make Own Investment Decisions<br />30% Worse Off than One Year Ago<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 6<br />Image: Curtis Gregory Perry (Flickr) | Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)<br /> 7. Affluent Travelers: Value is King<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 7<br />Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)<br /> 8. Personalization &amp; Customization<br />Guests Are Not Frequent Guest Numbers<br />Interactive Conversations Can Get Complicated<br />True Customer Engagement Doesnt Scale Well<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 8<br />Image:kagey_b (Flickr)<br /> 9. Guests Have Multiple Personas<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 9<br /> 10. Multiple Travel Phases (Seven)<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 10<br /> 11. Multiple Hotel Touch Points (Six)<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 11<br /> 12. Channels: A Small Sampling<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 12<br />Image: Michael Coghlan (Flickr) | Source: VFM Leonardo<br /> 13. SoLoMo Distribution Gets Tricky<br />Social<br />Personal Likes / Group Likes / Similar Likes<br />Cannot Fully Control Message in the Wild<br />Local<br />Proximity Based Offers<br />Context-Sensitive Offers<br />Mobile<br />Variations Form Factor / OS / Carrier<br />Mobile Web (HTL5) v. Native Application (App)<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 13<br />Image: Jason Mcdermott(Flickr)<br /> 14. SoLoMo Travel Factoids<br />Leisure Travel Search<br />Average is 22 Sites Over 10 Sessions<br />Mobile <br />19% Hotel Queries From Mobile Devices<br />IHG Europe Adding Click to Call +91% Revenue<br />Local<br />70% Mobile - 1 Person, 1 Night, Same Day<br />Social<br />80% of Travelers Participate in Social Media<br />49% Book Based on Others Experiences/Reviews<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 14<br />Sources: Forrester Research | Google | Ipsos/OTX 2010/2011<br /> 15. Social Media: Cynical Perspective<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 15<br /> 16. Social Media Its All About Trust<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 16<br />Source: The Nielsen Company April 2009<br /> 17. Splinternet Walled Gardens<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 17<br />Image: Stephen Bowler (Flickr) | Source: Forrester Research The Splinternet (January 2010)<br /> 18. Splinternet Advertising Impact<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 18<br />Image: Stephen Bowler (Flickr) | Source: Forrester Research The Splinternet (January 2010)<br /> 19. Discounting Considerations<br />Do Discounts Translate to Consumer Value?<br />Does Channel Absorb Discount as Profit?<br />Group Buying<br />Have never seen a profitable Groupon deal for a travel site H. Harteveldt, Forrester Research<br />Flash Sales<br />How Exclusive is the Club? Qualified User Base?<br />New Models - Micro Auctions<br />Off &amp; Away Is it a Game, a Con or New Model?<br />Packaging<br />Protects Retail Pricing; Requires Strong Rules Control<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 19<br />Image: Christopher Sessums(Flickr)<br /> 20. The Future New User Experiences<br />Voice Commands<br />Google Android Voice Actions<br />Near Field Communications<br />Interaction / Authorization / Payment<br />Integrated Travel Experience<br />Apple iTravel<br />Traditional Channels<br />Travel Agencies / GDS / Telephone<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 20<br />Image: Iris Shreve Garrott(Flickr)<br /> 21. Future Voice Commands<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 21<br /> 22. Future Near Field Communications<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 22<br />Integrates Distribution / Engagement / Access<br />Unique Sound Pattern<br />Mobile Phone Key<br />Openways (Example)<br />Pre-Arrival Contact<br />Engagement for Stay<br />Supports All Cell Phones<br />Uses Existing Locks<br />Cards Keys Still Work<br />More Secure than Cards<br />Code Change 12 Secs<br />Future Support for NFC<br /> 23. Apple iTravel End to End Control<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 23<br /> 24. Apple iTravel Traveler Identity<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 24<br /> 25. Apple iTravel Airport Experience<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 25<br /> 26. Apple iTravel Hotel Experience<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 26<br /> 27. Apple iTravel Cruise Experience<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 27<br /> 28. Apple iTravel Conference Experience<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 28<br /> 29. Apple iTravel Event Experience<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 29<br /> 30. Apple iTravel - Payment<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 30<br /> 31. Apple iTravel - Merchandising<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 31<br /> 32. Apple iTravel Passive App Delivery<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 32<br /> 33. Future - Traditional Channels<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 33<br />Traditional Travel Agents - Specialization<br />Origin (Local) v. Destination (Experience) <br />Type of Travel Luxury / Destination Weddings<br />Online Travel Agencies<br />Rate Parity / Last Room Availability / Max. Discount<br />Order Takers or Order Makers?<br />Global Distribution Systems<br />Critical Role for Air Vertical &amp; Corporate Segment<br />Air Model Change Cost Shift to Intermediary<br />Telephone<br />High Touch / Customer Care<br />Mobile Click to Call<br /> 34. The New Customer<br />Seeks Value<br />Is More Sophisticated &amp; Empowered<br />Desires Unique Experiences<br />Demands the Lowest Available Price<br />Has Questionable Brand Loyalty<br />Has Situational, Itinerary-centric Needs<br />Defines the Degree of Engagement<br />Demands Seamless Cross-Channel Access<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 34<br />Image: Sergey Galyonkin (Flickr) <br /> 35. New Distribution Challenges<br />Must Have Presence in Favored Channels<br />Consistent Cross-Channel Brand Message<br />Consistent Online &amp; Offline Experience<br />Value is a Highly Personal Assessment<br />Time, Convenience, Simplicity, Quality, Cost<br />Efficiently Managing App &amp; Channel Silos<br />Competition May Behave Irrationally<br />Distribution Costs May Shift to Subscribers<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 35<br />Image: Toni Blay (Flickr)<br /> 36. Navigating Distribution Obstacles<br />Three Core Distribution Goals<br />Easier<br />Faster<br />Cheaper<br />To Be Successful, Luxury Hoteliers Must Control<br />Retail Pricing Structure<br />Access to Visual &amp; Descriptive Content<br />Distribution Rules Access to Rates &amp; Inventory<br />Only Point of Focus - The Guest<br />Why is Guest Using that Channel/Site/Tool?<br />Is Guest Able to Accomplish that Goal?<br />Why Not?<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 36<br />Image: The U.S. Army (Flickr)<br /> 37. Its All About The Customer<br />Questions?<br />Copies of the Presentation?<br />Comments?<br />Robert Cole<br />mail: robert@rockcheetah.com <br />phone: +1.262.309.9560<br />skype: robertkcole<br />twitter: @robertkcole<br />web: rockcheetah.com/blog/<br />May 15, 2011 Bonn, Germany<br />Leading Hotels of the World Distribution<br />Robert Cole | RockCheetah - Page 37<br /></p>