Online Travel Agencies and Meta-search Websites - A Travel Studio System?

Online Travel Agencies and Meta-search Websites - A Travel Studio System?

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  OTAs & Meta-search- A Travel Studio System? VFM Leonardo Webinar Benefits of Marketing on OTAs September 25. 2013 Image Credit: Twentieth Century Fox (All Rights Reserved)
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  Major OTA/Meta-search TravelStudios • Powerful Machines – Production – Distribution – Promotion • Create Stars – Develop Talent – Showcase Leaders – Create Opportunities • Sell The Product – Right Script – Right Casting – Right Direction VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 1 Image Credit: Paramount Pictures (All Rights Reserved)
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  Major Forces inTravel • Priceline | $51.3B Mkt Cap | 36.4M US UV’s – Booking.com | Agoda | Kayak | RentalCars.com • Expedia | $7.3B Mkt Cap | 40.6M US UV’s – Hotels.com | Hotwire | Venere | eLong | Trivago • TripAdvisor | $10.6B Mkt Cap | 43.8M US UV’s – JetSetter | CruiseCritic | SeatGuru | GateGuru • Google | $300.8B Mkt Cap | 192M US UV’s – ITA Software | Zagat | Frommer’s | Waze • Apple | $425.0 B Mkt Cap | 600M Credit Card #’s – See iTravel Patents | Starwood & Hipmunk iOS7 Apps VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 2 Statistics:Yahoo! Finance & C Image Credit: RKO Radio Pictures (All Rights Reserved)
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  Intermediaries Love Media •Expedia Brands – $870 Million Total Advertising Spend 2012 – Average $22.28 Core Ad Spend per Room Night • Priceline – $1.27 Billion Online Spend 2012 (38.6 % Increase) – 2.6% of Google Search Advertising Revenue – Priceline Offline Ads $35 Million in (US Television) – Average $11.50 Core Ad Spend per Room Night • TripAdvisor – Considering $50 Million Television Campaign VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 3 Data: Susquehanna International Group, Priceline/Expedia & Bloomberg | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
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  OTAs & Meta-searchRule Mobile Rank Travel App Type Downloads Satisfaction Rating 1 TripAdvisor Meta-search 23.3 Million 8.5 / 10 2 Hotels.com Online Travel Agency 13.0 Million 7.5 / 10 3 Kayak Meta-search 12.1 Million 8.0 / 10 4 Booking.com Online Travel Agency 10.9 Million 8.0 / 10 5 Hotwire Online Travel Agency 8.4 Million 6.2 / 10 6 Expedia Online Travel Agency 7.0 Million 6.5 / 10 7 Priceline Online Travel Agency 5.4 Million 6.0 / 10 8 Travelocity Online Travel Agency 2.9 Million 3.7 / 10 9 Hotel Tonight Online Travel Agency 2.8 Million 8.2 / 10 10 Orbitz Online Travel Agency 2.3 Million 7.0 / 10 11 Agoda Online Travel Agency 2.1 Million 8.1 / 10 12 HRS (iHotel) Online Travel Agency 2.0 Million 5.3 / 10 13 Airbnb Online Travel Agency 2.0 Million 7.3 / 10 14 Trivago Meta-search 1.6 Million 4.9 / 10 15 Hipmunk Meta-search 1.3 Million 8.0 / 10 16 IHG Hotel 1.1 Million 7.5 / 10 VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 4 Data: Xyo.com, PhoCusWright & RockCheetah | Image Credit: Dimension Films (All Rights Reserved)
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  Purchase Path IsNot Short or Straight VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 5 Data: Millward Brown Digital/ Expedia Media Solutions | Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
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  What Sites DoTravelers Choose? When Comparison Shopping Leisure Business Expedia.com (E) 42% 44% Hotels.com (E) 39% 36% Travelocity.com (E) 37% 34% Google 35% 25% Priceline.com (P) 32% 27% Orbitz.com (O) 29% 31% Hotwire.com (E) 25% 26% Specific Hotel Brand Website 23% 25% Kayak.com (P) 17% 24% AAA.com 15% 15% VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 6 Data: Google Travel Study. May 2012. Ipsos MediaCT | Image Credit: Warner Bros. (All Rights Reserved)
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  Celebrate What MakesYou Unique • Compelling Descriptions that Explain How You: – Make the Guest Feel Special – Simplify the Traveler’s Life – Satisfy Guest Needs Better than Competition • Engaging Images Showing Your Hotel in Action – Is a Building Exterior the Most Important Sales Benefit? – Why is the Property Empty? – Are Interior Design Shots more for Hoteliers or Guests? • Relevant, Guest Oriented Video Content – InterContinental’s Concierge Video Guides Offer Local Tips – Four Seasons Buenos Aires – Films Gala Events – Best Western Plus Sedona – Destination, Hotel & Guests VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 7 Image Credit: Metro-Goldwyn-Mayer (All Rights Reserved)
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  Effectively Communicate Message VFMLeonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 8 • What Story Are You Telling? – Different Channels May Require Different Messages – Tailor Message to YOUR Audience Through THEIR Platform – Not an Update & Forget Environment - • Use All Available Tools & Across Major OTAs – OTA Resources Often Used by Meta-search Sites – TripAdvisor Support Hotelier Video Posts – Google Business Photos - StreetView Virtual Tours • Google Knowledge Graph is a Game Changer – Hotel Images Prioritized at Top of Search Results – Photo | Rating | # Reviews | Street Address – At Present, More Relevant List than Hotel Price Ads Image Credit: Gracie Films (All Rights Reserved)
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  Looking Good WillAttract Attention • Important Segments Deserve Targeted Images – LGBT – Families – Honeymoons • Engaging Images Showing Your Hotel in Action – Proper Orientation – Understand Cropping Methods – Appropriate Sizing – Different Resolutions Are Important – Descriptive Titles, Captions & Tagging • People Stay in Hotels – Guests Enjoying Key Points of Differentiation – Guests Naturally Interacting with Staff – Guests Interacting with Other Guests VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 9 Image Credit: Twentieth Century-Fox (All Rights Reserved)
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  Difficult Decisions • TotalRevenue Management – Need to Transition from RevPAR to GOPPAR as Basis – ADR Higher Under Agency Model, But High Commission – Need to Incorporate Pay Per Click Costs for Meta-Bookings • Rate Parity Under Attack in UK & EU – UK Office of Fair Trade Rate Parity Ruling – Resolution: Rate Parity Does Not Apply to Frequent Guests – Result? New Battles for the Returning & Repeat Guest • Customer Lifetime Value – All Want 1st Time / International / Brand-Agnostic – Challenge is Returning & Repeat Guests… – Try to Convert Hotel Direct or Their Preferred Channel? VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 10 Image Credit: Lucasfilm (All Rights Reserved)
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  True Love orMarriage of Convenience? • OTAs/Meta-search Drive Volume – Strong Traffic & Advertising – Dominate Mobile Platforms – Tactical Promotion Capability to Shift Share • Quality Presentation Across Guest’s Preferred Channels – Try to Convert to Hotel Direct or Guest Preferred Channel? – Want Best Opportunity for Conversion – Across Channels – Does Not Mean OTA/Meta Should Take Priority Over Direct • The Studio Never Overshadows the Star or Project – Ignoring OTAs & Meta-search Shifts Share to Competitors – Need to Leverage Channel to Your Benefit, Not Just OTA’s – Must Focus on Setting Common Goals & Mutual Benefits VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 11 Image Credit: Buttercup Films (All Rights Reserved)
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  OTAs & Meta-search- A Travel Studio System? Robert Cole twitter: @robertkcole phone: +1.262.309.9560 email: [email protected] VFM Leonardo Webinar | Sep 2013 OTAs & Meta-search - A Travel Studio System? Robert Cole ● RockCheetah | 12 Image Credit: Warner Bros. (All Rights Reserved)