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Revenue Generating Integrated Solutions, the future for Hoteliers - TravelClick - WHR Destination Rome 20/11/2013
This document provides an overview of TravelClick and the solutions it provides to help hotels optimize performance, grow revenue, and strengthen their brand. TravelClick delivers expertise globally through local account management and service teams. It has over 33,000 hotel customers in 176 countries. The document outlines TravelClick's five business lines that work together to improve hotel performance, including central reservation systems, web solutions, mobile solutions, GDS and Pegasus UltraDirect integrations, and channel management. It also summarizes key market trends in hospitality, highlighting the importance of social media, business intelligence, meeting consumer expectations, mobile, and distribution management. The document emphasizes how TravelClick can help hotels succeed in this changing market environment.
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Revenue Generating Integrated Solutions, the future for Hoteliers - TravelClick - WHR Destination Rome 20/11/2013
- 1. Revenue Generating Integrated Solutions,the future for Hoteliers Rome Alejandro Lista Director of E-commerce Southern Europe 11/22/2013
- 2. TravelClick provides expert solutionsto hotels to optimize performance, grow revenue, and create a stronger brand. 11/22/2013 2
- 3. Our team deliversglobal expertise and local knowledge to grow Hotels revenue. Our dedicated field sales, account management, and service teams have deep knowledge of the communities where your hotels operate, and they draw from proven industry experience. 33,000+ hotel customers 176 countries 800+ employees Atlanta Barcelona Chicago Dubai Hong Kong Houston London Melbourne New York Orlando Philadelphia Shanghai Singapore Tokyo 11/22/2013 3
- 4. We’ve been aleader for more than 12 years, guiding 33,000+ hotels of all types and sizes. Independent & Small size Groups Mid-Sized Brands 11/22/2013 4
- 5. We have fivelines of business that will work together to improve Hotels performance. •iHotelier® Central Reservation System™ •iHotelier® Web 3.0™ •iHotelier® Mobile™ •iHotelier® GDS & Pegasus UltraDirect™ •EZYield Channel Management™ •iHotelier® VoicePro™ •iHotelier® Demand™ •iHotelier® PMS Integrations™ • Rate360® • Agency360® • Demand360® • Enterprise Solutions™ • Travel Agent (GDS) Media™ • Display Marketing™ • Pay-Per-Click Advertising • Custom Websites • Search Engine Optimization • Social Media Optimization 11/22/2013 5
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- 7. Highlights | SecondQuarter 2013 The Brand Website revenue contributed 20.7% of the $10 billion total revenue booked and 63 million room nights Revenue by Channel 2013 Q2 Web = Hotel proprietary Web site or brand Web site Web 20,7% OTA = Online travel agency such as Expedia, Orbitz, Priceline GDS = Global distribution systems Sabre, Galileo, Worldspan, Amadeus OTA 10,2% GDS 16,3% CRO 14,8% CRO = Central reservations office for contact center reservations via voice, chat or email Direct 38,0% Direct = Reservations taken directly on property such as walk-ins, meetings/groups, direct call in Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. Revenue in USD. 7
- 8. Highlights | SecondQuarter 2013 Revenue International Web 15,3% CRO 9,8% OTA 11,3% GDS 14,9% Direct 48,7% United States Web 21,6% OTA 10,1% GDS 16,5% CRO 15,6% Direct 36,1% Source: TravelClick Demand360. Top 50 markets worldwide from participating brands. 8
- 9. At-A-Glance | GlobalTrends: Europe -5,7% Istanbul Lisbon London 0,3% 7,5% 11,4% 3,9% 4,2% -3,1% -1,3% -4,2% Madrid 4,1% 4,2% Milan 1,0% 0,8% 1,8% 0,2% Moscow Paris 8,6% OCC ADR RevPAR 6,9% 7,1% 0,4% 0,8% 1,3% 1,2% 2,1% 3,3% Prague Rome -1,2% -2,5% -3,7% -3,1% Tel Aviv Vienna Warsaw 8,9% 3,1% 3,3% 0,2% -3,0% -26,8% 5,4% -22,7% 5,6% 4,1% Zurich -30% -25% -20% -15% -10% -5% 0% 5% 10,2% 10% 15% Percent Change ADR are in Local Currency. Source: Smith Travel Research. Q2 2013. 9
- 10. All International destinations(excl. Americas) Third Party Internet Revenue (In Millions USD) $27 Expedia $22 $22 $61 Booking Priceline $25 $12 $2 $2 $3 $16 $18 $18 OTA Other $11 Hotels.com Orbitz Hotwire Travelocity $8 $7 $5 $4 $4 $2 $2 $1 $4 $4 $5 2013 Q2 2012 Q2 2011 Q2 Source: TravelClick Demand360. Top 25 International markets from participating brands. Transient reservations. 10
- 11. Global interest foraccommodation International Domestic 26% Italian market interest for accommodation 74% 1 Source Google research data, 11/22/2013 11
- 12. Global interest forEuropean accommodation ITALY represents the 10% 1 Source Google research data, 11/22/2013 12
- 13. GDS figures forall Hotels linked to ROM for the last 24 months 11/22/2013 13
- 14. Rome’s Performance YTD-2013vs YTD-2012 Occupancy +0.2% 67.6% in 2013 vs 67.4% in 2012 ADR +7% 124.71€ in 2013 vs 116.52 in 2012 RevPar +7.2% 84.18€ in 2013 vs 78.51€ in 2012 Source STR Global 11/22/2013 14
- 15. Hotel searches onMobile are growing very fast globally One in Seven searches originate from a mobile device¹ 5-10% of web bookings come from a mobile device3 By 2015, 81% of cell phone users will have smart phones5 42% of travelers research or book accommodations on a mobile device platform2 65 percent of mobile bookings are same day4 More people will access the internet via mobile devices than desktops6 1 Google research data, 2012 2 Smarter Travel 3 TravelClick Data – sampling of 1600 iHotelier clients with MobiBook. 4 Orbitz data, Dec 2011 5 Goldman Sachs. June 2011 6 IDC New Media market Model, Sep 2011 11/22/2013 15
- 16. Where do peoplego when they leave your site? 22 9.5 68% The number of sites the average travel researcher visits before booking The average number of online research sessions a consumer conducts before booking The percent of consumers who consult online reviews before booking Google Think Insights: 5 Stages of Travel 11/22/2013 16
- 17. Major Market Trendsin Hospitality Trend 1: Social media is the cornerstone of marketing strategy Trend 2: Business Intelligence (BI) at every level. The new face of successful travel companies: Competitor Analysis - Market Penetration - Distribution costs by channel. Trend 3: Meeting the expectations of the modern consumer: Improve customer experience - deliver relevant data - engage the customer - embrace new channels - Integrate online, offline and social - retain customer loyalty. Trend 4: Semantic technology (finally) becomes relevant in the travel value chain Evaluate opportunities – Experiment to see what works Trend 5: Mobile provides a unique platform for more direct distribution The new mobile devices facilitate continuous engagement - mobile marketing becomes more personalized and relevant *Source: PhoCusWright Inc. 11/22/2013 17
- 18. HOW TO SUCCEDIN A FAST CHANGING MARKET 11/22/2013 18
- 19. Hoteliers need toface this complex and changing market. Distribution Service Channel Guests Corporate Branding Sales Revenue Management Marketing 11/22/2013 19
- 20. Your website needsto reflect an unique property or brand style and features, but always combined with the Best Practices to convert. 11/22/2013 20
- 21. Robust content managementsystem (CMS) that allows Hotels easily maintain the website fresh and updated. 11/22/2013 21
- 22. Social media optimizationdrives direct bookings: −845m monthly active users −250m monthly active users −1 trillion views in 2011 −2.7b likes/comments a day −500m users signed up −1 hour uploaded/second −250m photos uploaded/day −340m tweets sent/day −3 billion hrs watched/month Engage your customers with Social integration into your Booking Process 11/22/2013 22
- 23. Your Hotel needsto be where the customers are and engage them: Social media optimization drives direct bookings, example of Hotel BLOOM! Increased fan base by 300% in less than two months Sold 10 extra room nights directly from hotel’s Facebook party tab Gained 450 new email subscribers Was awarded the IAC Best Hotel and Lodging Social Media Campaign 11/22/2013 23
- 24. Your Hotel needsto be where customers are and drive more DIRECT Business 11/22/2013 24
- 25. Your Hotel needsto be where customers search to drive more DIRECT Business 11/22/2013 25
- 26. Business Intelligence solutionsprovide you with actionable insights to increase hotel revenue. Price rooms… Promote products… Target customers… …with precision, to win the right customers and maximize Hotel revenue Allocate inventory… 11/22/2013 26
- 27. Business Intelligence isKey for taking the right decisions and increase Hotels’ revenue. Agency Demand See your competitors’ rates See your competitors’ production by travel agent See your market’s future production across all channels How should I price to maximize ADR and occupancy? To what agencies should I target my sales activities? What should I do now to impact my future bookings? RATE360 AGENCY360 DEMAND360 & DESTINATION INSIGHTS Rate 11/22/2013 27
- 28. Mobile statistics* The ADRfor a typical Mobile booking versus web booking is 15 USD higher Close to 50% of all Mobile bookings are made with 0 to 1 day lead time The average mobile reservation is 25% higher in total revenue value versus web bookings Hotels receive a minimum of at least 2 direct voice bookings via the iHotelier mobile click to call * TravelClick Data – sampling of 1700 iHotelier clients with MobiBook. 11/22/2013 28
- 29. A mobile-friendly websiteis a “must” for every hotel: One in Seven searches originate from a mobile device¹ 5-10% of web bookings come from a mobile device3 42% of travelers research or book accommodations on a mobile device platform2 65 percent of mobile bookings are same day4 By 2015, 81% of cell phone users will have smart phones5 More people will access the internet via mobile devices than desktops6 1 Google research data, May 2011 2 Smarter Travel 3 TravelClick Data – sampling of 1600 iHotelier clients with MobiBook. 4 Orbitz data, Dec 2011 5 Goldman Sachs. June 2011 6 IDC New Media market Model, Sep 2011 11/22/2013 29
- 30. Your hotel needsan integrated solution for real-time distribution management across all channels. 11/22/2013 30
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- 32. Your web bookingengine should help you to: Build your brand With a cutting-edge technology Drive more bookings In fewer clicks with optimized navigation and clear calls to action Increase RevPAR With intelligent upsell of stay length, rooms and add-on services Have full control of the booking experience Allowing you to sell the way you want 11/22/2013 32
- 33. How to drivemore direct bookings and increase RevPAR with your Booking Engine. Select Dates Select Rooms Add Enhancements Confirm Reservation Optimized navigation precipitates conversion in ~20% fewer clicks Turn lookers into bookers with engaging visual cues and clear calls to action Up-sell and cross-sell functionality 11/22/2013 33
- 34. Increase Occupancy andRevenue for each stay: Add a day before or after dates selected to increase occupancy. Flexible date calendars to allow guests to see when best rates are available to stay. But most important help you to increase occupancy the days your hotel need it. Up sell Room categories and ancillary products/services to increase Revenue for each stay. 11/22/2013 11/22/201 3 34
- 35. Hotel needs tocontrol content also on their booking engine and not only on the website. Create multiple themes for promotional offer merchandising Preview real-time, prior to publishing to live site Easy photo and media content administration Flexible configuration for all design aspects Enhanced customizations for button styles, header gradients and colors 11/22/2013 35
- 36. Customize the onlinebooking experience to engage customers and get more direct bookings. 11/22/2013 36
- 37. Hotel will capturemore on-the-go bookings with a mobile booking engine: 42% 40% 25% of travelers research or book accommodations on a mobile device1 book within 1 day of arrival2 book on the same day of arrival2 Increase direct Bookings to your hotel… 1 2 SmarterTravel Based on iHotelier Mobile customer data 11/22/2013 37
- 38. Hotels need tohave a Next Generation Seamless connectivity to all 4 GDS. +19% growth in GDS revenue and bookings for TravelClick European hotels in 2012. 11/22/2013 38
- 39. Growing GDS awarenessof your Hotel on the outside of “Just Connecting”... GDS Media It reaches decision makers (Travel Agent) at the point of sale for a specific booking date. GDS Preferred Placement Over 98% of qualified GDS transactions are generated directly from Page One results Consortia Participation Consortia hotels received 5 non Consortia hotels times more reservations than 11/22/2013 39
- 40. Demand Drivers iskey to get incremental bookings and reduce Hotel distribution costs… Metasearch Partnerships OTA Partnerships Consortia/ Mega Agency Partnerships • Increased demand driven directly to your web booking engine • Competitively position hotels to drive direct bookings • Preferred commercial terms resulting in reduced customer acquisition costs • Increased distribution resulting in more bookings • Preferred placement on the shelf • Preferred commercial terms, including reduced margins • Increased business travel demand and bookings • Favorable subscription pricing • Preferred placement in GDS • Access to travel agent offices globally • Centralized management of RFP content, submission and rate audits 11/22/2013 40
- 41. …and work withdozens of partners to drive demand to Hotels and mainly to their direct channels. Online Travel Agent Corporate Metasearch Consortia 11/22/2013 41
- 42. Key Benefits inConsortias for Hotels worldwide with Fully Preferred Partnerships Global partnership opportunity offering worldwide exposure Only large hotel groups can gain this status on their own Preferential placement in point of sale tools Coordinated Global agency visits Exclusive marketing opportunities to over 60 thousand agents worldwide. 11/22/2013 42 www.g-h-s.com
- 43. Seamlessly synchronize reservationsdirectly into your Property Management System, allowing for true last room availability, with PMS Connect. iHotelier PMS Connect Your Hotel’s Property Management System Rates / Availability Reservations 11/22/2013 43
- 44. Real time reportingto take the right decisions Integrated, simple and flexible manager level reports with rate codes, credit cards, LOS, pace information create the base for strategic decisions 11/22/2013 44
- 45. Hotels need tohave an E-Commerce Strategy • • • • • Analyze Convert Paid Search SEO Social Media Display Advertising Affiliated Marketing Attract • • • • Best Practices Design Best Rate Guarantee Dynamic Rate Display Integrated Booking Engine • Email Acquisition Strategy • Email Marketing • Pre / Post Stay Email Marketing • Social Media • Website Analytics • Online Marketing Performance Review • Data Driven optimization Retain 11/22/2013 45
- 46. The media landscapeis complex, and hotels need help getting in front of potential guests with a holistic Media approach . Guest Hotel 11/22/2013 46
- 47. Growing high qualitytraffic to Hotel website is key to maximizing online revenues. It needs to be focused on the right channels Online research activities Online marketing strategy: Google: “best things to see in Milan” Research Travel Content Sites: guide to Milan TripAdvisor: things to do in Milan Acquire new customers Airline Sites: Complete flight reservation Shop Google: “Boutique hotels near DUOMO” TripAdvisor: Reviews Your website: In-depth property research Make it easy to book direct Google: “Hotel Amore” Buy OTA: Shop/book travel Travel Agent: Shop/book travel Convert Travel Agent shoppers 11/22/2013 47
- 48. An effective onlinemarketing strategy for Hotel targets two groups of qualified leads: Converters: People who show interest in your property Behavior Search for your property on Google Visit your site but don’t book View your TripAdvisor page How to target this behavior PPC (Paid Search) brand terms Display Remarketing TA Business Listings & Check Rates Shoppers: People coming to, or researching the market Behavior Search your market on Google Read travel content sites Booked a flight to your market How to target this behavior PPC (Paid Search) geo/generic terms Travel Intent Display (Contextual Marketing) Travel Intent Display (Behavioral Marketing) 11/22/2013 48
- 49. It is timefor looking at an integrated media solution From products managed in isolation… PPC Trip Advisor DRM Travel Agent Media Travel Intent Display • SEPARATE products and objectives • SEPARATE contracts • SEPARATE points of contact • SEPARATE performance reports To holistic media planning and management Travel Intent Display Travel Agent Media Pay-PerClick DRM Trip Advisor • ONE integrated media strategy • ONE contract • ONE point of contact • ONE performance package 11/22/2013 49
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