hotel distribution - channels, complexity and chaos at rainmaker gaming & hospitality customer...

Hotel DistributionChannels, Complexity & Chaos

Rainmaker Customer ConferenceMarch 26, 2014 | Santa Barbara, CA

Image Credit: koi. | flickr (cc)

Hotel Distribution Challenges

• Channels– OTA– Meta-Search– Brand/Property Direct

• Complexity– Personalization– Adaptive Content– Advanced Analytics

• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 1Image Credit: will ockenden | flickr (cc)

Hotel Distribution – Channels

• Online Travel Agencies

• Meta-Search Websites

• Brand/Property Direct

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 2Image Credit: Olaf | flickr (cc)

7-Step Travel Process

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 3

PLANNING(How)

VALIDATION(Who)

BOOKING(When)

TRAVEL(What)

SHARING(Wow)

RESEARCH(Where)

INSPIRATION(Why)

Image Credit: paul bica, Greything, | flickr (cc)

Channels – OTA Unfair Advantage?

• Content Dominance– Broad Destination Coverage | Cross-brand Shopping

– High Traffic | Relevant Content | Massive Ad Spend

– Models – Meta / Merchant / Agency / Opaque / Package

• Actionable Demand & Market Intelligence– Strong Meta-search Bidding/Conversion Experience

– Deep Supplier Opaque Discounts Absorbed as Margin

– Shaving of Merchant Room Occupancy Taxes

• Agency Model Rising?– Lower Margin / Better Payment Terms

– Ease of Cancellation / Free Option for Hedge Strategy

– Increased Poaching Potential by Competition or {Gasp} Self

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 4Image Credit: Olaf | flickr (cc)

Channels - Meta-Search Transformation

• Not All Platforms Created Equal– OTA Top Meta-search Position from 66% to 78%– Kayak: 57x Referrals to OTA v. Brand.com | TRIP: 11x– Google Knowledge Carousel Beating Hotel Finder

• TripAdvisor– 2 Billion Annual Unique Visitors in 2013– 1/3 of 150 Million Reviews Entered in 2013– Just Wait – “TripConnect” & “Just For You”

• Wallet Integration– Eliminate Keystrokes on Mobile Device– Frequency Program Integration– Pass Booking Request/Response via API v. Deep Link

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 5Image Credit: x | flickr (cc)

Channels – Is Direct Enough?

• Fluid Website Architecture – Multiple Devices– Google: 89% Have Started One Device / Finished on Other

– Responsive Web Design Dynamic - Screen Dimensions

– Adaptive Web Design – Preset for Specific Dimensions

• Mobile Apps– Intermediary Apps Dominating Hotel Brands

– Utility Focus – Download is Useless if Never Used

– Next Generation – Mobile Check-in | Contextual Offers

• Call Center– Often Forgotten - Smartphones are Still Phones

– Call Tracking Integration Technology

– Ties Online Website Sessions to Call Center Screen Pops


Hotel Distribution – Complexity

• Personalization

• Adaptive Content

• Advanced Analytics

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 7Image Credit: joncandy | flickr (cc)

The Multiple Persona Traveler

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 8Image Credit: Greything | flickr (cc)

Weather Delay

WeddingAnniversary

College Trip

Family Visit

Industry Conference

Getaway with Friends

Client Visit

RomanticWeekend

Family Vacation

Complexity – Personalization

• Behavioral Segmentation– Multiple/Cross-Device Usage

– Website Navigation

– Remarketing Across Future Website Activities

• Traveler Engagement– Personas Dictate Channel | Destination | Components

– Preferences Largely Situational & Itinerary-specific

– Common Goals? | One Night Stand v. Lifetime Relationship

• Contextually Relevant Offers– Right Product|Message|Guest|Time|Channel|Price

– Unparalleled Social Targeting Capability – Facebook

– Who Draws The Creepy Line? The Buyer | Not The Seller


Complexity - Adaptive Content Puzzles

• Programmatic Advertising– Anonymous Traveler Purchase History– Bid-based, Real-time, Advertising Exchanges– Rules Based RMS Integration Creates Real-time Offer

• Website Design Considerations– Responsive Website versus Adaptive Website Design– Landing Page Design/Optimization to Convert Sale– Navigation Path to Support Persona’s Narrative

• Multivariate Conversion Testing– Booking Engine Integration – Can Be a Sore Point– Not Just Best Option – Best Combination of Options– Track All Data Points – Seek Conversion Correlation


Complexity – Advanced Analytics

• Integrated Analytics– Shared Social Attribution

– Billboard Effect or Coincidental Visit?

– Review Scores – Correlation and/or Causation?

• Big Data– Too Big, Fast or Weird to Fit in Traditional Database

– NOT Just Data You Control

– Predictive Analytics

• Death Of The 3rd Party Cookie– Apple / Microsoft / Facebook / Google Alternatives

– Universal Analytics – Persistent Across Sessions & Devices

– UserID – Signed In Account from Authenticated Platform


Hotel Distribution – Chaos

• Hotel Product Transformation

• Rate Parity Under Assault

• Total Revenue Management

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 12Image Credit: scragz | flickr (cc)

Chaos – Hotel Product Transformation

• Room Inventory Gets Personal– Airbnb / HomeAway Training Guests to Select Unit– Managing Unit-based Inventory Like Playing Tetris – Push or Pull Synchronization Challenges

• Rate Plan Permutations & Combinations– Multiple Personas = Multiple Options / Eligibility– Rules-based Variable Pricing & Combinability Rules– Validation Based on Offer / Affiliation / Channel

• Bundled Offers– Demand Generator and/or Value Added Pairings– Protects Retail Pricing Structure– Avoids Rate Parity Entanglements


Chaos – Rate Parity Under Assault

• United Kingdom / European Union Rulings– Illegal in Europe / OK in US– Open Game for Returning Guests with Profiles– Distribution is Virtual & Global

• Returning Guests are Open Game– Redefines the Frequent Guest– Best Available Rate Guarantee Undermined– Merchant & Agency Models Equally at Risk

• The Battle to Induce Trial– Lifetime Value Basis for New Customer Acquisition– Special Offers Independent of Room Rate– Meta-search Visibility Into Frequency Programs


Chaos – Total Revenue Management

• Acquisition Costs– Channel Advertising Spend

– Staff Allocation – Important for Social Media

– Cost Allocation Frequently Conversion Dependent

• Distribution Costs– Channel Distribution Expenses

– Are You Paying for Marketing, Technology or Both?

– Fully Allocated Brand Related Expenses

• GOPPAR Is End Game– Understand True Channel Profitability

– Requires Integrated Spend / Traffic / Conversion Analytics

– Enterprise & Highly Interoperable Solutions Win


Review of Hotel Distribution Challenges

• Channels– OTA– Meta-Search– Brand/Property Direct

• Complexity– Personalization– Adaptive Content– Advanced Analytics

• Chaos– Product Transformation– Rate Parity Considerations– Total Revenue Management

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 16Image Credit: 3[3] | flickr (cc)

How Do Revenue Managers Survive Thrive?

• Embrace Complete Hospitality Vision – Old School– A New “Location, Location, Location” Paradigm

– “Life is Service” & “Guest is Always Right”

– When Herd is Culled – Old / Weak / Those Unable to Adapt

• Total GOPPAR Management– Break Through Marketing / Web / Advertising / CRM Silos

– Segment Granularity Down to Persona/Itinerary Basis

– More Signals from More Sources – Big Data Gets Real

• Surviving in the Intersection During Rush Hour– Guest Segment: Traveler Persona & Itinerary Goals

– Product Offer: Destination Experience & Breaking Rules

– Business Success: GOP Capture v. Lifetime Guest Value

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 17Image Credit: HJ Media Studios | flickr (cc)

Hotel DistributionChannels, Complexity & Chaos

Hang On, It’s Going to Be a Bumpy Ride!

Thank You

Robert Cole

phone: +1.262.309.9560

social media: @robertkcole

email: [email protected]

Rainmaker Customer Conference Hotel Distribution - Channels, Complexity & Chaos Robert Cole ● RockCheetah | 18Image Credit: ::hap / flickr (cc)

mailto:[email protected]