how can hotels gain control over distribution channels? · hotel revenue by channel hotels’...
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How can Hotels gain Control over
Distribution Channels?
Alex Zheng
Chief Brand Architect, Plateno Hotels Group
Sep.11, 2013
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Distribution Channels such as
OTAs have grown rapidly
In recent years
,
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OTA's hotel business saw rapid growth
Global: Mainland China
: 2011H1-2013H1 OTA Hotel Revenue 2011H1-2013H1 OTA Room Night Booking
In Ten Thousand Room Night
Data Source:Travel Click Data Source:ctcnn.com
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In Millions USD
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Emerging online distribution models
Group
Buying
Last
Minute Vague
Pricing Reverse
Auctions
Hotel’s
Revenue
Management
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Global:
Data source:Travel Click
Hotel Revenue by Channel
Hotels’ reliance on distribution channels
has increased
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Web
CRO
GDS
OTA
Direct
Web—brand web site CRO—central reservations via voice, chat or email
Direct—walk-ins,direct call in
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2
24.6% 25.3% 21.2% 25.5% 25.0% 25.8%
15.7% 16.1% 16.9% 15.4% 14.5% 14.6%
27.6% 26.8% 37.1% 27.9% 27.7% 26.6%
10.7% 12.3% 11.1% 12.2% 12.0% 13.3%
21.4% 19.6% 13.7% 19.0% 20.8% 19.6%
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Mainland China:
Sales Channel by Hotel Type
Data Source:iResearch China Hotel Sales Channel Report of 2012
Hotels’ reliance on distribution channels
has increased cont'd
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How should Hotels Cooperate
and Compete with OTAs?
Response,
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In life, Brands induce different feelings
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Why do consumers pay 250% higher for a
cup of Starbucks Coffee?
Treat
Myself
Good
Taste
Pretend
to be
Cool
+60% +50%
+55%
RMB 9 RMB 33
+45%
+40%
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Economic
Price
Petty
Bourgeois
Sentiment
Social
Coffee
Culture
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Brand
Feelings
Social
Status
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Is it sufficient for Hotel Brands to just satisfy
customer’s functional needs?
When the functional needs of customers have been
satisfied,they need more …
Culture
Preference
Minds
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1
2 3
Multi-industry
interaction increases
customer loyalty
Multi brands meet
various demands
Creativity –Soul of Brand
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Characterized brands
through defining life-style
Brand
Soul
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Originates from Portofino in Italy.
Abandon excessive luxury, back to pure life .
Focus on core requirements on hotel.
Respect and cherish each noble and free soul…
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Portofino-- A Paradise for Private Enjoyment, A Harbor for Your Soul
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With the core of comfortable culture
Lavande-- Experience-oriented
Boutique Hotel
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Featuring natural fragrance, Lavande
provides a extremely comfortable resting
space with considerate 3-dimension
caring---breath, sleep and feeling.
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Perfect combination of coffee
culture and hotel experience.
China's first new service model of
mid-scale boutique hotel, which
creating an elegant atmosphere of
humanity, social life and style to
free yourself.
James Joyce Coffetel
--Journey within Coffee
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Z M AX , the FUNNEST
& trend-leading hotel in the
city
ZMAXERs are always following their own
heart, refusing constraints and pursing unique
character.
ZMAX defines new concept of hotel, and
creates Z-life style for freedom-hunters ---
ZMAXERs.
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Strong brands leverage internet channels to
become easily accessible and searchable
Baidu...
B2C...
OTA
Qunar... •Brand.com
•M.com
•APP
Social
Media
Mobile
Channels
• Microblog
Hotels introduce customers to their own online
platforms via direct and non-direct channels
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Data Source:7 Days
Direct Channels include website, mobile
website and APP
2012 7 Days Booking by Channel
Hotel
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Offline multi-industry cooperation enhance
customer loyalty
10 Points
Integrated Membership and Points
Management Platform = RMB100
Hotel brands can offer more Value-added Service based on their
membership system
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10 Points 10 Points 10 Points 10 Points 10 Points
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Conclusion
• Strong brands conduct consumers’ purposeful decision
making in their hotel selecting process rather than solely
leaning on OTA’s recommendation;
• More comprehensive and interactive member loyalty
programmes combining with hotel’s efficient direct sales
channels will increase customer’s brand loyalty.
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Q&A
What else could brand and membership
bring to a hotel ?
Thanks for your attention!