seven travel planning steps - impact on hotel distribution strategy

1.Distribution Super Session
Seven Travel Planning Steps & Their Impact on Hotel Distribution Strategy
Image: Brave Heart (Flickr)

2. Session Overview
Different Perspective on Distribution
Hotel Distribution Challenges
Discussion of Seven Step Travel Process
Five Minute Presentations on Each Step
Each Step Followed by Question Period
June 21, 2011 Austin, Texas
HFTP HITEC Distribution Super Session
Robert Cole | RockCheetah 2
Image:Images by John 'K' (Flickr)
3. The Team
Robert Cole RockCheetah
Founder
Alan Genin Great Wolf Resorts
Corporate Director of Revenue Management
Ran Weerasuriya Mammoth Mountain
Director of Revenue Management
Thomas Patchin Station Casinos
Senior Vice President, Interactive Marketing
KurienJacob Highgate Hotels
Senior Vice President Revenue & Distribution
Loren Gray Ocean Properties
Director of E-Commerce
Tanya Pratt Fairmont Raffles International
Executive Director - Customer Information Systems
Image: ohad* (Flickr)
4. A Different Perspective on Hotel Distribution
The Focus Will Not Be On
Global Distribution Systems
Online Travel Agencies
Private Sale Websites
Group Buying
XML Interfaces
The Merchant Model
Search Engine Optimization
Mobile Web Versus Native Apps
Image: ::hap (Flickr)
5. Distribution Isnt Just Technology
Right Product in the Right Place at the Right Timethrough the Right Channel at the Right Price for the Right Guest
Not Just Making a Booking Gaining a Customer
Image: mikebaird (Flickr)
6. Customer Engagement is King
Image: Defence Images (Flickr)
7. Loyalty is Based on Values
Example: jetBlue
Integrity
Passion
Safety
Caring
Fun
Value Drives Transactions Values Drive Loyalty
Image: maistora (Flickr)
8. Seven Stages of Travel
INSPIRATION
(Why)
SHARING
(Wow)
RESEARCH
(What)
PLANNING
(How)
TRAVEL
(Where)
VALIDATION
(Who)
BOOKING
(When)
Image: kevindooley(Flickr)
9. Six Hospitality Touch Points
Pre-Stay
Post-Stay
Arrival
On-Property
Departure
In-Destination
10. Multiple Traveler Personas
Relocation
Business Trip
Family
Vacation
Romantic Getaway
Solo-time
Weekend
with The
Guys
Conference
Training
Convention
Image: Greything (Flickr)
11. Different Brands Should Look Different
Compare the Following Six Examples
Upscale Baltimore Inner Harbor Hotels
Game: Guess the Brand
With Logos & Names Blacked Out
Question: Can a Guest Do It?
Profit Only Results From Value is Created
Result: One Size Doesnt Fit All
12. What brand is this?
13. Unique selling proposition?
14. Competitive differentiation?
15. Wait, did we repeat this one?
16. Did the sign on roof change?
17. Nicer design, but is it unique?
18. Inspiration
Robert Cole RockCheetah
Founder
Image: another.point.in.time(Flickr)
19. Morgans Hotel Group
20. Morgans Hotel Group
21. June 21, 2011 Austin, Texas
22. Andre Balazs/The Standard
25. Research
Alan Genin| Great Wolf 25
Alan Genin Great Wolf Resorts
Corp. Director of Revenue Management
Image: Great Wolf Resorts
26. 11 Indoor Water Park Resorts - 4200 Rooms
85% Transient Leisure
60% of Bookings via Brand.com
90% of Those Booking via Contact Center Are or Have Been Online
Moms are Primary Researcher
Limited Direct Competition
Complex Value Proposition
Great Wolf Background
Be Present
Be the Conduit
29. Provide Platform on brand.com
Support La Carte Packaging
Convert Customer Service Contact into Sales Opportunity
Know Enough to Know When You Dont Know
Dont Control Enable
30. Planning
Ran Weerasuriya| Mammoth 30
Ran Weerasuriya Mammoth Mountain
Director of Revenue Management
Image: another.point.in.time(Flickr)
Ran Weerasuriya | Mammoth 31
Mammoth Background
3rd Most Visited Ski Area US
1.3M Annual Skiers
Ski Area
3,500+ acres
28 Lifts
150 Trails
Open Nov-Jul
2011 Snowfall: 669 (~56ft)
Guest Facilities
4 slopesidehotels
5 restaurants
7 bars
4 day lodges
22 sport/rental shops
6 on-hill snack bars/food courts/cafeterias
ski & snowboard school, race department, lockers, child care
Portland
San Francisco
San Jose
11,053ft
Los Angeles
Mammoth Path to Purchase
Web; MyMammoth
Unaware
Aware
Consider
Experience
Advocate
Key Strategies
Deliver content specific to customer needs & interests throughout their planning & consideration process
Leverage digital media to create engaging, memorable interactions with the Mammoth brand
Align heavy-up communications with key promotional periods to drive purchase/bookings.
Mammoth Website
Homepage
Event & Activity-driven Content
Trip Planner
Airfare
Lodging
Tickets, Lessons & Rentals
Shopping Cart Model
Mammoth -MYMammoth
Traveler Priority
Experiencing a Destination like a Local & Getting Insider Knowledge ***
When Planning a Trip
40% of travelers listened to opinions of family and friends
43% used user-generated content
27% used social media
28% used a mobile device
Core objective of MYMammoth:
Get paid repeat visitors to come to Mammoth Mountain more often than they are now
35. Validation
Thomas Patchin Station Casinos
Senior Vice President, Interactive Marketing
Thomas Patchin| Station Casinos 35
Image: Red Rock Casino
Thomas Patchin| Station Casinos 36
www.welovelocals.com
Strategy:

Keep direct guest relationship

38. Drive incremental guest visits 39. Top of mind for the guestDefinition of Success:

Revenue & Learning Objectives

40. End game 41. Guest loyalty and share of walletGoals:

Support of key brand value proposition

42. Creation of a database 43. Drive guest(s) into properties 44. Non-Station guests 45. Additional visit from existing customersThomas Patchin| Station Casinos 37
Evolution :

Social Media

47. Tight integration to E-commerce platform 48. Preferences capture and growth of database 49. Growth of database across platforms and channels 50. Property specific bundled offers 51. Validation through sharing 52. Experience in on-line that drives off line conversations 53. Dining, entertainment, hotel conversations 54. Opportunities 55. How deep and broad will the messaging grow 56. Risks 57. Discounting versus long value propositionThomas Patchin| Station Casinos 38

New purchasable weekly coupons are presented in green.

59. New outlet specific coupons. 60. When the quantity offered runs out, a sold out will appear on the coupon. 61. New purchasable coupons are changed regularly. Thomas Patchin| Station Casinos 39
62. Booking
KurienJacob- HighgateHotels
Senior Vice President Revenue & Distribution
Kurien Jacob | Highgate 40
Image: Park Central New York
The Booking Process
A very valuable potential booking:

6 nights long length of stay

65. About a month in advance revenue managers perfect booking 66. Staying in June low season in NY 67. Stay straddles a weekend lower occupancy for business hotels 68. 2 people will spend a lot on ancillary revenues at the hotelThis guest should qualify for ALL SORTS of special offers!
Why is this problematic?
44 price points and products is quite a lot for a guest to make sense of.
Three different sales that offer nothing different they just kick in under different conditions
The Best Available Rate is not nearly the best available rate
The packages are priced way too high for them to make sense because the room component in these rates are not discounted like the rates in the sales
This is all IRRATIONAL to the consumer.
This makes more sense to the consumer
Clear Options for Consumer
Rich Pictures in Booking Pages
Up-sell length of stay
Up-sell room type, showing the price difference per night.
Guarantee revenue or earn more revenue by offering stricter (advance purchase) or more liberal (last minute no-fee cancellation) reservation policies.
Results From Single Up-sell Mechanism
= Extend Your Stay (EYS)

52% increase for Hotel 1

73. 33% Increase for Hotel 2

seven travel planning steps - impact on hotel distribution strategy

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