Post on 16-Apr-2017
WHAT’S NEW IN DIGITAL TRAVEL?
BRAND CENTRICITY CONSUMER CENTRICITY
The biggest trend in the hotel, accommodation and travel
industry for 2015 - 2016 is
Consumer Centricity
Understanding the Path to Purchase and the triggers affecting each stage
CONSUMER CENTRICITY: TRAVELER’S JOURNEY
Reviews, Social Media
Content, Ads, Search and Social
Reviews
Content Reviews, Cross
Services, Concierge Aps
and Social Reviews
Staying
Websites, OTAs,
ReviewsTRAVELER‘S
JOURNEY
To offer value to consumers, travel industry competitors must understand what is drivingconsumers:
WHAT ARE THE MAIN CONSUMER TRENDS?
They are looking for the best offer that would maximize the value they are getting for their money
They are looking for the most convenient,instantexperience, straight from their mobile, seamlessly moving between channels
They rely on their social network and friends – as a result, we are witnessing a booming “sharing economy”
The travel consumersare increasingly searching for a tailored, personal experience
PERSONAL
CONVENIANT
SOCIAL
VALUE FOR MONEY
Competitors are increasingly responding to consumer needs via the following strategies:
WHAT ARE THE MAIN COMPETITOR STRATEGIES?
Competitors respond with loyalty programs
Cross-services that enhance thecustomer experience
Focus on mobile strategy: pre-stay, on-stay, post-stay apps and concierge services
Focus on locationbased & connected offers
Competitors seek a share of the Sharing Economy with new models
Emphasizing reviews to support the consumer decision process
Using big data forpersonalization –“Just for You”
Social Log-in
Special offers per segment –including content, commerce, experience
PERSONAL
CONVENIANT
SOCIAL
VALUE FOR MONEY
Circle: Main consumer trends | Arrows: Respective strategies
TREND MAP - ROUNDUP
Loyalty
Entertainment
Luxury
Mobile + omni-channel
Instant
ConciergeNew Price
Cross-servicesParadigms
Self Service
IoT & Wearables
Reviews
Sharing Economy
Referrals
Segmentation
Customization
Personalization
Big Data
ContentPERSONAL
CONVENIANT
SOCIAL
VALUE FOR MONEY
The Consumer-Centric approach drove many competitors to offer “end-to-end experiences”, realizing that the consumers don’t want “a hotel”, “a flight” or “tickets”: they want a great experience.
The most prominent instruments we have noticed for creating such experience are:
Content - ideas, inspiration, reviews which pertain to the entire trip (including dining, tickets and even social acquaintances)
Mobile – self service, concierge apps, digital wallet etc.
INTEGRATION ALONG THE PATH TO PURCHASE
Personalization = better conversion. The more relevant the content / offer to the consumer, the more he/she are likely to make a purchase.
Today, Personalization is enabled by mobile, but it also stems from the rise in “big data” and the ability to analyze the data, reaching “micro segments”.
Industry competitors are also targeting consumer segments, and this is increasingly based on data analysis.
TREND #1: PERSONALIZATION
Enabling Technology: Big data
TripAdvisor’s 'Just For You' personalization feature
PERSONALIZATION | SPECIAL OFFERS
PERSONALIZATION | CONTENT
Community Research
On the Trip
TripAdvisor uses personalized content to drive traffic to its site
Content Drives Audience
Audience Drives Leads
Community Drives Content
“Luxury” Airbnb – “One Fine Stay” (UK): Adaptation of the Airbnb model, targeting a specific client segment.
PERSONALIZATION | SEGMENTATION
Utrip uses an artificial intelligence platform to help travelers plan personalized itineraries
PERSONALIZATION | CONTENT
According to Traveler’s preferences, Utrip deliver personalized day-by-day itineraries withsorted combinations of hotels, sites, activities and restaurants
PERSONALIZATION | CONTENT
The need for extra convenience is a mega-trend concerning any industry
This stems from lack of time on the one hand – and the consumers’ growing reliance on technology to make their life easier
Common strategies include:
Omni-Channel – “All in one place”
Mobile – “Wherever / Whenever”
Cross-services – “One Stop Shop”
Instant offers – concierge apps and services, immediate & location-based offers (sometimes based on Internet of Things/ beacons
INTEGRATION ALONG THE PATH TO PURCHASE
TripAdvisor acquired Viator – a global leader in online tours and attractionsbookings.
CONVENIENCE | CROSS-SERVICES
Booking Now shows the best nearby properties with immediate availability in a single page, personalized experience.
Available for mobile and Apple watch.
CONVENIENCE | CROSS-SERVICES
Priceline.com and other OTAs now enable mobile wallet payment
CONVENIENCE | CROSS-SERVICES
Pay with Google Wallet
The Intercontinental (IHG) mobile app caters to the travelers’ different needs across their journey
CONVENIENCE | CROSS-SERVICES
CONVENIENCE | SERVICE INNOVATION
iBeacon technologyBeacons placed in the lobbies and restaurants of the IHG hotels recognize IHG REWARDS CLUB
members using the IHG APP in close proximity. They then send information to the guest’s
smartphone, including personalized notifications and offers relevant to their stay. The pilot is
being implemented in a selection of hotels in China.
CONVENIENCE | SERVICE INNOVATION
Hilton Hotels app lets guests make actions as: Room selection, Check-in, special requests etc. (before and during their stay).“93% of guests saying they’ve felt satisfied or extremely satisfied with the experience.”
CONVENIENCE | SERVICE INNOVATION
Marriot hotels mobile app is adjusted to variety of devices including Smart watch
CONVENIENCE | OMNI-CHANNEL
Airbnb offers tools on mobile & Apple Watch for travelers – as well as forhosts. Similarly, HomeAway offers innovative tools for hosts, recognizingthat apartment sharing success depends on the quality and variety ofrentals.
CONVENIENCE | INSTANT MESSAGING
Instant messaging platforms used by hotels: Hyatt hotels contact theirguests by using WeChat. KLM airlines contact consumers withWhatsApp.
CONVENIENCE | INSTANT MESSAGING
La Quinta Hotels offers to their clients fast internet upgrade and “ReadyFor You” service – Guests get instant message (SMS/Email) when theirroom is ready.
CONVENIENCE | INSTANT MESSAGING
Emoji Room Service - Aloft Hotels launched TiGi service (Text it. Get it).Guests can simply text an emoji of what they want to the hotel’s front desk andwithin minutes, the delivery is made.
"Our guests can now talk to us like they talk to each other“- Paige Francis, vice president of global marketing forStarwood Hotels
CONVENIENCE | SOCIAL CUSTOMER SERVICE
Hyatt and Hilton hotels chains have set up dedicated Twitter accounts whichprovides a 24/7 concierge services in any matter for their guests.
The rise in social networks has created a new sharing economy, where people are interested in, and in buying from, other people whom theydon’t necessarily know.
Consumer trust other consumers’ opinions, more than they trust brands.
Competitors increasingly turn to incorporate social media in their tactics, whether by managing platforms or by incorporating the reviews into the site(so that the consumer will not look elsewhere).
TREND #3: SOCIAL
Hotel reviews are tremendously important when it comes to choosing a hotel.
According to TrustYou, Travelers are 3.9 times more likely to choose a hotel with higher review scores when the prices are the same
When hotel prices are increased for hotels with better review scores, travelers are more likely to book the hotel with the higher score even when it costs more.
76% of travelers were willing to pay more for a hotel with higher review scores, when asked explicitly.
SOCIAL | REVIEWS
SOCIAL | REVIEWS
95%
is spent reading a hotel’s
reviews prior to booking.
are read, on average
by leisure travelers.
7 Reviews 30 Min
of travelers read
reviews prior to
booking a hotel.
Source: Consumer Research Identifies How To Present Travel Review Content For Optimal Bookings // TrustYou
Review Data Has A Significant Impact On Travelers’ Booking Decisions
Hotels today embrace customer reviews, recognizing their importance to the customers, and thus enabling the customer to complete its journey without leaving the site.
SOCIAL | EMBRACING REVIEWS
Marriott displays “Marriott Verified Reviews”
Planely connect you with other travelers who are on the same flight, or at the same departure or arrival airports as you.
SOCIAL | NETWORKING
INTEGRATION ALONG THE PATH TO PURCHASE
In order to achieve loyalty, a company must go back to the parameters that drive consumer decisions – and offer an added value for at least some of them:
Better value for money – additional night for free, free upgrades etc.
Personal, outstanding service – self service, concierge, personalized perks, customized offers etc.
Convenience throughout the travel lifecycle – order, check-in via app, ordering via mobile, etc.
VFM | NEW PRICE PARADIGM
HotelTonight, an app launched in 2011, today has 11 million users in almost 30countries. The app helps cover for hotel vacancies – while saving consumersmoney.
In the “opaque“ model, certain elements of the service, including the identity of the travel service provider, are not disclosed to the consumer prior to making a reservation.
Priceline.com is a leader in the „opaque“ travel reservation
VFM | “OPAQUE” PRICING
Expedia makes opaque accommodation room reservations available on its
principal website under the name „Expedia Unpublished Rates“
VFM | “OPAQUE” PRICING
VFM | NEW LOYALTY PROGRAMS
Starwood has integrated Apple‘s Passbook
Pre-stay: photos, hotel address, confirmation number
Upon arrival: notification upon check-in with the room number Upon
departure: survey.
Guests booking with IHG in one of more than 50 key destinations across the globe will be able to use Stay.com to research and plan their travel, and create personalised travel guides to share with friends.
VFM | USEFUL CONTENT
Best Price Guarantees are common on OTA and Meta-Search engines; but they are now also penetrating the direct sales channel (by hotels).
VFM | BEST PRICE GUARANTEE
Orbitz: Refer a friend -When friends join, they‘ll get a $25 promo code for their first hotel stay.
You‘ll get $25 in Orbucks once they complete their first hotel stay of $50 or more.
VFM | REFERRALS & LOYALTY
VFM | LOYALTY
Starwood Hotels offers companies the SPG (Starwood Preferred Guest) program – can enjoy discounted rates, room upgrades, late check out and more.
The relationship between the OTAs and hotel operators has been the subject of wide debate in the industry.
OTAs have aggressively focused on hotels to provide a higher share of their revenuesas the commission from selling flights has declined, and they have tried to attract consumers by reducing the cost of booking as much as possible.
However, industry regulation (including self-regulation) has leveled the playgroundfor hotels, and they are now free to offer best price guarantees via their websites.
In addition, hotels are imitating OTAs and are offering more cross-services, such as car rentals and airline tickets.
OTAS VS. HOTELS
Source: Schieber Research, Deloitte, Google Trends
In Sep. 2015, Google announced some changes to how it markets and distributes hotel inventory, making it easier for hotels to list their properties directly on its site — and to collect leads seamlessly on mobile devices —while skipping middlemen like online travel agencies (OTAs) and other metasearch sites.
OTAS VS. HOTELS
http://www.google.com/ads/hotels/getstarted/index.html
Founded in 2008, Airbnb connects "hosts" with guests through an online platform – Airbnb.com.
Though about two thirds of the listings are for an entire home, guests have multiple options, ranging from living room couches to shared and private rooms to even castles, tree houses, and igloos.
Since Airbnb's creation in 2008, it has hosted over40 million guests across 34,000+ cities spanningover 190 countries.
Currently, there are more than 2 million listings worldwide (75% increase 2014 – 2015) with about 25% of them in the U.S.
Source: nasdaq.com
AIRBNB | SHARING ECONOMY
AIRBNB | SHARING ECONOMY
Airbnb had changed the accommodation industry, and is a symbol of the “sharing economy”– peer to peer accommodation.
The company reports 353X growth in summer travel, in 5 years.
AIRBNB: SUCESS BY THE NUMBERS
1,200,000 1,100,000
722,575 715,000 715,000 600,000
500,000 480,000
348,117
156,875
Rooms/ Listings in 2015
Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)
AIRBNB: SUCESS BY THE NUMBERS
Source: Skift 2015 (based on company filings for all except Airbnb which is self-reported)
27.68
2421.1
14.0512.6
10.09 9.878.14
3.24 2.95
Market Cap / Valuation 2015 USD Billion
AIRBNB | FOCUS ON COMMUNITY
Airbnb has a community where their users can connect with other hosts, share stories, ask for advice, and get updates. Moreover, they offer loyalty Program which includes an incentive for members to book a holiday through the website or to host.
Hotel chains are beginning to recognize to the potential threat of the sharing economy, and particularly Airbnb, especially ever since Airbnb had announced that it will try to attract more business travelers – the bread and butter of many chains.Main strategies used by hotel chains:
HOTELS RESPOND TO AIRBNB THREAT
Provide a Better Experience
•Utilizing the same competitive tactics designed to compete with OTAs
• For example, focusing on the entire experience; incorporating loyal programs; digital check ins; concierge services; etc.
•Offer budget stays –with hotel amenities.
Leverage the platform
•Apartment rental platforms provide another source to drive visits to the hotel’s website.
•Hotels may choose to target specific segments such as families through this platform.
Differentiation
•Hotels might actually want to leverage that feeling of ex-territory instead of considering it as a disadvantage.
• In addition, with vacation rentals, hotels should emphasize the amenities, trust and security that they offer the guests.
M&A
•Hotels and OTAs have turned to deals in order to win a share of the vacation rental market – such as Expedia’s acquisition of HomeAway or Hyatt’s investment in OneFine Stay.
Hospitality companies are targeting the entire trip, aiming to accommodate the various needs of the traveler. Through this, companies can offer a better experience and more convenience, and they can also find new growth.
One of the key technologies for companies in this regard is the smartphone: Hilton, for example, considers the smartphone as the consumers’ “remote control” for the entire travel experience.
In this field, OTAs have taken the upper hand, since they have planned the trip (rather than the accommodation alone) from the start. However, major hotel chains have already stated that they are concentrating on the traveler’s entire trip as well.
Airbnb has said in an interview to Fast Company in 2014, "Our business isn't the house - our business is the entire trip.” Indeed, the company is well positioned to leverage its community to offer additional peer-to-peer services.
EVERYONE’S GOAL: “ENTIRE TRIP”
CURRENT COMPETITORS’ FOCUS AREAS
Business Travelers
Families
Individuals
Airbnb
HomeAway
Hotel Chains
Boutique Hotels
Kid & Co.
Millennials Older Travelers
Millennials Older Travelers
OneFineStay
THE HOTEL OF THE FUTURE
https://www.youtube.com/watch?v=qjWQ1sDhc-8&feature=youtu.be
Identify any key area where you are able to provide added value to the traveler across the path to purchase, whether by personalizing, providing the best instant service, offering better value for money, saving time or providing a stress-free experience to consumers, or connecting them to other consumers.
Then, decide which tools or devices will enable you to respond to these needs across the traveler’s path to purchase.
Keep up with industry trends and create a relevant action plan in order to provide valuable 'up to date‘ services to your clients.
CONCLUSION