CONFIDENTIAL DO NOT DISTRIBUTE OR COPY€¦ · DO NOT DISTRIBUTE OR COPY Intellectual Property of...
Transcript of CONFIDENTIAL DO NOT DISTRIBUTE OR COPY€¦ · DO NOT DISTRIBUTE OR COPY Intellectual Property of...
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CONFIDENTIAL
DO NOT DISTRIBUTE OR COPY
Intellectual Property of HSMAI
Asia Pacific Inc.
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UNDERSTANDING YOUR GUESTS PATH
TO BOOKING
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Understanding Yours Guests Path to
Bookings
Think like a customer!
You need to know where consumers are shopping
and where they are booking accommodation. Only
then will you know how much money and effort to put
into distributing your rooms to those channels.
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Group Activity!
Let’s shop for accommodation!
Get into groups of 3
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Activity - Step 2
• Now go and book the same property
direct on their website
Discussion/ Compare/ Tell us what
happened
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The Customer Journey
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Dreaming Phase
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Dreaming PhaseLeisure “dreamers” are different to Business “dreamers”.
• If you're going on a business trip, there will normally be a shorter dreaming phase. You might already know where you need to go and when you need to go.
• You might be dreaming about staying longer in the destination and what you could do if you had a few extra days. Or just dreaming of a very fast Wificonnection at the hotel ☺.
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Dreaming Phase
Source: Google / Phocuswright / Travelclick
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Researching Phase
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Researching Phase
Source: Google / Phocuswright / Travelclick
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Researching Phase
38 Websites on Average! Increased Research Online!
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
OnlinePenetration
Online TravelAgents
Supplier Websites Other Channels
Hotel Booking Channels - Globally
2013 2014 2015 2016 2017
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Booking Phase
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Booking Phase
Source: Google / Phocuswright / Travelclick
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What Influences the Decision-Making
Process?
View the video of this research study: https://hsmaiasia.org/2017/07/09/price-reviews-and-the-business-traveller/
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Booking PhaseMany things have an influence on which accommodation a consumer chooses: • Location
• Price, value for Money
• Reviews, ratings
• Brand
• Friends, partner
• Travel agents
• Corporate policy
• Reason for travel
• Rewards, loyalty
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Key Take-aways• Reviews matter to Business travellers
• Negative Reviews will take your property out of the consideration set for Leisure travellers
• If you aggregate Rating is 5-circle/star, or at the top for your destination, leisure travellers will take notice
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Key Take-aways• Business travellers are much more influenced by
Loyalty clubs than leisure travellers
• Business travellers still recognise a deal but they won’t be as influenced by a few dollars difference
• Leisure travellers will respond more to a known brand than an unknown brand, whereas Business travellers will rank brand highly as they care more about the loyalty points from known brands
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Why OTAs? Why not ‘Direct’?...Well because they are the
hotels’ ‘Phone book’ for consumers. They have choice,
convenience and brand awareness.
Source: Phocuswright Channel Surfing Report
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
I couldn't find what I wanted anywhere else
I like their mobile app
It is easier to change and cancel my booking
The website has the most selection
It is easy to book all of your travel in one place
OTAs typically have the best prices
I trust the brand
I am used to booking travel this way
The website is easy to use
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Source: SiteMinder
So, where are consumers booking their travel?
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Where Leisure
Travellers are
Booking Hotels?
Source: Phocuswright / Eye for Travel / Google / Expedia
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Travel AgentsMost travel agencies have a separate department devoted to making travel arrangements for leisure as well as business travellers
and some travel agencies specialise in commercial and business
travel only (TMCs).
Travel Agents book hotels in three ways:
1. Via a wholesaler (ie: leisure customers)
2. Via the Global Distribution System (GDS)
3. Directly with a hotel if they have a special negotiated rate available.
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Experiencing and Sharing Phases
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Experiencing and Sharing Phases
Source: Google / Phocuswright / Travelclick
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Experiencing and Sharing
These phases influences
others decision making!
Just about EVERYONE
who has had a bad
experience shares the
experience on social
media and review sites.Source: Google / HSMAI / Common Sense
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Travel Agents
• Traditional and Corporate travel agents influence consumer choice so a relationship with agents is still important
• Travel Agents use GDS's (Global Distribution Systems) and Hotel Aggregators so keep these channels up to date
• Revenue Directors need to work closely with Digital Marketing teams to use data and analytics to continuously improve performance.
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CERTIFICATE OF REVENUE MANAGEMENT (HOSPITALITY)
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www.hsmaiasia.orgwww.hsmaiacademy.org
EventsEducationMembershipInformation & tools
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THE REVENUE MANAGER
SUPERPOWERSKEY COMPETENCIES & EVOLUTION OF ITS ROLE
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Revenue Game – Maximize
REVENUE• Use the worksheet on the following page.
• The facilitator will read off reservation opportunities.
• Accept or turn down each reservation as it is read out.
• To accept a reservation write its rate down on the worksheet.
• Once denied you can not retake – just like in reality.
• Make multiple reservations in one room as long as they do not overlap.
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Sample
$100 $100 $100
$50 $50
$70 $70 $70
$50 $50
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WHAT DID WE LEARN FROM THIS
CHALLENGE?
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11%Europeans
14%Americans
15%Africans
60%Asians
50%50%
0% 100%44% 75%
THE WORLD TODAY
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Travel Milestones
Creation
Automation Innovation Disruption Evolution
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Direct and total contribution of travel and tourism
(in trillion U.S. dollars)
Source: https://www.statista.com
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The Consumer & the distribution & pricing landscape have
evolved
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Founding principles of Revenue
Management
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Supply and Demand
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Revenue Management
Principles
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Measuring Success - Internal
= OCC (Occupancy)
= ADR (Average Daily Rate)
= RevPAR (Revenue Per Available
Room)
Number of Rooms Occupied
Number of All RoomsThe most commonly used
operating ratio
Rooms Revenue
Number of Rooms SoldAverage of all room
types and rates
Rooms Revenue
Number of Available RoomsMeasures revenuecapabilities of hotel
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Measuring Success - External= MPI (Market
Penetration Index)
= ARI (Average Rate Index)
= RGI (Revenue
Generation Index)
Hotel Occupancy
Market OccupancyHow hotel occupancy compares
to its competitive state
Hotel ADR
Market ADRHow hotel average rate compares
to its competitive state
Hotel RevPar
Market RevParHow hotel RevPar compares
to its competitive state
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Think about the bottom line
GDSChannel Manager
DirectConnect
Brand
$ $ $
$
$ $$
Hotel Direct
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LET’S LOOK AT THE REVENUE
MANAGER
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Thinking Commercial
Metrics of the future
Focus on what matters
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The workforce
Humans and AI driven robots
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TACTICS
Focus on strategy, “forget copy and paste” jobs
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BUILD YOUR SUPERPOWERS
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Thinking Commercial
Metrics of the future
Focus on what matters
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Increase your Asset Value = YOUAUTOMATE where possible
THINK about what you want to measure
KEEP IT SIMPLE! Don’t overcomplicateFOCUS!