The Challenge Of The Shortened Booking Or Reservation Window, By Tarun Lakhanpal
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Travel Distribution Summit Asia 2010 Challenge Of The Shortened Booking Window April 29, 2010 Marina Mandarin, Singapore www.lemontreehotels.com
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The shortened booking window is becoming a major issue for suppliers from both a pricing and forecasting standpoint. There is no calculated optimal point at which prices should be dropped in the instance of a largely empty flight or hotel. When prices are revised down the byproduct is a consumer culture that searches for the last minute deals. This is reflective of and dependent on the consumer perception of the markets from where the business originates
Transcript of The Challenge Of The Shortened Booking Or Reservation Window, By Tarun Lakhanpal
Travel Distribution Summit Asia 2010
Challenge Of The Shortened Booking Window
April 29, 2010Marina Mandarin, Singapore
www.lemontreehotels.com
The Lemon Tree Hotel Company
• Lemon Tree Hotels: India’s fastest growing, upscale, full service, moderately priced hotel chain
• Red Fox Hotels: Economy hotel brand
• Happy Shrimp Hospitality: Restaurant chain
World Economy Is Cyclical
Source: World Bank
GDP growth rate
Percentage change of real GDP compared to previous year. Real GDP is adjusted for inflation
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Occ % Chg
ADR % Chg
Total US – Occupancy & ADR Percent Change, Twelve Month Moving Average – 1989 to August 2009
Hospitality Industry Is Cyclical
Source: Smith Travel Research
Source: Nielsen Global Online Consumer Survey, June 2009
Source Markets Perception
Do you think, your country will be out of recession in the next 12 months?
Source: HVS, Indian Hotel Valuation Index
Hotel Supply And Population
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
3/1/20074/1/20075/1/20076/1/20077/1/20078/1/20079/1/2007
10/1/200711/1/200712/1/2007
1/1/20082/1/20083/1/20084/1/20085/1/20086/1/20087/1/20088/1/20089/1/2008
10/1/200811/1/200812/1/2008
1/1/20092/1/20093/1/20094/1/20095/1/20096/1/20097/1/20098/1/20099/1/2009
10/1/200911/1/200912/1/2009
1/1/20102/1/20103/1/2010
01 Day 02 Days 03 Days 04 to 07 Days 08 to 14 Days 15 to 21 Days 22 to 30 Days 31 to 60 Days 61 to 90 Days 91 to 120 Days Over 120 Days
Booking Window: Major Indian Cities
Source: Sabre Hospitality Solution
Volcanic Eruptions In Iceland: Shift In Lead Time At Lemon Tree Hotels
Reservation pick-up trend FTY 2010
April 15 to 21 March 15 to 21
1 - 3 days 72% 59%
4 - 7 days 17% 16%
8 - 10 days 4% 6%
10 + days 7% 19%
Varied Market Reaction
• Dependent on condition of the source market
• Mindset of the consumer
Objective: Conversion At All Touch Points
Hotelname
Hotelin a city
Event in a citySearch activity
Demand Drop: Offset Techniques
• Opaque selling
• Leveraging your database
• Innovative marketing initiatives
• Discounting to stimulate demand
Effective Management
• Database mining
• Invest in online marketing
• Target RevPAR, not ARR or OCC
• Measured response in sync to market reality
Challenge
• Anticipate change
• Communicate effectively • React quickly and efficiently
• Bringing CRM, RM & Marketing, together
