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What is modern hotel e-commerce?By Pedro Colaco

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Agenda

The weather

Charting the course

New solutions for new world

At the destination

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Most hotel managers in 2010

My profits dropped 50%Too many rooms in my market…The Internet is promising but…I just don’t have the time.

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Travel outlook: Cloudy

Leisure: Cheap– Shorter, closer, downgrade

MICE: Cut– Many events cancelled

Corporate: Flat– But… sentiment improving

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Online growing in Europe

Double-digit growth

Chain sites growing faster

Success story Booking.com

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The Independent Gap

400,000 independent properties

60,000 4*, 5*

chain hotels

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Charting the course

Learn from big guysLook for cost without returnCompete through innovation

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New guests = New opportunity

Search specific products/experiences

Trust social word-of-mouth

Want direct interaction with hotel

82% prefer to book direct*

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Old solutions not fit for new reality

Hard-selling distribution channelsGreedy marketing agenciesClosed, custom-built software

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Google sees the opportunity

Estimates users visit 13-28 travel sites before deciding

Recently spent $800M on ITA to boost travel search

Google Places visibility for owner sites

Social Search for word of mouth

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Independents must be realistic

Expedia + Booking.com spend $300M online

Will not be #1 for Hotels New York or Paris

But… many visitors can turn to guests

Promote experiences instead of regions

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Golf trip – $4.00 PPC

Highly competitive PPC market

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Whale watching trip – $1.75 PPC

Little advertising!

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Wine tasting trip

No advertising!

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hotel adventure – $2.00 PPC

Some advertising

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hotel wine – $1.50 PPC

Some advertising

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hotel gourmet

No advertising!

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You can attack the niches

Sum of niches better than massLow competition, little advertisingNew structure required to attack

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LookSearch for

Options,investigate

New structure: Guest interaction cycles

InteractUser reviews,

requests

BookSelect dates,

rooms,packages

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Look: Ensure Sales Focus

Match web to property experience

Perform usability tests

Pictures, pictures, pictures

Highlight special offers

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Book: Offer incentives on your website

Easy, real-time booking

Highlight best rate

Ensure rate parity

Innovate: promotions, special room types

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Interact: Listen and Engage

Monitor and listen

Integrate user content

Offer social exclusives

Be useful and fun

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Modern = Easy to use

Quick projects (weeks not months!)

Elastic, accommodates growth

Great user experience

Web mash-ups

Analytics in hotelier terms

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The destination

Boost direct bookings 3x to10x

Fuel viral business

Prepare future by competingtoday

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Current statusOur brand is huge: we have staff and

spend loads of money on marketing

Our hotel is so much better but

how can we compete???

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The vision This internet thing is really

great!!!

Level the playing field for 400,000 independent hoteliers