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Influence of Internet over Distribution Hotel Distribution: Trends, Evolution & Balance By Geetika Bahri
Evolution Past Present Future
Traditional Channels CRS  Connect to GDS + 800# PMS Property Voice  Reservations GDS Travel Agent Reservations  Manager
Current Channels CRS Central Reservation  System GDS Global Distribution Systems  Onward  Distribution   Proprietary  Webs...
Electronic Distributions’ Emerging Dominance <ul><li>Telephone </li></ul><ul><li>Fax </li></ul><ul><li>Travel  </li></ul><...
Categorization of Indian  Internet Users Maximum users online are between the age of 19 – 35 years Majority of users are f...
Top 10 online activities Source: India Stats
Most net user  ‘window shop’ online <ul><li>Last Year, </li></ul><ul><li>89% of all regular online Indians ‘shop’ online (...
Areas of Technology <ul><li>Central Reservation System </li></ul><ul><li>GDS connectivity </li></ul><ul><li>IDS/ADS connec...
Hotel Reservation Process
The “Mechanics” of  Onward Distribution Four ways that Internet sites receive hotel information & rates Switch Smaller  we...
GDS Powered Websites Travelocity, GetThere, Site59 Trip, Cheaptickets, Lodging, Orbitz, ebookers, Collegetravelnetwork Hot...
Equilibrating Distribution
Reservation Sources for Major Hotel Brands Source: TravelClick
Electronic Distribution Competitors Third Party Intermediaries Hotel Chains GDS: DSPs & CRS
Revenue Management:  Business Process Product  Definition Competitive  Benchmarking Strategic  Pricing Demand Forecasting ...
Online Revenue Management <ul><li>Rate Parity across all distribution channels </li></ul><ul><li>Best Internet Rate Guaran...
Market Intelligence <ul><li>Understand your current market position </li></ul><ul><li>See a consolidated view of your port...
Direct vs Indirect  Online Channel In U.S. hotel bookings  through the brand website is showing an increase as compare to ...
Evolution of Web Collective intelligence Collective intelligence Web 1.0 Web 2.0 mostly read-only web Published content Us...
Epitome of Web 1.0 <ul><li>Information exclusivity, be the first to own the content </li></ul><ul><li>Dividing the world w...
Power of Web 2.0 <ul><li>Focus on power of community to create and validate </li></ul><ul><li>The power of a seemingly fre...
Social Media Distribution
Online Marketing Strategies Meta-Search listings Search Engine Marketing Web 2.0 & Social Media PPC Ads & Banners CRM init...
Do you know? <ul><li>At a time when companies are cutting advertising budgets, online marketing provides much-needed edge ...
Brand Website Event Calendar Short & simple contact form Mobile-friendly +ve social media rankings Visitor comments In-dep...
Web Analytical tools Track website traffic Measure Banner ROI Analyze guest booking behavior Track keywords used Referral ...
CRM Initiatives <ul><li>Email marketing to hotel guest database </li></ul><ul><li>Pre & post stay email communications; cr...
CRM: Experience Purchase Post Purchase Pre Purchase
Pay Per Click Banners & Ads <ul><li>Attention grabbing flash ads </li></ul><ul><li>Unique landing pages </li></ul><ul><li>...
Survival Tools 2009
  Thank You! By: Geetika Bahri Date: July 2009 E-mail: geetika.bahri@gmail.com
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Hotel Distribution: Trends, Evolution & Balance

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Influence of internet over hotel distribution

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Hotel Distribution: Trends, Evolution & Balance

  1. 1. Influence of Internet over Distribution Hotel Distribution: Trends, Evolution & Balance By Geetika Bahri
  2. 2. Evolution Past Present Future
  3. 3. Traditional Channels CRS Connect to GDS + 800# PMS Property Voice Reservations GDS Travel Agent Reservations Manager
  4. 4. Current Channels CRS Central Reservation System GDS Global Distribution Systems Onward Distribution Proprietary Website www.yourhotel.com IDS Internet Distribution Systems PMS Property Management System DORM Director, Revenue Management
  5. 5. Electronic Distributions’ Emerging Dominance <ul><li>Telephone </li></ul><ul><li>Fax </li></ul><ul><li>Travel </li></ul><ul><li>Agents </li></ul><ul><li>Sales </li></ul><ul><li>GDS </li></ul><ul><li>E-mails </li></ul><ul><li>CRO </li></ul><ul><li>Web 1.0 </li></ul><ul><li>OTA </li></ul><ul><li>Booking </li></ul><ul><li>Engine </li></ul><ul><li>RMS </li></ul><ul><li>Channel </li></ul><ul><li>Managers </li></ul><ul><li>Meta </li></ul><ul><li>Search </li></ul><ul><li>Social </li></ul><ul><li>Media </li></ul>
  6. 6. Categorization of Indian Internet Users Maximum users online are between the age of 19 – 35 years Majority of users are from monthly income group of 6.25 K– 25 K Source: India Stats
  7. 7. Top 10 online activities Source: India Stats
  8. 8. Most net user ‘window shop’ online <ul><li>Last Year, </li></ul><ul><li>89% of all regular online Indians ‘shop’ online (i.e either search or buy) </li></ul><ul><li>20% of active online buyers base of 7.6 million users, bought products online </li></ul><ul><li>65% of total online buyers, bought travel products </li></ul>Source: India Stats
  9. 9. Areas of Technology <ul><li>Central Reservation System </li></ul><ul><li>GDS connectivity </li></ul><ul><li>IDS/ADS connectivity </li></ul><ul><li>Hotel/Chain Website </li></ul><ul><li>Web booking engine </li></ul><ul><li>Group/meeting websites </li></ul><ul><li>RFP websites </li></ul><ul><li>Rate Shopper systems </li></ul><ul><li>Property Management Systems </li></ul><ul><li>Point Of Sales </li></ul><ul><li>Revenue Management System </li></ul><ul><li>Sales/Catering </li></ul><ul><li>Customer Relationship Management </li></ul><ul><li>CMS (channel management systems) </li></ul><ul><li>CGM Customer Generated Media </li></ul>Source: HSMAI De-Mystifying Distribution
  10. 10. Hotel Reservation Process
  11. 11. The “Mechanics” of Onward Distribution Four ways that Internet sites receive hotel information & rates Switch Smaller websites GDS Extranet E-Mail
  12. 12. GDS Powered Websites Travelocity, GetThere, Site59 Trip, Cheaptickets, Lodging, Orbitz, ebookers, Collegetravelnetwork Hotels.com (retail version) Expedia, Hotwire, Lodging, Priceline OneTravel, Vacation, opodo Booking Engine Onward Distribution
  13. 13. Equilibrating Distribution
  14. 14. Reservation Sources for Major Hotel Brands Source: TravelClick
  15. 15. Electronic Distribution Competitors Third Party Intermediaries Hotel Chains GDS: DSPs & CRS
  16. 16. Revenue Management: Business Process Product Definition Competitive Benchmarking Strategic Pricing Demand Forecasting Distribution Management Business Mix Manipulation
  17. 17. Online Revenue Management <ul><li>Rate Parity across all distribution channels </li></ul><ul><li>Best Internet Rate Guarantee on the hotel website </li></ul><ul><li>Matching the rates of the hotel’s comp set </li></ul><ul><li>Dynamic Pricing using length of stay and discount strategies </li></ul>
  18. 18. Market Intelligence <ul><li>Understand your current market position </li></ul><ul><li>See a consolidated view of your portfolio’s performance </li></ul><ul><li>Find out future performance trend </li></ul><ul><li>Know what your competitors are charging </li></ul><ul><li>Maximizing Pricing Efficiencies For Multiple Properties </li></ul><ul><li>See how online consumers view your hotel </li></ul>
  19. 19. Direct vs Indirect Online Channel In U.S. hotel bookings through the brand website is showing an increase as compare to the TPIs which show a decline Source: Merrill Lynch, HeBS   Overall for the industry (USA) 2007 2008 2010 Hotel Branded Websites: 60% 62% 65% Intermediary Websites: 40% 38% 35%
  20. 20. Evolution of Web Collective intelligence Collective intelligence Web 1.0 Web 2.0 mostly read-only web Published content User generated content widely read-write web Published content User generated content 2,50,000 sites 80,000,000 sites
  21. 21. Epitome of Web 1.0 <ul><li>Information exclusivity, be the first to own the content </li></ul><ul><li>Dividing the world wide web into usable directories </li></ul><ul><li>Everyone has their personal own little corner in the cyberspace </li></ul><ul><li>Lacks: </li></ul><ul><ul><li>Content </li></ul></ul><ul><ul><li>Interaction </li></ul></ul><ul><ul><li>Scalability </li></ul></ul>
  22. 22. Power of Web 2.0 <ul><li>Focus on power of community to create and validate </li></ul><ul><li>The power of a seemingly freer form of organisation </li></ul><ul><li>Setting up hooks for future integration (RSS, API) </li></ul><ul><li>Lacks: </li></ul><ul><ul><li>Personalisation </li></ul></ul><ul><ul><li>True portability </li></ul></ul><ul><ul><li>interoperability </li></ul></ul>
  23. 23. Social Media Distribution
  24. 24. Online Marketing Strategies Meta-Search listings Search Engine Marketing Web 2.0 & Social Media PPC Ads & Banners CRM initiatives Web-analytics tool Focus on Brand Website
  25. 25. Do you know? <ul><li>At a time when companies are cutting advertising budgets, online marketing provides much-needed edge to marketing </li></ul><ul><li>Indian market has seen 19% increase in the regular internet users in 2008 over 2007, boasts of an active eight million online buyers </li></ul><ul><li>Since most Internet users now avail search services and buy online, online marketing is becoming an active advertising model for result-oriented projects in India </li></ul>Source: India Stats
  26. 26. Brand Website Event Calendar Short & simple contact form Mobile-friendly +ve social media rankings Visitor comments In-depth destination information Syndicate content as RSS Directional Maps Video clips Live chat support Great domain names Brand Website
  27. 27. Web Analytical tools Track website traffic Measure Banner ROI Analyze guest booking behavior Track keywords used Referral Source Types
  28. 28. CRM Initiatives <ul><li>Email marketing to hotel guest database </li></ul><ul><li>Pre & post stay email communications; cross-sells and up-sells; surveys, etc </li></ul><ul><li>Building Loyalty via customer differentiation ( personalization, promote existing or create a simple reward program) </li></ul>
  29. 29. CRM: Experience Purchase Post Purchase Pre Purchase
  30. 30. Pay Per Click Banners & Ads <ul><li>Attention grabbing flash ads </li></ul><ul><li>Unique landing pages </li></ul><ul><li>Targeting specific demographics </li></ul>
  31. 31. Survival Tools 2009
  32. 32. Thank You! By: Geetika Bahri Date: July 2009 E-mail: geetika.bahri@gmail.com

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