The Changing Online Travel Distribution LandscapeChanging Landscape GDS . Changing Landscape Online...

The Changing Online Travel

Distribution Landscape

Innovation in the GDS World

Changing Landscape

GDS

Changing Landscape

Online world

• OTA Consolidation and revamping of User

Interfaces

• Growth of Meta Search Sites

– Kayak, Trivago, Google Hotel Finder

• Emergence of increasingly niche OTAs

– Hotel Tonight

• Buy out of Meta Search Sites by OTAs

– Kayak by Priceline

– Trivago by Expedia

• Mobile – The most innovation will happen in this

space

Changing Landscapes in the Online World

Why is mobile important for us?

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

mobile as % of total

Mobile Visitors as % of Total Web Traffic

Mobile Revenue with Mobile Traffic

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

% of web as total mobile as % of total

Percentage of Web Bookings

by Lead Time

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

same day 1 to 2 days 3 to 5 days 6 to 7 days 8 to 14 days 15 to 28 days more than 29 days

Combined (Primary Y Axis)

Bookings by Lead Time

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

same day 1 to 2 days 3 to 5 days 6 to 7 days 8 to 14 days 15 to 28 days more than 29 days

Combined (Primary Y Axis) % Mobile (Secondary Y Axis) % Website (Secondary Y Axis)

Adapting to the User’s Device

Full Browser Booking Flow:

Search Compare Room/Rates Add-Ons Payment Upselling Confirmation

Mobile Booking Flow:

Search Rooms Rates Payment Confirmation

Device Comparison

Desktop Mobile

User has more time to understand your product (rooms, rates)

User wants to make a quick decision – availability is key

User can consume more information easily

Abbreviated booking flow, descriptions

User shops more sites Make it easy to book – if they find your hotel and it has rooms, they will book

Longer lead time Run your mobile ads accordingly

Higher ADR

Longer LOS

Mobile Website and Booking Engine

• Short & precise website content

• Simple rooms and rates display

• Image based booking engine

• Maps integration

• Mobile Promotions

• Email marketing

Trip Advisor’s Change to

Meta Search

TripAdvisor CPC

CPC model with minimum

monthly spend.

Meta Search Model

User Interface moves from

Web 1.0 to Web 3.0

Room

Availa

bili

ty –

Sin

gle

-room

Are

a A

vaila

bili

ty

User Interface Innovation

28

“Creepy Marketing is Critical”

Innovation in Behavioral Marketing

The Consumer Purchasing

Funnel

Geo Targeting

Behavioral or Audience Targeting

Search Retargeting

Search

Site Retargeting

Demography, geography, and

content related websites

Users who showed intent on

interest related websites

Users who previously

searched your product

Users who are searching for

your product

Users who previously visited

your website.

Interest

based

Intent

based

Audience Targeting

Target travelers coming to your area with display ads.

Get traveler purchase and intent data.

Audience Targeting

How it works

Collect Data Create

Audience Segments

Targeted Ad Delivery

Analyze and Optimize

Performance

Search,

purchase and

check-in data is

collected and

curated from

travel partners.

Custom

audience

segments are

created and

refined based

on each hotels

needs.

Defined

audience

segments are

targeted across

the web.

Campaign is

continuously

optimized and

improved

through

machine

learning and

human insights

Customers looking for flights into

New York

33

Behavioral Marketing Companies

• Blue Kai

• Intent

• Sojern

• Adara

• Master Card / Visa/ Amex

Gateway Desktop/Mobile Booking

UI

Sabre Amadeus World-span

Galileo ADS

Traditional Hotel CRS

Channel Manager

SWITCH

OTA World

Customers

Mobile UI Booking UI

Integrated Hotel Marketing CRS

Customers Behavioral Marketing Meta Search

Customers Customers

DEMAND

Booking UI

36

Focus areas to keep up with innovation

• Mobile

• Meta Search

• Customer Facing Web 3.0 User

Interfaces

• Behavioral Marketing

Thank You!