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This 60-minute webinar, produced by Tnooz and Travelport, tackles issues around searching and booking accommodation, especially as new channels emerge and existing ones evolve, all from three unique perspectives:* the needs of the consumer.* the challenges facing the intermediary.* the view of the technology provider.
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Tackling the hotel shopping dilemma
Consumer, agency and distribution perspectives
November 29, 2011
Kevin May, Tnooz editor / moderator
Poll no. 1
Nina Willdorf Editor-at-Large, Budget Travel
Stage 1: Ideas and Inspiration
52% 48%
Where does the original idea come from?
Family & Friends
Traditional Media
49% 48%
46%
43%
Categories of Traditional Media
Consumer Booking Behavior: An Overview
SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
Stage 2: Advice and Insight
54% 44%
38% 38% 37%
Once the seed is planted, where do consumers turn next?
Consumer Booking Behavior: An Overview
SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
Stage 3: Pricing and Comparing
OTAs Supplier Websites
56%
51%
Now that it’s time to compare pricing, where to?
Consumer Booking Behavior: An Overview
SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
Stage 4: Purchasing
OTAs Supplier Websites
Multi-brand Websites
Destination Websites
41% 38%
18% 17%
Who gets those coveted booking dollars?
Consumer Booking Behavior: An Overview
SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
• The Rise of the Smart Shopper
• Over 77% attribute a new sense of travel savvy to the current
economic situation. But still, the number of choices overwhelms.
SOURCE: Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
CONSUMER PAIN POINT #1 “There are far too many choices when it
comes time to look for information.”
CONSUMER PAIN POINT #2 “I don’t always trust the information I
find online.”
Reduced Shopping Time
Increased Online Complexity
2008: 23% agreed with statement “if I could find a good offline
travel agent to work with I would.
2010: 28% agreed with statement.
SOURCE: Forrester Research: Technographics Travel Online Study
• Time Spend Is Ballooning—thanks to more content
CONSUMER PAIN POINT #3 “It takes hours to find good information and
recommendations.”
SOURCE: Hotelmarketing.com, July 2011
June '05 June '07 July '09 July '11
1,000,000 10,000,000
25,000,000
50,000,000
No. of Published Reviews and Opinions on TripAdvisor, the #1 source for user-generated reviews
• Explosion of Fees. Hotels are likely to pocket a record US$1.8 billion—
up 80% from 2001.
• Increased Need for Comparison Shopping.
SOURCES: Bjorn Hansen, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University; Ypartnership/Harrison Group’s 2011 Portrait of the American Traveler
CONSUMER PAIN POINT #4 “I can’t effectively comparison shop because
there’s no transparency when it comes to
fees/pricing structure.”
What can companies/agents do to help consumers?
Follow the following two steps:
#1: Facilitate Easy Comparison Shopping: Create the ability to compare
hotels on a number of levels from a single site
#2: Add Lifestyle Issues Into Search: Create the ability to search by
budget, best times to travel, purpose of travel
HAPPY HOTEL HUNTING
Hopes and Dreams
Poll no. 2
Challenges Facing Travel Agency and TMC
Don Buynack President, OptionsTravel
Challenges Facing Travel Agency and TMC
1) Analyzing client needs
2) Negotiating corporate rates with specific hotels
3) Hotels load agreed upon corporate rate
4) Travel Agency validates the rate is loaded and correct
5) Rate is then loaded in GDS BAR, online booking tools and master hotel database
6) Rate is now available to travelers
Rate Loading Process …
1) Corporate clients that need direct bill
2) Hotels are unfamiliar with loading rates in GDS
3) Benchmarking/Analytics for savings
4) Time dilemma
5) Lack of hotel communication
6) Renewing/Renegotiating annual hotel rates
7) Hotels wanting to deal directly with client
Issues …
Challenges Facing Travel Agency and TMC
Donald J. Buynack
President
Options Travel
800-544-8785
Challenges Facing Travel Agency and TMC
Poll no. 3
Produced by Market Strategy and Pricing, CMO
- a “distribution” perspective
Niklas Andréen Group Vice President Global Hospitality and Partner Marketing
The Hotel Shopping Dilemma
21
Consumer Supplier
Corporate Agency
OTA
Hotel Direct (IBE, Phone,
Fax)
Brand / Repco (Call Centre,
IBE)
Leisure Agency
Tour Operator (Phone, Retail,
IBE)
PMS
Sales & Conference
Revenue & Channel
Management
Social Networks
Affiliate / Review Sites
Search / Metasearch
Wholesalers
GDS
Switch
Repco
Rich Media / Content
Aggregators
CRS
Hotel Distribution
Mobile
Tnooz 29 November 2011
Source: Euromonitor, May 2011. Refers to 52 selected countries
The hotel industry
Tnooz 29 November 2011 22
Hotel booking channels - by Agent type
23
57%
36%
13%
36%
18%
32%
52%
32%
3% 6%
5% 5%
19% 19%
12%
18%
4% 8% 18%
9%
0%
100%
Corporate Mixed Leisure Total
Other
Direct with Hotel (phone, fax, email, web) Consumer OTA (e.g. Expedia)
Hotel Wholesaler (e.g. GTA)
GDS
Source: Travelport Hotel Subscriber Survey
Tnooz 29 November 2011
Challenge 1 – Fragmentation
24 Tnooz 29 November 2011
What is important?
• Speed
• Accuracy
• Availability
• Choice
• Lowest Fare
• Relevance (fuzzy search)
• Simplicity (semantic search)
• Inspiration
Challenge 2 – How do customers search?
25 Tnooz 29 November 2011
Room only?
Breakfast ?
Wifi?
Transfer?
Spa?
Printing?
Lounge?
Sightseeing?
Preferred check-in?
Gym access?
Customers want comparability
Suppliers want differentiation
Challenge 3 – What are customers really wanting to buy?
26 Source: Travelport Industry Analysis
Tnooz 29 November 2011
Challenge 4 – How do we TRUST?
27
• More than just privacy and security
• “Look and feel” affects trust
• Process affects trust
• Trust is a process
• Individuals and products differ in trust
• Different parts of the booking chain defines trust differently
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The GDS role in solving the Hotel Shopping Dilemma
Brings travel agents content from
multiple sources through a
powerful, one-stop, shopping and
booking portal
• Single log-in/participation
• Multi Source content
• Comparison shopping
• One purchase process
• Guaranteed commission
Tnooz 29 November 2011
The GDS role in solving the Hotel Shopping Dilemma
29 Tnooz 29 November 2011
30
Meta B
oo
king
Search/ Metaseach
Guides
Social Networks
Reviews
Payments
Reliability
Sup
plie
rs
Suppliers keep control of the transaction
Customer have one trusted partner
No Back Office
ROI Tracking
Comparability and trust
No payment/security related issues
All transactions visible
Multi-channel Booking
Control
Metabook
The GDS role in solving the Hotel Shopping Dilemma
Tnooz 29 November 2011
In summary our joint challenge
31
With such complexity and fragmentation of suppliers and
their rates...
To provide our respective customers with the most
appropriate prices based on their search criteria, taking into
account their preferences. And all from what they perceive
as a trustworthy source.
Tnooz 29 November 2011
32
Copyright
Copyright
©2011 Travelport Inc. All rights reserved. All Travelport logos and marks as well as all other Travelport proprietary
materials depicted herein are the property of Travelport Inc. and/or its affiliates.
Notes About Examples
All screen examples and other inserts associated with system output are provided for illustration purposes only. They are
provided as illustrative examples of system functionality and are not meant to represent actual screen responses, rates,
etc.
Tnooz 29 November 2011
Q & A
Thank You!
Webinar replay will be available on www.tnooz.com
Please send questions and comments to Kevin May, [email protected]
