Course 6: Distribution

Transcription

1 Course 6: Distribution

2 Demystifying Distribution Distribution History Timeline

3 Demystifying Distribution Distribution History Timeline

4 Demystifying Distribution History of Distribution The term distribution means the action of sharing something across a group or an area, and the movement of goods and services. Distribution has many meanings in various industries, from farming to finance to accommodation providers. Your Distribution Strategy determines when and through which channels to sell your accommodation (rooms, suites, cabins, penthouses, bungalows, villas, apartments, etcetera!) based on your analysis of the costs and Distribution benefits of each of the channels. History Timeline

5 Demystifying Distribution History of Distribution By using the right channel of distribution and shifting business to more cost-efficient and/or highest producing channels, revenue managers can maximise their profitability. There is wide, and always growing, range of distribution channels through which to sell your rooms. The primary ones which are considered are global distributions systems (GDS), wholesalers, tour operators, online travel agents (OTAs), and tourism partners. Your hotel's own website as well as your Reservations and Sales Distribution team, and even walk-ins are important channels of distribution. History Timeline Why is it a good strategy to distribute room inventory across multiple channels?

6 Hotels are being sold on multiple platforms, and are just one piece of the guest s complex travel booking experience.

7 Amount of people travelling internationally has doubled since It is easier and less expensive than ever for humans to move across the planet. Budget airlines, accommodation options, methods to book In 1950, a mere 25 million people had travelled internationally In 2017 international tourists reached 1.2 billion Are you getting your fare share of the 1.2 billion guests?

8 Distribution opportunities for independent properties OTAs % commission Metasearch CPC / CPA GDS Retail / Merchant / Opaque model

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12 Which ones should you use and why?

13 OTAs How it works Fees Consumer Your Property

14 How to be strategic with OTAs Revenue Look at OTAs from emerging markets where your property does not yet have a presence Attract, reach, and convert using The Billboard Effect Balance global with local Cost Reach

15 Are there locations and markets from which you d like more business? Do you notice a pattern with your ideal guests being from a certain location? How can you make sure you increase your reach in that region? Or maybe you ve seen that travellers from a certain location are on the rise. China, of course one of the most active markets in travel, is showing high volumes from these OTA channel partners for you to consider: Ctrip elong Zanadu

16 Are there certain age groups you would like to target? Millennial travellers are a great market to invest in, because they are set to outnumber other generations by 2030 (Skift). Whether they re travelling for business, leisure, or bleisure purposes, millennials are known to be tech-savvy and have high expectations. To cater to them, you need a mobile optimised booking engine. Most OTAs support this and ensure your website s booking engine can also be via mobile.

17 When you know who you want to target, the rest is easy! Before you sign an agreement: make sure that you ask the OTA which markets they have reach into, and whether they have a lot of small properties listed on their site. The more small properties they have, the higher the chances of actually being booked through them. Points to consider when selecting Distribution partners: Is it a good marketing alignment with your hotel(s) brand? How easy it is to work with the partner? Production they deliver to your market / competitor set? List of all source countries / feeder markets from which their customer base is derived? Cost of sales through the partner?

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20 Metasearch How it works Your Property Consumer

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24 GDS How it works (Retail Model) Your Property Consumer GDS

25 GDS How it works (Merchant Model) Your Property Consumer GDS

26 How to be strategic with GDSs Understand that GDSs have been around for a long time and for good reason But due to high associated costs, hoteliers should be strategic with GDSs

27 How to be strategic with GDSs Use GDSs to tap into the business travel

28 How to be strategic with GDSs Use GDSs when you have a lot of inventory

29 GDS Owning the OTA relationship Fees Your Property Consumer Channel Manager

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35 You need the right technology to manage it all 52 % 71 % OTAs will continue to grow market share in the short term - representing 52% of online gross bookings by % of independent hotels marketing spend goes to online channels Distribution cost as well as lack of control are the most frequently cited challenges with OTAs Reference: Phocuswright research co-sponsored by SiteMinder.

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37 You need the right technology to manage it all Use a channel manager to Get booked faster online Remove manual entry with complete real-time automation Have all your rooms online at once to increase revenue Make more powerful and insightful decisions

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45 But, what about direct bookings? 72% of independent properties believe their direct website to be their most important channel But OTAs, metasearch, and GDS are all part of a holistic distribution strategy don t put all your eggs in one basket!

46 Enhance your most profitable channel Look for an internet booking engine that can help you: Reach travellers on any device Keep guests on your website for longer Provide a clear path to booking Two-step booking process, plus seamless connection to marketing channels

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48 Streamline your distribution and operational goals More Revenue More Profit Less Time Broadened distribution Direct bookings Fewer systems and logins to manage

49 The momentum for change becomes unstoppable. Gladwell Tipping point: Let your success online generate itself.

50 Own your customer. Be a curious student of revenue and distribution management. Have a long memory.

51 Thank-you! Checkout our Revenue Ready Online Course at:

52 LEARN MORE: Download a free guide by Siteminder: How to diversify your hotel s distribution strategy

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