Online Distribution. Navigating the changing distribution landscape in 2018
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1 Online Distribution Navigating the changing distribution landscape in 2018
2 Agenda The year of reckoning 1. A big and growing global market - Where do we stand in 2018? 2. How has the distribution changed to attract global guests? 3. The changing distribution landscape fuelled by changing booking habits, and new players 4. The changing distribution landscape boosted by new technologies 5. Challenges and opportunities for hotels globally 6. The need of the right technology to price right and sell on the right channel 7. Key takeaways
3 A big and growing global market Where do we stand in 2018?
4 Online travel continues to grow Online travel market is forecasted for steady growth up to 2020 Statista, Global digital travel sales growth
5 Online travel continues to grow Global bookings Global Bookings 2016 $513 bill 2017 $567 bill Phocuswright 2017
6 Online travel continues to grow Distribution of digital travel sales worldwide from 2014 to 2020, by region Statista, Global digital travel sales growth
7 Strong outbound travel forecasted into 2018 Online travel bookings 2016 vs Phocuswright Europe, WIT Europe: 2018 Better Travel in Asia, 2018
8 Online travel fuelled by strong outbound Leisure Travel Jan -Aug 2017 Global Europe Asia / Pacific North America Latin America Total Outbound Trips +6% +6% +5% +7.5% +5% Holiday Trips +6% +6% +9% +9% +6% - City Trips +16% +20% +9% +15% +9% - Sun & Beach Holidays +9% +7% +14% +9% -2% 2018 forecast (total outbound) +5% +4% +6% +4% +6% ITB Worlds Travel Trends Report, 2017/2018
9 Overnight Int. Tourist Arrivals Growth (YOY) Nordics region continues to grow in popularity WTTC, 2017
10 How has the distribution changed to attract global guests?
11 History of distribution The evolution of distribution Walk In Letter Phone Airline CSR 6 GDS Consolidation 7 OTAs 8 9 New Connectivity & Social Media Emerging Channels & Direct Connect Consolidation
12 Important to understand guests and travelers behavior Travelers are more informed than ever and can access multiple sources of information to make their booking decisions Skift, The 2018 Digital Transformation Report
13 Important to invest in technology to digitalize the experience The growing complexity of travel companies numerous touchpoints with consumers is encouraging many hoteliers to consider how they can simplify and streamline their systems to create more seamless customer experiences. Skift, The 2018 Digital Transformation Report
14 Travel companies are owning the guest relationship The digitalisation of the guest experience created by the travel companies have changed the face of distribution forever
15 Important to collect and understand data The travel companies know big data
16 Important to collect and understand data Accommodation providers own the data that makes the difference Properties own the inventory, but there s another crucial asset you hold that OTAs can t match: customer spending data, including and especially folio data.
17 The changing distribution landscape fuelled by changing booking habits and new players
18 Alternative Accommodation is evolving stay behavior Now 23% of total rentals are urban stays Bleisure segment growth Hotels are integrating travelers favourite aspects of rentals: - Hyatt House - Marriott s Moxy - Radisson Red AccorHotels acquired onefinestay Airbnb launching Niido powered by Airbnb (a branded 300-unit rental complex in Miami) Phocuswright, 2017
19 Airbnb and HomeAway are adding new offerings at record speed Almost 1.7million properties now instant bookable between Airbnb and HomeAway
20 Priceline (with booking.com) is quickly catching up We recognize we need to go out and get more properties, including the classical villa and home on the beach that customers want. We have a large number of alternative accommodations around the world. But there are areas where I look, I know we are not complete at all, which is why we re spending additional money to get that additional inventory in it. - Glenn Fogel (CEO Bookings holding)
21 What does this mean for the hotel inventory on the OTAs? Hotels will compete with this alternative accommodations, how will you do this? Which days of the weeks? Which room types? If Booking.com and Expedia start adding more and more Vacation Rentals to the OTA site what will happen with key placement on page 1? How will your hotel be represented on the OTA? And at what cost?
22 What is Airbnb doing to get more listings? Airbnb s new hotel campaign Airbnb s new campaign targeting hoteliers, and promising: New ways to help your rooms stand out Lower fees No long-term contracts Guests from around the world New tools coming soon Skift, Airbnb makes its battle against booking and expedia official with new hotel campaign, 2018
23 And what about Google Hotel Finder? Google making it harder to access the lowest rates? Skift, Has Google made the lowest hotel rates harder to find?, 2018
24 Closed user group rates published on metasearch egines Skift, 2017
25 Important to collect and understand data The travel companies know big data
26 AND WHAT IF THERE IS ANOTHER PLAYER STILL ON THE SIDELINE?
27 New player on the horizon? Amazon may get serious about travel? - Brian Nowak Amazon could disrupt online travel industry next, Morgan Stanley Analyst Already existing advantages of Amazon entering the travel business: Scale Customer loyalty Lower advertisement spend per transaction, thanks to the company s ability to attract repeat traffic to its platform Netaffinity, Can Airbnb compete with the OTAs?, 2018
28 The changing distribution landscape boosted by new technologies
29 Hotel technology in 2018 The evolution of distribution - Adapting to change Artificial Intelligence Voice technology Blockchain IoT Automation
30 Distribution Opportunities Skift, The 2018 Digital Transformation Report
31 Artificial Intelligence (AI) What is it? How can it help hoteliers? What does AI do? Actively learns from website interaction between the hotel and website visitor Learn how to optimise sales conversations > improve booking conversion Understand the ideal relationship between the hotel and the hotel website visitor Can optimise its own sales tactics Learns from every single interaction and uses that to improve its performance the next time by: Machine learning, learn across a network (worldwide network of hotels), effectively converting leads into direct bookings and monetising it. TTE, The impact of AI on improving hotel booking rates, 2018
32 Blockchain Inspiring technical community and innovative data-base structure What makes Blockchain unique? Transparency and immutability Cryptographically secure Decentralised Data integrity Efficiency and cost reduction How can you use it? Make loyalty programs more user-friendly Simplifying settlements in the travel value chain Improving identity management TUI Group: What is a blockchain?, 2018
33 Voice technology Voice has the potential to greatly impact interaction between humans and computers Daren Gill, director, Amazon Alexa What makes voice technology unique? Accuracy Productivity Scalability Rapid adoption of automation Management visibility Multilingual capabilities Solution flexibility How can you use it? In the hospitality world, voice interaction will give hoteliers, at all levels, instant access to a myriad of performance data such as occupancy, room rates, competitor rates, forecasts, revenue details and more...
34 How can hotels leapfrog the distribution challenge and take back control. Artificial Intelligence IoT Blockchain understanding
35 Challenges and opportunities for hotels globally
36 Challenges and opportunities for hotels globally OTA / Metasearch & Commissions Monitor emerging economies OTAs Billboard effect Local vs global reach Assisted conversions Direct Booking Strategies Loyalty programs Member rates Digitalisation of Hotel Distribution Seamless integrations Understanding the latest trends Data Management Important to collect and understand data
37 The need of the right technology to price right and sell on the right channel
38 That makes OTA Insight unique Our core aim is to provide our customers with simple-to-understand, real-time actionable data Data quality Advanced anomaly detection and automated integrity control ensure the industry's most accurate, complete and reliable data. Actionable insights Our easy-to-understand dashboard with real-time data and instant drilldown capabilities enables our customers to spot and leverage opportunities. Unparalleled customer care Our 24/7 support ensures peace of mind across all time zones.
39 How do I price right? Make smarter pricing decisions Rate Insight is our user-friendly dashboard with realtime data allows you to focus on making decisions instead of manually collecting data Rates Events Parity Ranking Market Demand Benchmarking (STR, Benchmarking Alliance, Fairmas, MKG/Olakala)
40 How do I price right? An actionable and flexible interface for users who manage multiple properties Rate Insight for multi-properties provides macro-level analytics on pricing trends and anomalies View pricing and event analytics at regional / city / country / cluster level - whilst being able to drill down to single property view This simplifies reporting for cluster and regional revenue managers whilst providing better insights into performance
41 How do I price right? Keep control of your distribution cost Parity Insight helps you manage and track your parity to better control your distribution and reduce your reliance on OTA business Parity Insight helps you achieve this by visualising all your parity discrepancies across the web, both with a single hotel view solution and a consolidated dashboard
42 How do I sell on the right channel? Optimise your channel mix Make smarter revenue management decisions through Revenue Insight s simple-to-use and interactive dashboard, helping you track and analyse key factors such as Room Nights, ADR and Revenue Visualise your main business drivers by interacting with market segments, channels, source markets, groups and corporate client data Simpler, better and faster hotel level reporting with dynamic analytics on your Revenue Management KPIs
43 Over 20,000 customers globally chose us With solutions for single and multiple properties Det går inte att visa bilde VIEW CUSTOMER STORIES >
44 Key takeaways Inbound and outbound markets keep changing Guests globally are more informed than ever The digitalisation of the guest requires new investments New travel companies are entering the market New technology trends are emerging Hotels have opportunities to rise above with the right partner Properties own the inventory, but there s another crucial asset you hold that OTAs can t match: customer spending data, including and especially folio data
45 Thank you for your time! Visit us on: Contact me at:
22 JULY 2016, SINGAPORE FASTBOOKING has signed an exclusive partnership for Asia to distribute technology platform for UK-based company OTA Insight.
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