Scott Pusillo Matt Guillot Adam Anderson Bernard Ellis Moderator HSMAI Revenue Management Advisory Board VP, Market Strategy Viceroy Hotel Group
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2 Scott Pusillo Matt Guillot Adam Anderson Bernard Ellis Moderator HSMAI Revenue Management Advisory Board VP, Market Strategy Viceroy Hotel Group Speaker Manager of Data Analytics Viceroy Hotel Group Speaker Managing Director of Industry Relations Expedia Speaker VP, Industry Strategy Infor Hospitality 2
3 Matt Guillot Viceroy Hotel Group 3
4 4 satisfaction
5 US Hotel Industry Supply/Demand Growth (%) STR Analytics 2015 Host Almanac 5
6 6 STR Analytics 2015 Host Almanac
7 5.35M 5.69M 6.47M 181K #manbun #nomnom #wanderlust #beyoncé wanderlust noun [won-der-luhst] a strong, innate desire to rove or travel about. 7
8 Reported Spending on Business Flights (%) Boston Consulting Group
9 Free shipping on returns Amazon Prime Same Day Delivery 9
10 10
11 Adam Anderson Expedia 11
12 Low Cancellation Channels Non-Refundable bookings Packages Opaque Merchant Low Cancel Channels Higher Cancel Channels Setting Strategy
13 1 Vacation Packages Air Cross Sell 3 Mobile 2 Branded Deals ~30% growth in global package demand in 2014 Low Cancel Channels Higher Cancel Channels Setting Strategy
14 Opaque Channels Expedia unpublished rate Travelocity top secret deals Wotif mystery hotels Low Cancel Channels Higher Cancel Channels Setting Strategy
15 Higher Cancellation Channel Agency Low Cancel Channels Higher Cancel Channels Setting Strategy
16 Low Cancel Channels Higher Cancel Channels Setting Strategy Pay Now Pay Later CUSTOMER CHOICE
17 Pay in full now $119 Expedia Traveler Preference 78% nightly price BRAZIL 72% Deposit per night now +$0 per night HUNGARY at the hotel We ll process your payment in your local currency Cancel for free right up until the hotel s cancellation window Pay at hotel later $119 Pay the hotel in their currency 71% 70% S. KOREA VENEZUELA Cancel for free right up until the hotel s cancellation window Collect and redeem Welcome Rewards nights You can collect Welcome Rewards nights 61% You can pay with your Hotels.com USA gift card GREECE 66% Pay in full now Pay only the deposit Low Cancel Channels Higher Cancel Channels Setting Strategy
18 Strategies to Mitigate Cancellations
19 Set channel mix to lower cancellation channels Package Bundle Non-Refundable Opaque Low Cancel Channels Higher Cancel Channels Setting Strategy
20 Stay competitive to reduce risk Track Your Performance Create a Custom Competitive Set Low Cancel Channels Higher Cancel Channels Setting Strategy
21 Had some last minute cancellations? Go to mobile. 1 in 4 room nights booked on a mobile device are for same day stays Low Cancel Channels Higher Cancel Channels Setting Strategy
22 Key Takeaways
23 Thank You
24 Bernard Ellis Infor Hospitality 24
25 Five Cancellation & Rebooking Survival Tips 25
26 Be Glad If you have an automated RMS RMS that dynamically balance pickup models with historical models will pick up on any new cxl-rebook trend though it will be working much harder The final demand forecast shouldn t be affected Prices should get higher closer to the arrival date, as usual 26
27 Stay the Course Have a clear pricing strategy Shortened booking curves no longer allow enough time for course correction in pricing Last minute discounting will likely be too late to help move the needle Don t undercut your own brand.com 27
28 Don t Make It So Easy Experiment with tougher cancellation and deposit policies Disallow self-service cancellations from mobile devices instead enable click to call and have a live agent request reason for cancellation Let guilt prevail! 28
29 Weigh Down The Booking Sell enhanced experiences that must be associated with the original booking Provide certain guarantees to advance bookers only, e.g. early or remote check-in, late checkout, room type preference 29
30 Don t Over-Stigmatize Any optimal demand mix will include some last-minute demand 25% of mobile reservations are made same day, often just prior to arrival Less likely to be rebooks Should be embraced as *The New Walk In* 30
31 31
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