Pricing in a post parity World | BTO 2015 | Sergio Farinelli | Alex Barros

Pricing in a post parity World

Alex Barros -‐ Due.o Research Sergio Farinelli -‐ Simple Booking

Due5o Research Alex Barros

VP Sales EMEA

Simple Booking Sergio Farinelli President / CTO

Parity performance in Europe (August 2015)

3 Star Hotels

Source


4 Star Hotels

Source


5 Star Hotels

Source

+ 2 MLN Real Live Query

1.6 MLN Users

+ 500 Hotels Monitored (in Italy)

5 Major OTA’s monitored

Parity analyzed by single user query and not by hotel

Query conducted within 30 days (november 2015)

Parity performance in Italy

OUR RESEARCH

Cheapest Channel Aggregated Search Data

ITALY - MAIN ART CITIES

3-4-5 STAR HOTELS

Source: Simple Booking, internal data, 30 Nov. 2015

Parity performance in Italy (November 2015)

Cheapest Channel Aggregated Search Data

ITALY – ALL DESTINATIONS

ALL PROPERTY TYPES




Direct cheaper

Iin parity

OTA cheaper

28,3%

34,4%

37,3%

44,6%

15,7%

39,8%

66,5%

13,4%

20,1%

53,9%

22,1%

24,0%

75,6%

12,2%

12,2%

Data by CITY Source: Simple Booking, internal data, 30 Nov. 2015

Data by USER COUNTRY


Direct cheaper

Iin parity

OTA cheaper

51,7%

31,0%

17,3%

49,3%

24,4%

26,4%

57,2%

28,1%

14,7%

57,0%

12,5%

30,5% 14,4%

15,0%

59,1%

18,0%

22,9%

41,1%

22,8%

36,1%

67,0%

15,7%

17,3%

38,4%

25,1%

36,5%

46,7%

25,3%

28,1%

70,6%


Data by CURRENCY


Direct cheaper

Iin parity

OTA cheaper

50,6%

31,9%

17,5%

46,8%

12,9%

40,4%

47,7%

12,6%

39,7%

74,1%

6,3%

19,6%

22,1%

64,3%

13,6%

31,5%

67,9%

36,0%

64,0%

46,1%

52,8%

48,8%

51,6%

53,8%

44,6%



Direct cheaper

Iin parity

OTA cheaper

50,0%

29,8%

20,2%

50,5%

29,3%

20,1%

50,8%

27,1%

22,1%

53,5%

24,2%

22,4%

21,9%

22,5%

59,7%

21,7%

18,6%

64,1%

21,7%

14,2%

62,0%

21,2%

16,8%

62,7%

21,9%

15,4%

55,6%

30

Data by LENGHT OF STAY Source: Simple Booking, internal data, 30 Nov. 2015

Data by NUMBER OF GUESTS


Direct cheaper

Iin parity

OTA cheaper

44,5%

36,1%

19,3%

51,7%

30,5%

17,8%

68,5%

15,3%

16,2%

83,4%

9,5%

7,1% 4,9% 4,8%

93,4%

5,0%

98,7% 99,6% 98,1%

90,3% 100%


54,6%

30,4%

15,0%

55,3%

21,7%

23,0%

Data by DEVICE TYPE

Direct cheaper

Iin parity

OTA cheaper



Common reasons for out of parity Why oQen OTA are cheaper than official websites? • Mixed Rates • Currency Exchange • Offers on OTA (allowed by hotels) not replicated on Direct Channel • Wholesalers / Bed Banks reselling to 3rd parfes • Discount on margins by OTA (on net rates) • Geolocated Promofons • Reserved prices for registerd users on OTA

How to mantain rate integrity Problem Solu+on

OTA Mixed Rates Enable them on your Booking Engine *

Different Currency Exchange rates Rate Match Technology

Promofons on OTA (allowed by hotels) not replicated on Direct Channel Replicate any offer/promofon on direct channel *

Wholesalers / Bed Banks reselling to unknown 3rd parfes

Review or cancel contracts *

Discount on margins by OTA on net rates Don’t give OTA net rates when possible*

Geolocated promofons by OTA Replicate on your booking engine *

Offers for Registerd OTA users only Do not agree to this kind of offers

*All this problems can be automafcally resolved by Rate Match Technology

Take away boast direct reservaVons using the right strategy • Always mantain a rate integrity approach • Review your distribufon contracts and renegofate when necessary • Discounfng too much can hurt your revenue and don’t make sense •  Target your promofon by LOS, Guest Country, Returning Guests, Booking Window, Channel, Device • Offer (real) benefits for direct reservafons and display them during the booking process • Choose the right technology partner J

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Pricing in a post parity World | BTO 2015 | Sergio Farinelli | Alex Barros