Leading Hotels of the World - Deconstructing Distribution

1. Leading Hotels of the WorldSales, Marketing & Distribution ConferenceDeconstructing DistributionIts All About the Customer
Robert Cole | RockCheetah
Kameha Grand Bonn | May 15, 2011
Image: Brave Heart (Flickr)

2. Deconstructing Distribution
The Customer
Affluent Travelers
Personalization & Customization
Multiple Stages & Touchpoints
The Channels
The Splinternet
SoLoMo
Discounts
The Future
New User Experiences
One Size Does Not Fit All
May 15, 2011 Bonn, Germany
Leading Hotels of the World Distribution
Robert Cole | RockCheetah - Page 2
Image Credit:
3. Pitfall: SOS (Shiny Object Syndrome)
Image Credit:
Every New Idea is Not a Good Idea
4. Pitfall: Egocentric Customer Relationship
Image: i-love-cartoons.com
5. Pitfall: Customer Engagement Marriage
Image: Defence Images (Flickr)
6. The Customer: Affluent Travelers
6.44 million US Affluent Online Travelers
89% Take At Least 1 Leisure Trip per Year
62% Have Investible Assets of $1-$2.5 Million
95%+ College Graduates | 45% Post-Grads
Average Age 58 | 14 Years Above US Avg.
73% Manage Finances Online
45% Make Own Investment Decisions
30% Worse Off than One Year Ago
Image: Curtis Gregory Perry (Flickr) | Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
7. Affluent Travelers: Value is King
Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
8. Personalization & Customization
Guests Are Not Frequent Guest Numbers
Interactive Conversations Can Get Complicated
True Customer Engagement Doesnt Scale Well
Image:kagey_b (Flickr)
9. Guests Have Multiple Personas
10. Multiple Travel Phases (Seven)
11. Multiple Hotel Touch Points (Six)
12. Channels: A Small Sampling
Image: Michael Coghlan (Flickr) | Source: VFM Leonardo
13. SoLoMo Distribution Gets Tricky
Social
Personal Likes / Group Likes / Similar Likes
Cannot Fully Control Message in the Wild
Local
Proximity Based Offers
Context-Sensitive Offers
Mobile
Variations Form Factor / OS / Carrier
Mobile Web (HTL5) v. Native Application (App)
Image: Jason Mcdermott(Flickr)
14. SoLoMo Travel Factoids
Leisure Travel Search
Average is 22 Sites Over 10 Sessions
Mobile
19% Hotel Queries From Mobile Devices
IHG Europe Adding Click to Call +91% Revenue
Local
70% Mobile - 1 Person, 1 Night, Same Day
Social
80% of Travelers Participate in Social Media
49% Book Based on Others Experiences/Reviews
Sources: Forrester Research | Google | Ipsos/OTX 2010/2011
15. Social Media: Cynical Perspective
16. Social Media Its All About Trust
Source: The Nielsen Company April 2009
17. Splinternet Walled Gardens
Image: Stephen Bowler (Flickr) | Source: Forrester Research The Splinternet (January 2010)
18. Splinternet Advertising Impact
Image: Stephen Bowler (Flickr) | Source: Forrester Research The Splinternet (January 2010)
19. Discounting Considerations
Do Discounts Translate to Consumer Value?
Does Channel Absorb Discount as Profit?
Group Buying
Have never seen a profitable Groupon deal for a travel site H. Harteveldt, Forrester Research
Flash Sales
How Exclusive is the Club? Qualified User Base?
New Models - Micro Auctions
Off & Away Is it a Game, a Con or New Model?
Packaging
Protects Retail Pricing; Requires Strong Rules Control
Image: Christopher Sessums(Flickr)
20. The Future New User Experiences
Voice Commands
Google Android Voice Actions
Near Field Communications
Interaction / Authorization / Payment
Integrated Travel Experience
Apple iTravel
Traditional Channels
Travel Agencies / GDS / Telephone
Image: Iris Shreve Garrott(Flickr)
21. Future Voice Commands
22. Future Near Field Communications
Integrates Distribution / Engagement / Access
Unique Sound Pattern
Mobile Phone Key
Openways (Example)
Pre-Arrival Contact
Engagement for Stay
Supports All Cell Phones
Uses Existing Locks
Cards Keys Still Work
More Secure than Cards
Code Change 12 Secs
Future Support for NFC
23. Apple iTravel End to End Control
24. Apple iTravel Traveler Identity
25. Apple iTravel Airport Experience
26. Apple iTravel Hotel Experience
27. Apple iTravel Cruise Experience
28. Apple iTravel Conference Experience
29. Apple iTravel Event Experience
30. Apple iTravel - Payment
31. Apple iTravel - Merchandising
32. Apple iTravel Passive App Delivery
33. Future - Traditional Channels
Traditional Travel Agents - Specialization
Origin (Local) v. Destination (Experience)
Type of Travel Luxury / Destination Weddings
Online Travel Agencies
Rate Parity / Last Room Availability / Max. Discount
Order Takers or Order Makers?
Global Distribution Systems
Critical Role for Air Vertical & Corporate Segment
Air Model Change Cost Shift to Intermediary
Telephone
High Touch / Customer Care
Mobile Click to Call
34. The New Customer
Seeks Value
Is More Sophisticated & Empowered
Desires Unique Experiences
Demands the Lowest Available Price
Has Questionable Brand Loyalty
Has Situational, Itinerary-centric Needs
Defines the Degree of Engagement
Demands Seamless Cross-Channel Access
Image: Sergey Galyonkin (Flickr)
35. New Distribution Challenges
Must Have Presence in Favored Channels
Consistent Cross-Channel Brand Message
Consistent Online & Offline Experience
Value is a Highly Personal Assessment
Time, Convenience, Simplicity, Quality, Cost
Efficiently Managing App & Channel Silos
Competition May Behave Irrationally
Distribution Costs May Shift to Subscribers
Image: Toni Blay (Flickr)
36. Navigating Distribution Obstacles
Three Core Distribution Goals
Easier
Faster
Cheaper
To Be Successful, Luxury Hoteliers Must Control
Retail Pricing Structure
Access to Visual & Descriptive Content
Distribution Rules Access to Rates & Inventory
Only Point of Focus - The Guest
Why is Guest Using that Channel/Site/Tool?
Is Guest Able to Accomplish that Goal?
Why Not?
Image: The U.S. Army (Flickr)
37. Its All About The Customer
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Robert Cole
mail: [email protected]
phone: +1.262.309.9560
skype: robertkcole
twitter: @robertkcole
web: rockcheetah.com/blog/