Deconstructing Distribution - It’s All About the Customer
Presentation by Robert Cole of RockCheetah at Leading Hotels of the World Global Sales, Marketing & Distribution Conference held May 15, 2011 at Kameha Grand Hotel, Bonn Germany.
& 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:
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 May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 6 Image: Curtis Gregory Perry (Flickr) | Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 7 Source: Forrester Research - Selling To US Online Affluent Travelers Poses A First-Class Challenge To Travel eBusiness (January 2011)
• Interactive Conversations Can Get Complicated • True Customer Engagement Doesn’t Scale Well May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 8 Image: kagey_b (Flickr)
Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 11 Pre-stay Arrival On- property In- destination Departure Post-stay
/ 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) May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 13 Image: Jason Mcdermott (Flickr)
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 May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 14 Sources: Forrester Research | Google | Ipsos/OTX 2010/2011
Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 17 Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 18 Image: Stephen Bowler (Flickr) | Source: Forrester Research “The Splinternet” (January 2010)
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 May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 19 Image: Christopher Sessums (Flickr)
Google Android Voice Actions • Near Field Communications – Interaction / Authorization / Payment • Integrated Travel Experience – Apple iTravel • Traditional Channels – Travel Agencies / GDS / Telephone May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 20 Image: Iris Shreve Garrott (Flickr)
Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 22 – 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 Unique Sound Pattern • Integrates Distribution / Engagement / Access Mobile Phone Key
Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 33 • 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
& 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 May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 34 Image: Sergey Galyonkin (Flickr)
• 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 May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 35 Image: Toni Blay (Flickr)
– 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? May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 36 Image: The U.S. Army (Flickr)
Comments? Robert Cole mail: [email protected] phone: +1.262.309.9560 skype: robertkcole twitter: @robertkcole web: rockcheetah.com/blog/ May 15, 2011 – Bonn, Germany Leading Hotels of the World • Distribution Robert Cole | RockCheetah - Page 37
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